F45 Training

Item 7 details a hefty entry point: total initial investment spans $294,200 to $719,100, kicked off by a $60,000 franchise fee. Monthly obligations pile on with a 7% royalty (minimum $2,500), up to 2% brand/ad fund (minimum $200), a flat $2,500 marketing fee, and $500 service fee—potentially eating 10%+ of gross sales for many operators. The absence of Item 19 earnings disclosure is a red flag in fitness franchising, where average unit volumes often exceed $500K; buyers must dig into FDD contacts or third-party data for profitability clues, as opaque financials amplify risk in a market flooded with boutique gym rivals.

System metrics paint a mixed vitality picture: franchise locations jumped from 728 in 2022 to 789 in 2023 (+8%), with just 2 corporate-owned, and 109 new units forecasted. Yet 42 terminations and 13 non-renewals over the past year equate to roughly 7% churn, higher than average for mature fitness brands. Litigation clusters around state disclosure lapses, misleading financial claims, contract breaches, and franchisee disputes—echoing growing pains. For buyers eyeing $300K+ commitments, this growth momentum tempts, but scrutinize renewal rates and legal exposure to gauge if F45's functional training formula delivers enduring ROI.