Orangetheory

Item 7 pegs total investment at $764,577-$1,104,920, including a $59,950 franchise fee, driven by buildout and equipment for 2,000-3,000 sq ft studios. Ongoing fees hit 8% royalty plus 3% brand fund, a $899 monthly tech charge, and $149 for OTbeat wearables—equating to 11-12% of sales effectively. Item 19 shines with average gross revenue of $802,145 and median $750,643 for 2024, implying 15-20% EBITDA margins after fees if expenses align (typical for fitness at 60-70% of revenue). That's $120K-$160K potential owner profit, solid but vulnerable to membership churn in saturated markets.

Item 20 exposes contraction: 1,283 studios in 2024 to 1,209 in 2025 (-6%), with only 15 projected openings, 26 non-renewals, and a staggering 214 transfers—over 17% turnover hinting at resale pressure or dissatisfaction. Bankruptcy history and settled litigation over territory misrepresentations add caution; one case reimbursed $34,200 post-arbitration. For investors, revenues tempt but system shrinkage and high transfers scream risk—probe FDD deeply before committing.