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Orangetheory
Orangetheory Fitness franchises operate health and fitness studios that provide members with access to cardio and strength training equipment in a contemporary, orange-themed atmosphere under the ORANGETHEORY® trademarks. Franchisees follow a comprehensive system including specific studio designs, equipment specifications, operating procedures, training, and marketing techniques developed by the franchisor and affiliates. The business targets adults aged 18-60, though open to customers above age 13, in competitive fitness markets with a focus on group fitness experiences.
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Franchise Costs
8% royalty + 3% ad fund + $899/mo technology fee
Financial Performance
Item 19 Financial Performance
Data Based On: 1,189 franchised Orangetheory Fitness Studios open and operating for the Relevant Time Period.
* All revenue figures were extracted directly from the 'Section A Total Gross Sales' table on page 2. No profit, net income, or EBITDA figures were provided, with page 3 explicitly stating that the disclosed information does not reflect costs or expenses to calculate net income or profit.
Extracted Item 19 Section
Avg. Revenue: $802,145
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Unlock financial performance dataOrangetheory Franchise Analysis
Fitness franchises are multiplying, yet Orangetheory's network just contracted—signaling turbulence in a heart-pounding sector. Item 19 discloses revenue figures that outpace many gyms, but Item 20 reveals elevated transfers and a bankruptcy shadow. Can this orange powerhouse rebound to justify a seven-figure stake, or is the pulse fading?
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.
Analysis based on the 2026 Franchise Disclosure Document. All figures should be independently verified before making investment decisions.
How Orangetheory Compares
Key Insights
- Higher investment than 97% of Specialized Fitness franchises
- #2 largest franchise system in Specialized Fitness
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
Orangetheory Current | $765K – $1.1M | $60K | 8.0% | 1,209 |
| JAZZERCISE | $2K – $3K | $1K | 20.0% | 5,092 |
| F45 Training | $294K – $719K | $60K | 7.0% | 789 |
| Stretch Lab | $281K – $815K | $60K | 8.0% | 486 |
| BRITISH SWIM SCHOOL | $123K – $176K | $60K | 10.0% | 289 |
| THE LITTLE GYM | $420K – $723K | $60K | 8.0% | 255 |
Specialized Fitness Average 33 franchises | $312K – $662K | $51K | 7.5% | – |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 33 Specialized Fitness franchises by location count.
Locations & Growth
Outlet Growth Over Time
Total outlets at end of each year
Geographic Distribution (2025)
Outlets by state across the United States
+36 more states
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Unlock location growth dataFranchisee Contacts
904 franchisee contacts on file from official FDD filings.
904 Contacts Available
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Unlock contactsDue Diligence
Litigation (Item 3)
One arbitration dispute concerning alleged misrepresentations about territory demographics and suitability of a franchise location, which was settled by the franchisee transferring the studio and the franchisor reimbursing a portion of the costs and waiving transfer fees.
Bankruptcy (Item 4)
CEC Entertainment, Inc. (former employer of current CEO Thomas Leverton) filed Chapter 11 in June 2020 and was discharged in December 2020. Shift Technologies, Inc. (former employer of current CFO Oded Shein) filed Chapter 11 in October 2023.
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
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Unlock due diligence reportsFrequently Asked Questions
The total initial investment to open a Orangetheory franchise ranges from $764,577 to $1,104,920. This includes a franchise fee of $59,950. Ongoing royalty fees are 8.0% of gross sales.
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