Fitness Together Franchise Costs, Fees & FDD

Year Business Began: 1984

Franchising Since: 1996

Headquarters: Denver, Colorado

Estimated Number of Units: 95

Franchise Description: The franchisor is Fitness Together Franchise, LLC. The franchisor offers franchises for the operation of personal fitness training studios under the name “Fitness Together,” which provide individualized one-on-one and small group personal fitness training, a nutrition program and other related services and products. Franchisees will operate the studio according to the franchisor’s mandatory specifications, standards, operating procedures, and rules.
Training Overview: Before franchisees open their studio, they (or their operating partner), their designated manager, and their studio’s lead trainer (or if the lead trainer is a separate individual from the franchisee, the operating partner or the designated manager) must attend and satisfactorily complete the initial training program. The franchisor expects to provide the training program both virtually and at a certified franchisee training studio or another location that it designates, such as its support center in Colorado. The franchisor reserves the right to provide the training program, in whole or in part, virtually as well. Franchisees are responsible for providing a training program concerning the operation of their studio in accordance with the system standards for all employees other than the attendees of the training program. Franchisees (or their operating partner) and any applicable designated manager are required to attend any scheduled annual meeting of franchise owners. The franchisor may require franchisees (or their operating partner) to attend regional meetings for franchise owners. The franchisor may require franchisees (or their operating partner) and/or certain other managers and employees of their studio (including any applicable designated manager) to attend or otherwise complete various in-person or electronic training courses, trade shows, ongoing education or certification programs, franchisor-sponsored performance groups, and/or webinars at the times and locations designated.

Territory Granted: Franchisees will not receive an exclusive territory. However, if franchisees remain in compliance with the Franchise Agreement the franchisor will not own or operate or authorize any person or entity to own or operate, studios in the “protected area” identified in the Franchise Agreement during the term of the Franchise Agreement. If the location of the studio has not been identified at the time franchisees sign their Franchise Agreement, the protected area will be assigned to them at the time that the studio’s premises is determined. The franchisor will typically define the boundaries of a protected area as a circle with the studio at its center and a radius of 1.5 miles. But, in some cases (for instance in densely populated urban areas), the franchisor may define the boundaries of the protected area by political subdivisions, streets, ZIP codes, or other similar designations, and the protected area in that case may be the lesser of: (i) a circle with a 1.5-mile radius; or (ii) a circle with a radius reflecting a 50,000 person population density. The franchisor determines the boundaries of each protected area on a case-by-case basis based on various factors.

Obligations and Restrictions: If franchisees are signing the Franchise Agreement as a legal business entity, they must designate an individual with at least a 25% ownership and voting interest in the franchise to act as the “operating partner.” Franchisees are solely responsible for the management, direction and control of their studio. However, franchisees (or the operating partner if the franchisee is an entity) may elect not to supervise the studio on a full-time basis; provided that they appoint a manager with personal training experience (as demonstrated by a certification, license, or educational background) who has completed the then-current training program to work full-time at the studio. Franchisees must sell or offer for sale all products and services the franchisor requires using the method and manner of distribution the franchisor prescribes. Franchisees must offer and sell memberships as the franchisor requires. Subject to applicable law, the franchisor may periodically set a maximum or minimum price that franchisees may charge for products and services offered by the studio.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. One additional term of 10 years is available, if requirements are met.

Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease or other obligation. The franchisor offers a 20% discount on the initial franchise fee (or the development fee for an area development agreement) for veterans and active-duty members of the United States armed forces who meet the program requirements. The franchisor also offers a 20% discount on the initial franchise fee for members of a minority race or ethnicity (Black, Hispanic, Asian, Pacific Islander, or American Indian/Alaska native) who meet the program requirements.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$40,000	$40,000
Real Property Utility, Security, and Other Deposits	$4,500	$11,100
Leasehold Improvements (net of landlord tenant allowances)	$80,000	$275,000
Cabinetry, Millwork, Furniture, and Décor	$2,500	$10,000
Fitness Equipment	$24,500	$67,000
Initial Software Set-Up and Technology Fees	$2,096	$2,096
Computer System & Other A/V Technology	$1,500	$7,500
Training Program and Other Training Expenses (plus travel, meals, lodging and other expenses)	$2,650	$3,950
Architect, Engineer, Drawings	$7,000	$18,500
Grand Opening Spend Requirement	$15,000	$15,000
Signage and Graphics	$8,500	$10,550
Office and Business Supplies	$1,650	$2,750
Business Licenses and Permits	$982	$1,208
Insurance (initial 20% payment)	$1,100	$1,300
Professional Fees	$1,980	$13,530
Additional Funds (3 months)	$27,500	$45,000
ESTIMATED TOTAL	$221,458	$524,484

Other Fees

Type of Fee	Amount
Royalty	6% of gross receipts.
Brand Marketing Fund	2% of gross receipts.
Local Marketing Spend Requirement	2% of gross receipts.
Default Fee	$250 - $2,500
Dishonored Check or Insufficient Funds Fee	$150
Interest on Late Payments	1.5% per month or highest commercial rate.
Monthly Management Fee (in event of the franchisee’s abandonment, default, or termination)	Up to $7,500 per month, plus direct out-of-pocket expenses.
Replacement or Remedial Training Program Fee	Then-current fee, currently, $500 per attendee, plus costs and expenses.
Additional or Special Training	Then-current fee, currently $500 per hour per trainer or attendee (as applicable to the training program), plus costs and expenses.
Annual Meeting Registration Fees	Then-current annual meeting registration fees for at least one attendee (currently, $500 per person), plus costs and expenses. Default fee applies for non-attendance.
Manager Training Program	Then-current fee (currently $500 per trainee), plus costs and expenses.
Approved Mentorship Studio Training Program	Then-current fee (not currently charged), plus costs and expenses.
Technology Fee	Currently, $300 per month.
Marketing Cooperatives	As established (none are currently in existence).
Successor Franchise Fee	25% of the then-current initial franchise fee.
Transfer Fee—Franchise Agreement	50% of the then-current initial franchise fee; reduced to $2,500 for select ownership interest transfers.
Transfer Fee—Area Development Agreement	$2,500 for administrative costs and expenses in connection with ownership interest transfers. Development rights cannot be transferred.
Transfer Fee Deposit	$3,500
Inventory	Varies according to products purchased.
Royalty Underpayments (audit)	Varies. Difference between amount reported and correct amount, plus applicable interest (and if understated amount is more than 2%, plus the franchisor’s costs (including attorneys' and accountants' fees)).
Defense or Enforcement Costs	All costs including attorneys’ fees (variable).
Indemnification	All costs including attorneys’ fees (variable).
Collection Costs	Actual costs to collect past due or other amounts.
Arbitration and Proceeding Costs	The franchisor’s arbitration or other proceeding fees and costs plus attorneys' fees and costs if the franchisor prevail in the arbitration or proceeding.
Liquidated Damages	An amount equal to the net present value of the royalties and brand marketing fund contributions, and any other fees under this agreement (without regard to any fee waivers, or other reductions) payable during the 36 months preceding the date of early termination, multiplied by the lesser of (i) 36 or (ii) the number of full months remaining in the term. The present value of the total calculated at a discount rate of 8%, assuming payment at the end of each month, will be the liquidated damages.
Alternative Supplier Evaluation	Varies according to administrative expenses in evaluating the request and its complexity.
Relocation Fee	$ 10,000, plus costs and fees associated with migrating clients to nearby studios.
Quality Assurance Inspections	Actual costs and expenses.
Development Area Change Fee	$1,000
In-House Legal Billing Rates	Then-current hourly billing rate for in-house attorneys (currently, $400 per hour) and paralegals (currently, $150 per hour).

The above information has been compiled from the FDD of Fitness Together. Year of FDD: 2025.
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