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Snap Fitness Franchise Cost & Fees

Date of Incorporation: 2003
Franchising Since: 2004
Headquarters: Chanhassen, Minnesota

Business Description: Snap Fitness Centers are accessible 24 hours a day and offer the sale of memberships that allow access to exercise equipment, including cardio, strength and selected equipment. Snap Fitness has developed a proprietary business format and system for operating a fitness and workout club featuring state-of-the-art exercise equipment; 24-hour personal keycard access for members (except as restricted by law); an online training page; personal fitness consultation, wellness plan and web page; automated member billing and collection procedures and services; web-accessible video surveillance; and proprietary and confidential information.

Franchise Offer: The franchise offered is a Snap Fitness Club featuring state-of-the-art exercise equipment and 24-hour keycard access for members. The franchisor grants the right to operate a Snap Fitness athletic and fitness center. The franchisee will be in the business of selling Memberships and operating their Center. A Membership entitles the individual to access and use the franchisor’s Center and any Affiliate-owned Centers.

Financial Assistance: Snap Fitness offers, directly or through a preferred financing vendor, the following financing programs: the Lease Servicing Center (LSC)/Matrix Vendor Program for new franchisees opening their first Club or existing franchisees opening an additional Club, the Snap Fitness In-House Program for existing Snap Fitness franchisees to finance equipment to open their next Snap Fitness location, and the Re-Snap Program for existing Snap Fitness franchisees renewing their agreement for a second term. The Snap Fitness franchise program is also pre-approved for SBA loan programs through its listing with the SBA Franchise Registry. In addition to the programs mentioned, the franchisor may periodically arrange with third party finance companies or banks to make financing programs available to franchisees.

Training and Assistance: The franchisor provides an initial training to at least two people in the franchisee’s organization (including the General Manager), which the attendees must complete to the franchisor’s satisfaction. The program lasts four days. The franchisor does not charge for this training, but the franchisee must pay the travel and living expenses and supply costs for themselves and their employees. Periodically, the franchisor may offer additional training programs and may charge a fee for attending these training programs. Training will occur at Snap Fitness headquarters in Chanhassen, Minnesota, or in the franchisee’s Club prior to opening.

Territory: The franchisee will not receive an exclusive territory. When the Franchise Agreement is signed, the franchisee will select a general geographic area in which he or she intends to operate their Club (Preliminary Designated Area). The franchisor will approve the franchisee’s selection unless they determine, in their sole judgment, that it may negatively affect the interest of another Snap Fitness franchisee. A minimum Preliminary Designated Area will consist of one city block and, in suburban and rural areas, may be as large as a three-mile driving distance from the anticipated location.

Term of Agreement and Renewal: The term of the franchisee agreement is 10 years with the option to renew for unlimited additional 10-year terms, if requirements are met.

Obligations and Restrictions: : During the term of the Franchise Agreement, the franchisee or general manager must devote full time and best efforts to the management of the Club. The franchisee is expected to stay informed about the franchisor’s organizational plans, initiatives and direction by regular review of communications sent to the franchisee electronically or otherwise. The franchisee or general manager must provide direct on-premises supervision to the Club. The franchisee must offer at the Club all of the products, equipment and services that the franchisor periodically require and may not offer at the Club any unapproved products or use the premises for any purpose other than the operation of the Club.

Estimated Number of Units: 1,440

Investment Tables:
Initial Investment
Name of Fee Low High
Initial Franchise Fee $25,000 $25,000
GO FAST™ Kit $5,400 $8,225
Fitness and Weight Equipment $26,800 $38,470
Freight and Installation $10,000 $17,000
Exterior Signage $1,855 $2,655
Door Access, Security and Surveillance System $4,775 $6,780
Mirrors $585 $1,060
FitnessOnDemand (optional) $1,590 $2,785
MyZone (optional) $265 $795
Leasehold Improvements (not including flooring) $0 $125,000
Flooring (and Installation) $5,105 $7,295
Rent $4,400 $18,000
Lease & Utility Security Deposits $1,500 $5,800
Insurance $750 $900
Training Expenses $500 $2,000
Professional Fees $1,000 $4,000
Additional Funds (3 month period) $20,000 $20,000
Estimated Total $109,525 $285,620
Other Fees
Type of Fee Amount
Continuing Fee $509 per month.
National Marketing Fund $135 monthly fee.
Local Marketing Fund or Cooperative Advertising Contribution $200 per month.
Member Service Fees Currently, one-time $1.00 fee for each new member.
Website Fee $32 per month.
Membership Processing Fees One-time fee of $5.40 for each new membership agreement; continuing $0.57 fee per month membership maintenance fee for each membership enrolled at the Club; Then-current price for door access cards (currently $5)
Fitware $69 per month.
FitnessOnDemand (optional) $199,99 per month.
MyZone (optional) $150 per month.
Reimbursement Processing Fee $35 per month.
Member Engager $30 per month.
Online Acquisition Fee $15 per online enrollment.
Audits Cost of audit plus interest at the maximum rate allowable by law.
Transfer Fee $5,000 fee if transferee is an existing Snap Fitness franchisee. If the transferee is new to the system, the transfer fee is equal to the then-current Initial Franchise Fee.
Costs and Attorneys' Fee Will vary under circumstances.
Insurance $250 - $400 monthly.
Interest 18% per annum.
Indemnification Will vary under circumstances.
Supplier Review Fee Franchisor’s costs and expenses, which are currently expected to range between $1,000 and $3,000, although costs could exceed those amounts depending on the product.
Modernization and Maintenance Costs The franchisor’s reasonable costs and expenses which will vary.
Securities Offering Costs Will vary under the circumstances.

The above information has been taken from the FDD of Snap Fitness. Year of FDD: 2015

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