Snap Fitness Franchise Costs, Fees & FDD

Year Business Began: 2003

Franchising Since: 2004

Headquarters: Chanhassen, Minnesota

Estimated Total Number of Units: 995

Franchise Description: Snap Fitness, Inc. is the franchisor. The franchise offered is a Snap Fitness club, which offers 24/7 gym access to members as well as group fitness and personal training, using advanced fitness technologies and high quality fitness equipment.
Training Overview: The franchisor provides 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 franchisor also provides ongoing webinars with relevant educational content and franchisee panels and reserves the right to offer virtual or in-person training in its sole discretion. The training program is for three days and is held virtually or in Chanhassen, Minnesota. In addition to the on-site (or virtual) training program, additional onboard training is provided via one-on-one calls, video courses, site visits, and workshops. The additional onboard training includes 26 hours of training provided by onboarding coaches, franchise business coaches, the club software support team, and the marketing team. Periodically, the franchisor may offer additional training programs and may charge a fee for attending these training programs. In addition, the franchisor may hold and require that the principal owner (a person who owns a 25% or greater interest in the franchisee entity) and general manager or other designated employees attend any conference, meeting, convention or seminar to present new methods and programs for operation, training, management, sales or marketing.

Territory Granted: When the Franchise Agreement is signed, franchisees will select a general geographic area in which they intend to operate their club (preliminary designated area). The franchisor will generally approve the franchisee’s selection unless it determines, in its sole judgment, that it may negatively affect the interest of another Snap Fitness franchisee or is otherwise unavailable for development under the franchisor’s current policies. Once franchisees have acquired a site, the franchisor will complete the Franchise Agreement to reflect the site (which will become the club’s “authorized location”) and to define the “designated area” around the authorized location. If the site franchisees acquire is within the preliminary designated area, their designated area will be substantially the same as their preliminary designated area in terms of size, shape or demographics. A minimum 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. The actual size and boundaries of the designated area will depend upon a variety of factors. During the term of the agreement neither the franchisor nor its affiliates will develop or operate or grant to anyone else the right to develop or operate, a Snap Fitness club physically located in the designated area (except for designated special sites).

Obligations and Restrictions: During the term of the Franchise Agreement, franchisees (if the franchisee is an individual) or their general manager must devote full time and best efforts to the management of the club. Franchisees are 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. Franchisees or their general manager must provide direct on-premises supervision of the club. The general manager must complete the training course. Franchisees must offer at the club all of the products, equipment and services that the franchisor periodically requires and may not offer at the club any unapproved products or use the premises for any purpose other than the operation of the club. If permitted by state and local law, franchisees must be open for business every day of the week for 24 hours.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. Renewal is for unlimited additional 10-year terms if requirements are met.

Financial Assistance: As of the date of this disclosure document the franchisor does not offer direct or indirect financing and the franchisor does not guarantee a franchisee’s note, lease or obligation.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$39,500	$39,500
Build-Out Labor Costs	$120,000	$240,000
Leasehold Improvements	$80,000	$280,000
Exterior Signage	$10,000	$20,000
Furniture and Fixtures	$25,500	$56,300
Fitness Equipment	$60,000	$300,000
Technology	$15,000	$25,000
Grand Opening Marketing	$10,500	$10,500
Occupancy	$26,500	$53,100
Lease Deposits	$8,800	$17,700
Insurance	$1,500	$2,000
Travel and Training Expenses	$3,000	$3,500
Professional Fees	$5,000	$20,000
Additional Funds (3 month period)	$25,000	$50,000
ESTIMATED TOTAL	$430,800	$1,118,100

Other Fees

Type of Fee	Amount
Royalty Fee	$700 per month.
Membership Maintenance Fee	$0.70 per month for each membership enrolled at the club.
New Membership Fee	One-time fee of $7.00 for each new membership agreement.
National Marketing	$500 per month.
Local Marketing Fund or Cooperative Advertising Contribution	$200 per month.
Local Marketing	$400 per month.
Technology Fee	$325 per month.
Door Access Cards	Then-current price (currently $5.90).
Insurance Reimbursement Processing Fee	$45 per month.
Medical Panic System	$29.95 per month.
Summit	The then-current fee (currently, $750 with accommodations).
Audits	Cost of audit plus interest.
Mystery Shopper Fee	Cost of mystery shopper.
Transfer Fee	$5,000 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.
Renewal Fee	$0
Costs and Attorneys' Fee	Will vary under circumstances.
Insurance	$546.47 per month.
Interest and Late Fee	18% per annum in interest, late fee of the greater of 10% of past due or $150 per month.
Indemnification	Will vary under the circumstances.
Supplier Review Fee	The 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.
Additional Assistance or Training	Currently, $250 per day plus travel costs.
Securities Offering Costs	Will vary under the circumstances.

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