Startup cost
$500k–$1.5M
TRUiC Business Ideas
How to Start an Orangetheory Franchise
Decision Snapshot
Orangetheory
Idea Score
48
Profit margin
23%
Break-even
4 mo–12 mo
Time to launch
12 wk–36 wk
Demand trend
Stable
5-yr failure rate
—
Capital intensity
Very high
Time commitment
Full time
Part 1 - How to start an Orangetheory Franchise business - Background
Many people these days are trying to adopt a healthier lifestyle and are placing more emphasis on nutritious food and regular exercise. An Orangetheory gym offers its members a highly-intensive workout which focuses on complete coach-led cardio and strength training programs while maintaining a target heart rate. It is a one-of-a-kind approach to exercising at health clubs, and it works.
Our guide is in 3 parts:
- Part 1 - How to start an Orangetheory business - Background
- Part 2 - Our planner tool to see if this idea is the right fit for you
- Part 3 - Action plan to get started
What are the costs involved in opening an orangetheory franchise?
The costs to open an Orangetheory franchise are quite high. On the low end, the costs are just over $488.000, while on the high end, the costs can reach almost 1 million dollars. The majority of the cost of opening an Orangetheory franchise goes toward leasehold improvements, rent and the purchase of workout equipment. This cost includes everything except for ongoing fees.
Franchisees must have a net worth of over $500,000 and have liquid assets of $150.000 minimum to qualify for a franchise opportunity.
What are the ongoing expenses for an orangetheory franchise?
There are many ongoing expenses associated with an Orangetheory franchise. Besides the cost of labor, rent, utilities, insurance and other common business expenses there are franchise-specific costs. Orangetheory franchisees must pay an 8% royalty and a 1% brand fund contribution of gross revenue. If a franchise falls below a certain level of gross sales for the year, the franchisee must make up the difference in these fees. Besides these fees, there is also the monthly advertising fee of up to $4,000, a $250 per year per person refresher course fee, a $1000 per person cost to attend the annual conference and other assorted costs.
Who is the target market?
Orangetheory is not a run-of-the-mill gym. It attracts clients who are health conscious, but definitely not gym rats. Due to the class format, many Orangetheory customers are working people who are more serious about getting fit than hanging out.
How does an orangetheory franchise make money?
Owners of an Orangetheory franchise makes money through the sale of different tiers of memberships. These three different membership levels give members a set number of classes per month. Members can purchase additional classes at a discounted rate compared to non-members.
In addition to earning money on memberships, an Orangetheory studio can sell the brand’s clothing and accessories.
How much can you charge customers?
The average cost of a membership at Orangetheory is between $59 – $200 a month depending on the membership level. Non-members can take a single class for $28.
How much profit can an orangetheory franchise make?
Revenue for Orangetheory is up overall, but there is no information on average revenue for individual franchisees. The number of franchises continues to grow and many franchisees have multiple units.
How can you make your business more profitable?
Franchise owners can make additional money through the sale of Orangetheory clothing and accessories. Additional add-on services are restricted according to the franchise agreement.
The best way to increase profits would be to open up another Orangetheory gym in a populated area far enough away from your first location that it would be able to develop its own local membership.
Day-to-Day and Growth
What happens during a typical day at an orangetheory franchise?
While some Orangetheory studio owners have a background as trainers and continue to teach classes after starting their own franchise, most owners fill their days by taking care of the same daily administrative and managing tasks which every business requires. There is one difference. Since Orangetheory franchise owners receive extensive support from the corporate headquarters, most franchisees find they can devote more time to promoting a welcoming atmosphere at their studios and are able to handle their customers’ needs better than independent business owners.
What are some skills and experiences that will help you build a successful orangetheory franchise?
A background in physical fitness or strength training can be beneficial for new owners, but this does not mean that people new to the fitness market are unqualified to own an Orangetheory franchise. Although experience within the fitness industry is not mandatory, franchise owners need to have a solid business background, a passion for promoting a healthy lifestyle, and enough available funds to qualify.
What is the growth potential for an orangetheory franchise?
There is a huge potential for growth of the Orangetheory concept. As the only health club of its kind, Orangetheory franchisees are in the unique position of being able to offer a service with no real competition. Orangetheory began in 2010 with only one studio. Now there are over 525 gyms open with another 520+ gyms in development. The best news is that no Orangetheory studio has closed due to lack of members. Ever.
Since 2015, Orangetheory revenue has been up over 100 percent, and there is no reason to believe the business can not continue to grow.
Owning an Orangetheory gym is a great opportunity with a solid future.
What are some insider tips for jump starting an orangetheory franchise?
One benefit of purchasing a franchise is the ability to take advantage of an established brand and business plan. Orangetheory has a very successful business model, and the best thing for a new franchise owner to do is to learn as much as he can about the business from the people who started the company.
How and when to build a team
A great team is essential to the success of an Orangetheory franchise. Everyone from instructors to reception needs to be friendly, helpful, passionate about fitness and focused on helping your franchise succeed. Franchisees should take advantage of the training program the corporate office offers to ensure every member of the staff knows how to do his job the right way.
Part 2 - Is an Orangetheory Franchise business the right fit for you?
Business Evaluation & Strategy Tool
We'll walk you through the four pillars every business needs: Points of Leverage, Marketing Strategy, Financial Model, and Personal Compatibility. At the end you'll see a personalized report and your action plan below will be tailored to your answers.
Step 1 of 4 — Points of Leverage
Every viable business has natural advantages. Below are common leverage points across four categories. Pick the ones that apply to your Orangetheory business. We've pre-suggested a few based on your idea — review and adjust.
Step 2 of 4 — Marketing Strategy
Without a way to connect with customers, even great businesses fail. Pick the channels you plan to use to reach your customers.
Step 3 of 4 — Financial Model
Enter your monthly baseline costs — the minimum overhead to keep the business running. Then we'll calculate how many sales per month you need to break even.
Step 4 of 4 — Personal Compatibility
A business that doesn't fit your life will fail no matter how good the numbers look. Tell us how this business fits you.
Your Orangetheory Evaluation Report
Complete the four pillars and your personalized summary will appear here.
Points of Leverage
Marketing Strategy
Financial Model
Personal Compatibility
Part 3 - Action plan to launch your Orangetheory Franchise business in 90 days
Nine concrete steps to take you from idea to open business, grouped into 30-day phases. Complete the planner above and we'll highlight what's most important for your situation.
First 30 days — Foundation
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Form your legal entity
An LLC keeps your personal assets separate from business debts and lawsuits — the most common reason small business owners choose this structure. Sole proprietorships and partnerships do not provide this protection.
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Get an EIN and register for taxes
Apply for your free Employer Identification Number through the IRS, then register for any state or local taxes that apply to your business (sales tax, franchise tax).
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Open a business bank account and credit card
A dedicated business account is required to maintain personal asset protection. Mixing personal and business finances ('piercing the corporate veil') can void your LLC's liability shield.
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Set up business accounting
Recording expenses and income from day one makes tax filing easier and lets you see when the business is actually profitable. Use software (QuickBooks, Wave) or a part-time bookkeeper.
Days 30–60 — Compliance & Risk
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Get permits and licenses
State and local requirements vary widely. Brick-and-mortar businesses typically need a Certificate of Occupancy; service businesses may need specific professional licensing; food businesses need health permits.
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Get business insurance
General Liability Insurance is the most common starting point. If you'll have employees, most states require Workers' Compensation. Specific industries need additional coverage (product liability, professional liability, etc.).
Days 60–90 — Launch
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Define your brand
Your brand is how customers perceive and remember you. A clear name, logo, and visual identity make every later marketing decision easier and protect you legally as you grow.
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Create your business website
Every legitimate business needs a website. Social media pages are not a substitute — you don't own the platform. Modern website builders mean you can launch a clean site in a weekend without a developer.
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Set up your business phone system
A dedicated business number keeps your personal life private, makes the business look legitimate, and lets you route calls professionally. Cloud phone services start under $20/month.