Orange Theory Fitness franchise research

Investment by format

Format-specific estimates only. Do not combine one format's minimum with another format's maximum.

Investment sourceFDD p.25 ↗

Franchise fees and ongoing costs

Franchise fee

$59,950 · Extracted Item 5 scalar range, not a universal minimum or maximum; formats, eligibility, discounts and waivers require original-filing review.

Royalty

8% · 8% of Gross Sales, paid weekly by bank debit; minimum Performance Standards of $300,000 (Yr 1), $350,000 (Yr 2), $400,000 (Yr 3+) gross sales with royalty shortfall payable

Marketing contribution

3% (basis not captured; see original filing)

Technology fee

$899 per month (increases 10% annually, compounded/cumulative) plus $575 one-time Management Software setup fee; starts at software account opening (typically ~5 months before opening)

Other fees

OTbeat fee $149/month (+$250 setup; may rise to $500/month); Product and promotional item purchases typically $5,000-$11,000/year; Cooperative advertising as determined by co-op (if formed)

Working capital (FDD Item 7)

Additional Funds - 3 Months: $171,239 (low and high); covers fees to franchisor/affiliates incl. technology fees, payroll, utilities, payroll taxes and local marketing of $2,500/month

Fees sourceFDD p.19 ↗

Working capital is drawn from Item 7. The Investment source below locates the investment section, not an independently verified working-capital scalar.

Investment sourceFDD p.25 ↗

Franchise fee sourceFDD · page not captured ↗

Financial performance: Item 19

Item 19 captured

Yes

Metric / basis

Total Gross Sales (average, median, highest, lowest, by quartile) and Monthly Member Count for franchised Studios; no profit/EBITDA disclosed

Reporting period

12-month period ended February 28, 2026

Sample

1,189 franchised Studios open and operating for the full period (of 1,201 franchised at 2/28/2026; excludes 95 studios that closed during the period)

Reported average

$802,145

Reported median

$750,643

Owner income is not captured. Gross sales and EBITDA are not owner pay. Results depend on the disclosed metric, sample and period; consult the full filing.

Item 19 performance sourceFDD p.66 ↗

Unit growth: Item 20

Reporting year

2025

Scope

franchised outlets

Starting outlets

1283

Year-end outlets

1209

Net change

-74

Derivation

ending minus starting outlets

Openings

13

Terminations

0

Non-renewals

26

Other closures

61

Reacquisitions

0

Transfers

214

Transfers are not closures. Net change is ending minus starting outlets for the stated scope and year, or complete openings less terminations, non-renewals, other closures and reacquisitions. Missing inputs stay unknown.

Unit growth sourceFDD p.68 ↗

SBA loan history

Loan activity

54 approvals

Activity window

FY2021-FY2026 YTD; snapshot 2026-06-30

Median SBA loan

$606,750

Median loan window

FY2023-FY2026 YTD through 2026-06-30

Median loan sample

34 loans

Historical charge-off share

1.45%

Cohort

7(a) FY2010-2019 approvals

Numerator / denominator

5 / 346

Formula

CHGOFF / (PIF + CHGOFF + EXEMPT) × 100

This is a historical loan-level share, not a franchise failure probability or location survival rate. Loan size is not total investment. Other loan statuses are excluded from the seasoned denominator. Activity combines 7(a) and 504 approvals, excluding canceled and not-funded records; this is not a rolling five-year count. FY2024-25 franchise tags are sparse after directory suspension; fewer tagged loans do not establish brand decline. Recent charge-off cohorts are immature.

SBA loans sourceSBA data · Jun 30, 2026 ↗

Median loan amounts are financing context, not startup cost. The median window is separate from the seasoned charge-off cohort.

Median SBA loan sourceSBA data · Jun 30, 2026 ↗

Questions before you invest

How much does Orange Theory Fitness franchise cost?

Single Studio Franchise (1,750-4,800 sq ft, excluding real estate purchase costs; includes 3 months rent + deposit and 3 months additional funds): $764,577 to $1,104,920; Area Development Agreement - Development Fee only (3 to 5 studios; in addition to first Studio's investment; fee replaces per-studio initial fees): $150,000 to $237,500 These are format-specific estimates, not a guaranteed cash requirement. Franchise fee: $59,950 · Extracted Item 5 scalar range, not a universal minimum or maximum; formats, eligibility, discounts and waivers require original-filing review..

Investment sourceFDD p.25 ↗

Franchise fee sourceFDD · page not captured ↗

How much do Orange Theory Fitness owners make?

Owner income is not captured. Gross sales and EBITDA are not owner pay. Item 19 metric: Total Gross Sales (average, median, highest, lowest, by quartile) and Monthly Member Count for franchised Studios; no profit/EBITDA disclosed. Sample: 1,189 franchised Studios open and operating for the full period (of 1,201 franchised at 2/28/2026; excludes 95 studios that closed during the period). Period: 12-month period ended February 28, 2026.

Item 19 performance sourceFDD p.66 ↗

What's the SBA charge-off rate for Orange Theory Fitness?

1.45%; numerator / denominator: 5 / 346. Historical 7(a) FY2010-2019 approvals; CHGOFF / (PIF + CHGOFF + EXEMPT) × 100, snapshot 2026-06-30. This is not a franchise failure probability. Median SBA loan: $606,750; window: FY2023-FY2026 YTD through 2026-06-30; sample: 34 loans. Median financing is not total investment.

SBA loans sourceSBA data · Jun 30, 2026 ↗

Median SBA loan sourceSBA data · Jun 30, 2026 ↗