F45 Training

The $60,000 establishment fee (F45's term for franchise fee) is non-refundable, with one exception: if your studio opens within 5 months of signing, you get 50% refunded. That's a meaningful incentive, but most buildouts take longer.

The equipment pack at $115,000 is mandatory and purchased from the franchisor — it includes everything from exercise equipment to TVs, sound systems, rubber flooring, and marketing collateral. Add $25,000 in required grand opening spend plus $3,000 in nutritional supplements, and you're at approximately $203,000 committed to the franchisor before you've signed a lease.

Leasehold improvements are highly variable: $1,000 to $300,000 depending on how built-out your space is. Total investment: $349,200 on the low end (assuming minimal buildout) to $786,100 at the high end including optional recovery amenities ($40K–$67K for cold plunges, infrared saunas, massage equipment).

The ongoing fee structure has multiple required payments. Royalty: the greater of 7% of gross sales or $2,500/month minimum — that $2,500 floor means you're paying even if revenue is low. Brand Fund: up to 2% of gross sales or $200/month minimum. Technology fee: $500/month. Marketing fee: $2,500/month (required spend on local advertising). And the required merchandise purchase: at least $1,500/quarter in F45 branded apparel. Plus $1,200+ in annual music licensing fees.

Total monthly minimums before rent or labor: royalty ($2,500) + marketing ($2,500) + tech ($500) = $5,500/month minimum regardless of revenue.

F45 discloses gross sales data for 699 studios that were open for at least 12 months as of February 28, 2025. The average annual gross sales were $454,320 and the median was $407,220. Only 41.6% of studios met or exceeded the average — a skewed distribution driven by top performers.

Breaking into thirds: the top third (233 studios) averaged $684,477. The middle third averaged $413,131. The bottom third averaged just $265,351.

With a $2,500/month royalty minimum, $2,500/month marketing, $500/month tech, and $1,200/year in music licensing, a bottom-third studio generating $265,351 annually has already committed $67,200/year in mandatory franchisor-related fees before paying a single instructor, rent dollar, or liability insurance premium. At $265K revenue, there's not enough left to operate sustainably.

F45 does not disclose net income data. Boutique fitness studios typically run instructor labor at 25–35% of revenue, plus rent, insurance, and management overhead. A middle-third studio at $413K revenue could theoretically generate $50K–$80K in owner income under favorable conditions, but that's modeling, not a franchisor representation.

F45's unit data is the most concerning signal in this FDD. The system has been contracting: 729 units at end of 2022, growing to 791 by end of 2023, then falling to 753 by end of 2024. The 2024 attrition was severe: 46 terminations + 16 non-renewals + 10 ceased operations = 72 exits against only 34 openings.

This is a system in active contraction. In 2023, the brand lost 75 units net despite opening 136. The brand's backers include celebrities and was briefly publicly traded — but the unit-level economics have struggled with post-pandemic normalization and competition from Orangetheory, Barry's Bootcamp, and other HIIT concepts.

The 270 franchise agreements signed but not yet open suggests some pipeline activity, but the 72 closures in 2024 means more than 2 studios are closing for every new one opening. The annualized closure rate is approximately 9% of the operating system — a level that indicates structural stress, not normal churn.

The declining system is the lead concern. Buying into a contracting brand means entering a market where some of your potential customers were previously members of a studio that closed. Brand credibility erodes with high closure rates.

The $2,500/month royalty minimum creates a cash trap at low revenue levels. A new studio ramping up through months 3–6 may be generating $15,000–$25,000/month while still owing $5,500+ in mandatory fees to the franchisor.

F45 requires franchisees to purchase at least 100 LionHeart heart rate monitors per year ($54–$100 each) starting in year 2. That's $5,400–$10,000/year in mandatory product purchases regardless of member interest.

The annual conference is mandatory even if you don't attend: 2 tickets at $600 each = $1,200 billed regardless. The non-compliance fee is up to $2,000 per violation, and the promotional programs clause requires you to spend additional money on promotions if your sales fall below 70% of the system average after year 1.

Get current information on the brand's financial stability and litigation history before signing. The brand has had leadership turnover and financial challenges at the corporate level that deserve additional due diligence.