Orangetheory Fitness Franchise Cost & 2026 FDD Data
73/100
Strongest tier
73 this brand46 Health & Fitness medianlikely 69–77 (high confidence)
Higher is better · an editorial assessment, not investment advice
#422 of 3,068 graded brands
Why an A: Helped by scale and transparency. Held back by unit economics and unit growth. See all six factors
- Total investment
- $765K – $1.1M
- excl. real estate
- Avg gross sales
- $802K
- “All Franchised Studios”, 1,189 outlets; not profit
- SBA charge-off
- 1.6%
1 in 63 SBA 7(a) loans to Orangetheory Fitness owners charged off (5 of 319 resolved loans, approved since FY1991); Health & Fitness median 14.9%. Loans approved FY2014–FY2021: 5 of 314 resolved loans charged off (1.6%); newer loans have not had time to default, so this is not a trend.
Data from the FDD filing + SBA 7(a) records. Analysis by FranchiseVerdict · Methodology · Website · Report an error · Franchisor? Claim this listing
Orangetheory Fitness is a boutique-fitness franchise offering heart-rate-monitored group classes that mix cardio and strength. Franchisees run studios built on recurring memberships, coaching staff, and the OTbeat tracking system.
FranchiseVerdict summary · 2026 FDD
Per the 2026 FDD, a Orangetheory Fitness franchise requires a total initial investment of $765K – $1.1M, excluding real estate, including a $60K franchise fee. Once open, the ongoing royalty is 8.0%. Per the 2026 FDD, average gross sales were $802K (Item 19 group “All Franchised Studios”, 1,189 outlets; gross sales, not profit). SBA 7(a) loans show a 1.6% charge-off rate on 319 resolved loans. Verdict grade: A (Strongest tier), an editorial assessment, not investment advice.
Sources: 2026 FDD · SBA 7(a) loan records (FOIA) · What one unit could make and lose →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low (issued within the last 12 months)
Evidence for the headline figures: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored8 of 8 headline figures on this page cite a page of the filing.
Overview
Quick verdict · vs Health & Fitness median
Top edge: green = better than the Health & Fitness median by more than 10%, red = worse by more than 10%, gray = within 10% or no benchmark. Source: FDD filings + SBA 7(a).
Data from public FDD filings and SBA records. Methodology
Bottom line
- RETURNSAverage gross sales of $802K/year (outlet median $751K; Item 19 group “All Franchised Studios”, 1,189 outlets; gross sales, not profit).
- GROWTHIn the latest Item 20 year, the number of franchised outlets fell by 74 (13 opened, 87 closed).
- FLAGItem 4 discloses a bankruptcy of an officer or of a company an officer ran, not of the franchisor. Review Item 4 for details.
AT STAKEOne unit at the Item 7 midpoint: $121K a year in payments on assumed SBA 7(a)-style terms.You put in about $187K of your own cash and personally guarantee a $748K loan. Assumptions are labeled in Sales; not investment advice.See what one unit could make and lose
Things to check before you sign (3)
- Net -74 franchised outlets in 2026 (Item 20, outlet counts). Ask owners why outlets closed.
- The franchisor keeps the right to compete inside your territory (Item 12, territory).
- The franchisor receives rebates or payments from suppliers you buy from (Item 8, required suppliers).
Checked and clear: no auditor doubt that the franchisor can keep operating, no pending lawsuit naming the franchisor, SBA charge-off rate 1.6%, below the 14.9% category median, no jury-trial waiver, no rule that the owner must run it personally and the full filing on file, and an Item 19 average from 1,189 units.
What to do next
Step 1: Read the FDD itself.
Free: read the 2026 filing on this site, page by page. The franchisor must also give you its current FDD at least 14 days before you sign or pay. Or look it up in a state registry (Wisconsin, Minnesota, California). What to read first.
Step 2: Talk to current and former owners.
Free: Item 20 of the FDD lists every current owner and those who left last year, most with a phone number. Questions to ask.
Shortcut: the Orangetheory Fitness owner list as a CSV, in the Contacts section.
Step 3: Talk to an SBA lender.
Free: the SBA's Lender Match, or the lenders already lending to this brand in the SBA section. Ask what you would personally guarantee and what the monthly payment would be. If you plan to use retirement savings, ask a CPA about the rules for that first.
Step 4: Have a franchise attorney review the FDD and agreement.
Free: your state bar's lawyer referral service can name franchise lawyers, and many offer a short first consultation. Bring the checks listed above.
Research steps, not investment or legal advice.
Can you afford it, and what does the money buy?
Entry cost (the Item 7 midpoint) is 2.2× the Health & Fitness median ($420K).
Source: FDD 2026 · Items 5–7 (fees and startup costs)
Do you qualify? The filing states no minimum net worth or liquid capital. Ask OTF Franchisor, LLC (Item 1: 6000 Broken Sound Parkway NW, Suite 200, Boca Raton, Florida 33487) and your lender what they require, and keep living costs for the first year outside the deal.
Full Item 7 breakdown16 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $60K | $60K | |
| 3 Months Rent + Security Deposit | $21.5K | $57.3K | |
| Architect & Design Fees | $10K | $24K | |
| Furniture, Fixtures & Equipment | $10.4K | $18.9K | |
| Construction Management Fees | $0 | $12.5K | |
| Office & Cleaning Supplies | $3K | $3.8K | |
| Leasehold Improvements and Construction Costs | $245K | $418.3K | |
| Fitness Equipment (including installation) and OTbeat System | $119.1K | $163.4K | |
| Initial Inventory of Orangetheory Fitness Retail Merchandise | $3.31K | $5.85K | |
| Interior and Exterior Signage | $17.7K | $28.4K | |
| Technology System | $46.8K | $62.1K | |
| Pre-Sale and Grand Opening Advertising | $36K | $45K | |
| Initial Training Expenses and Studio/Presales Launch Trainings | $5K | $8.85K | |
| Miscellaneous Opening Costs | $11.7K | $20.2K | |
| Insurance | $4K | $5K | |
| Additional Funds - 3 Months | $171.2K | $171.2K | |
| Total initial investment | $765K | $1.1M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. The total row is the total as printed in Item 7. Actual costs may fall outside this range depending on market and build-out scope.
Item 6 · what you pay once you are open
Ongoing fees
| Fee | Amount |
|---|---|
| Royalty | 8.0% of gross sales |
| Marketing / ad fundBrand-wide marketing pool. Currently 3% of Gross Sales; may be increased up to 5% of Gross Sales | 3.0% of gross sales |
| Technology fee$899/month Technology Fee (subject to 10% annual increase); plus $575 one-time Management Software setup fee | $899/month |
| Transfer fee | $0 |
| Renewal fee | $0 |
| Total fee loadabove the Health & Fitness median of 9.0% (heavy) | 11.0% of sales |
What do units actually make?
Average gross sales are 75% above the Health & Fitness median ($458K).
Source: FDD 2026 · Item 19 (sales and earnings)
Items 6 (other fees), 7 (startup costs) and 19 (sales and earnings) · assumptions labeled
What you could make and lose: one unit
What one Orangetheory Fitness unit would ask of you, from the filing's Item 7 total and labeled assumptions.
Average gross sales are $802K (FDD Item 19, p.65), and the royalty and ad fund take about $88K of that a year (Item 6). This brand's Item 19 does not print cost lines. Enter your own from a lease quote, a payroll plan and calls with current owners. So this box does not estimate a profit. To cover the loan payment alone, one unit has to clear $121K a year after its food, labor, rent and other costs and the franchisor's fees.
How these figures are worked out
- Loan (assumption): 80% of the $935K Item 7 midpoint is a $748K loan, paid over 10 years at 10.5%: $121K a year. SBA 7(a)-style terms on a long-term rate; your lender sets yours. Orangetheory Fitness' past SBA 7(a) loans averaged 6.3% at approval; 7(a) rates move with the prime rate, so 10.5% is a current-rate assumption, not this brand's history.
What you put at risk
Your own cash in: about $187K Assumption (the part the loan does not cover of the $935K Item 7 midpoint), plus whatever anything Item 7 leaves out (its notes say what). The loan is $748K.
Personal guarantee. SBA 7(a) loans require a personal guarantee from anyone who owns 20% or more of the business. If the unit cannot pay, the lender can collect from you personally, which can include your savings and your home. The worst case is losing the cash you put in and still owing the rest of the loan.
Gross sales are not profit, and none of these figures is take-home pay until tax and every operating cost are paid. The assumptions are ours, not the filing's. Not investment advice.
Returns modelOne unit · several units · editable
One unit
One unit: what is left after the loan payment
Gross sales, minus the franchisor's fees and the operating costs, is the unit's EBITDA (earnings before interest, taxes, depreciation and amortization). Minus an assumed loan payment, that is what is left for you, before tax. Gross sales are not profit.
This brand's Item 19 does not print cost lines. Enter your own from a lease quote, a payroll plan and calls with current owners. Invested capital is the Item 7 total, which already includes its working-capital (additional funds) line.
Returns model · one unit
What would one Orangetheory Fitness unit leave you each year after the loan payment?
Item 19: $802,145 average for 1,189 outlets (All Franchised Studios). Use a figure for outlets like yours if yours differ.
Gross sales, not profit: the costs below decide what is left.
Item 6, as stored, a year. A fixed fee, so it comes off EBITDA as dollars, not a share of sales.
This brand's Item 19 does not print cost lines. Enter your own from a lease quote, a payroll plan and calls with current owners.
Illustrative category typicals, not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Item 7 midpoint of $765K to $1.1M
Item 7's $171K to $171K additional funds are already in the total
Left after the loan payment · per year
The unit's EBITDA minus the assumed loan payment. Before tax, depreciation and any cost your inputs leave out (insurance, accounting and legal, licenses, technology fees): not take-home pay.
Gross sales are not profit. Neither the filing nor a stated assumption on this page supplies direct costs, labor, rent / occupancy and other operating costs. Enter your own (a lease quote, owner calls) and the model runs on it.
Loan of $748K at 10.5% over 10 years, an assumption, not a quote. Return and payback are before tax, depreciation and the costs above. The loan usually needs your personal guarantee.
Buying several existing units? The acquisition scenario
Buying several units
What buying a few existing units could return
Prices an existing operator of a few units off the single-unit EBITDA above, after shared services, and finances it with an SBA 7(a) loan, a conventional loan and a seller note. It shows the yearly return on your cash (IRR), whether year-1 earnings cover the loan payments (DSCR) and how the price is paid for. It starts at 5 units; every deal term is an assumption you can change, and none is from the FDD.
Not modelled yet
Gross sales are not profit. Neither the filing nor a stated assumption on this page supplies direct costs, labor, rent / occupancy and other operating costs. Enter your own (a lease quote, owner calls) and the model runs on it.
This scenario starts from a per-unit EBITDA. Fill in the operating costs in the one-unit model above and it runs on that figure, or take it to the full ROI workbench, where the multi-unit and acquisition models accept your own per-unit economics.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD · filed by OTF Franchisor, LLC
Financial performance
- Range (low → high)
- $156K→$2.9M2026 FDD Item 19, p.65
- Cohort dispersion (min → max)
- Top and bottom 25%
- $476K→$1.2M
- Bottom group → top group: the top and bottom 25% as the filing reports them
- Transparency
- 4 / 10
- vs category median 3 / 10 (more detail than most)
Percentile ranks within Health & Fitness
Each rank is among the Health & Fitness brands that report that figure (the count is under each bar).
Average gross sales are only 0.9x the investment midpoint, so recouping the initial outlay is likely to take years even at strong margins. Gross sales are not profit.
vs Health & Fitness medians
How Orangetheory Fitness compares
Category median of published Health & Fitness brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Who are you contracting with?
OTF Franchisor, LLC, owned by Purpose Brands Holdings, LLC.
Item 1 (the franchisor) · who you're contracting with
The franchisor
Corporate structure & franchisor financials
- Legal entity
- OTF Franchisor, LLC
- Parent company
- Purpose Brands Holdings, LLC
- FDD Item 1, page 8 of the 2026 FDD
- Predecessor
- OTF Royalties, LLC; Ultimate Fitness Group, LLC
- Prior franchisor entity
- CEO title
- Chief Executive Officer (of parent companies Purpose Brands Holdings, LLC and Purpose Brands Intermediate, LLC)
- Thomas Leverton
- CEO experience
- 2009 yrs
- Years in role or industry
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- DE
- HQ
- 6000 Broken Sound Parkway NW, Suite 200, Boca Raton, Florida 33487
- Auditor
- PricewaterhouseCoopers LLP
- Audited financials
- Franchisor revenue
- $375.9M
- latest fiscal year in the 2026 FDD; $317.0M the year before
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Franchisee associations and councils
- Franchise Advisory Council (FAC)
- Independent Franchisee Association
As the filing names them; ask whether each is independent or set up by the franchisor (Item 11 or 20).
Affiliated brands
- Anytime Fitness Iberia
- Waxing the City Franchisor
- Anytime Fitness Franchisor
- OTF Product Sourcing
Other brands the franchisor or its parent operates (Item 1).
Same owner · FDD Item 1, page 8
4 other brands on this site name Purpose Brands Holdings, LLC as parent or ultimate parent in their own FDD.
- Anytime Fitness (grade B)
- Basecamp Fitness (grade B)
- The Bar Method (grade B)
- Waxing the City (grade B)
Portfolio: Purpose Brands
Grouped by the owner's name as each filing prints it (this page: the 2026 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
Overview
About
- CEO
- Thomas Leverton
- States and territories listed
- 49
- registered or offered in, as the filing lists them (DC and territories included); not where units may open
Is the system healthy?
-102 franchised outlets over the two years to 2026 (1,311 to 1,209, -7.8% in total, -4.0% a year compounded).
Source: FDD 2026 · Item 20 (outlets opened, closed and transferred)
Item 20 (outlet counts) · unit dynamics
The growth chart
- Company-owned
- 15
- Corporate units in the system
- % franchised
- 99%
- vs corporate-owned
- Multi-unit owners
- 1.0%
Last fiscal year · Item 20 rates and pipeline
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 85
- 1 for every 14 open outlets · Item 20 Table 5
- Projected new
- 15
- Franchisor's next-year forecast
- Transfer rate
- 2.1%
- Owners selling to other franchisees
- Termination rate
- 0.4%
- Franchisor-initiated terminations
Item 20 · franchised units at year end
Franchised units fell from 1,311 in 2023 to 1,209 in 2025
Axis does not start at zero.
Source and method
Item 20 (outlet counts) outlets · 13 states
Where current outlets are
States with at least one current outlet in the Item 20 list the franchisor prints. Former owners are not counted, and this is not a list of where the franchisor may sell new units.
Current outlets (count on the tile) · 13 statesNo current outlet
22 current outlets in 13 states: the 22 on the owner list, of 1,209 franchised at year end (Item 20). 161 former owners (terminated, transferred, not renewed or otherwise left) listed separately.
Counts only, from the list the franchisor prints in Item 20. The contact details are for your own due diligence and are not shown here.
Registration-law states
States whose laws require the FDD to be filed, as the filing lists them; not where units may open.
- Michigan
- Wisconsin
The states this FDD names in its state registration list or state addenda. It is not a count of where units operate.
Government records
SBA loan data
Lenders charged off 1.6% of 319 resolved SBA 7(a) loans, below the 14.9% category median. 7(a) is the SBA's main small-business loan; a resolved loan was paid in full or charged off.
- Loans on file
- 455
- SBA 7(a) loans matched to this brand, incl. those still being repaid
- Loan volume
- $254.9M
- Average loan
- $560K
- loan volume divided by loans
- Charge-off rate
- 1.6%
- 5 of 319 resolved loans
- Paid in full
- 98.4%
- of resolved loans
- Charge-off, loans approved FY2014–FY2021
- 1.6%
- 5 of 314 resolved loans; newer loans have not had time to default, so this is not a trend
- Lenders
- 76
- Average interest rate
- 6.3%
- Jobs reported
- 5,945
- Lender concentration
- 25%
- top lender's share
Cumulative: every 7(a) loan matched to this brand in the SBA’s FOIA files, approved FY1991 onward. Historical lending data, not predictive of future performance. How SBA charge-off rates are calculated
Benchmark: the median Health & Fitness brand charges off 14.9% (35 brands with a published rate, same cumulative window and source). This brand is 13.3 points below it.
The approval-year breakdown covers 319 resolved loans and 5 of the 5 charge-offs (FY2013 to FY2021).
SBA 7(a) · charge-off rate by approval year
Orangetheory Fitness: below all franchise loans in each of the 7 rated years
Hollow rings on the axis: years with fewer than 10 resolved loans, not rated (too few to judge; recent years are too early to judge while loans are still being repaid). Their numbers are in the table.
Show the numbers by year
| Year | Resolved | Charged off | Rate |
|---|---|---|---|
| 2013 | 5 | 0 | Too few |
| 2014 | 34 | 0 | 0.0% |
| 2015 | 50 | 2 | 4.0% |
| 2016 | 66 | 0 | 0.0% |
| 2017 | 80 | 2 | 2.5% |
| 2018 | 51 | 0 | 0.0% |
| 2019 | 19 | 1 | 5.3% |
| 2020 | 10 | 0 | 0.0% |
| 2021 | 4 | 0 | Too early |
Dashed line: all franchise 7(a) loans approved the same year.
Source and method
Top lenders financing Orangetheory Fitness franchisees Each lender’s rate counts only its own resolved loans; a 0.0% often means few of that lender’s loans have been resolved, not that none will fail. A lender with fewer than 10 resolved loans reads “Too few”.
Showing 3 of 76 lenders. The full SBA lending report below lists the top 10 by loan count, with states and the yearly trend.
Explore lender portfolios on Bank Reports or regional data on State Reports.
With a charge-off rate of 1.6% on 319 resolved loans, very few of this brand's SBA 7(a) loans have been charged off.
What are the risks?
Main risk: a shrinking system. Franchised outlets fell from 1,311 to 1,209 over the two years to 2026.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Verdict grade + FDD Items 3 (litigation), 4 (bankruptcy), 8 (required suppliers), 16 (what you may sell), 21 (audited financials)
Risk and legal
Grade A: Strongest tier, 73/100 (category median 46); the full grade is at the top of the page.
How the grade is built
Why an A, factor by factor
- Financial health NeutralAudited financials; no going-concern doubt; statements are the parent's, so this stays near neutral
- Unit economics Weighs on itAvg gross sales $802K on a $935K investment midpoint, 0.9x (gross sales, not profit)
- Unit growth Weighs on it, weakest dimension-102 franchised outlets over the two years to 2026 (1,311 to 1,209, -7.8% in total, -4.0% a year compounded); turnover 7.1%
- Scale Helps1,209 franchised units, +15 company-owned (1,224 in all); franchising since 2019
- Legal Neutral1 matter naming the franchisor among the Item 3 matters we list (under 0.1 per 100 outlets); a bankruptcy disclosed in Item 4 (an officer's)
- Transparency HelpsItem 19 discloses financial performance; audited financials
- Adjustments after the six dimensions (+10 points)SBA loan record: the SBA charge-off rate (1.6% on 319 resolved loans) is under 2%, a range the score counts in a brand's favour, so it added 10 points.
From the six scored dimensions, an editorial assessment, not investment advice. How the score is built
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
1) Rpash Inc./Regelean v. UFG (AAA 2016): franchise territory misrepresentation claim; settled with $34,200 payment and transfer fee waiver. 2) Illinois v. The Bar Method Franchising Inc. (2009); franchise registration violation; consent decree with $5,000 penalty. 3) NY AG v. The Bar Method Inc./Carl Diehl (Assurance No. 08-108); franchise registration violation; AOD with $2,500 payment.
Bankruptcy (Item 4)
Subject: an officer. An officer’s own bankruptcy or a company an officer ran, not the franchisor’s
Thomas Leverton (CEO of parent companies) was CEO of CEC Entertainment, Inc. from July 2014 to February 2020. Approximately 4 months after he left, CEC Entertainment filed Chapter 11 bankruptcy (Case No. 20-33163, June 24, 2020). Plan confirmed December 15, 2020; discharge December 30, 2020.
Audited financials (Item 21)
Yes · PricewaterhouseCoopers LLP
Franchisor revenue (Item 21)
The revenue figures are in the Franchisor tab, under The franchisor.
Franchisor entity revenue (not unit-level)
Audited consolidated financial statements are for Anytime Fitness, LLC and Subsidiaries (the AFLLC manager providing required support/management services to OTF Franchisor, LLC under a management agreement), not the franchisor entity itself. Figures reported in thousands of US dollars; converted to dollars. Total revenues for FY2025 of $375,934K comprise franchise royalties $172,308K, franchise fees $24,440K, sales $95,031K, advertising fund revenue $15,979K, vendor rebates $65,858K, and other revenues $2,318K. The Company reports a member's deficit (negative equity) of $(932,047)K driven by ~$945M long-term debt. A separate guarantor entity, SEB Franchising Guarantor LLC, has $5,000K member's equity and minimal activity.
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results; the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
Ask what the franchisor earns on the supplies it sells you or the rebates it takes (Item 8).
- Franchisor sells you products: Yes
- Franchisor takes supplier rebates: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Notes from the filing review · not the score inputs
- 01MEDNet income not disclosed in Item 19 prevents ROI analysis; only average gross sales of $802,145 provided without profitability metrics
- 02HIGHMultiple litigation actions including settled arbitration for demographic misrepresentation, permanent Illinois injunction for FDD violations, and NY Assurance of Discontinuance for unregistered sales — suggests compliance and disclosure issues
- 03MINORHigh total investment ($765K – $1.1M) combined with 8% royalty creates significant fixed costs with unclear profit margins
Severity inferred from the FDD text · not a regulatory classification
Litigation case detail3 matters · Item 3
Litigation cases
The franchisor and its predecessor
Concluded (1)
Rpash, Inc., David Regelean, and Tammie Regelean v. Ultimate Fitness Group, LLC and Dan Adelstein
concludedUltimate Fitness Group, LLC · filed 2016-01-28 · American Arbitration Association · 01-16-0000-3280
“… (Case No. 01-16-0000-3280, American Arbitration Association, filed Janua”Page 15 of the 2026 FDD, Item 3
Outcome: “The arbitration was dismissed by the claimants with prejudice on January 5, 2017. The foll”
Parent, affiliates, master franchisor and subfranchisor
Concluded (2)
Illinois v. The Bar Method Franchising Inc. and The Bar Method Inc.
concludedGovernment or regulatory action · The Bar Method Franchising Inc.; The Bar Method Inc. · filed 2009-02-09 · Seventh Judicial Circuit of Illinois · 2009CH 0125
“… (Case No. 2009CH 0125, Seventh Judicial Circuit of Illinois, filed February 9, 2009). The Il”Page 16 of the 2026 FDD, Item 3
Outcome: “Defendants agreed to the entry of a Final Judgment and Consent Decree in which, while not admitting”
In the Matter of the Investigation by Andrew Cuomo, Attorney General of the State of New York, of The Bar Method Inc. and Carl Diehl
concludedGovernment or regulatory action · The Bar Method Inc.; Carl Diehl (Vice President) · Office of the Attorney General of the State of New York · Assurance No. 08-108
“… (Assurance No. 08-108). On April 2, 2”Page 16 of the 2026 FDD, Item 3
Outcome: “TBM and Mr. Diehl, as its Vice President, entered into an Assurance of Discontinuance (“AOD”) under which, wit”
Item 3 lists the litigation the franchisor must disclose; a matter against a parent, an affiliate or a named officer is not a matter against the franchisor, and pending claims are allegations, not findings.
What are you signing up for?
Ongoing fees run about 11.0% of sales (royalty + ad fund), before your own operating costs.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12 (territory), 15 (owner participation) and 17 (renewal, termination and disputes)
Contract and territory detail
| Allowed renewals | 1 |
|---|---|
| Protected territory | Yes |
| Exclusive territory | No |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Who runs it (Item 15) | A manager may run it |
| Non-compete (years) | 2 years |
| Non-compete (miles) | 10 mi |
| Right of first refusal | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 5 days |
| Termination grounds | 15 |
| Curable defaults | 3 |
| Mandatory arbitration | Yes |
| Arbitration location | Palm Beach County, Florida |
| Jury trial waiver | No |
| Governing law | FL |
Items 5 (initial fees), 7 (startup costs), 12 (territory) and 20 (outlet counts) · development agreement
Area development (several units)
The filing offers a development agreement for several units. If you miss the schedule, the development agreement can be ended.
Every term, with its page
- Item 7 for the agreement
- $150K – $238K to sign the development agreement, before any unit's own Item 7 total.
2026 FDD p.27
“Total (2) $150,000 $237,500”Open p.27 in the filing - If you miss the schedule
- The development agreement can be ended.
2026 FDD p.51
“If you fail to meet the terms of the Development Schedule or you fail to develop a Studio on or before the required opening date in your Franchise Agreement, we can terminate your Area Development Agreement and/or Franchise Agreement(s) in their entirety and you are not entitled to a refund of any of the Development Fees or Initial Franchise Fees paid.”Open Item 12, p.51 in the filing - Signed, not yet open
- 85 franchises sold but not open at year end (Item 20, Table 5; see Growth). Ask how long they have been waiting and why.
Each unit still needs its own Item 7 investment on top of the development fee. Have a franchise attorney read the schedule and the default terms before you sign.
Items 10 (financing), 11 (training and support)
Training and operations
- Classroom training
- 22 hrs
- On-the-job training
- 0 hrs
- Training location
- Online and/or franchisor headquarters in Boca Raton, FL
- Ongoing training
- Required
- Time to open
- 9–12 mo
- From signing to launch (FDD p.45)
- Site selection
- Franchisee selects, franchisor approves
- Franchisor financing
- Not offered
- Item 10
- POS system
- MindBody Online (MBO)
- Operating tech stack
Items 5 (initial fees) & 11 (training and support)
Franchisor support
Item 20 (outlet counts) · call current owners
Franchisee contacts
Who can you call before you sign?
22 current outlets listed
Records carry a phone number, city and state (city on 182 of 183). 18 of 183 also name the franchisee. 183 records: 22 current outlets + 161 former owners (terminated, transferred, not renewed or otherwise left). From the filing's Item 20 (the outlet list); the FDD itself is the free source. Our list covers 22 of the 1,209 franchised outlets Item 20 counts at year end; the owner exhibit prints the rest without a usable phone number, or omits them.
For your own due-diligence calls only. Not for telemarketing, marketing lists, or automated or prerecorded calls or texts.
One-time · CSV download · full refund within 7 days if the data does not match the FDD. Some numbers, especially for former owners, may be outdated.
Frequently asked questions
How much does it cost to open a Orangetheory Fitness franchise?
Per the 2026 FDD, the total investment to open a Orangetheory Fitness franchise ranges from $765K to $1.1M, with an initial franchise fee of $60K. This is the Item 7 total in the Franchise Disclosure Document (FDD): the startup costs the franchisor lists, such as build-out, equipment, inventory and working capital. The filing says these totals do not include real estate.
What do Orangetheory Fitness franchise owners earn?
According to Item 19 of the Orangetheory Fitness FDD, average gross sales were $802K (Item 19 group “All Franchised Studios”, 1,189 outlets; gross sales, not profit). The median is $751K. What an owner keeps depends on location, operating costs and management.
Who owns Orangetheory Fitness?
Orangetheory Fitness is franchised by OTF Franchisor, LLC. Its parent company is Purpose Brands Holdings, LLC. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Orangetheory Fitness FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Orangetheory Fitness FDD and qualifies whose outlets they describe.
What is Orangetheory Fitness' franchise failure rate?
There is no published franchise failure rate. What is measurable is Orangetheory Fitness' SBA charge-off rate: 1.6% on 319 resolved loans. Put plainly: 1 in 63 SBA 7(a) loans to Orangetheory Fitness owners charged off (5 of 319 resolved loans, approved since FY1991); loans approved FY2014–FY2021: 5 of 314 resolved loans charged off (1.6%); newer loans have not had time to default, so this is not a trend. The SBA charge-off rate is the share of a brand's resolved SBA 7(a) loans to its franchisees that the SBA wrote off, including purchased guarantees. Resolved means paid in full or charged off; active loans are excluded because their outcome is not yet known. It is a lending outcome, not a count of closed businesses. A franchisee can repay and close, or default and keep trading.
How many Orangetheory Fitness franchise locations are there?
Per the 2026 FDD, Orangetheory Fitness has 1,209 franchised units and 15 company-owned (1,224 in all). In the latest year, the number of franchised outlets fell by 74 (13 opened, 87 closed).
Is Orangetheory Fitness a good franchise to buy?
FranchiseVerdict gives Orangetheory Fitness an A Verdict grade (Strongest tier) with a verdict score of 73 out of 100 (higher is better), an editorial assessment, not investment advice. Helped by scale and transparency. Held back by unit economics (avg gross sales $802K on a $935K investment midpoint, 0.9x: gross sales, not profit) and unit growth. The “Why an A” section on this page lists all six dimensions and any adjustment. Speak with current franchisees before making any investment decision.
Other Health & Fitness franchises
Similar investment first, then by grade
This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.