Orangetheory Fitness Franchise Cost, Revenue & Review 2026
- Investment
- $765K – $1.1M
- Disclosed sales
- $802K
- gross sales, not profit
- SBA charge-off
- 1.6%
- on 455 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
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
A ORANGETHEORY FITNESS franchise requires a total initial investment of $765K – $1.1M, including a $60K franchise fee and an ongoing 8.0% royalty[2]. Per the 2026 FDD, average unit revenue was $802K[2]. SBA 7(a) loans show a 1.6% charge-off rate across 455 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
Evidence: 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
- Investment
- $765K – $1.1M
- 91st pct Health & Fitn…
- Avg gross sales
- $802K
- 29th pct Health & Fitn…
- Royalty
- 8.0%
- 72nd pct Health & Fitn…
- Units
- 1,224
- 97th pct Health & Fitn…
- SBA charge-off
- 1.6%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Health & Fitness · color = vs category peers
Green = favorable by >10% vs Health & Fitness median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $765K – $1.1M including a $60K franchise fee, 8.0% ongoing royalty.
- RETURNSAverage unit revenue of $802K/year (median $751K).
- RISKVerdict A (Strongest tier), verdict score 73/100 (higher is better). SBA loan charge-off rate of 1.6% across 455 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHNegative: net -74 franchised outlets in the latest year (13 opened, 87 closed); 85 signed but not yet open (Item 20).
- FLAGItem 4 discloses a bankruptcy of an officer or of a company an officer ran, not of the franchisor. Review Item 4 for details.
Item 1 · 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
- vs $317.0M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Independent franchisee associations
- Franchise Advisory Council (FAC)
- Independent Franchisee Association
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
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.
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
- Headquarters
- FL
- Founded
- 2018
- FDD year
- 2026
- States available
- 49
Can you afford it, and what does the money buy?
Entry cost runs 138% above the typical health & fitness franchise.
Source: FDD 2026 · Items 5–7
Full Item 7 breakdown16 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $60K | $60K | |
| 3 Months Rent + Security Deposit | $21K | $57K | |
| Architect & Design Fees | $10K | $24K | |
| Furniture, Fixtures & Equipment | $10K | $19K | |
| Construction Management Fees | $0 | $13K | |
| Office & Cleaning Supplies | $3K | $4K | |
| Leasehold Improvements and Construction Costs | $245K | $418K | |
| Fitness Equipment (including installation) and OTbeat System | $119K | $163K | |
| Initial Inventory of Orangetheory Fitness Retail Merchandise | $3K | $6K | |
| Interior and Exterior Signage | $18K | $28K | |
| Technology System | $47K | $62K | |
| Pre-Sale and Grand Opening Advertising | $36K | $45K | |
| Initial Training Expenses and Studio/Presales Launch Trainings | $5K | $9K | |
| Miscellaneous Opening Costs | $12K | $20K | |
| Insurance | $4K | $5K | |
| Additional Funds - 3 Months | $171K | $171K | |
| Total initial investment | $765K | $1.1M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $765K – $1.1M
- Bottom third — review vs category
- Liquid capital req'd
- $171K – $171K
- Bottom third — review vs category
- Franchise fee
- $60K – $60K
- Bottom third — review vs category
- Royalty
- 8.0%
- typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 11.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 8.0% of gross sales |
| Marketing / ad fund | 3.0% of gross sales |
| Technology fee | $899 |
| Transfer fee | $0 |
| Renewal fee | $0 |
| Inventory (initial) | $3K – $6K |
| Total fee load | 11.0% of rev |
What do units actually make?
Average unit sales run 68% above the health & fitness norm.
Source: FDD 2026 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for ORANGETHEORY FITNESS until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$1.1M
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one ORANGETHEORY FITNESS unit return on the cash you put in?
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.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
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
Financial Performance
- Avg gross sales
- $802K
- Per unit, per year
- Median gross sales
- $751K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross sales
- Sample size
- 1,189 outlets
- vs category median 11 · large
- Range (low → high)
- $156K→$2.9MCited, not corroborated — printed on page 65 of the 2026 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Quartile band
- $476K→$1.2M
- Bottom 25% → top 25%
- Reporting year
- 2026
- Fiscal year the figures cover
- Source filing
- FDD 2026
- The FDD edition these figures were read from
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
Compared against 173 Health & Fitness brands
Revenue is only 0.9x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $802K/year in gross sales. Revenue-to-investment ratio: 0.9x.
Fee burden
Total ongoing fee load of 11.0% — above the Health & Fitness median of 9.0%.
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System contracting at -7.8% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Multi-unit rate
Only 1% of franchisees own multiple units. Could indicate challenging economics or a young system where operators haven't had time to expand.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
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.
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 1,224
- Opened
- 13
- Last reporting year
- Closed
- 87
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 26
- Term expired, not renewed (per Item 20)
- Turnover rate
- 7.1%
- Company-owned
- 15
- Corporate units in the system
- % franchised
- 99%
- vs corporate-owned
- Multi-unit owners
- 1.0%
- Net growth (3-yr)
- -7.8%
- Net unit change over 3 years
- 3-yr CAGR
- -7.8%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 26
- Transferred
- 214
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 85
- 0.07 per open outlet · 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
- Ceased ops
- 4.3%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 36 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Available to sell in · Item 12
- Michigan
- Wisconsin
States where the franchisor is registered to sell new franchises (FDD registration filings).
Where the owners are · Item 20 owner list
37 current owners across 20 states; 146 former (terminated, transferred or not renewed) listed separately.
- FL 5
- IL 5
- NY 4
- CA 3
- CO 3
- OH 3
- AL 1
- AZ 1
- GA 1
- IA 1
- ID 1
- IN 1
- +8 more states
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 455
- Loan volume
- $254.9M
- Median loan
- $487K
- 50th percentile
- Charge-off rate
- 1.6%
- on 455 loans · rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 98.4%
- 5-yr charge-off
- 3.0%
- Loans approved 2021+
- Active lenders
- 76
- Defaults
- 5
- Typical loan rate
- 6.3%
- avg rate to borrowers
- vs industry
- N/A
- NAICS 7139
- Jobs supported
- 5,945
- 2.5 per loan
- Lender concentration
- 25%
- top lender's share
Borrower mix: 0% went to startups / new businesses, 100% to established operators
Vintage analysis
Orangetheory Fitness charge-off rate by loan vintage
Shaded area: recent vintages with few resolved loans; rates may change as loans mature.
Top lenders financing Orangetheory Fitness franchisees
Showing 3 of 76 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
With a 1.6% charge-off rate across 455 loans, banks have historically viewed this brand favorably for lending.
What could kill this investment?
SBA loans charge off at 1.6% — 90% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
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)
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
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 73 / 100 verdict
- 01MEDUnit count declined 5.8% YoY (1224 to ~1152 units) indicating system contraction and potential market saturation
- 02MEDNet income not disclosed in Item 19 prevents ROI analysis; only average revenue of $802,145 provided without profitability metrics
- 03HIGHMultiple 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
- 04MINORHigh total investment ($764K-$1.1M) combined with 8% royalty creates significant fixed costs with unclear profit margins
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 11.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 5 days |
| Termination groundsℹ | 15 |
| Curable defaultsℹ | 3 |
| Mandatory arbitration | Yes |
| Arbitration location | Palm Beach County, Florida |
| Jury trial waiver | No |
| Governing law | FL |
| Litigation count | 3 |
View Item 3 litigation summary
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.
Items 10, 11
Training & 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
- 10 mo
- From signing to launch
- Site selection
- Franchisee selects, franchisor approves
- Franchisor financing
- Not offered
- Item 10
- POS system
- MindBody Online (MBO)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: MindBody Online (MBO)
Item 20 · call current owners
Franchisee Contacts
183 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a ORANGETHEORY FITNESS franchise?
The total investment to open a ORANGETHEORY FITNESS franchise ranges from $765K – $1.1M, with an initial franchise fee of $60K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do ORANGETHEORY FITNESS franchise owners earn?
According to Item 19 of the ORANGETHEORY FITNESS FDD, the average gross sales per unit is $802K. The median is $751K. Note: this is gross revenue, not profit. Actual owner earnings vary based 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's franchise failure rate?
Based on SBA 7(a) loan data, ORANGETHEORY FITNESS has a charge-off rate of 1.6% across 455 loans, meaning 1.6% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many ORANGETHEORY FITNESS franchise locations are there?
As of their most recent FDD filing, ORANGETHEORY FITNESS has 1,224 total units in the United States, including 1,209 franchised units and 15 company-owned units. 13 new units were opened in the latest reporting year.
Is ORANGETHEORY FITNESS a good franchise to buy?
FranchiseVerdict rates ORANGETHEORY FITNESS as a A-grade franchise with a verdict score of 73 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). 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.