Bottom line
- Total investment $765K – $1.1M including a $60K franchise fee, 8.0% ongoing royalty.
- Average unit revenue of $802K/year (median $751K).
- Rated STRONG with a risk score of 52/100.
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one ORANGETHEORY FITNESS unit return on the cash you put in?
Unlevered ROIC · per unit
20%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 ORANGETHEORY FITNESS units return on equity?
Equity IRR · 5-yr
32.9%
4.14× MOIC
Year-1 DSCR
2.46×
EBITDA ÷ debt service
Equity required
$6.2M
on $16.0M purchase
Total debt
$9.8M
SBA $5.0M + senior + seller note
Overview
About
Orangetheory Fitness franchisees operate boutique fitness studios offering science-backed group fitness classes (rowing, running, strength training) combining heart-rate monitoring technology with personal coaching. Daily operations include managing studio staff, marketing to local members, conducting classes, monitoring member engagement via OTBeat technology platform, and managing recurring membership billing.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 5 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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
System contraction, undisclosed profitability, multiple litigation actions around compliance, and going concern status create meaningful risk despite protected territory and established brand.
Score breakdown · what drove the 52 / 100 rating
- 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
- 05HIGHGoing Concern status raises questions about franchisor's financial stability and long-term viability
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
98 numbers
One-time purchase · CSV download · Validation questions included
FDD download
ORANGETHEORY FITNESS · FDD (2026) PDF