Orangetheory FitnessFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
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]. Verdict grade: A. Run a live ROI scan →
Data last verified June 21, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $765K – $1.1M
- 89th pct Health & Fitn…
- Avg gross sales
- $802K
- 41st pct Health & Fitn…
- Royalty
- 8.0%
- 55th pct Health & Fitn…
- Units
- 1,224
- 98th pct Health & Fitn…
- SBA default
- 1.6%
- system-wide median varies by category
Quick verdict · Health & Fitness · color = vs category peers
Green = >15% above Health & Fitness avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Only 1.6% of 455 SBA loans charged off, well below the 16% franchise average.
Franchised units fell from 1281 to 1209 over 3 years. Investigate why operators are leaving.
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
Large franchise systems benefit from brand recognition, supply chain leverage, and proven operations.
Bottom line
- Total investment $765K – $1.1M including a $60K franchise fee, 8.0% ongoing royalty.
- Average unit revenue of $802K/year (median $751K).
- Verdict A (Top Quintile) with a risk score of 37/100. SBA loan charge-off rate of 1.6% across 455 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- Auditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- OTF Franchisor, LLC
- Parent company
- Purpose Brands Holdings, LLC
- Ultimate parent
- Ultimate Fitness Holdings, LLC
- Predecessor
- AFLLC
- Prior franchisor entity
- CEO title
- Chief Executive Officer and Manager
- 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
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
- ⚠ Going-concern note
- Disclosed in FDD 2026
- Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.
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).
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.
- CEO
- Thomas Leverton
- Headquarters
- FL
- Founded
- 2018
- FDD year
- 2026
- States available
- 49
FDD Item 7 · 2026 filing · 16 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.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$217K
27.0% margin
Unlevered ROIC
20%
EBITDA / total invested capital
Payback
5.1 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $765K – $1.1M
- Below avg, review vs category
- Liquid capital req'd
- $171K – $171K
- Below avg, review vs category
- Franchise fee
- $60K – $60K
- Below avg, review vs category
- Royalty
- 8.0%
- Gross Sales · 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 |
| Training fee | $250 |
| Transfer fee | $30K |
| Renewal fee | $30K |
| Total fee load | 11.0% of rev |
Financial Performance
- Avg gross sales
- $802K
- Per unit, per year
- Median gross sales
- $751K
- Item 19 type
- gross_sales
- Sample size
- 1189 units
- vs category median 11 · large
- Range (low → high)
- $156K→$2.9M
- Cohort dispersion (min → max)
- Quartile band
- $476K→$1.2M
- Bottom 25% → top 25%
- Reporting year
- 2025
- Fiscal year the figures cover
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 180 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.
vs Health & Fitness averages
How Orangetheory Fitness Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 1,224
- Opened
- 13
- Last reporting year
- Closed
- 87
- Turnover rate
- 7.1%
- Company-owned
- 15
- Corporate units in the system
- % franchised
- 99%
- vs corporate-owned
- Multi-unit owners
- 1.0%
- Net growth (yr3)
- -5.8%
- Net unit change last year
- 3-yr CAGR
- -7.8%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 13
- Closed (3yr)
- 87
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 8
- Transfers (3yr)
- 214
- Reacquired (3yr)
- 0
- Franchisor bought back
- 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).
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%
- 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
Vintage analysis
Orangetheory Fitness charge-off rate by loan vintage
Shaded area: recent vintages with few resolved loans; rates may change as loans mature.
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.
Risk analysis
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.
Litigation (Item 3)
0 case reference(s): 0 pending, 0 settled.
Largest disclosed settlement: $34,200
Bankruptcy (Item 4)
Disclosed in last 7 years
Two officers' prior company bankruptcies disclosed: (1) Thomas Leverton (CEO of parent companies) was former CEO of CEC Entertainment, Inc., which filed Chapter 11 on June 24, 2020 (Case No. 20-33163, Southern District of Texas), with plan confirmed December 15, 2020 and discharge December 30, 2020. (2) R. John Pindred (CFO) was former officer of Family Christian, LLC, which filed Chapter 11 on February 11, 2015 (Case No. 15-00643, Western District of Michigan), with liquidation plan confirmed August 11, 2015.
Audited financials (Item 21)
Yes · PricewaterhouseCoopers LLP⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
Score breakdown · what drove the 37 / 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
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Geographic |
| Protected territory | Yes |
| 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 | 30 days |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Arbitration location | Palm Beach County, Florida |
| Jury trial waiver | Yes |
| Governing law | Florida |
| Litigation count | 3 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 73 hrs
- On-the-job training
- 8 hrs
- Training location
- On-site and at franchisor location
- Franchisor financing
- 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
FDD download
ORANGETHEORY FITNESS · FDD (2026) PDF
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.
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 1,281 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 risk score of 37 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. 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.
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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.