Orangetheory
Orangetheory offers fitness studios providing cardio and strength training in an energizing orange-themed environment. Known for high-intensity interval training, it operates in the health and fitness franchise sector.
About Orangetheory
Orangetheory Fitness (OTF) is a boutique fitness studio franchise, operating globally and based in Boca Raton, Florida. The first studio was established in Fort Lauderdale, Florida, in 2010 by founder, Ellen Latham. The classes are one hour long and involve two groups, one on the treadmills and the other group working with weights or on rowers. Since its founding in 2010, the chain has expanded, surpassing $1 billion in systemwide sales in 2018, with over one million members in 2020. As of 2023, Orangetheory Fitness has over 1,500 studios throughout 50 US states and 24 countries.
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Orangetheory franchise FAQ
How much does it cost to open one — the total initial investment?
The total estimated initial investment for opening one ORANGETHEORY® Studio ranges from $764,577 to $1,104,920. This includes $182,658 to $237,994 that must be paid to the franchisor or an affiliate [p.1]. Additional costs may vary based on factors such as location and size of the studio [p.26].
What is the initial franchise fee?
The initial franchise fee is $59,950 for a single Studio franchise when signing the Franchise Agreement. This fee is not refundable and may be decreased in certain circumstances, such as running a franchise marketing promotion or if you sign an Area Development Agreement to open multiple Studios [p.16]. If you commit to opening at least two Studios through an Area Development Agreement, the initial franchise fee is referred to as a Development Fee and covers all committed Studios [p.24].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 8% of the franchisee's studio's gross sales each week [p.99]. Advertising fund contributions paid by franchisees must be spent on advertising, marketing, and related activities [p.211], with specific details on how these funds are managed provided in the FDD excerpts [p.213].
How long is the initial franchise agreement, and can I renew it?
The duration of the initial franchise agreement and renewal terms are not explicitly stated in these excerpts. [p.362] mentions an automatic renewal for successive one-year Renewal Terms unless notice is given, but the initial term length is not specified. Therefore, this isn't specified in the provided excerpts.
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you can transfer ownership of your franchise except for good cause as determined by the franchisor [p.58]. However, there is a restriction on transferring this specific agreement; you may transfer any interest in any previous Orangetheory Studio franchise agreements apart from rights under this agreement, provided you comply with the transfer provisions of each agreement you seek to transfer [p.178]. Good cause for refusal by the franchisor includes but is not limited to unspecified reasons [p.5].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on any grounds available by law [p.256]. Additionally, if the franchisee fails to meet the terms of the Development Schedule or does not develop a Studio by the required opening date, the franchisor can terminate both the Area Development Agreement and Franchise Agreement(s) in their entirety, with no refund of fees paid [p.51].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
You do not receive an exclusive territory under either the Area Development Agreement or the Franchise Agreement [p.50]. However, if you sign a Franchise Agreement and we accept your site, we will define a protected territory for you based on relevant factors such as population, traffic flow, and competitor presence [p.51]. This territory is not guaranteed to be exclusive and can be modified or eliminated if you are in default under the Franchise Agreement [p.52].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training programs, studio launch, and presales launch trainings. Successful completion is required before selling memberships or advertising the studio. Ongoing support includes training for lead trainers and studio managers as needed [p.206].
How many franchised outlets are there, and how many have closed or been terminated?
As of February 28, 2026, there were 1,201 franchised Orangetheory Fitness Studios in the system. During the Relevant Time Period, 95 of these studios permanently closed, and 362 franchisees had their studios terminated, cancelled, not renewed, or otherwise ceased to do business under the franchise agreement [p.74].
Does the franchisor share any financial performance or earnings information?
The franchisor may provide actual records of an existing outlet if you are purchasing one. However, they do not make representations about a franchisee's future financial performance or past financial performance of outlets in general [p.66]. Any financial performance information provided must have a reasonable basis and be included in the disclosure document [p.64].
What am I restricted to selling, and where must I buy supplies?
You are restricted to selling only the products, services, and classes that the franchisor has approved in writing. Additionally, you must offer specific products, services, and classes as required by the Manuals or other written communications from the franchisor [p.104]. You must purchase Branded Products from suppliers designated or approved by the franchisor, which may include them, their Affiliates, or licensees [p.58]. This isn't specified in the excerpts regarding where you must buy supplies beyond the requirement to purchase Branded Products as directed.