Snap Fitness
Snap Fitness offers 24/7 gym access, group fitness classes, and personal training using advanced technologies. Known for high-quality equipment and flexible membership options, it operates in the fitness franchise sector.
About Snap Fitness
Snap Fitness is a privately owned global chain of 24/7 fitness centers headquartered in Chanhassen, Minnesota, United States. It was founded in 2003 and currently operates over 1,000 locations in over 17 countries across 5 continents, with almost a million members.
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Snap Fitness franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a single Club ranges from $554,731 to $827,621. This range includes the initial franchise fee that is fully earned and non-refundable upon payment [p.1].
What is the initial franchise fee?
The initial franchise fee is payable in full when the Franchise Agreement is signed and is considered fully earned and non-refundable upon payment [p.15, p.60, p.172, p.153]. However, it has been amended to state that no Initial Franchise Fee shall be due under the Franchise Agreement [p.208].
What are the ongoing royalty and advertising fees?
The ongoing fees include a Royalty Fee, Technology Fee, and National Marketing Fee, which are due beginning the month after your club opens and each following month through the term of the agreement. Additionally, franchisees contribute $100-$400 per month to an advertising fund that the company may use for advertising initiatives at its discretion [p.92].
How long is the initial franchise agreement, and can I renew it?
The duration of the initial franchise agreement isn't specified in the excerpts. Regarding renewal, the franchisee desires to renew its franchise rights for the Club under the terms and conditions of the old franchise agreement, but must sign Snap Fitness's current form of franchise agreement by a certain date as part of the renewal process [p.208].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you must first offer to sell your interest to the franchisor if you propose to transfer or assign the franchise agreement, including transfers contemplated by Section 11.D or described in Section 11.A. This requirement applies whether the transfer is due to a change in control, insolvency, or other circumstances. The franchisor has the right of first refusal under these conditions [p.125]. Good cause for refusing such a transfer includes but is not limited to unspecified factors [p.37].
On what grounds can the franchisor terminate the agreement?
This isn't specified in the excerpts.
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. However, you have a protected area (the Designated Area) where neither the franchisor nor its affiliates will develop or operate, or grant to others, additional SNAP FITNESS Clubs, except for specified 'Special Sites.' This protection is not contingent on sales volume or other performance metrics and does not allow for sublicensing or acquiring additional franchises. [p.34, p.149]
What training and ongoing support does the franchisor provide?
The franchisor provides initial training that includes 26 hours of training via on-site or virtual sessions, one-on-one calls, video courses, site visits, and workshops. Topics cover areas such as competitive analysis, lead generation/marketing processes, sales process, personal training, club culture, member retention, and software training [p.32]. Ongoing support includes webinars with educational content, franchisee panels, and the right to offer virtual or in-person training at their discretion [p.31].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts. The provided FDD sections discuss future projections and lists of outlets but do not give specific numbers of current franchised outlets or those that have closed or been terminated.
Does the franchisor share any financial performance or earnings information?
The franchisor may provide actual records of an existing outlet if you are considering purchasing one. Additionally, they can supplement the information provided in Item 19 with possible performance data at a specific location or under certain circumstances, but this must have a reasonable basis and be included in the Disclosure Document [p.41]. For earnings information, the company had a 40% equity interest in 9Round Franchising, LLC, and shared some of its financials related to that investment [p.90], though specific earnings data for outlets are not detailed in these excerpts.
What am I restricted to selling, and where must I buy supplies?
You are not specifically restricted to selling any particular items; however, you may need approval from the franchisor to purchase products or services from unapproved suppliers [p.24]. As for supplies, you might have to buy or lease certain items from the franchisor or a limited group of suppliers they designate, which could be more expensive than other options [p.3].