Franch Monsters

OTF Franchisor, LLC franchises Orangetheory Fitness, studios that offer group interval training based on heart rate zones: during workouts, members wear heart rate monitors connected to the brand's proprietary OTbeat system. Since April 2024 the franchisor has been part of Purpose Brands; its affiliates franchise Anytime Fitness, The Bar Method, and Waxing the City.

Key figures

Investment

from $764,577

Payback

not disclosed

Royalty

8% of Gross Sales

Initial fee

$59,950

Listing updated October 21, 2026. Investment, royalty, and initial fee are from the franchisor's Franchise Disclosure Document (FDD) and may be out of date; check them with the franchisor and in its current FDD. Franch Monsters is not affiliated with Orangetheory Fitness; this page is not an offer to sell a franchise.

About the franchise

Item 20 of the 2026 Franchise Disclosure Document (FDD) counts 1,333 Orangetheory studios in the USA at the end of 2023 (1,311 franchised and 22 affiliate-owned), 1,298 at the end of 2024, and 1,224 at the end of 2025 (1,209 franchised and 15 affiliate-owned). Item 19 of the same FDD reports total Gross Sales and monthly member counts for the franchised studios that were open and operating throughout the 12 months ended February 28, 2026, both for all of these studios and by Gross Sales quartile; it does not reflect costs or expenses. The franchisor, OTF Franchisor, LLC, is a Delaware company that has offered Orangetheory franchises since March 2019 and does not operate any studios itself; from July 2010 to March 2019, franchises were sold by its affiliate and predecessor, Ultimate Fitness Group, LLC. On April 2, 2024, OTF Franchisor became an indirect, wholly owned subsidiary of Purpose Brands Holdings, LLC, and the franchisors of Anytime Fitness, The Bar Method, and Waxing the City became its affiliates (FDD Items 1, 19, and 20).

The investment shown on this page is for a single studio under a Franchise Agreement (Item 7 of the FDD); the fees for developing three or more studios under an Area Development Agreement, the payments due before and after opening, the capital requirements, and the opening deadlines are in the sections below.

On its franchising page for the USA (orangetheory.com/en-us/franchising), Orangetheory says that "development opportunities are limited" (checked October 19, 2026).

Included in the franchise

Initial Training Program for your first studio, for all owners who sign the Franchise Agreement, including the Principal Owner: currently four days, online or at the franchisor's headquarters in Boca Raton, Florida; up to three trainees at no charge (you pay travel and living expenses), and $1,000 per session for each additional, repeat, or replacement trainee
Studio Launch Training (sales, operations, and OTFit certificate training) for up to eight fitness coaches and four sales associates, online and at your studio; no charge if an area representative provides it; otherwise, the franchisor charges the travel and lodging costs of its employees who provide the training, capped at $5,000
Presales Launch Training for you and all owners and employees of your first studio, to help market the studio and sell memberships before it opens; no charge if an area representative provides it, otherwise $2,500
Online access to the Manuals through the OTCONNECT intranet and the Orange University learning platform, part of the Required Software for which you pay the monthly Technology Fee

Franchisee requirements

Liquid capital and net worth that Orangetheory's U.S. franchising page (orangetheory.com/en-us/franchising) lists under "Franchising Candidate Requirements": "$350K liquid capital with $1M net worth" (checked October 19, 2026); the FDD does not state these amounts
Enough capital for the total initial investment for a single studio in Item 7 of the FDD (see "How much does it cost to open an Orangetheory Fitness studio?" below)
A site the franchisor accepts; studios range from 1,750 to 4,800 square feet, and a typical studio occupies about 3,100 square feet (FDD Items 1 and 11)
Meet the minimum annual Gross Sales set in the Franchise Agreement (the Performance Standards), which rise in the second and third years and then stay at the third-year level; each year is counted separately, with Year 1 beginning on the day the studio first opens for member workouts. These are requirements of the agreement, not an estimate of what a studio will earn. For any year the studio falls short, you must pay the difference between the Royalties paid and those you would have paid at the standard, and develop and carry out a business plan the franchisor approves in writing to improve performance; after two consecutive years below the standards, the franchisor may end your protected rights in the Territory, reduce the Territory, or terminate the Franchise Agreement (FDD Items 6 and 12)

Franchise agreement

The initial term of the Franchise Agreement is 10 years from its effective date; after the lease or other agreement for the site is signed, the parties may agree on a longer term, up to 11 years, to line it up with that agreement. A franchisee who meets the conditions may acquire a successor franchise for one more 10-year term; the conditions include giving six months' notice, repairing and updating equipment, remodeling the studio premises, signing the then-current franchise agreement, which may contain materially different terms, and paying a successor franchise fee of 50% of the then-current initial franchise fee for new franchisees (FDD Items 6 and 17).

A transfer of the franchise is subject to conditions, including a transfer fee: 50% of the then-current initial franchise fee for new franchisees for a Control Transfer (a transfer of any interest in the Franchise Agreement, of the studio or substantially all of its assets, of a 20% or greater interest in the franchisee's entity, or of an ownership interest that changes control of that entity), or 25% for other transfers, except a transfer to an entity formed to operate the studio (FDD Item 6).

If the Franchise Agreement is terminated by either party, the franchisee must pay, as liquidated damages, all amounts it would have paid the franchisor for the rest of the term, including Royalties and Brand Fund Contributions calculated on the studio's average weekly Gross Sales in the six months before termination. This payment is set by Section 17(a) of the Franchise Agreement and is not listed in the Item 6 fee table. The Washington addendum to the Franchise Agreement limits it to the rest of the term or 24 months after termination, whichever is less (Franchise Agreement, Section 17(a); Washington addendum, Section 20).

Frequently asked questions

Item 7 of the 2026 FDD puts the total initial investment for a single studio from $764,577, excluding real estate purchase costs. That total includes the initial franchise fee, leasehold improvements and construction, three months' rent and a security deposit, signage, the pre-opening purchases and programs described under "What do I pay before the studio opens?", and additional funds for the first three months after opening; unless the FDD states otherwise, the costs in the Item 7 table are not refundable. OTF Franchisor does not offer financing, directly or indirectly, and does not guarantee your notes, leases, or other obligations, but Item 10 of the FDD describes its arrangements with two third-party equipment lenders: Ascentium Capital, which leases treadmills, and United Leasing, which pays the franchisor a referral fee of 1% of the amount financed (FDD Items 7 and 10).

The initial franchise fee is $59,950 for a single studio, paid in full when you sign the Franchise Agreement and not refundable. Under an Area Development Agreement for three or more studios, you pay a Development Fee instead, in full when you sign, for all the studios you commit to open; it is non-refundable. For a new franchisee, the Development Fee is $150,000 for three studios, $237,500 for five, and $47,500 for each additional studio. A new franchisee who is a current member of the U.S. military or an honorably discharged veteran pays $135,000, $213,750, and $42,750; an existing franchisee of Orangetheory or of its affiliated brands Anytime Fitness, The Bar Method, and Waxing the City that is open and operating and in good standing pays $135,000, $212,500, and $42,500; and an existing franchisee who also meets the veteran requirements pays $121,500, $191,250, and $38,250. The FDD says these Development Fees apply only to agreements signed while the franchisor offers these discounts (FDD Item 5).

Besides the initial franchise fee, before the studio opens you must buy from the franchisor's affiliate OTF Sourcing the fitness equipment, the OTbeat heart rate monitoring system, and OT Connect tablets or displays, which the FDD estimates from $114,323 for a 1,750-square-foot studio, and an initial stock of branded retail merchandise, from $3,315; these payments are non-refundable. The Technology System, including computers, TV displays, a speaker and audio system, and OT Connect tablets for treadmills and rowers, is bought or leased from a vendor the franchisor designates; the FDD estimates it from $46,760. You must also carry out a presale and grand opening program the franchisor approves, spending an amount the franchisor sets, from $36,000, over a period that runs from at least 12 to 16 weeks before opening until 30 days after it; this spending does not count toward other advertising obligations, and the parameters for the franchisor's approval to open include at least 250 qualified presale memberships. The weekly Royalty on presale revenue, the Technology Fee, and its setup fee also start before opening (see the next question), and training costs are listed under "Included in the franchise" (FDD Items 5, 6, 7, and 11; Franchise Agreement, Section 5(b)).

The Royalty is 8% of Gross Sales, paid weekly from the Franchise Agreement's effective date; Gross Sales include membership fees and other revenue from presales, so the Royalty is also due on revenue from presale memberships sold before the studio opens. Franchisees also currently contribute 3% of Gross Sales to the Brand Fund each month from the studio's opening (the franchisor may raise it to as much as 5%) and must spend the greater of 2% of the prior month's Gross Sales or $2,500 on local advertising each month; if a Co-op is formed in the area, the studio contributes the amounts its members vote, which count toward that spending. The Technology Fee is currently $899 a month from the month the Management Software account is set up, typically five months before opening, plus a one-time $575 setup fee; it is subject to an annual increase of 10%, compounded annually and cumulative, so one year's increase may exceed 10% to make up for earlier years with no increase or a smaller one. OTbeat Fees are $149 a month plus a one-time $250 setup fee, and the franchisor may raise each to as much as $500. The franchisor currently requires attendance at its Convention and training summit; Item 6 lists conference fees from $600 per person, depending on the event, and you pay travel and living expenses. Item 6 also lists ongoing purchases of products and promotional items, payable to the franchisor or its affiliate (FDD Items 5, 6, and 11; Franchise Agreement, Section 5(b)).

Orangetheory's U.S. franchising page lists $350,000 in liquid capital and a $1,000,000 net worth among its "Franchising Candidate Requirements." The 2026 FDD does not state these amounts.

Unless the franchisor sets longer deadlines for your market or circumstances, you must have a site accepted within four months of the Franchise Agreement's effective date, acquire the site and sign an approved lease or other site agreement within six months, and open the studio within 12 months. The FDD estimates the typical time from signing the Franchise Agreement or making the first payment, whichever comes first, to opening at about 9 to 12 months in most markets. If you do not open in time, the franchisor may terminate the Franchise Agreement; if your trainees do not complete the required training, it may terminate the agreement and keep the fees you paid. The initial franchise fee and all fees in Item 6 are non-refundable. Under an Area Development Agreement, if you miss the development schedule or do not open a studio by its required opening date, the franchisor may terminate the agreements, with no refund of Development Fees or initial franchise fees, and if the Area Development Agreement is terminated before all its studios are developed, you owe $10,000 in liquidated damages for each undeveloped studio (FDD Items 5, 6, 11, and 12).
Updated: October 21, 2026102 views

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