How Much Do Orange Theory Franchise Owners Make?

Franchising has tons of possible benefits. You can get a backbone of support for management, marketing, and financing.

You know this already.

But you may not know how to find out how much top fitness franchise owners make, such as OrangeTheory.

The average income for a franchise owner in the United States is approximately $70,000 per year. In the right location and with excellent management, it may be possible for an owner of an OrangeTheory fitness franchise to make as much as $200,000 a year, or more.

Along with this, you also follow the guidelines of your franchise and train new employees the same way. When opening a franchise, the groundwork has been laid for you to run a successful business.

Regardless of the additional help you get when starting a franchise, the ultimate goal of every business owner is to be profitable.

In today’s society, fitness franchises can become one of the most profitable franchises to be an owner of. People want to become more active and healthier, and often look to gyms to help them achieve their weight loss goals, as in the case with this feature on OrangeTheory.com.

Because of this trend, it’s no shock that becoming a gym franchise owner has the opportunity of making you extremely profitable. A successful franchise like Orange Theory, for example, is a great franchise to be a part of. For the sake of this article, let’s talk about how much Orange Theory franchise owners make, and if it’s something to consider doing.

What is an OrangeTheory Franchise?

To truly understand how much money Orange Theory owners make, you must understand the breakdown of a franchise and what exactly these owners are investing in. Franchising is the practice of distributing the brand and its services into multiple outlets to increase marketing share. The franchisor will sell its brand and name to another business owner, giving them the right to use the franchisor’s goods and services under a trademark. Franchises are everywhere around us, from hotels to fast-food chains to gyms like Orange Theory.

What is Orange Theory?

Orange Theory is a fitness franchise with over 1300 locations throughout the United States and other countries. The gym is based on 60-minute, high-intensity interval training sessions (also known as HIIT) by combining cardio and weight lifting exercises. Orange Theory is science-backed fitness based on the theory of excess post-exercise oxygen intake which means increasing metabolism after high-intensity training. Orange Theory classes are based on five zones that correlate to your heart rate. The zones range from least intense to maximum effort, which is what they use to measure exertion in each workout class.

Orange Theory is known for its intense, calorie-burning workouts. When you try out your first class, you’re given a heartrate monitor and discuss your fitness goals with your trainer that will help guide your workout plan. No class is the same at Orange Theory, but they all revolve around the same thing: increased heart rate. Due to the diverse, highly researched training sessions, the price for becoming a member at Orange Theory is not cheap. To be able to take a class every day, you must pay a fee of $160 per month. This is only the member cost. What are the investments of profits of being an owner?

How Much Does an Orange Theory Franchise Cost?

The initial investments to be an owner of Orange Theory seem astronomical, but actually have a reasonable cost-to-profit ratio. To open an Orange Theory franchise, you must have a net worth of at least the upper $400,000s. Initial investments may even be more than that depending on market availability and studio location. In addition to this, Orange Theory does not offer direct or indirect financing for the investment costs. To start, you must make an initial investment into the franchise of $60,000. Then, you must acquire commercial space of at least 2600 to 4000 square feet. This can be anywhere from $3000 to even $10,000 a month. Once the space is secured, you will need to hire architects and Orange Theory designers to make the space branded as the franchise. The cost of the leasehold improvements depends on the condition and size of the space, but can be anywhere from $300,000 to $900,000.

Once the studio looks the part, you must invest in the right equipment and technology to run the place efficiently. After that comes retail merchandise, training of employees, and other licensing to legally own and run a fitness franchise. As you can see, there are a lot of initial investments you need to make before the grand opening. All of this adds up to about $500,000 in the best-case scenario.

How Much Do Orange Theory Franchise Owners Make?

After reading about the initial investment fees to be a franchise owner at Orange Theory, it may be hard to see the return on investment opportunity after tallying the final number. The average salary for a franchise owner in the United States is approximately $70,000 per year. With a lucrative franchise such as Orange Theory, owners of the fitness brand make approximately $200,000 a year. Due to profit sharing, commission sharing, cash bonuses, and stock opportunities, owning an Orange Theory franchise can be extremely profitable when compared to the investment.

Orange Theory is a globally known, strong brand name that’s capable of acquiring thousands of memberships per thousands of locations. It should not be too shocking that the return on investment opportunities are well worth the initial fees. Orange Theory owners make significantly more than the average franchise owner.

The Overall Conclusion

Like any job, it takes a lot of hard work, patience, and dedication to own an Orange Theory franchise. For the initial starting costs along, you need to be a well-developed investor with a bank account to back it up. However, with trained staff, a great location, and great management skills, you will be able to make a profit on your investment within a couple of years. If you have the means, consider being an Orange Theory franchise owner. The franchise is not going away any time soon.

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