Launching its franchise model in 2014, F45 calls itself one of the fastest-growing fitness franchises in the world. F45 gyms offer high-intensity, functional, and circuit training alongside high-grade equipment, live DJ mixes, and plenty of modern technology to make exercising smoother for F45 members.
As a dynamic and unique fitness brand growing worldwide, becoming part of the F45 fitness franchise will provide you with a good route to leveraging this global brand’s appeal for ROI purpuses. In this article, we’ll explore what the F45 gym brand is about, how their business model works, costs, and what F45 gym franchise opportunities involve.
The benefits and opportunities of becoming
an F45 gym franchise owner
Becoming the owner of an F45 gym franchise can offer a lot of benefits to the right investor, including:
- Be part of the tenth fastest-growing franchise in the world as rated by Entrepreneur Magazine
- Benefit from a strong brand that enjoys the celebrity endorsement of Mark Wahlberg and David Beckham, who own a minority stake in the business
- See healthy revenue of around £500,000 on average with a mid-level fitness brand that combines an affordable membership fee
- Capitalise on the fitness trend for group training and one-on-one training sessions, helping you grow while providing a more effective training method for your members
- Offer accessible training programmes that are just 45 minutes long, helping you target the time-poor public
- Get access to over 36 ready-made, unique training programmes under the F45 brand, including favorite classes like HIIT, circuit training, and functional training
- Choose between the option to open either a traditional gym or a fitness studio depending on the needs of your demographic and local market
- Increase sales and performance with a comprehensive package including induction programs, ongoing training, marketing assets, owner meetings and 24/7 online support
How does the F45 gym franchise model work?
F45 Fitness was founded in Australia in 2011, and the company has been welcoming new franchise owners since 2014. With the objective of growing the F45 brand around the world, F45 gyms are popping up everywhere. As of the start of 2022, F45 had over 1,700 studios across 45 countries.
As well as offering traditional gyms, F45 also design ‘studios’ that are specifically designed to host fitness classes. The F45 model focuses on group training and community, encouraging its members to reach their goals by providing dynamic, always-changing training sessions and community support from fellow members and personal trainers.
1. F45 gym franchise requirements
If you’re interested in starting an F45 gym franchise, you’ll have to prove to the franchisor that you’ve got what it takes to make your gym or fitness studio a success. Some of the F45 gym franchise requirements include:
- Proving that you’ve got around £245,000 in liquid capital to cover the F45 gym franchise startup cost, which may include a one-off fee plus further investment
- Demonstrating that you have the drive and ambition to make your franchise work
- A willingness to operate in a location or site that meets the expansion goals of the F45 group
2. Minimum cost to buy and own an F45 gym franchise
The minimum total investment required to start an F45 gym franchise is £200,000. This F45 gym investment figure will include the gym’s startup fees as well as investment into the studio itself, including the cost of equipment, initial ground rent, and other essential outgoings.
However, not all of this total investment necessarily has to come from the franchisee. It’s possible to make a minimum investment of around £75,000 and source the rest of your financing from others. F45 can help their franchisees to seek financial backing from other investors.
3. Initial F45 gym franchise startup fees
Before you can launch an F45 gym, you’ll have to pay an F45 gym franchise price of around £40,000. The F45 gym franchise fees essentially buy you the right to use the F45 brand in your marketing, signage, and gym studio, and it’s the first fee that you’ll have to pay as an F45 franchisee. You’ll need more money after this to cover the total F45 gym franchise cost – perhaps around £160,000 – to invest in your new gym franchise.
4. Expected F45 gym franchise revenue
The average F45 gym franchise revenue is around £500,000 per year. This figure is taken from F45 clubs primarily based in the US, although it’s likely that clubs in the UK may have the potential to make a similar income. Franchise owners should also expect their revenue to be lower for the first year or two of owning an F45 club, as revenues typically grow as clubs become more established.
5. Costs associated with running an F45 gym franchise
Owning an F45 gym franchise will also cost you money because you’ll have to pay royalty fees out of your monthly revenue as well as all the usual costs of running a gym. The most significant F45 gym franchise cost is probably staff wages.
Costs to consider include:
- Royalty fees of 7% or £2000 per month, whichever is greater
- Marketing fees of £2000 per month
- A service fee of £400 per month
- Ground rent and utilities
- Staff wages
- Repair and maintenance costs
6. Predicted average profit of an F45 gym franchise owner
The costs of owning an F45 gym can add up and significantly eat into the total revenue that franchisees make. It’s important to have an understanding of the F45 gym franchise owner’s average profit and how this differs from the average revenue.
Subtracting the running costs and fees from the total revenue can give us an idea of the F45 gym franchise owner’s average profit. It’s thought that most F45 franchise owners typically make up to around £40,000 annually, after taking into account the costs and fees that they will pay each year to run their F45 fitness centre.
A look at the F45 gym franchise agreement and policies
When you become an F45 gym franchisee, you’ll have to sign the F45 gym franchise agreement which will set out the terms and conditions of your franchise. This may restrict the way you operate your business in various ways.
1. Territory
F45 will grant its franchisees some territorial protections, but franchisees do not receive an exclusive territory. Franchisees may find themselves in competition with other F45 franchisees if they choose to open another F45 branch within the same area.
However, usually, F45 will not authorize new franchises within a population area of at least 15,000 people of an existing F45 franchise. You’ll also have to make sure that the site you choose for your gym aligns with the F45 site selection guidelines.
2. Product Marketing
The F45 franchise agreement also sets out some rules on what products F45 franchisees can market, offer, and sell. These products must meet F45’s standards and comply with F45 guidelines. Franchisees are also obligated to stock and sell the products and services that the F45 group requires, which can change throughout the term of the franchise agreement.
What are the franchise terms of agreement and renewal?
The initial length of the franchise term is five years, but this can be extended for two additional terms of five years if franchisees meet the requirements set out by the franchisor. These requirements will likely involve meeting performance targets. Franchisees will also have to pay an additional fee to renew their franchise agreement after five years.
Is F45 gym a good fit for you?
It’s also important that F45 franchise investors consider whether the F45 brand is a good fit for their goals and objectives.
1. The target market of the average F45 gym franchise
F45 is a high-end fitness franchise where members may pay anything from around £140 to £220 per month for membership. This means that most F45 fitness members have relatively well-paying jobs with high amounts of disposable income.
2. Is an F45 gym franchise right for your chosen location?
Most F45 fitness members are young, with a good amount of disposable income. You may find that you’ll have to open an F45 gym in an affluent area with a healthy population of young professionals to find any success with this brand. A lot of affluent areas in the UK also have older populations, especially market towns and villages, which may make them unsuitable for an F45 franchise.
3. Other factors to consider when deciding whether owning an F45 gym franchise is right for you
F45 currently has over 70 fitness studios across the UK, although the vast majority of these are located around London and the South East. If you’re thinking of starting an F45 fitness studio in the UK, check to make sure that the area you want to position it in is not already served by an existing studio. You could also research other high-end gyms and fitness centres nearby to make sure that your F45 gym won’t face too much competition.
Are you a good fit for the
F45 franchise?
It’s also important to ask yourself whether you’re a good fit for the F45 franchise. There are a lot of fitness franchises both in the UK and overseas, each focusing on a specific niche within the health and fitness market. Consider whether the target market, brand, business model, and expansion plans of F45 align with your own goals, and research other franchises to make sure that F45 is really the right franchise for you.
For example, F45 is expanding rapidly worldwide, but this may also mean that individual investors receive less attention and support than they would in a franchise that is focusing on slower growth. The monthly fees that franchise owners pay to F45 are also quite high, which could be problematic if your F45 franchise isn’t immediately turning over high amounts of revenue.
The process of starting an F45 franchise
The process of starting an F45 gym franchise is not dissimilar to the process of starting any fitness franchise, and it involves multiple steps.
1. Contact F45
The first step of starting a new F45 franchise is contacting the franchisor to schedule a meeting. If you can prove that you have the capital, experience, and ambition to successfully open an F45 franchise, and if you decide that F45 is the right franchise for you, you’ll sign an agreement with the group.
2. Choose a site
Franchisees work closely with F45 to choose a suitable site for their new gym. F45 will help you to choose a site that aligns with their objectives and doesn’t cause unnecessary competition with existing F45 gyms.
3. Plan your business
After you’ve chosen a site, it’s time to start making plans, designing your gym, and putting operational procedures in place. You’ll be expected to work within the guidelines of the F45 franchise agreement to equip your gym, install signage, and plan out your gym’s offerings and timetable.
4. Market your new gym
Before you open your gym to the public, you’ll have to invest in marketing materials to try and build up a membership base before launch. While F45 will spend money on national and international promotions, you’ll be responsible for funding your own marketing locally.
5. Launch
When you’re ready to open, you can schedule a launch day and welcome new members to your gym. After launch, F45 will likely expect that you’ll be involved with running and managing your gym, although you can hire an acting manager if you want to take a more hands-off approach.
Conclusion
F45 is a global brand that offers high-end gyms and fitness centres with a relatively high monthly membership fee. F45 gyms focus on building communities of like-minded people and motivating members through classes and training sessions.
Franchisees looking to invest in a high-end gym with a unique focus on the community may be interested in F45 Fitness, although they must also ensure that they can pay the initial startup costs and the relatively high monthly fees that make up the F45 franchise agreement.
FAQs
If you want to find out more about starting an F45 gym, read some of our most frequently asked questions below.
1. How to start an F45 franchise
If you want to start an F45 gym franchise, the steps will include:
- Researching gym franchises to establish that the F45 brand is right for you
- Ensuring that you have the capital to cover the total F45 gym franchise cost and investment minimums
- Meeting with the franchisor to discuss your franchise plans and choose a site for your new gym
- Marketing your gym and creating a business plan
- Building and equipping your gym
- Launching your F45 gym and attracting new members
2. How much does owning an F45 franchise cost?
The total cost to buy and own an F45 gym franchise is usually around £200,000, and in most cases, investors will have to pay the majority of this cost themselves. This cost includes an F45 gym startup fee of £40,000. Most F45 franchisees are already successful business people with a large amount of liquid capital and some knowledge of how to run a successful business.
3. Is an F45 franchise profitable?
F45 gym franchise opportunities can definitely be profitable, but it’s important that investors understand that they are taking on a lot of risks when opening any gym franchise. On average, F45 gym franchise owners may make around £40,000 annually in profits after their business is established, which will see most investors making a return on their investment within around five years.
4. What questions to ask when buying an F45 gym franchise?
If you’re thinking of becoming an F45 franchisee, make sure you find out the answers to these questions during your research:
- How much does it cost to open an F45 gym franchise?
- What is the average income of an F45 gym franchise owner?
- When can I put up my F45 gym franchise for sale?
- What are my obligations in the F45 gym franchise agreement?
- How much support will I get from F45?
