Open an F45 Fitness Franchise: What You Need To Know

F45 Training is a leading boutique fitness franchise platform founded in 2013 in Sydney, Australia. Specializing in offering functional interval training workouts, F45 utilizes proprietary technology and a highly systemized business model purpose-built for franchising.

Often credited as one of the fastest-growing franchise concepts in Australian history, F45 grew to 250 franchises by 2015 and started to expand internationally, with the United States being a key strategic focus.

F45 has received numerous awards recognizing innovation and excellence in the fitness industry. In 2018, F45 was awarded #1 gym chain for customer satisfaction in Australia, a feat that would be repeated for five straight years. In 2020, F45 partnered with the United States Marines to open the first F45 facility on Marine Air Force Base Miramar. Additionally, F45 is the first fitness network approved by the US Department of Defense to provide education and training to military personnel transitioning out of the US Defense Force.

In 2021, F45 launched FS8, a progressive new fitness concept that remixes the best elements of Pilates, tone, and yoga into a 3-in-1 low-impact, high-energy workout. In 2023, F45 launched VAURA Pilates, an athletic Pilates concept offering a super-premium, multi-sensory fitness experience.

F45 continually innovates by introducing new athletics programming, such as Wahlberg Week, Trials Week, mobility-focused warm-ups and cool-downs, and Flow, a yoga-inspired stretch workout. Additionally, F45 recently launched ancillary recovery services, including sauna, cold plunge, and percussion therapy.

Over the last year, F45 has established several key partnerships, including IKON Pass, Spartan, Strava and Whoop. In May 2024, F45 announced a 2-year partnership with HYROX.

What is your franchise’s unique selling proposition (USP)?

Proven Fitness Concept: F45 Training offers a unique and proven functional fitness concept adaptable to any fitness level. The workouts are based on high-intensity cardio circuits and resistance strength training, delivering real results in a short amount of time.

Community and Accountability: F45 Training emphasizes a strong sense of community and accountability among its members. This fosters a supportive environment for individuals to achieve their fitness goals that contributes to higher retention rates and word-of-mouth referrals.

Technology Integration: F45 Training incorporates proprietary technology into its operating model through the use of F45TV, the LionHeart heart rate monitor, and the F45 Training App. The app includes features such as booking and payment, benchmark testing and tracking, and a Challenge portal that includes a nutrition program and recipe library. F45TV and LionHeart display exercises, timers, and performance metrics such as heart rate and effort, enhancing the overall experience for members by providing real-time feedback on their progress and increasing their adherence as customers.

Scalable Business Model: F45 Training franchisees receive access to a business model designed to be scalable that allows for growth and expansion. With a standardized approach to operations, marketing, and training, franchisees can replicate success across multiple locations.

Continuous Support and Training: Franchisees receive comprehensive real estate guidance related to target markets, exclusive trade areas, transactional assistance (site selection, preferred brokers, and retail lease legal partners), construction coaching and project management, network onboarding via a strict studio onboarding cadence, and ongoing operational support from the F45 Training corporate team. This includes access to the F45 Franchise Playbook, the F45 Education Platform, regular coach and performance workshops, relevant and up-to-date athletics programming centralized in phases, and operational SOPs and guidelines.

Award-Winning Brand Recognition and Marketing: F45 Training has built a robust brand presence globally with localized strategies, benefiting franchisees through increased brand recognition and marketing support. Franchisees have access to best practices guidelines, the Location Marketing Platform, and preferred agency partners to drive studio member marketing strategies, all supporting ongoing lead generation and differentiating the franchise from competitors.

How many units do you currently have? How many new ones are opening per month and in which geographic areas are you most popular? 

Approximately 1,700 open F45 studios and growing along with our two Pilates concepts and our new recovery concept.  We are very committed to responsible growth with the right franchise partners.  

What are the key revenue streams for franchisees? 

Membership Fees: Recurring revenue is earned through the sale of memberships, which provide access to in-studio workouts as well as our library of app-based at-home workout content. Memberships are generally available in various types, including unlimited and limited memberships as well as class packages.

Merchandise Sales: Franchisees can generate additional revenue by selling branded merchandise such as apparel, accessories, and equipment. This not only boosts profitability but also promotes brand loyalty among members.

F45 Training Challenge: The F45 Training Challenge is a comprehensive fitness and nutrition program run three times per year designed to help members achieve their health and wellness goals. This 45-day program combines tailored workout plans, a structured nutrition guide, and a supportive community environment to deliver transformative results. Participants have access to meal plans, recipes, and tracking tools via the F45 Training App, ensuring they stay motivated and on track throughout their fitness journey.

Recovery Services: Introducing recovery protocols like infrared sauna, cold plunge, and percussion therapy can provide an additional revenue stream for franchisees. These services appeal to members looking to enhance their recovery, reduce muscle soreness, and improve overall well-being.

New Fitness Concepts: In addition to our namesake F45 Training brand, we also offer two innovative brands in the Pilates categories: FS8 and VAURA Pilates. FS8 is our new hybrid concept centered around Pilates, tone and yoga training; FS8 appeals to individuals seeking a balance of strength, flexibility, and mindfulness. VAURA is our athletic reformer Pilates concept targeting those looking to improve core strength, stability, and mobility.

By diversifying their offerings, franchisees can attract a broader range of clientele and maximize revenue potential, owning wellness in their communities.

How is your brand positioned for future growth and expansion in the next 5-10 years?

F45 Training is strategically positioned for future growth and expansion in the next 5-10 years through a multifaceted approach that incorporates the following elements:

Market Trends and Demand: The fitness industry is experiencing significant growth globally, driven by increasing health consciousness and a growing focus on wellness. We believe F45 Training is well-positioned to capitalize on these trends by offering a proven and effective workout concept that appeals to a wide range of demographics, including millennials, Gen Z, and older adults.

Innovation and Adaptability: F45 Training has demonstrated a commitment to innovation and adaptability, continually evolving its workout programs, technology integration, and ancillary offerings to meet changing consumer preferences. By staying ahead of trends and embracing new technologies, F45 can maintain its competitive edge and attract new members.

Global Expansion Strategy: F45 Training has already established a strong presence in key markets worldwide, including North America, Europe, Asia, and Australia. The brand’s global expansion strategy involves continued growth of all three brands through targeted marketing, strategic partnerships, and flexible franchise development initiatives to enter new markets and penetrate existing ones further.

With established footholds in Australasia, Europe, and North America, F45 will continue to prioritize these core markets for sustained growth. These regions offer strong consumer demand for fitness services, favorable economic conditions, and a supportive regulatory environment.

To expand into other markets, F45 Training will leverage the master franchising model. This approach involves partnering with highly capable local partners who possess specialized knowledge of their respective markets. These master franchisees will oversee franchise development, marketing, and operations within their territories, ensuring localized strategies and rapid expansion.

Franchisee Support and Development: F45 Training places a strong emphasis on franchisee support and development, providing comprehensive training, operational assistance, and ongoing support to ensure the success of its franchisees. By fostering a network of successful and satisfied franchisees, F45 can drive growth through word-of-mouth referrals and expansion into new territories.

Diversification of Offerings: In addition to its core functional HIIT workout concept, F45 has diversified its portfolio with the introduction of FS8 and VAURA Pilates. This allows the brand to appeal to a broader audience and capture market share in complementary and high-growth segments of the fitness industry, such as yoga and Pilates.

Relevance of Workout Programming: F45 is committed to keeping its workout programming highly relevant by continuously innovating and adapting to changing consumer preferences and fitness trends. This includes incorporating new exercises, equipment, and training techniques to deliver effective and engaging workouts that resonate with members.

Your Workout, Your Way: Recognizing the demand for optionality and flexibility, F45 is focused on introducing a membership offering that allows members to travel and train at any F45 studio worldwide. This feature provides flexibility and convenience for maintaining fitness routines while traveling.

F45 will maintain and continue to optimize its at-home, in-app workouts, offering virtual, on-demand workouts accessible through digital platforms. By providing a seamless and personalized at-home fitness experience, F45 can reach a wider audience and enhance member engagement.

What are the minimum capital requirements, initial investment costs and ongoing fees for franchisees? Are financing or other fundraising options available?

The minimum capital requirements, initial investment costs, and ongoing fees for F45 Training franchisees can vary depending on factors such as location, size of the facility, and local market conditions. However, here is a general overview:

Initial Investment: The initial investment to open an F45 Training franchise typically ranges from $294,200 USD to $719,100 USD. This includes expenses such as franchise fees, leasehold improvements, equipment purchases, marketing expenses, and working capital.

Franchise Fee: The initial franchise fee for F45 Training is $60,000 USD. This fee grants franchisees the right to use the F45 brand, trademarks, and business system, as well as access to training and support from the corporate team.

Royalty Fees: F45 Training franchisees are required to pay ongoing royalty fees, which are usually a percentage of gross revenue with a minimum payment due each month. This monthly fee is the greater of: (i) 7% of gross revenue and (ii) $2,500 USD per month and covers ongoing support, and access to updated workout programming.

Brand Fund Contribution: Franchisees are also required to contribute to a national brand fund, which supports brand advertising and promotional campaigns. This monthly contribution is the greater of (i) 2% of gross revenue and (ii) $250 USD per month.

Other Operating Expenses: In addition to the above costs, franchisees will incur ongoing operating expenses such as rent, utilities, payroll, insurance, and equipment maintenance.

As for financing and fundraising options, F45 Training does not directly offer financing to franchisees. F45 Training has relationships with numerous third-party financing sources, including Swoop Funding, a funding brokerage platform that assists franchisees to obtain third-party financing. 

Franchisees may also explore various financing options available through third-party lenders, banks, or Small Business Administration (SBA) loans to fund their initial investment. Additionally, some franchisees may choose to use personal savings, investments from partners, or other sources of capital to finance their franchise venture.

It’s important for potential franchisees to conduct thorough due diligence, consult with financial advisors, and carefully review the Franchise Disclosure Document (FDD) provided by F45 Training to understand all the financial requirements and obligations associated with owning an F45 franchise.

What training and support do you provide to franchisees, including marketing, advertising, technology, equipment and real estate?

We have made significant upgrades to our franchisee-facing support systems over the last two years. These support improvements include critical activities that take place between the execution of a franchise agreement and a new studio opening, such as real estate selection, lease negotiation, construction management, and pre-open membership marketing.

Immediately following the execution of a franchise agreement, franchisees commence a cohesive onboarding experience involving F45’s onboarding managers and real estate and construction teams. Franchisees are provided access to preferred site selection AI maps, pipeline dashboards for viable site locations, complimentary access to F45’s preferred, brand-specific commercial brokers, and preferred lease counsel alongside development and construction support ranging from F45 construction coaching to full-scope, third-party project management.

Do you grant exclusive rights to a specific geographic area, or are there any limitations on competition from other franchisees?

F45 Training issues exclusive territory rights with its Franchise Agreements. F45 has meticulously crafted a brand-specific F45 real estate policy. Through F45’s internal Real Estate team and mapping and data intelligence partnerships, F45 will assign a specific exclusive trade area designed to maximize potential client acquisition and retention based on various demographic and psychographic data. F45 is focused on metro market franchisee peer-to-peer relationships, boutique fitness market saturation, and proximity to other F45 locations.

Can you provide any pertinent financial performance details that would assist potential franchisees?

We cannot provide this information based on FDD Regulations

What are the key contact details for reaching out to your company and exploring potential collaboration?

For those interested in exploring investment opportunities with F45 Training, FS8 and VAURA please visit www.f45training.com/invest and submit an inquiry. Our sales team will contact you shortly after to provide more information.