Independent annual earnings scenario
That is a manager-run, pre-tax operating-earnings sensitivity—not a franchisor profit claim. The base analytical case is about $34,000 per year. An actively involved owner may receive a higher owner-operator benefit, but the increment represents compensation for management work rather than passive business profit.
Evidence status
Sales disclosed; owner earnings not disclosed
Item 19 provides a broad historical revenue distribution but states that the franchisor does not have franchisee operating-cost data.
Why confidence is limited
Profit margins are scenario assumptions
The FDD does not disclose labor, rent, utilities, insurance, cost of goods, interest, depreciation, or franchisee net income.
Official FDD fact
$429,222
Median annual Gross Sales
Total mature-studio sample for the 12 months ended February 28, 2026.
Official FDD fact
676
Reporting franchised studios
Studios had to be open for the full reporting period.
Derived coverage
96.8%
Eligible U.S. studio coverage
676 of 698 franchised studios were included; 22 newer studios were excluded.
Derived from Item 6
17.4%
Core fee burden at median sales
Royalty, maximum Brand Fund, Marketing Fee, and Technology Service Fee.
Scenario
$34,338
Base manager-run earnings
Overall median Gross Sales multiplied by an 8% all-in residual margin assumption.
Item 19 evidence
What does F45 Training's 2026 Item 19 actually report?
Officially, it reports historical Gross Sales. It does not report what an owner earned. The applicable population is 676 franchised U.S. F45 Studios that were open and operating for the complete 12-month period from March 1, 2025 through February 28, 2026.
The strongest central revenue measure is the $429,222 median annual Gross Sales. The average was higher at $480,832, which indicates that higher-volume studios pull the arithmetic mean upward. For owner-income analysis, the median is therefore the more restrained central anchor.
| Item 19 population | Studios | Average annual Gross Sales | Median annual Gross Sales |
|---|---|---|---|
| Top third | 225 | $724,472 | $664,083 |
| Middle third | 225 | $437,219 | $429,418 |
| Bottom third | 226 | $281,691 | $296,826 |
| Total sample | 676 | $480,832 | $429,222 |
Source: 2026 F45 U.S. Franchise Disclosure Document, Item 19, pp. 19-1 to 19-3. Gross Sales is revenue under the FDD definition; it is not owner earnings.
Revenue is not earnings
Item 19 expressly excludes the cost data needed to reach net income: cost of sales, operating expenses, real estate, lease and occupancy costs, and other expenses. The point-of-sale reports also are not regularly audited or verified by the franchisor. A studio can generate substantial Gross Sales and still have little or negative owner cash flow.
How representative is the Item 19 sample?
The sample coverage is broad for mature franchised studios, but it excludes ramp-up performance. The 676 reporting studios represented 96.8% of the 698 franchised U.S. studios operating as of February 28, 2026. The excluded 22 studios had not operated throughout the full reporting period.
That design improves comparability among established studios, but a new buyer should not assume first-year revenue will match the mature-studio distribution. Item 20 also shows U.S. franchised outlet counts declining from 789 at year-end 2023 to 751 at year-end 2024 and 707 at year-end 2025, with 68 transfers during 2025. Those figures do not establish whether any individual studio was profitable, but they increase the importance of discussing closures, transfers, ramp-up, and local economics with current and former franchisees. Source: 2026 F45 U.S. FDD, Item 20, pp. 20-1 to 20-4.
Scenario model
How is the estimated annual owner-earnings range calculated?
The estimate multiplies three official Item 19 revenue anchors by three explicit residual-margin assumptions. The resulting figures are independent manager-run scenarios for one mature franchised F45 Studio, not probabilities and not predictions of the most likely result.
Conservative
$8,905
$296,826 bottom-third median Gross Sales × 3% residual margin.
Base
$34,338
$429,222 overall median Gross Sales × 8% residual margin.
Upside
$86,331
$664,083 top-third median Gross Sales × 13% residual margin.
Estimated annual pre-tax operating earnings per mature franchised F45 Studio.
Interpretation: Revenue position and operating margin compound each other. The chart should be read as a sensitivity range, not as a forecast distribution.
Sources and method: 2026 F45 U.S. FDD, Item 19, pp. 19-1 to 19-3; residual margins of 3%, 8%, and 13% are editorial scenario assumptions.
What the modeled margin includes and excludes
- Included conceptually: ordinary studio payroll, hired management, occupancy, utilities, insurance, routine supplies, local operating costs, and the recurring FDD fees described below.
- Excluded: personal income taxes, financing interest and principal, depreciation, major replacement capital expenditures, and distributions from previously retained earnings.
- Owner labor: no owner salary or labor value is included in the manager-run residual. An owner-operator adjustment is analyzed separately.
- Studio format: the model applies to the standard F45 Studio population in Item 19. Optional Recovery Amenities are not modeled as a separate format because Item 19 does not disclose a distinct revenue or expense cohort for them.
- Margin status: 3%, 8%, and 13% are analytical stress-test assumptions because neither Item 19 nor an official government source supplies an F45-specific, all-in franchisee profit margin.
Recurring obligations
How much do disclosed recurring franchise fees affect earnings?
The core recurring fees consume a larger share of revenue at lower-volume studios. Under Item 6, the royalty is the greater of 7% of Gross Sales or $2,500 per month; the Brand Fund can be up to the greater of 2% or $200 per month; the Marketing Fee is $2,500 per month; and the current Technology Service Fee is $500 per month.
Using the maximum 2% Brand Fund and the three Item 19 revenue medians, those four obligations equal approximately $71,937, $74,630, and $95,767 per year. This calculation does not include merchandise inventory, LionHeart inventory, music licensing, payment processing, training travel, local taxes, or other operating expenses.
Derived core fee burden as a percentage of each Item 19 revenue anchor.
Interpretation: The $30,000 annual royalty floor, $30,000 Marketing Fee, and $6,000 Technology Service Fee create operating leverage. A lower-sales studio carries substantially more fee pressure per revenue dollar.
Source and formula: 2026 F45 U.S. FDD, Item 6, pp. 6-1 to 6-7; royalty + maximum Brand Fund + Marketing Fee + Technology Service Fee, divided by the applicable Item 19 median Gross Sales.
Fixed-fee pressure
At the bottom-third median, 7% of Gross Sales is below the $30,000 annual royalty minimum, so the minimum applies. At the overall median, the percentage royalty barely exceeds the floor. This means incremental sales above the lower bands can improve operating leverage, but only if labor, occupancy, member acquisition, and other variable costs remain controlled.
Owner role
How does owner involvement change the economic result?
Active involvement can increase owner benefit, but it does not automatically increase business profit. Item 15 permits a General Manager, subject to written consent, while requiring the Key Person to remain responsible. Without a General Manager, the Key Person must devote full time and best efforts. The franchisee must also retain at least one Studio Manager at all times.
What does a manager-run result represent?
It represents residual operating earnings after normal hired-management cost. In this article's scenarios, the manager-run figure assumes ordinary payroll includes the leadership needed to operate the studio. It is pre-tax business cash generation before financing and major capital replacements—not an owner's salary.
What does an owner-operator result represent?
It is better described as estimated owner-operator benefit. When an owner personally performs General Manager duties that would otherwise require paid labor, the economic benefit may equal the manager-run residual plus the defensible local market value of those duties. That added amount compensates the owner for time and labor; it is not passive profit. The required Studio Manager role also means a hands-on owner should not assume all management payroll disappears.
- Manager-run earnings
- Residual operating cash after ordinary unit-level expenses, including normal hired management, but before personal taxes and financing.
- Owner-operator benefit
- Manager-run residual plus the market value of General Manager work actually performed by the owner, less any remaining staffing or role-coverage cost.
- Owner salary or draw
- A method of paying the owner; it is not automatically an additional source of economic profit.
- Debt service
- Interest and principal payments that reduce owner cash flow separately from the studio's operating result.
For a location-specific labor estimate, compare the actual role description and work hours with current local wage data. The BLS May 2025 industry-specific occupational wage tables provide an official starting point, but a buyer should use the studio's metro area, required experience, benefits, payroll taxes, and the distinction between a General Manager and Studio Manager.
Uncertainty
What could move actual owner earnings outside the scenario range?
Actual earnings can fall below or rise above the range because the FDD discloses revenue distribution but not the expense distribution. The largest unknowns are location-specific payroll and occupancy, followed by membership pricing and retention, presale and ramp-up performance, local marketing efficiency, and financing.
Variables to verify before relying on any earnings model
- Membership economics: active members, average realized monthly price, discounts, freezes, churn, failed payments, and ancillary product sales.
- Payroll structure: General Manager, Studio Manager, coaches, front-desk coverage, payroll taxes, benefits, and owner hours.
- Occupancy: base rent, common-area maintenance, insurance, property taxes, utilities, and scheduled rent increases.
- Fee implementation: current royalty minimum, Brand Fund rate, Marketing Fee, technology charges, required local spending, payment processing, music, inventory, and supplier costs.
- Capital needs: equipment replacement, remodel obligations, deferred maintenance, and leasehold refreshes.
- Financing: amount borrowed, interest rate, term, fees, covenants, and annual principal payments. Debt service reduces cash available dollar for dollar.
Why is there no after-tax take-home estimate?
Personal taxes cannot be estimated responsibly from the FDD. Federal and state tax outcomes vary with entity structure, owner compensation, depreciation, interest deductions, other income, filing status, and jurisdiction. The scenario therefore stops at pre-tax operating earnings and keeps debt service separate.
Which external data are useful—and which are not?
Official government data can help benchmark local costs, but it cannot substitute for F45 franchisee financial statements. F45 Studios align broadly with the fitness and recreational sports-center industry for labor and market context. The U.S. Census Bureau 2022 Economic Census dataset provides establishment, employment, payroll, and revenue measures, while BLS wage data can support local staffing assumptions. Neither source provides an F45-specific franchisee margin.
The Federal Trade Commission's consumer guidance is useful for understanding franchise due diligence and why a buyer should compare the FDD with direct franchisee interviews and written substantiation.
Buyer verification
What should a prospective F45 owner verify with franchisees?
Ask for a revenue-to-cash-flow bridge that uses the same definitions as the 2026 FDD. The most useful interviews separate Gross Sales, payroll, occupancy, recurring franchise fees, other operating expenses, financing, owner labor, and distributions rather than asking only, “How much do you make?”
Evidence-focused interview questions
- What were the studio's trailing-12-month Gross Sales, and do they reconcile to the point-of-sale definition in Item 19?
- What were operating profit and owner cash flow before debt service, and which expenses were excluded?
- How many paid management and coaching hours are required at the current membership level?
- How much owner time is required each week, and which paid role would cover that work if the owner stepped back?
- What are total occupancy costs per year, including common-area charges, insurance, utilities, and rent escalations?
- Which required fees, inventory purchases, technology charges, local advertising, and supplier costs have changed since signing?
- How did the studio perform during its first 12 months compared with the mature-studio Item 19 figures?
- For transferred or closed studios, what operational or financial factors drove the outcome?
Request Item 19 written substantiation and review Item 20's current and former franchisee contacts. The official F45 franchise information page confirms the current franchise offering context, while the official F45 Training website describes the consumer-facing studio model. Marketing claims on either site should not be treated as a substitute for outlet-level financial records.
Decision synthesis
What is the strongest defensible earnings answer?
A reasonable independent manager-run sensitivity is approximately $9,000 to $86,000 in annual pre-tax operating earnings per mature U.S. F45 Studio, with a base analytical case near $34,000. This is scenario-based, not an official Item 19 owner-income figure. The most important earnings driver is the combination of membership revenue and operating leverage after labor, occupancy, and fixed recurring fees.
The largest unresolved uncertainty is the absent franchisee expense distribution. Owner involvement can increase economic benefit when the owner replaces paid General Manager labor, but that increment is compensation for work and must account for the continuing Studio Manager requirement. Before making a decision, verify the Item 19 substantiation, obtain actual profit-and-loss statements where available, reconcile fees to Item 6, and interview enough current, transferred, and former franchisees to understand both mature-studio and ramp-up economics.