This is an estimated owner-operator benefit range for one U.S. Fitness Together Studio, not an official profit disclosure. The base scenario is about $29,600 before personal income taxes and financing principal. A manager-run Studio may produce materially less residual cash because a full-time Designated Manager must be paid.
This estimate is an independent analytical scenario, not an Item 19 financial performance representation by Fitness Together Franchise, LLC. It combines identified 2026 FDD facts with separately identified government benchmarks and explicit margin assumptions. Actual results can differ materially by location, Studio format, Gross Receipts, trainer labor, occupancy, financing, owner involvement, pricing, client retention, and execution.
- Legal franchisor
- Fitness Together Franchise, LLC, the U.S. franchisor identified in the Franchise Disclosure Document.
- Current disclosure
- FDD issued April 1, 2026. Item 19 reports 2025 Gross Revenue, Studio Visits, and Active Clients, but no Operating Profit, EBITDA, Net Income, Owner Compensation, or owner earnings.
- Applicable population
- 82 U.S. franchised Studios open on January 1, 2025 and operating throughout 2025. The Item 19 table excludes 11 Studios that closed during 2025.
- Scenario benchmarks
- IRS 2023 nonfarm sole-proprietorship income statements for the broad amusement, gambling, and recreation sector; BLS May 2023 wages for General and Operations Managers in NAICS 713940.
- Date checked
- July 20, 2026. No matching public FDD was verified on an official franchise-controlled domain, so FDD citations below are plain-text Item and page references.
OFFICIAL — 2025 median for all 82 reporting franchised Studios.
OFFICIAL — only 31 Studios, or 37.8%, met or exceeded this average.
OFFICIAL — U.S. franchised Studios operating for the full 2025 calendar year.
OFFICIAL — 6% Royalty, 2% Brand Marketing Fund, and 2% minimum Local Marketing Spend.
BENCHMARK — aggregate IRS net income less deficit divided by business receipts for a broad recreation sector.
BENCHMARK — BLS annual mean wage for General and Operations Managers in NAICS 713940, May 2023.
What does Fitness Together Item 19 actually measure?
Officially, Item 19 measures Gross Revenue and operating activity—not owner earnings. For the 82 U.S. franchised Studios that operated throughout 2025, median Gross Revenue was $480,382 and average Gross Revenue was $534,267. Gross Revenue is revenue before trainer payroll, rent, franchise fees, technology, insurance, other operating expenses, debt service, and owner taxes.
The distribution is wide. The bottom-third group of 27 Studios averaged $244,921, while the top-third group of 27 Studios averaged $901,603. The top 10 averaged $1,233,702. Across all Studios, the reported low was $89,439 and the high was $1,877,557. Because only 37.8% met or exceeded the $534,267 average, the median is the more defensible central revenue anchor.
The FDD term is Gross Revenue, defined consistently with Gross Receipts under the Franchise Agreement. It is not Gross Profit, Operating Profit, EBITDA, Net Income, owner salary, owner draw, or distributions. The Federal Trade Commission also cautions that gross sales do not reveal actual costs or profit.
| 2025 Item 19 cohort | Studios | Average Gross Revenue | Median Gross Revenue |
|---|---|---|---|
| All reporting Studios | 82 | $534,267 | $480,382 |
| Top third | 27 | $901,603 | $794,113 |
| Bottom third | 27 | $244,921 | $272,716 |
| Top 10 | 10 | $1,233,702 | $1,064,742 |
| Bottom 10 | 10 | $154,155 | $147,682 |
Source: 2026 Fitness Together Franchise Disclosure Document, Item 19, pp. 55–58. Franchisee-submitted data were not audited or independently verified by the franchisor.
How is the annual owner-earnings range estimated?
The estimate applies three explicit margin assumptions to three official Item 19 revenue anchors. The Conservative scenario uses the bottom-third average Gross Revenue, the Base scenario uses the all-Studio median, and the Upside scenario uses the top-third average. These are analytical scenarios, not probabilities, forecasts, or FDD-reported profit figures.
Estimated owner-operator benefit = Item 19 revenue anchor × scenario margin.
The base 6.17% margin is derived from 2023 IRS Schedule C data: $933.271 million of aggregate net income less deficit divided by $15.12234 billion of aggregate business receipts for the broad amusement, gambling, and recreation industries. The Conservative and Upside margins are the benchmark minus and plus 3 percentage points.
Annual pre-tax amount for one Studio; includes the economic value of the owner's full-time operating labor.
Interpretation: Sales level and margin compound each other. The Upside value is not a ceiling, and the Conservative value is not a floor because the FDD excluded Studios that closed during 2025.
Sources: 2026 Fitness Together FDD, Item 19, pp. 55–58; IRS nonfarm sole-proprietorship statistics, 2023 Table 2. Calculations use full-precision inputs and are rounded to the nearest $100.
| Scenario | Revenue anchor | Margin assumption | Owner-operator benefit |
|---|---|---|---|
| Conservative | $244,921 | 3.17% | $7,800 |
| Base | $480,382 | 6.17% | $29,600 |
| Upside | $901,603 | 9.17% | $82,700 |
The three points should not be read as a statistical confidence interval. They deliberately combine a lower sales cohort with a lower margin, a central sales observation with the benchmark margin, and a higher sales cohort with a higher margin. Real outcomes can cross those pairings: a lower-volume location may control costs well, while a high-volume location may carry unusually high wages or rent. The endpoints are therefore sensitivity markers rather than predictions about how often a result will occur.
Annual economic benefit also differs from cash that can be distributed on a particular date. Seasonal collections, prepaid packages, refunds, payroll timing, lease deposits, repairs, and working-capital needs can cause cash movement to lead or lag the annual income result. An owner draw is a financing decision by the business owner; it does not establish that the operation earned the same amount during the year.
- Interest and depreciation: the IRS Schedule C net-income proxy can reflect business interest and depreciation deductions; financing principal is not deducted.
- Owner compensation: a sole proprietor does not deduct a salary paid to the owner, so this estimate combines residual business income with compensation for the owner's labor.
- Capital expenditures and taxes: replacement capital spending and personal income taxes are not separately modeled. No after-tax take-home estimate is published.
- Franchise fees: the IRS proxy is treated as an all-in net-income margin. Royalty and required marketing commitments are shown separately for diligence and are not subtracted again, which avoids double-counting but leaves a material comparability risk.
How does active ownership change the result?
Active ownership can be the difference between positive owner benefit and little or no residual business profit. Item 15 requires the owner or Operating Partner to supervise the Studio full-time unless an approved full-time Designated Manager is appointed. The owner-operator figures therefore include the value of work performed by the owner; they are not passive profit.
Manager-run residual subtracts a $75,860 annual wage proxy but excludes employer payroll taxes and benefits.
Interpretation: Under this wage-only sensitivity, the Base Studio does not support a full market-rate manager and still leave positive residual owner earnings. Actual manager cost can be higher after payroll taxes, benefits, incentives, and recruiting expense.
Sources: 2026 Fitness Together FDD, Item 15, pp. 47–48; BLS NAICS 713940 industry-specific wage estimates, May 2023, General and Operations Managers. Calculations rounded to the nearest $100.
The $75,860 difference between each pair is labor value, not an increase in the Studio's operating profit. An owner who supervises full-time may capture that work value, while a manager-run owner must fund comparable management from the Studio's economics.
How much revenue is committed to franchise and marketing requirements?
At the current minimum rates, 10% of Gross Receipts is committed to the Royalty, Brand Marketing Fund, and Local Marketing Spend, plus a $310 monthly Technology Fee. This is an official FDD-derived burden, but the 2% Local Marketing Spend is operating advertising expenditure rather than money necessarily paid to the franchisor.
| Annual obligation at scenario revenue | Conservative | Base | Upside |
|---|---|---|---|
| 6% Royalty | $14,695.26 | $28,822.92 | $54,096.18 |
| 2% Brand Marketing Fund | $4,898.42 | $9,607.64 | $18,032.06 |
| 2% minimum Local Marketing Spend | $4,898.42 | $9,607.64 | $18,032.06 |
| $310 monthly Technology Fee | $3,720 | $3,720 | $3,720 |
| Total shown | $28,212.10 | $51,758.20 | $93,880.30 |
Source: 2026 Fitness Together FDD, Item 6, pp. 8–17. Annual conference registration, travel, insurance, occupancy, trainer payroll, payment processing, supplies, maintenance, and other operating costs are not included in this fee table.
The document allows the advertising-fund rate to rise from 2% to 4% and permits changes to the local spending requirement, so a buyer should model the rates in effect when the agreement is signed.
Why should the earnings range be treated cautiously?
The largest uncertainty is the missing same-brand expense and profit statement. Item 19 does not disclose trainer labor, occupancy, manager pay, operating expenses, EBITDA, Net Income, or owner compensation. A broad IRS margin cannot reveal the cost structure of a Fitness Together Studio in a specific market.
The sample also has survivorship bias. Item 20 shows franchised outlets declined from 93 at the start of 2025 to 82 at year-end, with 11 terminations and no new openings. Item 19 includes the 82 continuing Studios and excludes all 11 that closed. The Conservative scenario therefore describes a lower-performing continuing cohort,not failed or closed-unit economics.
Other material uncertainties include the mix of personal-training packages and memberships, trainer compensation per session, usable training-suite capacity, client churn, local price points, rent for the FDD's typical 1,500–2,600 square feet, and whether a Studio can support a Designated Manager without reducing owner distributions.
Location-level diligence should also test timing. A full calendar year from an established operation can differ sharply from an opening year, a transfer year, or a year affected by remodeling. Comparing records on the same accounting basis matters: cash and accrual statements can show different timing for prepaid services, deferred revenue, refunds, and unpaid bills.
The Item 19 average is pulled upward by high-performing Studios: the all-Studio average exceeds the median by $53,885, and the top reported Studio produced $1,877,557 in Gross Revenue. The median is more resistant to that skew, but it still excludes the 2025 closures.
What should a prospective owner verify before relying on this range?
A buyer should replace each proxy with comparable Studio records before making an investment decision. The following checks focus on the unresolved variables that most directly affect annual owner earnings.
- Request Item 19 written substantiation and reconcile the 2025 Gross Revenue cohorts, exclusions, and Gross Receipts definition.
- Ask several current franchisees for trailing-12-month profit-and-loss statements, separating trainer payroll, manager compensation, rent, Royalty, Brand Marketing Fund, Local Marketing Spend, Technology Fee, insurance, and merchant fees.
- Interview former franchisees listed in Item 20 about the 11 closures during 2025, including sales level, labor burden, occupancy, owner hours, and reason for exit.
- Compare owner-operated and Designated Manager-run Studios at similar revenue, age, square footage, and local wage levels. Identify whether owner salary is included above or below reported profit.
- Model debt interest and principal separately using the buyer's actual financing terms. Item 10 states that the franchisor does not offer or guarantee financing.
- Confirm maintenance capital, equipment replacement, remodel requirements, and personal tax treatment with independent accounting and legal advisers.
What is the strongest defensible annual earnings view?
The strongest defensible range is approximately $7,800 to $82,700 of estimated owner-operator benefit per year, with a $29,600 Base scenario. It is scenario-based, not official Fitness Together owner earnings. The most important driver is the interaction between Gross Revenue and trainer, manager, and occupancy costs. The largest unresolved uncertainty is the absence of same-brand unit-level profit data for both continuing and closed Studios.
A manager-run model appears substantially tighter under the BLS wage sensitivity: estimated residual ranges from a $68,100 loss to a $6,800 profit before employer payroll burden, debt principal, and personal taxes. Before relying on either range, a buyer should verify Item 19 substantiation, comparable Studio profit-and-loss statements, owner labor hours, Designated Manager cost, and closure economics through current and former franchisee interviews.