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Retrofitness Franchise ProfileFitness Franchises > Gyms |
What Are the Initial Investment Requirements for a Retrofitness Franchise?
To become a Retrofitness franchisee, you will need to prepare for an initial investment ranging from $1,483,466 to $2,273,216. This includes a franchise fee of $29,000. Additionally, you should have a cash reserve of $200,000 to $350,000 and a net worth between $500,000 and $1,000,000. Understanding these financial commitments is crucial to ensure you are fully prepared for the journey ahead.
What Are the Ongoing Fees for a Retrofitness Franchise?
As a Retrofitness franchisee, you will be responsible for ongoing fees that include a royalty fee of 5% on gross sales and a marketing fee of 2%. These fees contribute to the brand's overall marketing efforts and support services, which can help drive business to your franchise. It's important to factor in these costs when calculating your potential profitability.
What Are the Financial Performance Metrics for Retrofitness Franchise Units?
Average annual revenue per Retrofitness unit stands at $1,097,653, with a median revenue matching this figure. The revenue range is quite broad, with the lowest reported at $340,859 and the highest at $3,225,771. This data highlights the potential for significant earnings, but it also emphasizes the need for effective management and operational efficiency to achieve these results.
What Is the Breakeven Time and Investment Payback for Retrofitness Franchisees?
Franchisees can expect to reach their breakeven point within approximately 12 months of opening. Furthermore, the investment payback period is estimated at around 28 months. These timelines are essential for evaluating the financial viability of your investment and can help you plan your cash flow and operational strategies effectively.
Retrofitness Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Retrofitness Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2020 | 2021 | 2022 |
|---|---|---|---|
| Total Units | 105 | 98 | 86 |
| Net Change YoY | -7 | -12 | |
| Franchised Units | 105 | 98 | 86 |
| Net Change YoY | -7 | -12 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 |
Investment Overview
The Retrofitness franchise offers a low initial investment range of $1,483,466 to $2,273,216, making it an accessible option for aspiring franchisees. The initial franchise fee is set at $29,000, with ongoing royalty fees of 5% of gross sales and a marketing fee of 2%. A cash requirement of $200,000 to $350,000 ensures that franchisees have sufficient working capital to support their business in the initial stages.
Revenue Potential
With an average annual revenue per unit of $1,097,653, Retrofitness presents a compelling financial opportunity for franchisees. The revenue figures range from a low of $340,859 to a high of $3,225,771, showcasing the potential for significant earnings. This diverse revenue range indicates that while some units may perform exceptionally well, others may require additional support or marketing efforts to reach their full potential.
Breakeven and Payback
Franchisees can expect to reach breakeven within approximately 12 months of operation. The investment payback period is estimated at 28 months, providing a relatively quick return on investment compared to other franchise models. This timeline is crucial for franchisees seeking to recoup their initial investment and reinvest in their business for growth.
Franchise Growth
The Retrofitness franchise has seen a decline in the number of franchised units, with 105 units in 2020, 98 in 2021, and 86 in 2022. This trend suggests a need for strategic focus on franchisee support and market positioning to enhance unit performance and attract new franchisees. Understanding the dynamics of unit growth is essential for potential investors evaluating long-term viability.
Operating Expenses
Franchisees should anticipate variable operating expenses, including rent and utilities, which are not specifically detailed. However, marketing and advertising costs range from $30,000 to $90,000 annually, while insurance expenses can vary between $6,000 and $24,000. Managing these costs effectively is vital for maintaining profitability and ensuring the financial health of each unit.
Corporate Structure
Retrofitness operates with a franchise model that currently has no corporate-owned units, indicating a fully franchised approach. This structure empowers franchisees with ownership and operational autonomy while benefiting from the brand's established systems and support. Understanding the corporate framework is essential for franchisees to align their goals with the overall mission of the Retrofitness brand.
Frequently Asked Questions
The initial investment for a Retrofitness franchise ranges from approximately $1,483,466 to $2,273,216, which includes the franchise fee, equipment, and other startup costs.