2026 FDD Issued Mar 31, 2026, amended Sep 14, 2026 Minnesota Commerce (CARDS) Checked Sep 28, 2026
Orangetheory Franchise Cost (2026)
An Orangetheory franchise costs an estimated $764,577 – $1,104,920 to open, according to Item 7 of the 2026 Franchise Disclosure Document (FDD). That total includes the $59,950 initial franchise fee (Item 5) and covers this format: Single studio. Item 6 lists royalty: 8% of gross sales, subject to the conditions below.
- Total investment
- $765K – $1.1MItem 7 source and qualifications
- Franchise fee
- $60KItem 5 source and terms
- Royalty
- 8% of gross salesItem 6 conditions and fee bases apply
- Brand fund
- 3% of gross salesItem 6 conditions and fee bases apply
- Liquid capital
- $350KFranchisor website, checked October 29, 2026
- Net worth
- $1MFranchisor website, checked October 29, 2026
- Units (2025)
- 1,224Item 20 source and scope
- Franchise exit rate
- 4.3% / yrCalculated 3-year average; definition and source
What stands out about Orangetheory
Item 20 describes a system in retreat. Openings of franchised studios fell each year while exits rose, and in 2025, 87 studios left against 13 openings. That year's franchise exit rate was 6.8%, well above the three-year average of 4.3%. Most exits were studios that stopped operating, not terminations. Ownership churned as well: transfers to new owners jumped in 2025, which is worth raising with the franchisor and with the former owners Item 20 lists.
The royalty has a minimum sales base, while local advertising has a monthly greater-of formula. Item 6 requires a studio below its year-dependent sales standard to pay the royalty shortfall as though that standard had been met. Local advertising is the greater of a dollar minimum or a percentage of the prior month's sales, not a fixed charge. Missing the sales standard in consecutive years can lead to reduced territory rights or termination. Those conditions prevent a flat combined fee estimate.
Item 19 reports gross sales only, with no expenses. The qualifying studios averaged $802,145, and fewer than half reached it. The figures exclude permanent closures but retain temporarily closed storm-affected studios, so the sample is not every studio that traded during the period. Item 7's additional-funds reserve covers the first operating months, including payroll, fees and local marketing. Its estimate excludes purchasing real estate, a separate cost if the owner buys rather than leases the premises.
What are the initial franchise fees and financial requirements for Orangetheory?
Item 5 lists an initial franchise fee of $59,950 for Orangetheory. Check the cited Item 5 for payment timing, discounts and format-specific terms.
These minimums come from the franchisor’s website, not from the FDD, and can change: Orangetheory franchise page (checked October 29, 2026).
For a single studio, paid when the franchise agreement is signed and not refundable. Area development fees: $150,000 for 3 studios and $237,500 for 5, plus $47,500 for each additional studio; veterans pay $135,000 / $213,750 / +$42,750, existing franchisees $135,000 / $212,500 / +$42,500, and existing franchisees who are veterans $121,500 / $191,250 / +$38,250. A $575 management software setup fee is also due before opening. Fees paid in fiscal 2025 ranged from $0 to $59,950.
Source: Orangetheory 2026 FDD, Item 5, PDF p. 17.
How much does it cost to open an Orangetheory franchise? (Item 7)
Source: Orangetheory 2026 FDD, Item 7, PDF p. 24.
Item 7 of Orangetheory’s 2026 Franchise Disclosure Document estimates the total cost to open one single studio at $764,577 – $1,104,920. This total includes the initial franchise fee.
| Expense Category | Low ($) | High ($) |
|---|---|---|
| Initial fee | $59,950 | $59,950 |
| 3 months' rent + security deposit | $21,492 | $57,312 |
| Architect and design fees | $10,000 | $24,000 |
| Furniture, fixtures and equipment | $10,362 | $18,918 |
| Construction management fees | $0 | $12,500 |
| Office and cleaning supplies | $3,000 | $3,800 |
| Leasehold improvements and construction | $245,000 | $418,317 |
| Fitness equipment and OTbeat system | $119,122 | $163,424 |
| Initial retail merchandise | $3,315 | $5,850 |
| Interior and exterior signage | $17,666 | $28,436 |
| Technology system | $46,760 | $62,108 |
| Pre-sale and grand opening advertising | $36,000 | $45,000 |
| Initial training and launch trainings | $5,000 | $8,850 |
| Miscellaneous opening costs | $11,671 | $20,216 |
| Insurance | $4,000 | $5,000 |
| Additional funds (3 months) | $171,239 | $171,239 |
| Total | $764,577 | $1,104,920 |
For comparison, the median high-end investment among 7 fitness records without a source-review hold is $1,029,811.
Item 7's total excludes real-estate purchase costs. It includes a rent and security-deposit estimate, but purchasing the premises increases the initial investment (PDF p. 25).
What ongoing royalties and fees does Orangetheory charge? (Item 6)
Source: Orangetheory 2026 FDD, Item 6, PDF p. 19.
Item 6 of Orangetheory’s 2026 FDD lists the charges below. Recurring charges and charges triggered by a transfer, renewal or other event have different conditions. Read each fee’s basis and notes before comparing rates.
How to read an Item 6 fee table.
| Fee Type | Amount / Rate | Payment Frequency | Notes & Source |
|---|---|---|---|
| Royalty | 8% of gross sales | Every period | Paid weekly. If a studio misses the minimum annual gross sales of $300,000 in year 1, $350,000 in year 2 and $400,000 from year 3, the owner must pay the royalty it would have owed at the minimum. (Item 6, PDF p. 19) |
| Brand Fund contribution | 3% of gross sales | Every period | Currently 3%; may be raised to up to 5% of gross sales. (Item 6, PDF p. 19) |
| Minimum monthly local advertising spend | Varies | Every period | The greater of $2,500 or 2% of the prior month's gross sales, spent on local advertising. Any shortfall may have to be paid into the Brand Fund. (Item 6, PDF p. 19) |
| Cooperative advertising | Varies | When it applies | As set by a regional co-op, if one is formed. Counts toward the local advertising requirement. (Item 6, PDF p. 19) |
| Successor franchise (renewal) fee | Varies | When it applies | 50% of the then-current initial franchise fee. (Item 6, PDF p. 19) |
| Transfer / assignment fee | Varies | When it applies | 50% of the then-current initial franchise fee for a control transfer; 25% for other transfers, except transfers to an entity formed to operate the studio. Control transfers include a 20% or greater entity interest or a change in control. (Item 6, PDF p. 20) |
| Interest and late fees | 18% of overdue amounts, per year | When it applies | Or the highest legal rate if lower, plus $100 for each week a payment or report is late. (Item 6, PDF p. 20) |
| Audit expenses | Varies | When it applies | Only if payments are understated by more than 2%. (Item 6, PDF p. 20) |
| Additional initial training / participants | $1,000 | When it applies | Per person per session. (Item 6, PDF p. 20) |
| Refresher training | $250 | When it applies | Per person per day; may rise to $500. (Item 6, PDF p. 20) |
| Conference fees | $600 – $1,500 | When it applies | Per person, depending on the event. Attendance at the convention and training summit is currently required; travel is extra. (Item 6, PDF p. 21) |
| On-site evaluation fees | Varies | When it applies | The franchisor's costs, only if it decides evaluations have become excessive. (Item 6, PDF p. 21) |
| Insurance costs | $100 | When it applies | Premiums plus a $100 administrative fee, only if the franchisor has to obtain coverage for you. (Item 6, PDF p. 21) |
| Product and promotional item purchases | $5,000 – $11,000 per year | When it applies | Typical range for merchandise bought from the franchisor or its affiliate; varies with purchases and inventory. (Item 6, PDF p. 21) |
| Advertising collateral | $1,000 – $5,000 per year | When it applies | Only if you request multiple copies of advertising materials. (Item 6, PDF p. 21) |
| Technology fee | $899 per month | Every period | Starts when the management software account is opened for presales. Subject to 10% annual increases, compounded and cumulative; a catch-up increase can exceed 10% after years without increases. Plus a $575 setup fee. (Item 6, PDF p. 22) |
| OTbeat fees | $149 per month | Every period | For the required heart-rate monitoring system software, plus a $250 setup fee. May rise to $500 a month and a $500 setup fee. (Item 6, PDF p. 22) |
| Non-compliance fee | $3,000 | When it applies | Up to $3,000 per notice of violation. (Item 6, PDF p. 22) |
| Management fee | 15% of gross sales | When it applies | Up to 15% plus costs if the franchisor has to manage the studio after a default; 3% plus costs after an owner's death or disability. (Item 6, PDF p. 22) |
| Indemnification | Varies | When it applies | (Item 6, PDF p. 22) |
| Costs and attorneys' fees | Varies | When it applies | (Item 6, PDF p. 23) |
| Liquidated damages (area development) | $10,000 | When it applies | $10,000 for each studio not developed if an area development agreement is terminated. (Item 6, PDF p. 23) |
Explore annual fees and payback assumptions
This fee schedule cannot be reduced to the calculator’s simple sales-based formula. Enter your own assumptions and check them against the Item 6 terms.
Orangetheory startup investment and modeled fees over 10 years
Local advertising is the greater of a monthly dollar minimum or a percentage of prior-month sales. Royalty payments also have year-dependent minimum sales bases, and technology charges may increase. A single annual revenue figure cannot reproduce these conditions, so no combined fee or ten-year estimate is shown. See the fee amounts and definitions in Item 6 above. Open the calculator with your own assumptions.
Item 20: Orangetheory franchised outlet history
Source: Orangetheory 2026 FDD, Item 20, PDF p. 74.
Item 20 Table 3 reports 1,209 franchised outlets at the end of 2025. The company-owned table reports a further 15 outlets. Our calculated average annual franchised exit rate is 4.3% across the 3 reported years, using the definition below.
| Year | Franchised at Start | Opened | Reported Exits | At End | Franchise Exit Rate (%) |
|---|---|---|---|---|---|
| 2023 | 1,281 | 53 | 23 | 1,311 | 1.8% |
| 2024 | 1,311 | 27 | 55 | 1,283 | 4.2% |
| 2025 | 1,283 | 13 | 87 | 1,209 | 6.8% |
Franchised units went from 1,281 to 1,209 over 3 years (-72).
Reported exits include terminations, non-renewals, franchisor reacquisitions and other cessations. A reacquired outlet may continue operating. How we calculate the exit rate. How to read the Item 20 outlet tables. Compare Orangetheory’s exit rate with other brands.
214 units changed owners in 2025.
How much do Orangetheory franchise owners make? (Item 19)
Source: Orangetheory 2026 FDD, Item 19, PDF p. 66.
Item 19 of the 2026 FDD reports average gross sales of $802,145 (12 months ended Feb. 28, 2026, 1,189 franchised studios open the full period; 518 (44%) met or exceeded the average). Orangetheory’s Item 19 reports sales and other operating figures but no profit, costs or owner pay. Rent, payroll, supplies, loan payments and Item 6 fees such as the royalty (8% of gross sales) come out of sales before an owner is paid, so these figures cannot show what an owner earns.
See every Orangetheory Item 19 figure, with its period and sample.
Payback calculator (enter your own assumptions) Check any inputs against this record’s Item 7 startup costs and Item 6 fee rules.
How to interpret Orangetheory’s Item 19 figures and sample limits.
How long is the Orangetheory franchise agreement term?
Source: Orangetheory 2026 FDD, Item 17, PDF p. 61.
The standard Orangetheory franchise agreement runs 10 years, with renewal terms of 10 years.
The parties may mutually agree to a term up to eleven years to align it with the site agreement. One additional ten-year successor term is available only if the stated conditions are met, including remodeling and signing the then-current agreement.
How long does it take to open an Orangetheory franchise? (Item 11)
Source: Orangetheory 2026 FDD, Item 11, PDF p. 46.
Item 11 of the 2026 FDD states the time from signing the franchise agreement or the first payment, whichever is first to opening: approximately 9 to 12 months in most markets.
Franchises with a similar investment range
These published records are selected by proximity to Orangetheory’s $764,577 low-end Item 7 investment, starting with Fitness. Formats, fees and source qualifications differ; the figures are not interchangeable budgets:
- Blaze Pizza $757K – $1.3M Restaurants & Food
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- The Learning Experience $806K – $1.56M Education & Tutoring
- Jeni's Splendid Ice Creams $698K – $955K Source review pending Provisional publication Restaurants & Food
- Massage Envy $696K – $1.05M Health & Wellness
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Compare other fitness franchises
Frequently Asked Questions about Orangetheory
- How much does it cost to open an Orangetheory?
- Item 7 estimates $764,577 – $1,104,920 for a single studio. It separately lists leasehold improvements, the fitness equipment and OTbeat system, a technology system, and funds for the first three months. Purchasing the premises would add a cost that the estimate excludes.
- How much do Orangetheory owners make?
- Item 19 reports average gross sales of $802,145 for 1,189 franchised studios in the twelve months ended February 28, 2026. The sample includes two temporarily closed storm-affected studios but excludes 95 permanent closures. These are sales, not owner income; the FDD reports no expense or profit figures.
- What are the ongoing royalties for Orangetheory?
- The royalty rate is 8% of gross sales, subject to year-dependent minimum sales bases. The current brand fund is 3% of gross sales. Local advertising is the greater of $2,500 or 2% of prior-month gross sales. Technology and other charges are separate; the page does not show an unsupported combined annual fee estimate.
Sources
OTF Franchisor, LLC Franchise Disclosure Document, issued March 31, 2026, as amended September 14, 2026, as filed with the Minnesota Commerce (CARDS). Read the source FDD PDF. How to get this FDD yourself.
- Item 5: cited PDF p. 17
- Item 6: cited PDF p. 19
- Item 7: cited PDF p. 24
- Item 19: cited PDF p. 66
- Item 20: cited PDF p. 74
- Agreement term (Item 17): cited PDF p. 61
Page references for Orangetheory use the PDF viewer's digital page count, not printed page headers. Some viewers download the document instead of opening the referenced page.
If the state document viewer does not open, use Minnesota Commerce's public filing instructions to look up the filing by franchisor name and document date.
Document & verification changelog
- October 29, 2026: Record updated.
- September 28, 2026: Source check completed against the recorded FDD.
- September 28, 2026: Initial cost profile published from the 2026 Franchise Disclosure Document (issued March 31, 2026).
- September 14, 2026: Amendment date recorded for the source FDD.