A well-known gym chain that provides high-intensity interval training sessions is Orangetheory Fitness. Florida-based fitness professional Ellen Latham established the business in 2010. Orangetheory has over 1,200 facilities worldwide and is now valued at over $1 billion. At the moment, Orangetheory Fitness’ CEO is Dave Long.
Due to Orangetheory’s franchise-based business model, each gym is run by a different owner. Depending on the region, operating an Orangetheory gym can cost anywhere between $563,529 and $994,882. Owners must also pay an annual royalty fee of 8% of their gross sales in addition to the $39,500 franchise cost. The initial investment covers expenses for rent, machinery, and marketing.
Forbes estimates that the average Orangetheory gym brings in over $1 million annually. The profit margin, however, may differ based on the location, the size of the gym, and the local competitors. While it might take longer for some owners to break even, some may see a return on investment in as little as a few years.
Orangetheory’s distinctive workout approach, which blends cardio and strength training in a group setting, has been credited with the company’s success. During the workout, participants wear heart rate monitors, and the objective is to get into the “orange zone,” which is the ideal heart rate for burning calories and increasing endurance.
Orangetheory makes money not only through gym memberships but also from the sale of branded clothing and accessories. The business also provides corporate wellness programs that may be tailored to the requirements of organizations of all sizes.
In conclusion, for businesspeople who are enthusiastic about fitness and want to open their own gym, Orangetheory Fitness is a lucrative business opportunity. Despite the potential for huge profits, the initial investment may be expensive. The success of Orangetheory is evidence of both the strength of a good brand and the rising demand for high-intensity interval training.