If you are looking towards opening a Retro Fitness Franchise, it will be nice for you to have a preview of what the company represents before going ahead to enquire about the total cost of opening the franchise in your location. Retro Fitness was founded in 2002 and they began franchising in 2006, about 14 years ago.
The current CEO is Andrew Alfano and they have their corporate head office at 43 Country Rd. 537 W. Colts Neck, NJ 07722, USA. As of 2018, Retro Fitness owns and operates 146 franchises in the United States. Retro Fitness gyms, with locations across the US, have circuit- and weight-training equipment, cardio burning machines equipped with flat-screen TVs, individual and group training options, functional training areas, smoothie bars, and child care.
Retro Fitness is a rapidly growing franchise model within the $30 Billion health and wellness industry that provides a high return on investment with strong-unit economics and streamlined operations. Smart, savvy and successful, their diverse group of franchise owners include doctors, lawyers, C-level executives, multi-brand entrepreneurs and everything in between.
They’ve all chosen Retro Fitness to grow and expand their investment portfolios and are united by a common goal: to deliver the very best personalized fitness experience fitting each-and-every member’s budget. Here are areas where you are expected to spend money and the costs associated with it;
Financial Investment Required to Open Retro Fitness Franchise
- Initial Investment: $944,000 – $1,592,250
- Net-worth Requirement: $1,500,000
- Liquid Cash Requirement: $300,000
- Ongoing Initial Franchise Fee: $69,000
- Ongoing Royalty Fee: 5%
- Ad Royalty Fee: 2%
1. Initial Franchise Investment: $944,000 – $1,592,250
Please note that the total cost to open a Retro Fitness club ranges from $944,250 to $1,592,500 depending on the size of the space. You will need minimum liquid assets of $400,000 and a net worth of $1.5 million either individually or cumulatively amongst a group of investors to obtain necessary bank financing.
2. Franchise Fee: $69,000
3. Royalty Fee: 5 percent of Gross Sales
Due Date for this fee is Paid by electronic funds transfer every Friday for the preceding Reporting Period. The amount of the Royalty Fee for any renewal term will be that provided in the Franchise Agreement executed for such renewal term.
Please note that “Gross Revenues” include all revenues generated from the provision of any and all services and/or the sale of any and all products and, whether by the franchisee or a third-party provider, that relate to or arise from the Franchised Business. It does not include taxes collected from customers.
- Local Advertising Spend, Local Marketing Fund, or Cooperative Advertising Contribution: At least 1 percent per calendar year and the Due Date: for this is Monthly.
Please note that each local advertising Cooperative may elect to increase the monthly contribution if approved by a two-thirds majority of the members, and the minimum contribution is subject to adjustment by an amount not to exceed the increase in the CPI.
Centers owned by Retro Fitness and its affiliates are also members of their respective local Cooperative and each company-owned Center has the same voting rights as the franchised locations within the Cooperative.
If the company-owned Centers comprise the majority of a given Cooperative, the maximum and minimum fees for that Cooperative will be consistent with the range stated in this Item 6.
- Liquidated Damages Under Area Development Agreement: This fee varies but the Due Date is Payable within 30 days of the termination of the Development Agreement.
- Audit Costs: All costs and expenses associated with the audit, reasonable accounting and legal costs.
- Indemnity: This fee will vary under the circumstances and the Due Date is As incurred.
Please note that you must reimburse Retro Fitness if it is held liable for claims arising out of your franchise operations.
- Insurance: Reimbursement of costs the franchisor’s out-of-pocket costs.
- Equipment, Supply, or Supplier Testing or Inspecting: Fee not to exceed the actual costs of inspecting and testing. (Due Date: Due on receipt of invoice.)
Please note that This fee covers the cost of testing or inspecting equipment, supplies, or suppliers you propose.
- POS Hardware and Software: Depends upon vendor and products purchased. (Due Date: Depends upon vendor and products purchased.)
- Attorneys’ Fees and Costs: Will vary under circumstances. (Due Date: As incurred.)
Payable to Retro Fitness if it is forced to retain independent counsel and seek damages or injunctive relief to enforce the Franchise Agreement (whether or not suit is filed) or if Retro Fitness is required to defend your unsuccessful claim against it.
- Veteran Incentives: 10 percent off franchise fee
- Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If requirements are met, franchisees can renew for one additional term of 10 years.
- Financial Assistance: Retro Fitness offers in-house financing to cover the following: startup costs, equipment and also, Retro Fitness has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, payroll.