Orangetheory Fitness franchise unit economics

How much does an Orangetheory Fitness franchise make?

The average Orangetheory Fitness unit reported $802,145 of revenue in the 2026 FDD, and the median reported $750,643. The brand’s disclosure document discloses revenue and not profit, so what an owner keeps depends on the cost structure set out below. Fees come off the top first, at about 11% of sales across royalty, brand fund and the rest of the stack. Revenue is not income. Rent, wages, cost of goods and the franchise fees all come out before an owner is paid. The figures for the highest-selling and lowest-selling businesses are below.

Sales & members

Sales and members by quartile

Sales, members, medians and ranges are as the brand reported it. Revenue per member is marked *, dividing each quarter's sales by its member count and by twelve.

Revenue per member rises from $139.67 to $159.50 across the quartiles. That is a 14.2% range, and because the quartiles are shared it is a real difference. The top quartile extracts $19.83 more a month from each member, $238 a year, or $149,915 across a 630-member studio *. That is the clearest lever available after member count itself.

Member count accounts for 86% of the gap between the top and bottom quartiles. Sales differ 2.53 times, members 2.22 times and revenue per member 1.14 times *. So the work splits roughly six to one in favor of filling the studio over pricing it. But the one is worth $238 a year per member. That is a meaningful second lever in a system where member growth is hard.

33% of top-quarter studios reach their own quartile average. At Orangetheory, 57% of fourth-quartile studios reach their own quartile average. The top quartile runs $976,652 to $2,870,191 and its median of $1,136,849 sits $68,977 below its average. So a handful of very large Orangetheory studios pull the top quartile average above its median. The middle two quartiles are tight, 1.30 and 1.27 times inside themselves, and behave like a single population.

Half the system bills below $750,643. The median for all Orangetheory studios is $750,643, which is $51,502 below the $802,145 average. The lowest-selling Orangetheory studio reports $156,118 and 105 members, about a quarter of the system average on both measures. Against a build costing $764,577 at its cheapest, that is the studio the closure figures describe.

The highest-selling studio bills $2,870,191 on 1,390 members. That studio earns $172.07 a month per member *, the highest in the Orangetheory system, with 3.1 times the average member count. The lowest-selling bills $156,118 on 105 members, or $123.90. So across the extremes of this system, member yield moves 39% while member count moves thirteen times.

Top performers

What separates the top Orangetheory Fitness performers

Fees & the minimum

Royalty and advertising costs

We built this from Orangetheory's filed rates. The royalty is 8%, debited weekly from the owner's bank account. The Brand Fund contribution is 3%, debited monthly. The franchisor may raise it to 5%. A Minimum Monthly Local Advertising Spend applies at the greater of 2% of the prior month's gross sales or $2,500, spent inside the territory. Any shortfall is paid into the Brand Fund.

The $2,500 monthly minimum advertising charge binds below $1,500,000 of sales. The top quartile averages $1,205,826, so the minimum applies on all four quartiles and only the largest individual studios escape it. At fourth-quartile sales the 2% rate would be $9,520 and the minimum costs $30,000, $20,480 more, or 4.3 points of revenue.

Fees paid to the brand are 11% of sales at every level. In dollars, Orangetheory's highest-selling studio pays $315,721 to the brand and the lowest-selling pays $17,173. The $30,000 local advertising minimum is spent by the owner on top, and is 3.7% of average sales.

The brand fund may rise from 3% to 5%. The two extra points would cost $16,043 a year at the average Orangetheory studio and $24,117 at the top quartile *. That would take the share paid to the brand from 11% to 13% of sales at every level.

The royalty is debited weekly and the brand fund monthly. Two different calendars against a monthly close, on a base defined identically to the sales figures you are benchmarked against, which is unusually clean. Where a studio understates a payment by more than 2%, it reimburses the franchisor’s full audit costs including legal and accounting fees.

Opening a studio

Cost to open a studio

As the brand reported it, reordered here by size.

The average reported tenant improvement allowance is $28.62 a square foot. On a typical 3,100 square foot studio that is $88,722 *, 36% of the low building work of $245,000, and at the reported ceiling of $100 a square foot it would be $310,000, covering 74% of the $418,317 high estimate *. No allowance appears in the investment table, so the figures above are gross of something most owners negotiate.

Additional funds are $171,239 at both ends of the range. It equals 22.4% of the low build cost. Orangetheory states one working capital figure instead of a range. It says the franchisor expects roughly $57,000 a month of funding need across the first quarter regardless of how the build lands.

The build is 0.95 to 1.38 times a year of average sales. An Orangetheory studio costs $764,577 to $1,104,920 to build, against average sales of $802,145. At fourth-quartile sales of $475,979 it is 1.61 to 2.32 years, and at the lowest-selling studio’s $156,118 it is 4.9 to 7.1. With no cost data available, those sales multiples are what an owner has to work with.

Revenue runs $259 a square foot at the typical 3,100 square foot studio. Orangetheory revenue is $458 a square foot at the 1,750 square foot low end and $167 at the 4,800 square foot high end *. Since the equipment package scales with station count, a larger box buys capacity only where the member base supports the extra stations. The member ranges in the quarter table run 105 to 1,390.

The network of locations

Studios opened and closed, 2023 to 2025

As the brand reported it; every row reconciles exactly.

Openings fell from 53 to 27 to 13 while departures rose from 23 to 55 to 87. The lines crossed during 2024. In 2025 the system opened one studio for every 6.7 that left, and the franchised network fell 74 units, 5.8% in a single year.

Non-renewals went 1, 8, 26. A non-renewal is an owner reaching the end of a term and declining to sign again. That is a different signal from a closure mid-term. It says the decision was deliberate and scheduled. Against zero terminations in three years, this system's contraction is owners choosing to leave.

The franchised Orangetheory network shrank by a net 102 studios across 2024 and 2025. Orangetheory's franchised studios fell from 1,311 to 1,209. The 95 permanent closures counted in the performance section represent 7.3% of the studios that were open at any point in that twelve-month window. All of them had traded over a year, so these were established businesses.

Orangetheory territory protection depends on the agreement signed. A single-studio franchise receives a protected territory defined at the site. A development agreement has a Development Territory the franchisor will keep clear while the development schedule is met. The franchisor reserves studios inside private establishments where access is limited to that business's employees or guests. Orangetheory reserves the right to operate any other brand inside the territory.

Questions we get asked

Questions owners ask.