Risk Score
Pending analysis
Investment Range
$349,200 - $786,100
Franchise Fee
$30,000
Total US Locations
753
Business Summary
F45 Training offers franchises for studios that provide exercise training. The training involves alternating periods of short, intense anaerobic exercise as part of a distinctive system. F45 Training Studios provide designated exercise services, including at-home workouts, and sell related products to customers.
Corporate History
F45 Training Incorporated, based in Austin, Texas, was founded and incorporated in Delaware on March 25, 2015. The company operates under its corporate name and "F45 Training," focusing on selling franchises for its distinctive exercise training studios. Franchising operations began shortly after the company's inception, on August 1, 2015. F45 Training has not diversified into other lines of business within its direct operations. However, its ultimate parent, F45 Training Holdings Inc. (FIT), also in Austin, manages a broader portfolio of fitness brands. Affiliates of F45 Training have expanded the "F45" brand internationally since 2013 and have also introduced other fitness concepts, such as "FS8" (Pilates, yoga, and stretch) since 2020-2021, and "Vaura" (Pilates) studios since 2022-2024.
Financial Overview
Investment Range
$349,200 - $786,100
Franchise Fee (Low)
$30,000
Franchise Fee (High)
$60,000
Royalty %
7%
Marketing %
2%
Equipment Costs (Low)
$128,500
Equipment Costs (High)
$217,500
Working Capital
$80,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
F45 Training has experienced significant net losses and negative cash flows from operating activities over the past three years. The company reported net losses of $24.3 million in 2024, $34.3 million in 2023, and $115.8 million in 2022. Operating activities consumed $20.9 million in cash in 2024, $48.7 million in 2023, and $92.6 million in 2022. These ongoing losses are offset by substantial capital contributions from its parent company, F45 Training Holdings Inc., which provided $22.1 million in 2024, $56.9 million in 2023, and $79.8 million in 2022, indicating a reliance on parent funding for solvency. F45 Training carries a valuation allowance of $54.3 million against its deferred tax assets as of December 31, 2024, suggesting management does not anticipate generating sufficient future taxable income to realize these tax benefits. Historically, the company has faced significant bad debt expenses from franchisee non-compliance, including over $8 million in 2022, and has incurred legal expenses for various lawsuits and regulatory settlements. F45 Training also acts as a guarantor for its parent company's considerable debt obligations.
Financing Details
F45 Training does not offer any direct or indirect financing to franchisees, nor does it guarantee any notes, leases, or obligations for them. However, F45 Training maintains a relationship with Swoop Funding, a third-party platform designed to help small business borrowers, including franchisees, find financing from various lending institutions. While F45 Training may earn a commission from Swoop if a franchisee secures financing through this referral, F45 Training is not directly involved in providing the loans, nor does it have knowledge of the specific terms of any financing obtained through Swoop.
Performance Metrics
Total US Locations
753
Franchised Units
751
Corporate Units
2
Avg Square Footage
2,025
Franchising Since
2015
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
12
Litigation Summary
F45 Training has been involved in several legal matters. Most recently, in October 2024, a multiple-unit franchisee sued F45 Training regarding outstanding payments and equipment packages, with F45 Training filing counterclaims; this case is currently stayed for settlement discussions. F45 Training settled a 2017 lawsuit with Terrell Owens in August 2024 concerning the use of his likeness for marketing, agreeing to payments of $350,000. In December 2023, F45 Training settled a November 2020 lawsuit from franchisees alleging violations of the Illinois Franchise Disclosure Act and consumer fraud, which resulted in a $610,000 payment. Another franchisee lawsuit from January 2022 in Michigan, alleging breach of contract and franchise law violations, was confidentially settled in June 2024 for fifteen monthly payments of $100,000. A similar case from June 2023 was settled in March 2024 for $200,000. F45 Training's parent company is currently facing a class-action lawsuit from December 2022 by a stock holder, alleging securities law violations related to the 2021 initial public offering. In October 2022 and December 2023, F45 Training entered into consent orders with the Washington State Department of Financial Institutions Securities Division for past disclosure violations, paying a total of $18,112.50 and offering rescission to some franchisees. In October 2023, F45 Training settled with the California Commissioner of Financial Protection and Innovation for unlawful financial performance representations and failure to disclose public figure agreements, paying a $152,500 administrative penalty and offering rescission to certain franchisees. A settlement with the Michigan Department of Attorney General in August 2023 over alleged financial performance representations involved a $95,000 payment and rescission offers. A former franchisee's fraud and tortious interference lawsuit from March 2023 in Tennessee was dismissed based on a forum selection clause, though the plaintiffs indicated intent to refile. In November 2024, F45 Training sued a franchisee in Hawaii for operating a competing business, which settled in February 2025 with the franchisee agreeing to cease competing operations and divest studio interests.
Bankruptcy History
F45 Training has no bankruptcy history to report, and no bankruptcy is required to be disclosed in this item.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, F45 Training franchisees must give written notice between six and nine months before the initial term ends. They must update all required items and ensure they are not in default of their agreements, paying all money owed to F45 Training and its affiliates. Franchisees need to retain the rights to their current location or secure a new approved site. A renewal fee must be paid, and franchisees must sign a general release of claims and comply with F45 Training's then-current qualifications and training requirements. They will also need to sign the then-current form of the renewal franchise agreement, which may have different terms than their original agreement.
Training & Support Program
Franchisor Assistance
F45 Training provides extensive assistance to its franchisees both before and after opening. Before a studio opens, F45 Training offers site selection guidance, including demographic analysis, and provides access to prototypical design plans and operation manuals. They supply the initial Equipment Pack and a list of approved suppliers. Franchisees also receive an induction seminar and an online initial training program. F45 Training offers New Studio Project Management services, which can range from coaching with internal experts to full-service third-party retail project management, covering site due diligence, architectural design, construction management, and equipment logistics. After opening, F45 Training conducts periodic operational evaluations, manages marketing and brand funds, and provides ongoing advice and written materials on business management, including access to the operations manuals. F45 Training makes branded products and customer programs available at its discretion and provides updated lists of approved suppliers. Additional training programs and seminars may be offered at F45 Training's discretion.
Initial Training Hours
73
Training Location
Austin, Texas, and online
Ongoing Support
F45 Training provides ongoing support to franchisees after their studio opens, including periodic evaluations of operations and management of the Marketing Fee and Brand Fund. The franchisor also supplies advice and written materials on business management, including access to the operations manuals. F45 Training makes branded merchandise, nutritional supplements, and customer programs available at its discretion and provides updated lists of approved suppliers. Franchisees also gain access to proprietary software programs. While additional training programs and seminars may be offered at F45 Training's option in the future, currently no formal ongoing training programs are established.
Franchise Requirements
Ideal Candidate Profile
F45 Training seeks franchisees who will designate a "Key Person" to be the main individual responsible for the business. This Key Person must hold at least a 10% ownership stake in the franchisee entity and must meet F45 Training's qualifications and secure its approval. For franchisees operating multiple studios, the same individual must serve as the Key Person across all locations. Unless a General Manager is appointed, the Key Person is required to dedicate their full time and best efforts to supervising operations and cannot engage in other businesses. The Key Person must also fulfill F45 Training's training requirements, comply with its standards, and personally guarantee the franchisee's performance under the agreement. If a General Manager is appointed, they must also devote their full time and best efforts to studio supervision.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
supervisory
Territory Type
limited
Territory Size Requirements
F45 Training defines its protected areas based on a population of at least 15,000 people, as determined by the most recent U.S. census data. The exact size and shape of these protected areas can vary for each franchisee.
Staffing Notes
F45 Training franchisees must employ at least one Studio Manager to oversee daily operations. Additionally, each studio must have a minimum of three certified trainers who have completed F45 Training's required training, with the franchisor reserving the right to require more trainers as needed to maintain System Standards. While F45 Training provides suggestions and guidelines for staffing, franchisees are solely responsible for all employment decisions, including hiring, firing, compensation, and scheduling. Franchisees must ensure their employees maintain high customer service standards and comply with all F45 Training's operational guidelines and applicable employment laws. F45 Training explicitly states it is not considered a joint employer with its franchisees.