Fitness Together logo

Fitness Together Franchise

Audited Financials
FitnessEst. 1996Denver, CO
www.fitnesstogether.com

Risk Score

Pending analysis

Investment Range

$221,458 - $524,484

Franchise Fee

$20,000

Total US Locations

93

Business Summary

Fitness Together offers franchises for personal fitness training studios operating under the brand name Fitness Together. These studios specialize in providing individualized one-on-one and small group personal fitness training, virtual training services, and a nutrition program, along with other related services and products.

Corporate History

Fitness Together Franchise, LLC was founded in Arizona on January 25, 1996, under the name Fitness For Life Franchise Corporation, and began offering franchises for personal fitness training studios that same year. In 2005, the company changed its name to Fitness Together Franchise Corporation. In October 2015, Fitness Together converted to a Delaware limited liability company. From December 2002 to May 2009 and again from July 2014 to December 2017, Fitness Together also offered an area director program. The company is a wholly-owned subsidiary of WBZ Investment LLC, which is ultimately owned by KSL Capital Partners III, L.P. Fitness Together operates as part of the WellBiz Brands, Inc. portfolio, which also includes affiliated franchise systems such as Elements Therapeutic Massage, Amazing Lash Studio, Drybar, and Radiant Waxing.

Financial Overview

Investment Range

$221,458 - $524,484

Franchise Fee (Low)

$20,000

Franchise Fee (High)

$40,000

Royalty %

6%

Marketing %

2%

Equipment Costs (Low)

$117,000

Equipment Costs (High)

$370,050

Working Capital

$36,250

Audited Financials

Yes

Offers Financing

No

Audit Opinion

Unqualified opinion

Financial Health Notes

The financial condition of Fitness Together is reflected through the audited financial statements of its affiliate, Elements Therapeutic Massage, LLC (ETM), which unconditionally guarantees Fitness Together's obligations. While ETM's auditors provided an unqualified opinion on the financial statements, a special risk section in the FDD highlights that Fitness Together's financial condition, as shown in these statements, calls into question its ability to provide services and support to franchisees. ETM's consolidated net income was $248,456 in 2024, down from $1,164,956 in 2022, indicating a declining profit trend. The company also reported declining cash from $1.8 million in 2023 to $1.07 million in 2024. A significant portion of ETM's assets are listed as 'Due from affiliate,' totaling over $39 million in 2024, which could impact its liquidity. However, a major portion of ETM's debt was reclassified from current to long-term in 2024 due to an extension of the maturity date to March 2027, indicating some debt management flexibility. The Parent company (WBZ Investment LLC) was in compliance with all financial covenants of its credit agreement as of December 31, 2024.

Financing Details

Fitness Together does not offer any direct or indirect financing to its franchisees. Additionally, the franchisor does not guarantee any notes, leases, or other obligations of its franchisees.

Performance Metrics

Total US Locations

93

Franchised Units

93

Corporate Units

0

Avg Square Footage

2,050

Franchising Since

1996

Agreement Terms

Initial Term

10 years

Renewal Term

10 years

Renewal Conditions

To renew their Fitness Together franchise agreement, franchisees must notify Fitness Together in writing of their intent to renew between 180 days and one year before their current agreement expires. They must be in substantial compliance with their agreement and all brand standards, and rectify any operating deficiencies. Franchisees are required to remodel or upgrade their studio to meet the then-current standards for new Fitness Together studios, or relocate to an approved new premises. They must also sign Fitness Together's then-current franchise agreement (which may have materially different terms), execute a general release of claims against Fitness Together, and pay a successor franchise fee equal to 25% of the then-current initial franchise fee for new franchises.

Training & Support Program

Franchisor Assistance

Fitness Together provides comprehensive assistance to its franchisees, starting before the studio opens and continuing throughout the franchise term. Pre-opening support includes reviewing proposed sites and leases, providing mandatory and suggested specifications for studio development, construction, and decor, and granting access to the Operations Manual. Fitness Together also provides an initial Training Program for the franchisee (or Operating Partner), Designated Manager, and lead trainer. Prior to opening, an operations team may visit the studio for 3-6 days to provide on-site advice. After opening, Fitness Together offers general guidance on studio operations based on reports and inspections, covering areas such as facility appearance, client-service procedures, quality control, equipment maintenance, inventory management, advertising, marketing, and administrative practices. This guidance is provided through the Operations Manual, virtual meetings, and telephonic consultations. Fitness Together administers a Brand Marketing Fund for national and local advertising efforts, and franchisees are required to contribute to it. Franchisees and their Designated Managers must attend annual conferences and may be required to participate in regional meetings and other training courses. Additional or special training can be requested for a fee. For existing studios following a transfer, virtual advice and guidance are provided, with optional on-site support for a fee. Fitness Together also mandates the use of a Computer System for sales, scheduling, and other operations, to which Fitness Together and its affiliates have access, and charges a monthly Technology Fee for related services. Fitness Together may offer non-mandatory manager training programs and mentorship programs.

Initial Training Hours

51

Training Location

Virtually, at a certified Franchisee Training Studio, the Colorado Support Center, or another designated location.

Ongoing Support

After opening, Fitness Together provides ongoing support through periodic advice and guidance on studio operations, drawing from franchisee reports and inspections. This guidance encompasses various aspects such as maintaining facility appearance, adhering to client-service procedures, ensuring quality control, managing equipment and inventory, developing advertising and marketing strategies, and administrative, accounting, and reporting practices. This information is disseminated primarily through the Operations Manual, virtual meetings, telephonic conversations, and consultations at Fitness Together's offices. Franchisees are also required to attend scheduled annual franchise owner conferences and may be required to participate in regional meetings, various in-person or electronic training courses, trade shows, ongoing education programs, and webinars. Fitness Together may also offer non-mandatory manager training programs and opportunities for training at certified 'Approved Mentorship Studios.' Fitness Together also administers the Brand Marketing Fund, providing an annual unaudited statement of contributions and disbursements upon request.

Franchise Requirements

Ideal Candidate Profile

Fitness Together seeks individuals who are willing to invest and actively operate personal fitness training studios. If the franchisee is a legal entity, an Operating Partner with at least a 25% ownership and voting interest must be designated and approved. This Operating Partner, or the franchisee directly, is required to supervise the studio full-time, unless a full-time Designated Manager is appointed. The Designated Manager must possess personal training experience, which can be demonstrated through certification, a license, or educational background, and must satisfactorily complete Fitness Together's Training Program.

Industry Experience Required

Yes

Management Experience Required

Yes

Sales Experience Required

No

Technical Skills Required

No

Operational Details

Location Type

Retail

Owner Participation

Supervisory

Territory Type

Protected

Territory Size Requirements

Fitness Together typically defines each franchisee's protected territory as a circular geographic area with a 1.5-mile radius around the studio. In densely populated urban areas, the protected area may be defined by political subdivisions, streets, or ZIP codes, representing the lesser of a 1.5-mile radius or a radius reflecting a 50,000 person population density.