Orange Shoe Personal Fitness Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$98,600 - $325,000
Franchise Fee
$20,000
Min Cash Required
$30,000
Total US Locations
11
Business Summary
Orange Shoe operates health and fitness centers under its brand names, providing personal fitness training, various classes, small group and corporate wellness programs, in-home training, and personalized nutrition and weight loss counseling. Since March 2020, Orange Shoe has also offered online training sessions in addition to in-person classes.
Corporate History
Financial Achievements Corporation, operating as Orange Shoe, was formed as a Wisconsin corporation on December 18, 2013. It acquired most of its assets from its predecessor, Orange Shoe Gym Holdings Incorporated, on February 1, 2020. Orange Shoe Gym Holdings had previously offered franchises under the Orange Shoe brand from 2009 to 2012. Financial Achievements Corporation began offering franchises under the Orange Shoe brand on May 23, 2020, and primarily engages in franchising and providing services to its franchisees for health and fitness centers.
Financial Overview
Investment Range
$98,600 - $325,000
Franchise Fee (Low)
$20,000
Franchise Fee (High)
$39,000
Minimum Cash Required
$30,000
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$17,000
Equipment Costs (High)
$192,500
Working Capital
$45,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Financial Achievements Corporation, operating as Orange Shoe, has had negative stockholders' equity for the past three years, indicating its liabilities exceed its assets. For the fiscal years ending December 31, 2023, and 2022, Orange Shoe also had negative working capital, meaning its current liabilities were greater than its current assets. However, the company reported positive net income in 2023 ($21,518) and 2022 ($2,458), and consistently generated positive cash flow from operating activities in 2023 ($91,908), 2022 ($51,509), and 2021 ($28,857). Despite the negative equity and working capital, the independent auditors issued an unqualified opinion on the financial statements for these years and did not identify any substantial doubt about the company's ability to continue as a going concern.
Financing Details
Orange Shoe does not offer any direct or indirect financing to franchisees. It also does not guarantee any notes, leases, or other obligations for franchisees. Franchisees are responsible for securing their own financing.
Performance Metrics
Total US Locations
11
Franchised Units
11
Corporate Units
0
Avg Square Footage
2,150
Franchising Since
2020
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Orange Shoe has no litigation history to report.
Bankruptcy History
Orange Shoe has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
Orange Shoe franchisees may renew their franchise for three additional consecutive terms of five years each, provided they meet several conditions. Franchisees must have substantially complied with all provisions of their franchise agreement, maintain possession of their location or secure an approved substitute, and bring the studio into full compliance with current brand specifications before the expiration date. They must give written notice of their intent to renew between nine and twelve months prior to expiration. All monetary obligations to Orange Shoe and its affiliates must be satisfied, and franchisees must execute Orange Shoe's then-current successor franchise agreement, which may have different terms. Franchisees must also meet current qualification and training requirements, sign a general release of claims against Orange Shoe, and upgrade their studio to conform to the latest system standards at their own expense. Finally, they must pay Orange Shoe's then-current successor franchise fee.
Training & Support Program
Franchisor Assistance
Orange Shoe provides various assistance to its franchisees. Before a studio opens, Orange Shoe designates the site search and protected territory, offers consulting for site selection, and approves or disapproves proposed locations and lease agreements. It reviews and approves architectural plans and specifications, provides specifications for furniture and equipment, approves signage vendors, and grants electronic access to its confidential System Standards Manual. Orange Shoe also provides initial training for two individuals and information on required computer systems and software, and designates the opening inventory. After a studio opens, Orange Shoe furnishes advisable support services on-site, off-site, by phone, or other means. It provides specifications for required products and services, may establish pricing requirements, and administers the Marketing Fund. Orange Shoe also uses commercially reasonable efforts to correct computer system and software failures.
Initial Training Hours
160
Training Location
Corporate headquarters and an existing Orange Shoe Personal Fitness Studio in Pewaukee, WI
Ongoing Support
Orange Shoe provides ongoing support services, which it deems advisable, through in-person, telephone, newsletters, or other means, with timing dependent on personnel availability. It also offers individual or group advice, consultation, guidance, and assistance based on inspections and franchisee reports. Optional additional training programs, seminars, or advanced management training may be provided at designated locations, not more often than twice a year, with franchisees covering associated costs and fees. Orange Shoe also offers additional guidance for unusual operating problems at per diem fees plus expenses.
Franchise Requirements
Ideal Candidate Profile
Orange Shoe seeks qualified individuals and entities who are able to personally and directly supervise the operation of their studio, unless written permission for alternative arrangements is granted. Franchisees are expected to devote significant time and effort to the business. If the franchisee is an individual, they may serve as the Studio Manager or designate an approved Manager. Candidates must also demonstrate that they are sufficiently capitalized and possess adequate financial resources to open and operate the Orange Shoe Personal Fitness Studio.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Hands-On
Territory Type
Protected
Territory Size Requirements
Orange Shoe Protected Territories are determined on a case-by-case basis, considering the demographics and population size specific to the location, with no minimum geographic size. The minimum population size for the target demographic group is determined through demographic research, using tools like Google Earth Pro. Territories can range from a specific street address to a block, zip code, or other measurable area, with metropolitan studios typically receiving smaller territories than suburban/rural ones. Franchisees negotiate and agree upon the territory size when identifying a studio location.
Staffing Notes
Orange Shoe franchisees must staff their studio according to criteria, specifications, and directions provided in the System Standards Manual. Franchisees are responsible for hiring, training, and supervising honest, reliable, competent, and courteous employees, and for paying all their wages, commissions, benefits, and taxes. A sufficient number of trained employees must always be available to meet operational standards. The studio must operate under the direct, on-site supervision of the franchisee or a Designated Studio Manager, or an Assistant Manager who has completed the initial training program. If the Designated Studio Manager leaves, a new one must be hired within 30 days and complete initial training at the franchisee's expense. All employees needing access to confidential information must sign a Confidentiality/Non-Compete Agreement.