Risk Score
Pending analysis
Investment Range
$399,500 - $2,973,500
Franchise Fee
$40,000
Total US Locations
3
Business Summary
Pure Fitness franchises are fitness clubs that utilize innovative technology, offer low-cost and flexible memberships, and feature cardio equipment, fixed and free weights, personal fitness training, and exercise classes in a distinctive atmosphere. Pure Fitness Clubs also offer group exercise and cycle classes, along with ancillary products like vending, body composition scans, sports drink dispensers, and recovery massage beds. Members enjoy contactless club access, quick online sign-up, virtual coaching, and a library of workouts on the Pure Fitness app.
Corporate History
Pure Fitness Franchising LLC was formed in Delaware on August 10, 2021, and began offering Pure Fitness franchises in July 2022. The Pure Fitness concept is derived from its UK-based parent company, PureGym Limited, which was formed in 2008 and is a leading gym chain in the UK. PureGym, along with its affiliates, operates over 370 gyms in the UK and has expanded to other European countries through the acquisition of Fitness World Group in 2020. The PureGym Group was acquired by Leonard Green & Partners LP in 2017. Pure Fitness Franchising's U.S. affiliate, PureFitness LLC, has operated company-owned Pure Fitness Clubs since 2021 in the U.S. The Pure Fitness model leverages technology and a low-cost, high-quality fitness experience developed by the PureGym Group.
Financial Overview
Investment Range
$399,500 - $2,973,500
Franchise Fee (Low)
$40,000
Franchise Fee (High)
$50,000
Royalty %
6%
Marketing %
1%
Equipment Costs (Low)
$1,202,500
Equipment Costs (High)
$2,465,000
Working Capital
$112,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Pure Fitness Franchising LLC is a newly formed company that began offering franchises in July 2022. Its financial statements for the fiscal years ended December 31, 2023, and 2022 show net losses but have positive members' equity due to member contributions. The company has not yet generated revenue from franchise fees as of December 31, 2023. The independent auditor provided an unqualified opinion, indicating that the financial statements present fairly, in all material respects, the financial position and results of operations in accordance with GAAP. There are no explicit notes or qualifications from the auditor raising substantial doubt about the company's ability to continue as a going concern.
Financing Details
Pure Fitness Franchising does not offer any direct or indirect financing to franchisees. It also does not guarantee any franchisee's notes, leases, or other obligations.
Performance Metrics
Total US Locations
3
Franchised Units
0
Corporate Units
3
Avg Square Footage
13,750
Franchising Since
2022
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
Yes
Litigation Summary
Pure Fitness Franchising has no litigation history to report.
Bankruptcy History
Pure Fitness Franchising's affiliate, PureGym, acquired Fitness World Group in 2020. As part of this acquisition, PureGym determined that one of its acquired companies, Fitness World Poland, which operated 19 gyms in Poland, was not profitable. Consequently, around November 9, 2020, Fitness World Poland filed for insolvency. The company was later purchased out of bankruptcy by a third party in early 2021, and the administration concluded around April 16, 2021. This is the only bankruptcy event reported by Pure Fitness Franchising.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise, Pure Fitness Franchising franchisees must provide timely written notice (3 to 6 months before expiration), renovate and modernize their club to meet current brand standards (including installing new and replacing old equipment), not be in default of any agreement with Pure Fitness Franchising or its affiliates, demonstrate the right to possess the premises for the new term, sign Pure Fitness Franchising's then-current franchise agreement (which may have different terms like higher fees), sign a general release of claims, comply with current training requirements, pay a $10,000 successor franchise fee, and be current on all obligations to their landlord and suppliers.
Training & Support Program
Franchisor Assistance
Before opening, Pure Fitness Franchising provides franchisees with site selection guidelines and consultation, including on-site evaluations (at the franchisee's expense), specifications for a prototypical club layout, initial training for key personnel, advertising and promotional materials (at franchisee expense), access to confidential operating manuals via a password-protected website, and a standard equipment list with information on potential discount packages. For the first five clubs opened by a franchisee or their affiliates, Pure Fitness Franchising offers up to five days of onsite training and assistance at its expense, with franchisees covering travel costs. After opening, Pure Fitness Franchising offers ongoing advice and written materials on operations, sales, and marketing. It designates or approves suppliers for products and equipment, and provides access to its proprietary member management software and the Pure Fitness mobile app. Additional training and assistance are available upon request, subject to availability, at the franchisee's expense (currently $500 per day plus travel costs).
Initial Training Hours
171
Training Location
Springfield, Virginia
Ongoing Support
After opening, Pure Fitness Franchising provides ongoing advice, assistance, and written materials on operations, services, business issues, sales methods, and marketing techniques. Franchisees also have access to Pure Fitness Franchising's proprietary member management software and the Pure Fitness mobile app. Pure Fitness Franchising designates or approves suppliers for various products and equipment. Additional training and assistance can be requested by franchisees, subject to availability, for a fee (currently $500 per day plus travel expenses). Annual refresher courses are typically provided.
Franchise Requirements
Ideal Candidate Profile
Pure Fitness Franchising seeks franchisees who are legal entities, with owners who demonstrate educational, managerial, and business standards, possess good moral character, business reputation, and credit rating, and have the aptitude and ability to develop and operate the Pure Fitness Clubs. Owners are expected to devote full time, energy, and best efforts to the management and operation of their Pure Fitness Clubs. Franchisees must also maintain a competent, conscientious, trained staff, including a Gym Manager who has completed initial training, and ensure all employees undergo background checks and adhere to Pure Fitness Franchising's codes of conduct.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
full-time
Territory Type
protected
Territory Size Requirements
Pure Fitness Franchising defines the territory for each Pure Fitness Club as generally up to a 5-mile radius around the approved location. However, the size of this territory may vary significantly based on the population density of the surrounding area. For instance, a territory could be a certain number of city blocks in an urban setting or a township in a more suburban area. Pure Fitness Franchising does not guarantee a minimum size for the territory.
Staffing Notes
Pure Fitness Franchising requires that a Key Owner or an approved full-time Operations Manager dedicate full time, energy, and best efforts to the management and operation of the Pure Fitness Clubs. Each club must always be managed by an individual who has successfully completed the initial training program and be monitored by employees, contractors, or video according to minimum System Standards. Franchisees must maintain a competent, conscientious, and trained staff, including a Gym Manager who has completed training. Employees are expected to provide courteous and knowledgeable service, meet established attire standards, and comply with codes of conduct. Franchisees are responsible for conducting background checks for all employees, handling customer complaints, and making all employment decisions. Payroll expenses typically include salaries for fitness consultants, employed personal trainers (if applicable), facilities personnel, commissions, and bonuses, with amounts varying based on staffing and class schedules.