The Exercise Coach FranchiseCosts $136K – $349K (+ 2024 Profits)

The Exercise Coach franchise, founded in 2000 by Brian and Gerianne Cygan, is a pioneering fitness brand that specializes in offering personalized strength training programs. Headquartered in the United States, the franchise has carved a unique niche in the fitness industry by focusing on efficient, technology-driven workouts designed to deliver significant health benefits within a short time frame.

The Exercise Coach began offering franchises in July of 2011. What sets The Exercise Coach apart is its emphasis on leveraging cutting-edge technology, specifically the Exerbotics equipment, to tailor workouts to individual needs. 

This approach ensures that clients of all fitness levels can achieve optimal results through safe, 20-minute workout sessions that are scientifically designed to maximize muscle engagement and effectiveness. The brand’s workouts are especially appealing to those who might feel alienated by traditional gym environments, including the 50+ demographic, which often goes underserved in the fitness market.

Type of Expenditure	Amount
Initial Franchise Fee	$50,000
Initial Training Fee or Multiunit Operator Training Fee	$2,500
Food, Lodging & Travel (up to 4 people)	$1,000 – $7,000
Lease Deposit & 3 Months’ Rent	$4,000 – $19,000
Utilities Deposits	$100 – $1,000
Build Out & Improvements	$0 – $50,000
Signage	$1,000 – $8,000
Furniture, Decorations & Furnishings	$4,000 – $6,000
Computer System	$1,000 – $4,000
Technology Expense (3 months)	$1,554
Third-Party Operating Software Expenses (3 months)	$1,586
Telephone and Internet Services (3 months)	$400 – $1,200
Fitness Equipment Package	$10,000 – $81,000
Shipping, Installation and Setup of Fitness Equipment Package and Other Equipment	$7,000 – $9,000
Initial Supply of Inventory	$3,000 – $4,000
AED and First Aid Kit	$1,000 – $2,000
Uniforms	$600 – $1,000
Pre-Opening Marketing and Advertising Plus Print Collateral Material	$14,000 – $21,000
Post-Opening Marketing and Advertising (3 months)	$15,000 – $23,000
Business License	$250 – $500
Professional Fees	$2,500 – $5,000
Insurance (3-months’ premium)	$800 – $1,500
Startup Payroll (3-months)	$5,000 – $10,000
Additional Funds (3 month period after opening)	$10,000 – $40,000
Total Estimated Initial Investment	$136,000 – $349,000

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Initial Franchise Fee

You agree to pay us a $49,500 initial franchise fee in one lump sum at the time you sign the Agreement.

Royalty Fee

You agree to pay a royalty fee equal to the greater of 6% of your Adjusted Gross Revenue or $1,000 per month. This is waived for the first full or partial calendar month of operation.

Marketing/Advertising Fee

Marketing fees include local marketing fees ranging from $2,000 to $2,500 per month, and cooperative advertising fees up to $2,000 per month.

Technology Fee

The technology fee varies, currently at $518 per month, and includes licensing, support, and maintenance fees for the use of proprietary software and technology systems.

Lease or Rent Fee

Lease review and negotiation by a designated real estate attorney cost a flat fee of $3,000 per lease.

Transfer Fees

Transfer fees are $15,000, reduced to $7,500 if the buyer is an existing franchisee of the brand.

Renewal Fees

Renewal fees are 20% of the then-current initial franchise fee payable at the time you sign the Renewal Agreement.

Management Fees

Management fees range from $6,000 to $8,000 per month, payable if a temporary manager is appointed to manage your business in certain circumstances.

Franchise pros and cons

The Pros:

• Science-driven workouts: The Exercise Coach utilizes Exerbotics, its proprietary equipment and technology to offer members advanced fitness sessions. Franchisees can gain a competitive advantage, attract clients of all ages and achieve a high satisfaction and retention rate, leading to improved profitability.
• Marketing and advertising: The franchisor embraces turnkey marketing strategies to help franchisees promote and publicize their local studios. Franchisees can utilize national media, regional advertising, personalized studio marketing, ad templates, email marketing and targeted promotional campaigns to maximize sales.
• Passive investment: The franchise allows for semi-absentee ownership. Franchisees can operate their studios alongside other obligations.
• Exclusive territory protection: The Exercise Coach offers its franchisees an exclusive development market. As long as the agreement is in place, the franchisor does not authorize any other franchises to operate in the designated area or operate a competing unit in the area.
• Simple business concept: The Exercise Coach franchise uses a small footprint of approximately 800-1500 square feet and a small number of employees. 
• Scalable franchise: The Exercise Coach presents a multi-unit franchising opportunity. Franchisees can track their crucial business systems in real-time data using an industry-leading CRM. This leaves the franchisees with the responsibility of delivering quality services and scaling the studios’ growth.
• Franchise training: The franchisor provides its franchisees with 55–77 classroom hours of initial training to train them about the business concept, operations and managing the clubs. Additionally, it offers them studio grand opening education, sales training, the hiring and training of qualified coaches.
• Third-party financing. The franchisor helps its franchisees get financing through third-party financing. This is for franchise fees, equipment, inventories and payroll.
• Real estate and construction: The franchisor provides its franchisees with site selection assistance to identify the most conducive gym location in terms of high traffic and demographic patterns. Also, it helps them in design, construction and lease negotiations.

The cons:

• Not a part-time business: The business cannot be run as a side business or on a part-time basis. Franchisees need to keep the franchisor’s working hours.
• Not a mobile or home-based business: The Exercise Coach franchise does not present a home-based business opportunity. Franchisees must have a fixed retail facility, office space, or warehouse to operate from.
• Limited age groups: The brand is mostly focused on adults 50 years of age and older. This is likely to lock out potential members in lower age groups.
• Competition: GROW Personal Training and On The Go Fitness.

How to open a The Exercise Coach franchise

Opening a The Exercise Coach franchise involves several steps, designed to ensure you are a good fit for the franchise. Here are the main steps to follow to open a The Exercise Coach franchise.

1. Research and Understand the Franchise

• Start by gathering comprehensive information about The Exercise Coach franchise.
• Understand the business model, target demographics, and the unique value proposition of their fitness technology and methodology.
• Evaluate the financial r
• equirements, including initial investment, franchise fees, and ongoing royalties.

2. Submit an Inquiry

• Express your interest by submitting an inquiry through The Exercise Coach’s official franchising website.
• This usually involves filling out a form with your personal details, background information, and your financial capability.

3. Participate in a Discovery Day

• The Exercise Coach may invite you to a Discovery Day, an event that provides in-depth information about the franchise.
• Here, you’ll learn more about the franchise’s operations, support structure, and have the opportunity to meet the franchisor team and possibly other franchisees.

4. Review Franchise Disclosure Document (FDD)

• You will receive the Franchise Disclosure Document (FDD) which details important information about the franchise.
• Review this document carefully to understand the legal and financial aspects of franchising with The Exercise Coach.

5. Secure Financing

• Assess your financial situation and consider your options for financing the franchise.
• This might involve personal savings, bank loans, or other financing options tailored for franchise businesses.

6. Choose a Location

• Work with The Exercise Coach to find an optimal location for your franchise, considering demographics, market demand, and competition.
• The location will need to meet the brand’s specifications and standards for a studio.

7. Sign the Franchise Agreement

• Once you’ve decided to proceed, you will sign the franchise agreement.
• This legally binding document outlines your rights and responsibilities as a franchisee.

8. Complete Training Program

• Undergo The Exercise Coach’s training program, which may include both theoretical and practical components.
• This training is designed to prepare you for running your franchise effectively, covering operations, marketing, use of technology, and customer service.

Disclaimer

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