Burn Boot Camp Franchise Costs $239K – $563K (+ 2024 Profits)

Founded by Devan and Morgan Kline in 2012, the concept was initially born out of group workouts in a parking lot. This humble beginning was underpinned by a vision far greater than just physical exercise; it was about building confidence, happiness, and discipline that transcends traditional fitness boundaries. 

This ethos is what sets Burn Boot Camp apart from other fitness franchises, focusing on creating mentally and physically strong communities through their distinctive approach to fitness and well-being.

By 2015, the popularity and success of Burn Boot Camp’s model led to its franchising, signifying a rapid expansion phase. 

Burn Boot Camp distinguishes itself through its comprehensive approach to fitness, which includes challenging 45-minute workouts, nutritional support, one-on-one focus meetings with trainers, and complimentary childcare, known as Childwatch.

Type of Expenditure	Amount
Initial Franchise Fee	$60,000
Technology Systems	$2,753 – $29,600
Technology Fees (Pre-opening and 3-month period after opening)	$5,450 – $7,500
Exercise and Safety Equipment, Furniture and Fixtures	$22,821 – $32,760
Real Estate (security deposit and 3 months’ rent)	$22,500 – $60,000
Use Permits	$200 – $26,000
Leasehold Improvements	$59,867 – $198,096
Utilities	$1,000 – $5,100
Exterior Signage	$9,321 – $26,360
Initial Inventory Package	$4,460 – $7,488
Operating Supplies	$3,978 – $5,393
Grand Opening Marketing (Pre-opening and 3-month period after opening)	$20,000
Staffing (3-month period after opening)	$15,000 – $42,085
Insurance (3 months’ premium)	$600 – $1,200
Travel, Lodging and Meals for Initial Franchisee Education Program	$775 – $7,265
Business Licenses, Certifications, and other professional fees	$500 – $4,132
Additional Funds (3 months)	$10,000 – $30,000
Total	$239,000 – $563,000

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

The initial franchise fee for a Burn Boot Camp® franchise is $60,000. This fee is nonrefundable and is payable in a lump sum when the Franchise Agreement is signed.

Technology Fees

Franchisees are required to start paying a technology fee immediately upon signing the Franchise Agreement. Initially, this fee is $100 per month, which increases to $485 per month. There’s an intention to raise this fee to $860 per month beginning in October 2023.

Royalty Fee

Franchisees must pay a royalty fee equal to 6% of Gross Revenues per report period. This fee is due by the day specified by the franchisor during each report period for the immediately preceding report period.

System Brand Fee

In addition to the royalty fee, a System Brand Fee of 2% of Gross Revenues per report period is payable. This fee may increase up to 3% but will not exceed this percentage of Gross Revenue in any calendar year.

Additional Education Session Fee

If supplemental on-site education is deemed necessary by the franchisor, or for any post-opening education provided to the franchisee or their staff, a fee of $1,500 per person may be charged, along with the individual’s travel and accommodation expenses.

Tech Fee (Clarification)

This fee is charged monthly and includes access to various software, technology, and related services provided by the franchisor. The amount is $485 per month, with an intention to increase to $860 per month starting in October 2023.

Franchise Pros and Cons

The Pros:

• Comprehensive training: The franchisor has a detailed training program to help franchise owners understand the business concept easily and quickly. Franchisees receive training in areas such as equipment, customer service, hiring and training the right staff, and sales.
• Marketing and advertising: The brand has a passionate, creative, and well-established marketing strategy to help franchisees create awareness of their locations, attract new customers, and drive up sales and revenues. It offers franchisees resources and guidance to create targeted local and national campaign promotions so that they can grow and succeed.
• Operations support: The franchisor has an experienced management and franchise operations support team to help franchisees establish and run a successful gym. Franchisees get access to top leadership’s growth strategies, a network of successful franchise partners, ongoing support, field operations, and timely performance reviews and updates.
• Site selection and construction: The brand has an experienced real estate team to help franchisees identify the best location in terms of traffic and demographic patterns. Franchisees also get help with layout designs, equipment selection, and the construction of an ideal gym facility.
• Third-party financing: The brand helps its franchisees with planning and sourcing for funding through third-party partnerships. Franchisees get funded for franchise fees, equipment and inventory, and payroll.
• Exclusive territory protection: The franchisor allows the franchisees to operate their gyms in a designated development market area. It does not allow any other franchises or operates related and competing brands in the protected area.
• Multiple revenue channels: Boot camp has in place a variety of revenue streams to help franchisees meet members’ needs and diversify revenue. These include membership options and add-on services such as nutrition supplements.

The Cons:

• Not a passive investment: The franchise does not present an absentee ownership opportunity. Franchisees must be actively involved in the decision-making and daily operations of their fitness centers.
• Not a home-based business: The franchise cannot be operated from a vehicle or home. Franchisees are required to have fixed office space, warehouses, or retail facilities.
• Not a part-time business: The franchise is not a part-time or side business. The studios are open as per the parent company’s operating hours.
• Strong competition from Orangetheory Fitness, Snap Fitness, Crunch Fitness or Workout Anytime to name a few.

How to open a Burn Boot Camp franchise

Opening a Burn Boot Camp 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 Burn Boot Camp franchise.

1. Express Interest

• Start by visiting the Burn Boot Camp franchise website and filling out an initial inquiry form. This step often involves providing basic contact information and some preliminary details about your interest in the franchise.

2. Initial Introduction

• After expressing interest, the next step involves a more formal introduction where you’ll likely engage in discussions with a franchise representative. This could involve a scheduled call or meeting to discuss the franchise opportunity in more depth.
• Complete the “Request for Consideration” form, which is a more detailed application that helps the franchisor understand your qualifications and seriousness about the franchise.

3. Review the Franchise Disclosure Document (FDD)

• Once you’ve passed the initial stages, you’ll be provided with the Franchise Disclosure Document. This legal document contains important information about the franchise, including fees, investment requirements, and the responsibilities of both the franchisor and franchisee.
• It’s crucial to review this document carefully, ideally with the assistance of a legal advisor who specializes in franchises.

4. Territory Analysis and Selection

• If you decide to proceed after reviewing the FDD, the next step is to discuss and select a potential territory for your Burn Boot Camp location. This involves analyzing market potential, demographics, and competition in various areas to find a suitable location.

5. Sign the Franchise Agreement

• Once a territory is agreed upon, the final step is to sign the franchise agreement. This legally binding contract outlines the terms of your franchise ownership, including the length of the franchise term, ongoing fees, and the support and training you’ll receive from the franchisor.
• After signing, you’ll be officially welcomed into the Burn Boot Camp franchise family, and the process of setting up your location, including training, staffing, and preparing for the opening, will begin​​.

Disclaimer

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