ISI Elite Training Franchise Costs $327K – $687K (+ 2024 Profits)
ISI Elite Training is a dynamic player in the boutique fitness industry, recognized for its unique approach to group fitness that combines high-energy, coach-led workouts with a strong community atmosphere. Founded in 2011 by Adam Rice in Myrtle Beach, South Carolina, ISI Elite Training quickly identified itself as a brand with significant potential for growth.
It expanded into franchising in 2019 and has since established dozens of locations across the United States. The franchise operates on a model designed to maximize client engagement and retention by focusing on high-intensity, athletic-based training (ABT).
Each session is structured to cater to a variety of fitness levels, ensuring that everyone from beginners to seasoned athletes can participate and benefit. ISI Elite Training sets itself apart by requiring that all coaches are not only certified trainers but also specifically trained in ISI’s methods, ensuring a consistent and high-quality experience for members at any location.
Initial investment
Here’s what you can expect to spend to start a ISI Elite Training franchise.
Type of Expenditure | Amount |
---|---|
Initial Franchise Fee | $60,000 |
A/V Equipment | $20,200 – $30,000 |
Equipment, Furniture and Fixtures | $55,700 – $81,000 |
Real Estate | $6,800 – $20,500 |
Real Estate & Construction Management | $15,000 |
Leasehold Improvements (with no Tenant Improvement allowance) | $68,500 – $256,500 |
Utilities | $1,000 – $3,000 |
Signage and Graphics | $13,000 – $22,500 |
Startup Inventory and Uniforms | $2,200 – $4,000 |
Grand Opening Marketing | $5,000 – $20,000 |
Optional “Done-For-You” Presales Program | $0 – $55,000 |
Facility Personnel Compensation: Pre-Opening | $15,000 – $30,000 |
Insurance | $2,750 – $4,500 |
Travel, Lodging and Meals for Initial Training Program | $0 – $3,000 |
Training Fee | $3,000 |
Technology Fee (From signing Franchise Agreement through third month of operation) | $6,750 – $9,000 |
Business Licenses, Permits, Certifications, Soft Construction Costs, and other Professional Fees | $12,500 – $20,000 |
Additional Funds (3 months) | $40,000 – $50,000 |
Total Estimated Initial Investment | $327,000 – $687,000 |
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.
Franchise fees & Royalties
Here are the main ongoing fees the franchisor will ask you to pay going forward to run the franchise.
Initial Franchise Fee
The initial franchise fee is $60,000, fully earned and non-refundable upon payment. If you are a qualified veteran, you are eligible for a discount of $10,000, making the fee $50,000 for the first unit.
Royalty Fee
The ongoing royalty fee is 7% of Gross Revenues, starting either from the date the franchised business opens or when revenue collection begins.
Marketing/Advertising Fee
- Local Advertising Requirement (LAR): You must spend at least $4,000 each calendar quarter on local advertising and marketing within your Designated Territory.
- Grand Opening Marketing: You are required to spend a minimum of $20,000 on marketing for the grand opening of your Franchised Business. This spend includes promotional activities starting approximately three months before the official opening.
- Brand Development Fund Contribution: You may be required to contribute up to 3% of your Gross Revenues each month to a brand development fund managed by the franchisor. This fund is used for system-wide marketing efforts and promotions.
Technology Fee
The technology fee is $750 per month, covering the costs associated with required software and other technological services.
Transfer Fees
The transfer fee under the Franchise Agreement is $10,000, payable at the time the transferee signs the franchise agreement.
Franchise pros and cons
The Pros:
- Real estate and Site selection assistance: The franchisor provides its franchisees with site selection assistance to identify a suitable site for their gyms. It also helps them with the designs, lease negotiations, and development of their studios.
- Marketing and sales: ISI Elite Training offers it’s franchisees marketing and advertising support to help them promote their services and leverage digital marketing technology and branding.
- Low staff requirement: The franchise can be launched and operated with a minimal number of 3-6 staff members per location, which lowers the ongoing operational costs.
- Pre-opening training: The franchisor offers its franchisees detailed training to help them run successful ISI Elite training gyms. Its initial training consists of 16 on-the-job and 32 classroom training hours, and in addition, it helps franchisees with the grand opening and ongoing field operations support.
- Third-party financing: The franchisor has relationships with third-party partners to help franchisees with their loan applications to fund the startup costs, franchise fees, inventory, equipment, and payroll.
- Exclusive territory protection: The franchisees get a protected territory to operate their gyms, usually defined in the franchise agreement. The franchisor or its affiliates do not license any other franchise or operate a competing business in the designated area.
- Multiple revenue streams: The franchise presents its members with a variety of channels to maximize their services and increase their earning potential. These are monthly memberships, retail, supplements, and promotional challenges.
The Cons:
- Not a home-based opportunity: The franchise cannot be run from a home or mobile unit. Franchisees must have a fixed office space, warehouse, or retail facility to operate from.
- No global presence: The franchise does not have international locations. It may be difficult to market outside the US.
- Competitors: The franchise faces competition from other brands such as Core Fitness and The Elite Training School.
How to open a ISI Elite Training franchise
Opening a ISI Elite Training 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 ISI Elite Training franchise.
1: Initial Inquiry and Information Gathering
- Research the Franchise: Learn about ISI Elite Training’s business model, franchise system, and industry position.
- Contact ISI Elite Training: Reach out via their official website to express interest and request detailed franchise information and possibly attend an informational webinar.
2: Review Franchise Disclosure Document (FDD)
- Obtain FDD: Review the Franchise Disclosure Document which details critical information about the franchise costs, obligations, and performance.
- Legal and Financial Consultation: Engage with a franchise attorney and a financial advisor to understand the terms, conditions, and financial viability of the franchise opportunity.
3: Financial Qualification and Approval
- Financial Review: Demonstrate financial capability that meets the franchise’s requirements, including initial investment and ongoing fees.
- Franchise Approval: Undergo the approval process which may include interviews, background checks, and a review of your business experience and capabilities.
4: Training and Site Selection
- Comprehensive Training: Participate in required pre-opening training programs that cover operations, marketing, and the specific training methods unique to ISI Elite Training.
- Site Selection: Collaborate with the franchisor to identify and secure a suitable location that aligns with market research and brand requirements.
Disclaimer
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