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Workout Anytime Franchises: 10 Years Payback Due to High Costs
If you’re considering getting into the fitness franchise industry, you might consider to invest in Workout Anytime. In addition to the brand, the franchisor’s support and other factors, it’s important in your decision to take into account the financials.
Unfortunately, despite having high profit margins (34% EBITDA margin as per our estimates), Workout Anytime is unfortunately not the best franchise investment: it has a whopping 10 years payback on average.
How much does a Workout Anytime franchise cost? How much profits can you realistically make with this business? Should you invest in a Workout Anytime franchise?
In this article we’re diving into the Franchise Disclosure Document of Workout Anytime to find out the answers to these questions. Also we’ll explain why we don’t think this is the best investment among all fitness franchises.
Key figures
| Franchise fee | $35,000 |
| Royalty fee | 6.0% |
| Marketing fee | 2.0% |
| Investment (mid-point) | $1,519,000 |
| Revenue | $512,000 per year |
| Revenue per square foot | $49 per year |
| Sales to investment ratio | 0.3x |
| Payback period* | 10 years |
| Minimum net worth | $500,000 |
| Minimum liquid capital | $175,000 |
Download the Workout Anytime franchise business plan
Updated with Franchise Disclosure Document
5-year pro forma financial model
Free support
What is Workout Anytime?
Workout Anytime franchise is a health and fitness company founded in 1999 by John Quattrocchi and Steve Strickland.
The brand started as a simple concept in Douglasville, Georgia, growing steadily to become a health and fitness industry leader.
Based in Alpharetta, Georgia, Workout Anytime provides convenient, flawless and exceptional fitness services 24 hours daily, including cardio, personal training and weight loss programs.
The fitness company stands out with its superior fitness equipment, a results-based approach, and a blend of monthly fees and “value-priced” membership. Workout Anytime started franchising in 2007. Today, the chain has over 180 gyms in 22 US states.
Workout Anytime franchises pros and cons
Pros
- Multiple income streams: the brand‘s in-demand fitness services make it a viable franchise opportunity. Apart from the standard monthly fee, other income streams include personal coaching, tanning beds, and hydromassage beds.
- Third-party financing: Workout Anytime helps its franchisees secure funding for their new businesses. The fitness company has solid relationships with third-party sources to help business owners cover the franchise fee, inventory, trade fixtures, and equipment.
- Training & Support: the franchisor employs a qualified real estate team to help franchisees choose an ideal business location with enough parking space and visibility to attract potential customers. The franchise support staff will help with everything from the grand opening to site selection and lease negotiation.
- Marketing support: the fitness company employs effective marketing and advertising strategies to help franchisees attract new clients. Franchisees can rely on the brand’s popularity, social media, national media and regional advertising to stay ahead of the competition.
- Exclusive territory protection: the franchisor offers exclusive territory protection. Franchisees operate within a protected space, saving them from competition against other Workout Anytime units.
- A simple business model: the fitness clubs are easy to establish and operate, require a small staff and fit different retail spaces.
Cons
- No absentee ownership: Workout Anytime isn’t a passive investment. Franchisees must commit to everyday operations as stipulated in the Franchise Agreement.
- Not a home-based/mobile unit: franchisees must operate their businesses within the physical locations.
- Not a part-time business: the franchisor demands a full-time, long-term commitment. Franchisees can’t operate their stores as side businesses.
- Strong competition from established fitness chains like Anytime Fitness, Snap Fitness and Crunch Fitness to name a few.
How much does a Workout Anytime franchise cost?
As a franchisee, you would need to invest on average $1,519,450 to open a new Workout Anytime franchise.
This amount is on the higher end compared to similar franchises: indeed we found that the average fitness franchise requires an investment of $1 million.
Yet, this amount is an average. As such it changes depending on the size and location of your fitness club. According to the latest Franchise Disclosure Document, the required investment can be as low as $967,350 and as high as $2,071,550.
Workout Anytime startup costs
the initial investment covers all the startup costs you may need to start a fitness club business. As the investment amount covers all types of costs, you would not need to pay for anything else after the investment. In addition to the initial franchise fee of $35,000, the investment amount covers:
- Formation Costs: training expenses, real estate improvements, office equipment, furniture, signage, permits, business licenses, key tags, architect fees, initial equipment package, low voltage AV and door access, etc.
- Initial Marketing: advertising + start strong
- Operating Costs: rent, insurance, and working capital for first 3 months, etc.
| Type of cost | Low | High |
|---|---|---|
| Initial Franchise Fee | $35,000 | $35,000 |
| Formation Costs | $879,850 | $1,927,550 |
| Opening Advertising Expenses | $12,000 | $24,000 |
| Operating Costs | $40,500 | $85,000 |
| Total | $967,350 | $2,071,550 |
Download the Workout Anytime franchise business plan
Updated with Franchise Disclosure Document
5-year pro forma financial model
Free support
What is the turnover of a Workout Anytime franchise?
A Workout Anytime gym makes $511,628 in turnover per year on average.
Unfortunately, Workout Anytime does not provide any turnover information for its franchises specifically. Instead, we estimated this number by dividing the total gross revenue of all Workout Anytime franchised gyms ($85,442,000) by the number of franchises operating in 2021 (167).
According to the same logic, we found that the average turnover per gym have significantly increased in 2021 (+22% revenue growth vs. 2020).
How profitable is a Workout Anytime franchise?
We estimate the average Workout Anytime franchise makes about $140,000 in profits per year (27% EBITDA margin).
Workout Anytime is a profitable franchise: the 34% profit margin is higher than the industry average profit margin for fitness franchises as per our own fitness benchmarks.
Note that Workout Anytime does not provide detailed cost information in its Franchise Disclosure Document apart from rent and royalty and marketing fees. Instead, we had to use fitness benchmarks especially for staff costs and marketing expenses.
| Profit and loss | Amount | % revenue | Notes |
|---|---|---|---|
| Revenue | $511,628 | 100% | as per FDD |
| Staff | $(143,256) | 28% | industry average |
| Rent | $(75,000) | 15% | as per FDD |
| Royalty fee | $(40,930) | 8% | as per FDD |
| Marketing | $(25,581) | 5% | industry average |
| Other Opex | $(51,163) | 10% | assumption |
| EBITDA | $175,698 | 34% |
Should you invest in a Workout Anytime franchise?
Unfortunately, despite being a profitable business, Workout Anytime has a rather long payback period.
Indeed, we found Workout Anytime has a payback period of 10 years on average, meaning you would repay your initial investment within 10 years. Only after that you can finally reap the profits.
The reason behind such a high payback period is the very high required investment you would have to make as the franchisee to open a new Workout Anytime gym ($1,519,000).
Even though 10 years isn’t great, it’s not bad either: the average payback period for gyms we found is about 8 years on average as per our own analysis.
Download the Workout Anytime franchise business plan
Updated with Franchise Disclosure Document
5-year pro forma financial model
Free support
How does it compare vs. other Fitness franchises?
| Franchise | Net worth ($) | Liquid capital ($) | Investment ($) | Revenue ($) | Payback (years) | |||
|---|---|---|---|---|---|---|---|---|
| Anytime Fitness | https://sharpsheets.io/blog/anytime-fitness-franchises-costs-profits/ | 350,000 | 175,000 | 510,165 | 338,810 | $68 | 10.0 | |
| Planet Fitness | https://sharpsheets.io/blog/planet-fitness-franchises-costs-profits/ | 3,000,000 | 1,500,000 | 3,273,300 | 1,564,877 | $80 | 13.9 | |
| Orangetheory Fitness | https://sharpsheets.io/blog/orangetheory-fitness-franchises-costs-profits/ | 1,000,000 | 300,000 | 1,381,432 | 805,251 | $244 | 11.4 | |
| Club Pilates | https://sharpsheets.io/blog/club-pilates-franchises-costs-profits/ | 500,000 | 100,000 | 287,000 | 544,703 | $363 | 3.5 | |
| Pure Barre | https://sharpsheets.io/blog/pure-barre-franchises-costs-profits/ | 500,000 | 100,000 | 335,812 | 259,534 | $173 | 8.6 | |
| Snap Fitness | https://sharpsheets.io/blog/snap-fitness-franchises-costs-profits/ | 750,000 | 250,000 | 783,328 | 194,124 | $37 | 26.9 | |
| Burn Boot Camp | https://sharpsheets.io/blog/burn-boot-camp-franchises-costs-profits/ | 300,000 | 150,000 | 314,846 | 400,526 | $76 | 5.2 | |
| Crunch Fitness | https://sharpsheets.io/blog/crunch-fitness-franchises-costs-profits/ | 2,000,000 | 400,000 | 3,092,000 | 1,863,627 | $48 | 11.1 | |
| CycleBar | https://sharpsheets.io/blog/cyclebar-franchises-costs-profits/ | 500,000 | 100,000 | 417,410 | 335,855 | $168 | 8.3 | |
| Stretch Zone | https://sharpsheets.io/blog/stretch-zone-franchises-costs-profits/ | 250,000 | 150,000 | 161,027 | 357,632 | $286 | 3.0 | |
| Workout Anytime | https://sharpsheets.io/blog/workout-anytime-franchises-costs-profits/ | 500,000 | 175,000 | 1,519,450 | 511,628 | $49 | 10.0 | |
| Fitness Together | https://sharpsheets.io/blog/fitness-together-franchises-costs-profits/ | 175,000 | 80,000 | 292,013 | 400,000 | n.a. | 4.9 | |
| The Camp Transformation Center | https://sharpsheets.io/blog/camp-transformation-center-franchise-costs-profits/ | 100,000 | 75,000 | 287,000 | 495,067 | $99 | 3.9 | |
| Retro Fitness | https://sharpsheets.io/blog/retro-fitness-franchises-costs-profits/ | 1,500,000 | 300,000 | 1,681,341 | 998,459 | $66 | 7.0 | |
| F45 Training | https://sharpsheets.io/blog/f45-training-franchise-costs-profits/ | 300,000 | 100,000 | 457,650 | 632,902 | $253 | 4.8 | |
| Gold's Gym | https://sharpsheets.io/blog/golds-gym-franchise-costs-profits/ | 1,000,000 | 400,000 | 4,043,875 | 1,638,000 | $47 | 16.5 | |
| Fit Body Boot Camp | https://sharpsheets.io/blog/fit-body-boot-camp-franchise-costs-profits/ | 100,000 | 65,000 | 198,350 | 167,364 | $61 | 7.9 |
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