ORANGETHEORY Franchise
Cost, fees, owner earnings, closure rate and litigation for a ORANGETHEORY franchise — pulled from the franchisor's own public FDD (2026), not its sales material.
Disclosure honesty
ORANGETHEORY discloses earnings (Item 19) — but the grade is how honestly. We graded it D.
What their own earnings claim actually says
Gross sales data for 1,189 operating studios (Feb 2026). Average $802,145; median $750,643. 44% met/exceeded average. No expense/profit data disclosed.
What a ORANGETHEORY franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $59,950 | Item 5 — paid up front, before you open |
| Royalty | 8% of gross sales | Item 6 — charged on revenue, not profit |
| Advertising fund | 3% of gross sales | Item 6 — brand marketing, spent at the franchisor's discretion |
| Total recurring fees | 11% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $764,577 – $1,104,920 | Item 7 — franchisor's own low/high estimate |
8% royalty; 3% (up to 5%) brand fund; $2,500+ monthly local ad spend; tech fee $899/month (+10% annual).
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
ORANGETHEORY system size and owner turnover
| Total outlets | 1,224 |
| Ceased operations | 61 |
| Terminated by franchisor | 13 |
| Transferred to new owners | 214 |
| Closure rate | 5.0% of outlets |
74 net closures in 2025; 95 studios permanently closed during period; 13 terminations.
From Item 20 of the FDD 2026. Terminations and ceased operations are the franchisor's own count of owners who stopped — the number the sales pitch leaves out.
Is ORANGETHEORY worth it? — how it compares to 71 similar franchises
| Ongoing fees | 11% of sales | steeper than 90% of fitness & gyms franchises |
| Startup cost | from $764,577 | pricier than 93% of peers |
| Disclosure honesty | Grade D | less honest than most of the category |
| Closure rate | 5.0% of outlets | worse than 77% of peers |
| Disclosed lawsuits | 0 | fewer than most |
Benchmarked against every fitness & gyms franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.
Owner take-home for a ORANGETHEORY
The franchisor's framing: Gross sales data for 1,189 operating studios (Feb 2026). Average $802,145; median $750,643… We reconstruct what an owner actually keeps, from their own FDD.
- Reconstructed owner P&L — net take-home after royalty, ad fund, rent, labor & debt
- Break-even timeline + cash-on-cash ROI
- Full fee stack + required-purchase markups
- Decoded real failure / closure rate
- How it ranks vs comparable franchises
- Validation-call playbook — the exact questions to ask
See a full sample report → · 30-day guarantee
ORANGETHEORY franchise — frequently asked
- How much does a ORANGETHEORY franchise cost?
- The FDD lists a total initial investment of about $764,577–$1,104,920, including a $59,950 initial franchise fee.
- How much do ORANGETHEORY franchise owners make?
- Gross sales data for 1,189 operating studios (Feb 2026). Average $802,145; median $750,643. 44% met/exceeded average. No expense/profit data disclosed. We grade this disclosure D for honesty.
- What are the ORANGETHEORY franchise fees?
- ORANGETHEORY's FDD discloses a $59,950 initial franchise fee, a 8% royalty on gross sales, a 3% advertising-fund contribution, for roughly 11% of gross sales in recurring fees before rent, labor, or debt service. 8% royalty; 3% (up to 5%) brand fund; $2,500+ monthly local ad spend; tech fee $899/month (+10% annual).
- What is the ORANGETHEORY franchise profit margin?
- ORANGETHEORY does not publish a franchisee net-profit margin — almost no franchisor does. What Item 19 actually shows: Gross sales data for 1,189 operating studios (Feb 2026). Average $802,145; median $750,643. 44% met/exceeded average. No expense/profit data disclosed. Recurring fees alone take about 11% of gross sales, before rent, labor, food or debt service. Margin has to be reconstructed from the disclosure, not read off it.
- What is the ORANGETHEORY franchise failure rate?
- 74 net closures in 2025; 95 studios permanently closed during period; 13 terminations.
- How many ORANGETHEORY locations are there?
- ORANGETHEORY's FDD reports 1,224 total outlets, with 61 that ceased operations in the most recent reporting year and 214 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does ORANGETHEORY have complaints or lawsuits?
- ORANGETHEORY discloses no material litigation in Item 3 of the filing we reviewed. That's a positive signal, though it covers only what the franchisor is required to report.
- Is a ORANGETHEORY franchise worth it?
- It depends on the numbers, not the pitch. ORANGETHEORY scores D on disclosure honesty, carries about 11% of sales in ongoing fees. Get the real owner take-home before you sign.
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Compare ORANGETHEORY to similar franchises
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Source: WI DFI Franchise Registration (2026). FranchiseValidate is independent and not affiliated with ORANGETHEORY or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.