In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for a Snap Fitness franchise, based on Item 7 of the company’s 2024 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a Snap Fitness franchise, based on Items 5 and 6 of the company’s 2024 FDD

Section III – Number of franchised and company-owned Snap Fitness outlets at the start of the year and the end of the year for 2021, 2022, and 2023, based on Item 20 of the company’s 2024 FDD

Section IV – News updates on the Snap Fitness franchise opportunity

Section V – Presentation and analysis of Snap Fitness’ financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:

• 2023 average annual gross revenue (membership revenue, personal training revenue, insurance revenue, other revenue), member count, and square feet for the 10 corporate-owned U.S. Snap Fitness clubs in the Snap Fitness system as of December 31, 2023

• 2023 average annual gross revenue (membership revenue, personal training revenue, insurance revenue, other revenue), member count, and square feet for 2 of the 10 corporate-owned U.S. Snap Fitness clubs that had completed brand revitalization to the same design model required of all new club openings

• 2023, 2022, and 2021 average active memberships and annual revenue for the franchised U.S. Snap Fitness clubs that were open as of December 31 of the applicable year, grouped by quartile

• 2023 and 2022 average active memberships and annual revenue for the franchised U.S. Snap Fitness clubs that were open as of December 31 of the applicable year, grouped by club size

• 2023 and 2022 average active memberships and annual revenue for the franchised U.S. Snap Fitness clubs that had either opened as or fully revitalized to Snap Fitness’ current club design version, launched in 2021

Section VI – Key ratios, comparables, computations, and analyses for the Snap Fitness franchise opportunity (exclusive content for Platinum subscribers)

Section I – Snap Fitness Franchise Costs

• Initial Franchise Fee:  $39,500
• Build-Out Labor Costs:  $120,000 to $180,000
• Leasehold Improvements:  $80,000 to $210,000
• Exterior Signage:  $10,000 to $20,000
• Furniture and Fixtures:  $25,500 to $30,500
• Fitness Equipment:  $60,000 to $250,000
• Technology:  $15,000 to $25,000
• Door Access:  $500
• Grand Opening Marketing:  $10,500
• Occupancy (3-Month):  $26,500 to $36,500
• Lease Deposits:  $8,800 to $12,200
• Insurance (3-Month):  $1,500 to $1,700
• Travel and Training Expenses:  $3,000 to $3,500
• Professional Fees:  $5,000 to $20,000
• Additional Funds:  $25,000 to $50,000
• Total Estimated Snap Fitness Franchise Costs:  $430,800 to $889,900

Section II – Snap Fitness’ Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Initial Franchise Fee:  $34,500 to $39,500
• Royalty Fee:  6% of Gross Revenue
• National Marketing:  up to 4% of Gross Revenue, currently 2%
• Local Marketing Fund or Cooperative Advertising Contribution:  up to $200 per month
• Local Marketing:  $400 per month

Section III – Number of Franchised and Company-Owned Snap Fitness Outlets

Franchised

2021

• Outlets at the Start of the Year:  629
• Outlets at the End of the Year:  585
• Net Change:  -44

2022

• Outlets at the Start of the Year:  585
• Outlets at the End of the Year:  547
• Net Change:  -38

2023

• Outlets at the Start of the Year:  547
• Outlets at the End of the Year:  510
• Net Change:  -37

Company-Owned

2021

• Outlets at the Start of the Year:  28
• Outlets at the End of the Year:  22
• Net Change:  -6

2022

• Outlets at the Start of the Year:  22
• Outlets at the End of the Year:  12
• Net Change:  -10

2023

• Outlets at the Start of the Year:  12
• Outlets at the End of the Year:  10
• Net Change:  -2

Section IV – News Updates on the Snap Fitness Franchise

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Snap Fitness Franchise (Item 19, 2024 FDD)

• This Item 19 is divided into two sections. Part 1 reflects certain financial information for Snap Fitness corporate-owned Clubs. Part 2 reflects certain financial information related to franchise-owned Clubs. Each section contains its own tables and notes as appropriate.

• The Financial Performance Representation in Item 19 is based on the financial performance of Clubs during 2023 and 2022.

• Some Snap Fitness Clubs have earned these amounts. Your individual results may vary. There is no assurance that you will earn as much.

Part 1 – Corporate-Owned Snap Fitness Clubs – Statement of Revenue and Member Count

• There were 10 Snap Fitness Corporate-Owned Clubs in the Snap Fitness system as of December 31, 2023. No Corporate-Owned Clubs were excluded from these results.

A. Corporate-Owned Snap Fitness Clubs – Statement of Revenue and Memberships for 2023

Average

Annual Gross Revenue

• Membership Revenue:  $275,600
• Personal Training Revenue:  $44,707
• Insurance Revenue:  $31,850
• Other Revenue:  $13,049
• Total Revenue:  $365,206

Member Count:  966

Square Feet:  4,768

B. Corporate-Owned Snap Fitness Clubs – Statement of Revenue and Memberships for Revitalized Clubs

• As of December 31, 2023, 2 of the 10 U.S. Snap Fitness Corporate-Owned Clubs had completed brand revitalization to the same design model required of all new club openings. No Corporate-Owned Revitalized Clubs were excluded from these results.

Average

Annual Gross Revenue

• Membership Revenue:  $399,555
• Personal Training Revenue:  $85,437
• Insurance Revenue:  $48,699
• Other Revenue:  $15,825
• Total Revenue:  $549,515

Member Count:  1,327

Square Feet:  5,262

• The principal source of total sales for a Snap Fitness Club is its membership revenue. Membership revenue includes paid in full or as prepaid dues, the member’s monthly dues obligation, as well as annual and pro-rated annual fees.

• Typical monthly membership fees are $34.95 to $59.95 based on single membership types and $54.95 to $84.95 for joint or family membership types. Membership rates vary by club.

• Franchisees set their own membership prices depending on their club’s competitive landscape and amenity service fees (such as tanning) that are added to a membership (exceptions are for National Accounts and certain promotional programs as described in Item 16).

• Clubs may earn a significant percentage of revenue through the sale of personal training services to members. Not all clubs offer personal training and personal training revenue varies widely by club depending on the ability to find qualified and motivated personal trainers, types of services, and management of the personal training programs.

• Clubs may earn revenue through participation with certain programs which Snap Fitness administers, such as reimbursement of membership dues for insurance companies, affinity groups, and national accounts as described in Item 16.

• Clubs may earn additional revenue through Club Enhancement Fees, the sale of approved product and merchandise, and enrollment fees.

Part 2 – Franchise-Owned Snap Fitness Clubs – Statement of Revenue and Member Count

• There were 520 U.S. Snap Fitness Clubs in the Snap Fitness system as of December 31, 2023.

• Of those 520 Snap Fitness Clubs, 11 are excluded from the results displayed in Table A and Table B for the reasons provided in the notes below.

• The average square footage, average total sales, average membership counts, average member counts, and average sales per square foot are derived from the historical performance of 509 Clubs.

A.  Franchised Clubs – Sales and Memberships by Quartile for 2023, 2022, and 2021

2023

All Clubs (509 Clubs)

• Average Number of Active Members:  697
• Average Annual Revenue:  $238,988

Top Quartile (127 Clubs)

• Average Number of Active Members:  1,066
• Average Annual Revenue:  $432,100

Second Quartile (127 Clubs)

• Average Number of Active Members:  718
• Average Annual Revenue:  $246,911

Third Quartile (127 Clubs)

• Average Number of Active Members:  590
• Average Annual Revenue:  $170,922

Bottom Quartile (128 Clubs)

• Average Number of Active Members:  417
• Average Annual Revenue:  $107,057

2022

All Clubs (547 Clubs)

• Average Number of Active Members:  614
• Average Annual Revenue:  $212,305

Top Quartile (137 Clubs)

• Average Number of Active Members:  956
• Average Annual Revenue:  $377,230

Second Quartile (137 Clubs)

• Average Number of Active Members:  621
• Average Annual Revenue:  $219,650

Third Quartile (136 Clubs)

• Average Number of Active Members:  512
• Average Annual Revenue:  $153,777

Bottom Quartile (137 Clubs)

• Average Number of Active Members:  366
• Average Annual Revenue:  $98,134

2021

All Clubs (573 Clubs)

• Average Annual Revenue:  $194,127

Top Quartile (143 Clubs)

• Average Annual Revenue:  $339,543

Second Quartile (143 Clubs)

• Average Annual Revenue:  $201,430

Third Quartile (143 Clubs)

• Average Annual Revenue:  $142,382

Bottom Quartile (144 Clubs)

• Average Annual Revenue:  $93,855

B.  Franchised Clubs – Sales and Memberships by Club Size for 2023 and 2022

2023

All Clubs (509 Clubs)

• Average Number of Active Members:  697
• Average Annual Revenue:  $238,988

>=8,000 Sq. Ft. (25 Clubs)

• Average Number of Active Members:  1,351
• Average Annual Revenue:  $511,566

<8,000 to >6,000 Sq. Ft. (41 Clubs)

• Average Number of Active Members:  940
• Average Annual Revenue:  $348,420

<6,000 to >4,000 Sq. Ft. (177 Clubs)

• Average Number of Active Members:  726
• Average Annual Revenue:  $242,390

<4,000 Sq. Ft. (266 Clubs)

• Average Number of Active Members:  579
• Average Annual Revenue:  $194,238

2022

All Clubs (547 Clubs)

• Average Number of Active Members:  614
• Average Annual Revenue:  $212,305

>=8,000 Sq. Ft. (25 Clubs)

• Average Number of Active Members:  1,192
• Average Annual Revenue:  $436,325

<8,000 to >6,000 Sq. Ft. (42 Clubs)

• Average Number of Active Members:  856
• Average Annual Revenue:  $323,865

<6,000 to >4,000 Sq. Ft. (190 Clubs)

• Average Number of Active Members:  648
• Average Annual Revenue:  $223,123

<4,000 Sq. Ft. (290 Clubs)

• Average Number of Active Members:  507
• Average Annual Revenue:  $169,748

C.  Franchised Clubs – Sales and Memberships for Revitalized Clubs

2023

All Revitalized Clubs (7 Clubs)

• Average Number of Active Members:  645
• Average Annual Revenue:  $313,866

2022

All Revitalized Clubs (7 Clubs)

• Average Number of Active Members:  621
• Average Annual Revenue:  $228,651

• Table A, Table B, and Table C reflect the data of Franchised Clubs open for respective calendar years 2023 and 2022. Table A also includes data of Franchised Clubs open for respective calendar year 2021.

• Table A, Table B, and Table C only include data of Franchised Clubs that were open as of December 31, 2023. In other words, data from Clubs that opened January 1, 2024 or later are excluded from Table A, Table B, and Table C.

• Table A, Table B, and Table C exclude data from corporate-owned Clubs.

• The principal source of total sales for a Snap Fitness Club is its membership revenue. Membership revenue includes any initial enrollment fees, paid in full or as prepaid dues, the member’s monthly dues obligation, as well as annual and pro-rated annual fees. Clubs also earn a significant percentage of revenue through the sale of personal training services to members.

• Not all clubs offer personal training and clubs historically have not been required to report personal training revenue to Snap Fitness. Personal training revenue varies widely by club depending on the ability to find qualified and motivated personal trainers, types of services, and management of the personal training programs.

• Typical monthly membership fees are $34.95 to $59.95 based on single membership types and $54.95 to $84.95 for joint or family membership types. Membership rates vary by club. You set your own membership prices depending on your club’s competitive landscape and amenity service fees (such as tanning) that are added to a membership (exceptions are for National Accounts and certain promotional programs as described in Item 16).

• Table C includes only clubs that had either opened as or fully revitalized to Snap Fitness’ current club design version, launched in 2021. Clubs that are operating under a prior design version or that have started, but not completed their revitalization to Snap Fitness’ current club design version, are excluded from Table C.

Section VI – Snap Fitness Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️