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

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

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

Section III – Number of franchised and company-owned Retro 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 Retro Fitness franchise opportunity

Section V – Presentation and analysis of Retro 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, median, highest, and lowest gross sales for the 81 Retro Fitness franchised outlets that were open to the public for more than a year

• 2023 average, median, highest, and lowest revenue per square foot for the 81 Retro Fitness franchised outlets that were open to the public for more than a year

• 2023 average, median, highest, and lowest number of members for the 81 Retro Fitness franchised outlets that were open to the public for more than a year

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

Section I – Retro Fitness Franchise Costs

• Initial Franchise Fee:  $29,000
• Opening Advertising – Pre-Sales:  $30,000 to $50,000
• Marketing Kit:  $12,000 to $15,000
• Trailer Rental (if needed):  $0 to $30,000
• Office Supplies:  $1,000 to $2,000
• Computer Equipment:  $5,000 to $7,000
• Branded Key Tags:  $216
• Opening Inventory:  $10,000 to $15,000
• Insurance and Bond:  $6,000 to $24,000
• Signage:  $24,000 to $50,000
• Equipment and Furnishings:  $140,000 to $195,000
• Prepaid Rent and Security Deposit:  $0 to $75,000
• Lease Review Fee:  $2,500
• Turnkey Build-Out Service Fee:  $20,000 to $50,000
• Architectural Fees/Surveys:  $55,100 to $65,275
• Leasehold Improvements/Fit Out:  $1,280,000 to $1,875,000
• Utility Deposits:  $0 to $3,500
• Licenses and Permits:  $500 to $30,000
• Fictitious Name Registration and/or Incorporation and Legal Review:  $0 to $1,500
• Travel, Lodging, Meals, Etc. for Initial Training:  $0 to $3,500
• Miscellaneous Start-Up Costs:  $2,000 to $5,000
• Additional Funds:  $200,000 to $350,000
• Total Estimated Retro Fitness Franchise Costs:  $1,812,216 to $2,911,991

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

• Initial Franchise Fee:  $29,000

• Standard Royalty Fee:  5% of gross sales, subject to annual increases not to exceed +0.5% each year; monthly minimum of $1,000 per month, per outlet

• Increased Royalty Fee:  7% of gross sales, with a minimum of $1,500 per month, per outlet (franchisees who have had 3 or more defaults within the most recent 12-month period will pay an increased royalty fee for the next 6 months)

• Advertising Fund:  the greater of 2% of gross sales per month or $400 per month, payable to Retro Fitness Advertising Fund

• Local Advertising Requirement:  during pre-sales, you must spend between $30,000 and $50,000 on local advertising. Once an outlet is open to the general public, you must spend a minimum of $25,000 in the first month, $15,000 in the second month, $15,000 in the third month, and monthly thereafter a minimum of $5,000, or 5% of gross sales, whichever is greater, on local advertising.

• Local Advertising Deficiency Fee:  if you fail to comply with your local advertising expenditure obligations, Retro Fitness will impose a Deficiency Fee as follows: 1st Offense: $2,500 penalty fee (in addition to the amount you were obligated to spend on Local Advertising for the applicable month) and will require you to pay Retro Fitness $5,000 per month for three months for it to spend on local advertising on your behalf; 2nd and Each Subsequent Offense: $5,000 penalty fee (in addition to the amount you were obligated to spend on Local Advertising for the applicable month) and will require you to pay Retro Fitness $5,000 per month for six months for it to spend on local advertising on your behalf.

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

Franchised

2021

• Outlets at the Start of the Year:  105
• Outlets at the End of the Year:  98
• Net Change:  -7

2022

• Outlets at the Start of the Year:  98
• Outlets at the End of the Year:  86
• Net Change:  -12

2023

• Outlets at the Start of the Year:  86
• Outlets at the End of the Year:  86
• Net Change:  0

Company-Owned

2021

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2022

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2023

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  2
• Net Change:  +2

Section IV – News Updates on the Retro Fitness Franchise

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

• As of March 20, 2024, there were 82 franchised Retro Fitness Outlets open and in operation (each, a “Franchised Outlet”). Of those 82 Franchised Outlets, 81 were open to the public for more than a year. All 81 of these Franchised Outlets were included in the results displayed in Tables A, B, and C below (the “ABC Outlets”).

Table A – Average Gross Sales From March 1, 2023 to February 29, 2024 of 81 Outlets Open to the Public for More Than a Year

Top 10%

• Average Gross Sales:  $2,481,088
• Number of ABC Clubs in the Stated Percentile:  8
• Number of ABC Clubs in the Percentile That Attained or Exceeded the Average Gross Sales:  3
• Percentage of ABC Clubs in the Percentile That Attained or Exceeded the Average Gross Sales:  37%
• Highest Gross Sales:  $3,520,083
• Lowest Gross Sales:  $1,827,144
• Median Gross Sales:  $2,315,545

Top 25%

• Average Gross Sales:  $1,948,683
• Number of ABC Clubs in the Stated Percentile:  20
• Number of ABC Clubs in the Percentile That Attained or Exceeded the Average Gross Sales:  7
• Percentage of ABC Clubs in the Percentile That Attained or Exceeded the Average Gross Sales:  35%
• Highest Gross Sales:  $3,520,083
• Lowest Gross Sales:  $1,416,945
• Median Gross Sales:  $1,718,779

Top 50%

• Average Gross Sales:  $1,537,801
• Number of ABC Clubs in the Stated Percentile:  41
• Number of ABC Clubs in the Percentile That Attained or Exceeded the Average Gross Sales:  16
• Percentage of ABC Clubs in the Percentile That Attained or Exceeded the Average Gross Sales:  40%
• Highest Gross Sales:  $3,520,083
• Lowest Gross Sales:  $987,553
• Median Gross Sales:  $1,377,590

Top 75%

• Average Gross Sales:  $1,317,027
• Number of ABC Clubs in the Stated Percentile:  61
• Number of ABC Clubs in the Percentile That Attained or Exceeded the Average Gross Sales:  23
• Percentage of ABC Clubs in the Percentile That Attained or Exceeded the Average Gross Sales:  38%
• Highest Gross Sales:  $3,520,083
• Lowest Gross Sales:  $731,804
• Median Gross Sales:  $1,146,217

Top 100%

• Average Gross Sales:  $1,133,395
• Number of ABC Clubs in the Stated Percentile:  81
• Number of ABC Clubs in the Percentile That Attained or Exceeded the Average Gross Sales:  31
• Percentage of ABC Clubs in the Percentile That Attained or Exceeded the Average Gross Sales:  38%
• Highest Gross Sales:  $3,520,083
• Lowest Gross Sales:  $341,683
• Median Gross Sales:  $987,553

Table B – Average Revenue Per Square Foot From March 1, 2023 to February 29, 2024 of 81 Outlets Open to the Public for More Than a Year

Top 10%

• Average Revenue Per Square Foot:  $152
• Number of ABC Clubs in the Stated Percentile:  8
• Number of ABC Clubs in the Percentile That Attained or Exceeded the Average Revenue Per Square Foot:  2
• Percentage of ABC Clubs in the Percentile That Attained or Exceeded the Average Revenue Per Square Foot:  25%
• Highest Revenue Per Square Foot:  $205
• Lowest Revenue Per Square Foot:  $122
• Median Revenue Per Square Foot:  $148

Top 25%

• Average Revenue Per Square Foot:  $123
• Number of ABC Clubs in the Stated Percentile:  20
• Number of ABC Clubs in the Percentile That Attained or Exceeded the Average Revenue Per Square Foot:  9
• Percentage of ABC Clubs in the Percentile That Attained or Exceeded the Average Revenue Per Square Foot:  44%
• Highest Revenue Per Square Foot:  $205
• Lowest Revenue Per Square Foot:  $90
• Median Revenue Per Square Foot:  $116

Top 50%

• Average Revenue Per Square Foot:  $99
• Number of ABC Clubs in the Stated Percentile:  41
• Number of ABC Clubs in the Percentile That Attained or Exceeded the Average Revenue Per Square Foot:  14
• Percentage of ABC Clubs in the Percentile That Attained or Exceeded the Average Revenue Per Square Foot:  35%
• Highest Revenue Per Square Foot:  $205
• Lowest Revenue Per Square Foot:  $68
• Median Revenue Per Square Foot:  $90

Top 75%

• Average Revenue Per Square Foot:  $85
• Number of ABC Clubs in the Stated Percentile:  61
• Number of ABC Clubs in the Percentile That Attained or Exceeded the Average Revenue Per Square Foot:  23
• Percentage of ABC Clubs in the Percentile That Attained or Exceeded the Average Revenue Per Square Foot:  38%
• Highest Revenue Per Square Foot:  $205
• Lowest Revenue Per Square Foot:  $47
• Median Revenue Per Square Foot:  $78

Top 100%

• Average Revenue Per Square Foot:  $72
• Number of ABC Clubs in the Stated Percentile:  81
• Number of ABC Clubs in the Percentile That Attained or Exceeded the Average Revenue Per Square Foot:  40
• Percentage of ABC Clubs in the Percentile That Attained or Exceeded the Average Revenue Per Square Foot:  49%
• Highest Revenue Per Square Foot:  $205
• Lowest Revenue Per Square Foot:  $20
• Median Revenue Per Square Foot:  $68

Table C – Average Membership of Outlets as of February 28, 2024 of 81 Outlets Open to the Public for More Than a Year

Top 10%

• Average Number of Members:  5,390
• Number of ABC Outlets in the Stated Percentile:  8
• Number of ABC Outlets in the Percentile That Attained or Exceeded the Average Number of Members:  3
• Percentage of ABC Outlets in the Percentile That Attained or Exceeded the Average Number of Members:  37%
• Highest Number of Members:  6,589
• Lowest Number of Members:  4,690
• Median Number of Members:  5,245

Top 25%

• Average Number of Members:  4,449
• Number of ABC Outlets in the Stated Percentile:  20
• Number of ABC Outlets in the Percentile That Attained or Exceeded the Average Number of Members:  9
• Percentage of ABC Outlets in the Percentile That Attained or Exceeded the Average Number of Members:  44%
• Highest Number of Members:  6,589
• Lowest Number of Members:  3,290
• Median Number of Members:  4,327

Top 50%

• Average Number of Members:  3,661
• Number of ABC Outlets in the Stated Percentile:  41
• Number of ABC Outlets in the Percentile That Attained or Exceeded the Average Number of Members:  14
• Percentage of ABC Outlets in the Percentile That Attained or Exceeded the Average Number of Members:  35%
• Highest Number of Members:  6,589
• Lowest Number of Members:  2,646
• Median Number of Members:  3,285

Top 75%

• Average Number of Members:  3,212
• Number of ABC Outlets in the Stated Percentile:  61
• Number of ABC Outlets in the Percentile That Attained or Exceeded the Average Number of Members:  23
• Percentage of ABC Outlets in the Percentile That Attained or Exceeded the Average Number of Members:  38%
• Highest Number of Members:  6,589
• Lowest Number of Members:  1,989
• Median Number of Members:  2,844

Top 100%

• Average Number of Members:  2,812
• Number of ABC Outlets in the Stated Percentile:  81
• Number of ABC Outlets in the Percentile That Attained or Exceeded the Average Number of Members:  33
• Percentage of ABC Outlets in the Percentile That Attained or Exceeded the Average Number of Members:  41%
• Highest Number of Members:  6,589
• Lowest Number of Members:  982
• Median Number of Members:  2,646

• Some outlets have sold this amount. Your individual results may differ. There is no assurance that you’ll sell as much.

• All information reported in this Item 19 pertains to franchisee-owned Retro Fitness Outlets and reflects the membership and sales numbers reported by franchisees. Retro Fitness franchisees are required to report sales and membership data to ABC Financial. Retro Fitness franchisees are required to provide Retro Fitness with a copy of their federal tax returns.

• As such, the figures above are derived from reports generated from computer data reported to ABC Financial by Retro Fitness franchisees, maintained by ABC Financial, and reported to Retro Fitness. Retro Fitness has undertaken no independent investigation to verify the amounts reported to it.

• The financial performance representations do not reflect any other specific costs or expenses that must be deducted from the gross revenue or gross sales figures to obtain your net income or profit.

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