Independent Circuit Gym vs F45 Franchise: The Real Cost Side by Side

Independent circuit gym owners considering whether to convert to an F45 or Orangetheory franchise often run the math and find the franchise fees are 80-90 percent of what they expected to save by joining. Member merch is one of the most overrated reasons to go franchise. Here is the real side-by-side cost, including the member apparel program piece by piece.

The Real F45 Franchise Cost Breakdown

Based on publicly available F45 franchise disclosures and operator reports:

• Initial franchise fee: roughly $35,000-$50,000
• Buildout cost: $250,000-$450,000 depending on location
• Ongoing royalty: roughly 7 percent of gross revenue
• Marketing fee: additional 2 percent of gross
• Member merch: through F45 corporate apparel program, members buy via app

For a gym doing $400,000 in annual revenue, the royalty plus marketing fees alone are $36,000 per year, every year, forever.

Independent Circuit Gym Cost Breakdown

• Initial buildout: $40,000-$200,000 depending on equipment level
• Software (Mindbody, Mariana Tek): $200-$400 per month
• Member merch (Pro Shops VIP): $59 per month for full member apparel program
• Ongoing royalty: $0
• Marketing fee: $0 (you run your own)

For the same $400,000 revenue gym, ongoing platform costs are roughly $4,000 per year. The $32,000 annual delta versus franchise fees lands in your pocket.

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The Member Merch Piece, Compared Directly

Feature	F45 Member Merch	Independent + Pro Shops
Branded shop	Through F45 corporate	Your own subdomain
Per-piece member cost	Higher (franchise margin baked in)	You set retail, you keep margin
Design control	Limited to F45 catalog	Full, design and reorder freely
Margin to gym	Limited revenue share	Full margin on every piece
Member milestone shirts	Not a standard feature	Run your own milestone program
Monthly platform fee	Bundled into franchise fees	$59 or $109/month

What the Franchise Still Gets You That Independent Does Not

Being fair to F45: the franchise gives you:

• A proven programming system you do not have to build
• Brand recognition that drives some level of organic awareness
• The OnDemand platform and tracking
• Corporate marketing campaigns

If you are not confident in your own programming or your local market does not know circuit training yet, the franchise has real value. If you have an established member base, a known local presence, and confidence in your programming, the franchise math rarely justifies the ongoing royalty.

The Hybrid Path Some Owners Take

A growing number of circuit gym owners build the independent program but borrow the structural lessons from the franchises: timed station rotations, member tracking, branded merch, member milestones. The result is a circuit gym that runs the franchise playbook without paying franchise fees. Pro Shops fits this hybrid path on the merch side, the rest comes from your own programming and operations.

Frequently Asked Questions

How much does the F45 corporate merch program actually take from each piece?

Exact revenue share varies by location and contract. Reports from operators suggest the gym retains a small percentage per piece, with most margin flowing to corporate.

Can I switch from F45 to independent and keep my members?

Most members follow the gym, not the brand, especially in markets where the F45 next door has a different vibe or trainer roster. Member retention through a re-brand is typically 70-85 percent.

Is the Pro Shops monthly fee deductible like other software?

For most US gym businesses, yes. The monthly subscription is a deductible business software expense. Confirm with your accountant.

What about Orangetheory or Burn Boot Camp specifically?

Both have similar franchise structures with high initial fees and ongoing royalty plus marketing percentages. The merch comparison plays out the same way.