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Initial Investment
Becoming a franchise owner requires a significant
commitment, both in terms of time and money. To ensure you understand the financial investment required
of an Orange Shoe Personal Fitness franchisee, we’ve detailed the costs in the
table below. We want you to have a
firm sense of what’s required, and to understand that these estimates are
subject to variations according to geographical location and site.
|
Type of Expenditures |
Low Amount |
High Amount |
Method of Payment |
When Due |
To Whom Payment is Made |
|
Initial Franchise Fee |
$29,000 |
$29,000 |
Lump sum |
Upon execution of the Franchise Agreement |
Us |
|
Lease, Utility & Security Deposits |
$0 |
$8,500 |
As incurred |
As incurred |
Third parties |
|
Website Listing |
$500 |
$500 |
Lump sum |
As incurred |
Us or Approved Suppliers |
|
Leasehold Improvements |
$0 |
$125,000 |
As arranged |
As arranged |
Third parties |
|
Signage |
$2,000 |
$5,500 |
Lump Sum |
As arranged |
Us or Approved Suppliers |
|
Fitness Equipment |
$30,000 |
$45,000 |
Lump Sum |
As arranged |
Us or Approved Suppliers |
|
Electronic Equipment and Software |
$6,000 |
$8,000 |
Lump Sum |
As arranged |
Us or Approved Suppliers |
|
Apparel |
$500 |
$1000 |
As arranged |
As arranged |
Us or Approved Suppliers |
|
Furniture & Fixtures |
$4,000 |
$6,000 |
As incurred |
As incurred |
Third parties |
|
Office Supplies & Misc. |
$2,000 |
$3,000 |
As incurred |
As incurred |
Us or Approved Suppliers |
|
Printed goods |
$2,200 |
$2,500 |
As incurred |
As arranged |
Us or Approved Suppliers |
|
Business Licenses & Permits |
$100 |
$500 |
As incurred |
As incurred |
Third parties |
|
Professional Fees |
$500 |
$1,500 |
As arranged |
As arranged |
Third parties |
|
Insurance |
$1,500 |
$2,500 |
Lump sum |
Before commencing business |
Third parties |
|
Initial Training |
$3,000 |
$4,000 |
As incurred |
As incurred |
Third parties |
|
Grand Opening Advertising |
$3,000 |
$5,000 |
As incurred |
As incurred |
Us or Approved Suppliers |
|
International Health, Racquet and Sportsclub Association Dues (“IHRSA”) |
$250 |
$250 |
Lump Sum |
Before commencing business |
IHRSA |
|
Additional Funds/Working Capital |
$25,000 |
$35,000 |
As incurred |
As incurred |
Third parties |
|
Total |
$109,550 |
$282,750 |
|
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