Snap Fitness Franchise Cost & Fees

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Description

Year Business Began: 2003

Franchising Since: 2004

Headquarters: Chanhassen, Minnesota

Estimated Total Number of Units: 1,410

Franchise Description: Snap Fitness, Inc. is the franchisor. The franchise offered is a Snap Fitness Club, which offers group fitness and personal training, using advanced industry technologies and high-quality fitness equipment and providing 24-7 access to members.Training Overview: The franchisor provides an initial training to at least two people in the franchisee’s organization (including the General Manager), which the attendees must complete to the franchisor’s satisfaction. The program is four days. The franchisor does not charge for this training, but franchisees must pay the travel and living expenses and supply costs for themselves and their employees. Training will occur at Snap Fitness headquarters in Chanhassen, Minnesota, or in the franchisee’s Club prior to opening. Periodically, the franchisor may offer additional training programs and may charge a fee for attending these training programs. Territory Granted: When the Franchise Agreement is signed, franchisees will select a general geographic area in which they intend to operate their Club (Preliminary Designated Area). The franchisor will generally approve the franchisee’s selection unless it determines, in its sole judgment, that it may negatively affect the interest of another Snap Fitness franchisee. Once franchisees have acquired a site, the franchisor will complete the Franchise Agreement to reflect the site (which will become the Club’s “Authorized Location”) and to define the “Designated Area” around the Authorized Location. If the site franchisees acquire is within the Preliminary Designated Area, their Designated Area will be substantially the same as their Preliminary Designated Area in terms of size, shape or demographics. A minimum Designated Area will consist of one city block and, in suburban and rural areas, may be as large as a three-mile driving distance from the anticipated location. During the term of the Agreement neither the franchisor nor its affiliates will develop or operate, or grant to anyone else the right to develop or operate, a Snap Fitness Club physically located in the Designated Area (except for designated Special Sites).Obligations and Restrictions: During the term of the Franchise Agreement, franchisees (if the franchisee is an individual) or their general manager must devote full time and best efforts to the management of the Club. Franchisees are expected to stay informed about the franchisor’s organizational plans, initiatives and direction by regular review of communications sent to the franchisee electronically or otherwise. Franchisees or their general manager must provide direct on-premises supervision to the Club. The general manager must complete the training course. Franchisees must offer at the Club all of the products, equipment and services that the franchisor periodically requires and may not offer at the Club any unapproved products or use the premises for any purpose other than the operation of the Club. If permitted by state and local law, franchisees must be open for business every day of the week for 24 hours.Term of Agreement and Renewal: The length of the initial franchise term is 10 years. Renewal is for unlimited additional 10-year terms, if requirements are met. Financial Assistance: The franchisor offers through a preferred financing vendor, the Lease Servicing Center (LSC)/Preferred Vendor Programs. If franchisees qualify for a LSC preferred vendor program, they will sign an equipment lease agreement or equipment finance agreement directly with Lease Servicing Center. The Lease Servicing Center/Preferred Vendor Programs offer lease financing for the equipment franchisees will need to open a new Club. Also, for existing Snap Fitness franchisees modernizing their Club or a new Snap Fitness franchisees that acquired an existing Club, they may qualify for the Re-Snap Program for financing the upgrades and modernization of the Club in connection with the renewal, transfer or required contractual modernization of the Club. In addition to the programs mentioned, the franchisor may periodically arrange with third party finance companies or banks to make financing programs available to franchisees. Investment Tables: Estimated Initial Investment Name of Fee Low High Initial Franchise Fee $29,500 $29,500 GO FAST Kit $10,705 $17,348 In Club Technology Package $4,001 $7,557 Fitness and Weight Equipment $26,410 $58,834 Freight and Installation $10,000 $21,000 Exterior Signage $1,830 $2,615 Mirrors $575 $1,046 Leasehold Improvements (not including flooring) $0 $210,000 Flooring (and Installation) $5,000 $7,000 Rent $8,000 $40,000 Lease & Utility Security Deposits $1,500 $10,000 Insurance $750 $900 Training Expenses $500 $3,000 Professional Fees $1,000 $4,000 Additional Funds (3 month period) $50,000 $50,000 Estimated Total $149,771 $462,800 Other Fees Type of Fee Amount Continuing Fee $549 per month. National Marketing Fund $150 monthly fee. Local Marketing Fund or Cooperative Advertising Contribution $200 per month. Member Service Fees Currently, one-time $1.00 fee for each new member. Website Fee $40 per month. Membership Processing Fees One-time fee of $5.75 for each new membership agreement; continuing $.60 fee per month membership maintenance fee for each membership enrolled at the Club. Door Access CardsThen-current price (currently $5) Technology Fee (including Fitware) $185 per month. Fitness On Demand $199.95 per month. MyZone $150 per month. Reimbursement Processing Fee $35 per month. Convention The then-current fee (currently, $129 per club or attendee) Decline Recovery Service $1.00 per decline. Online Acquisition Fee $15 per online enrollment. Audits Cost of audit plus interest. Transfer Fee $5,000 fee if transferee is an existing Snap Fitness franchisee. If the transferee is new to the system, the transfer fee is equal to the then-current Initial Franchise Fee. Costs and Attorneys’ Fee Will vary under circumstances. Insurance $250 – $400 monthly. Interest 18% per annum. Indemnification Will vary under circumstances. Supplier Review Fee Franchisor’s costs and expenses, which are currently expected to range between $1,000 and $3,000, although costs could exceed those amounts depending on the product. Modernization and Maintenance Costs The then-current design fee (currently $500) and if applicable, the franchisor’s reasonable costs and expenses which will vary. Additional Assistance or Training Currently, $250 per day plus travel costs. Securities Offering Costs Will vary under the circumstances. The above information has been compiled from the FDD of Snap Fitness. Year of FDD: 2018Franchise Direct’s Disclaimer

 

Other Fees
Type of Fee Amount
Continuing Fee $549 per month.
National Marketing Fund $150 monthly fee.
Local Marketing Fund or Cooperative Advertising Contribution $200 per month.
Member Service Fees Currently, one-time $1.00 fee for each new member.
Website Fee $40 per month.
Membership Processing Fees One-time fee of $5.75 for each new membership agreement; continuing $.60 fee per month membership maintenance fee for each membership enrolled at the Club.
Door Access Cards Then-current price (currently $5)
Technology Fee (including Fitware) $185 per month.
Fitness On Demand $199.95 per month.
MyZone $150 per month.
Reimbursement Processing Fee $35 per month.
Convention The then-current fee (currently, $129 per club or attendee)
Decline Recovery Service $1.00 per decline.
Online Acquisition Fee $15 per online enrollment.
Audits Cost of audit plus interest.
Transfer Fee $5,000 fee if transferee is an existing Snap Fitness franchisee. If the transferee is new to the system, the transfer fee is equal to the then-current Initial Franchise Fee.
Costs and Attorneys’ Fee Will vary under circumstances.
Insurance $250 – $400 monthly.
Interest 18% per annum.
Indemnification Will vary under circumstances.
Supplier Review Fee Franchisor’s costs and expenses, which are currently expected to range between $1,000 and $3,000, although costs could exceed those amounts depending on the product.
Modernization and Maintenance Costs The then-current design fee (currently $500) and if applicable, the franchisor’s reasonable costs and expenses which will vary.
Additional Assistance or Training Currently, $250 per day plus travel costs.
Securities Offering Costs Will vary under the circumstances.