Two locations, 30 employees… and surprisingly thin returns.
This two-location Orangetheory Fitness franchise is listed at $750K, generating about $1.37M in revenue and $236K in cash flow.
On the surface, it looks like a solid franchise opportunity with a strong brand behind it.
But once you break down the numbers, the story changes.
Deal Snapshot
Let’s run it through a standard SBA-style scenario.
Financing Overview
After debt, you’re left with about $126K per year.
That’s decent — but not for what this actually takes to run.
The Reality Check
You’re running two locations with ~30 employees… for $126K.
That’s the disconnect most buyers miss.
Where It Breaks
The margins are weak.
- Low margin: 17.3% vs ~27.7% industry average.
- Franchise constraints: Limited ability to cut costs.
- Fixed expenses: Rent, payroll, and royalties are locked in.
And in a franchise model, fixing margins isn’t easy.
And You’re Paying a Premium
The valuation doesn’t help.
- Overpriced: 3.17x vs ~1.83x industry average.
- Below-average performance: Yet priced above market.
- No upside baked in: You’re paying for the brand, not the numbers.
This is where the deal really falls apart.
The Hidden Risk
Fitness franchises look stable — but they’re not low-risk.
- High default rate: ~5.3% vs ~3.6% overall.
- Member churn: Revenue depends on retention.
- Local competition: New gyms can impact demand.
- Lease exposure: Real estate is not included.
You’re more exposed than it seems.
What This Really Is
This is a brand-driven deal.
- Strong brand
- Weak efficiency
- Premium pricing
You’re paying for recognition — not performance.
BizHub Verdict
This deal scores a 5.4 / 10.
The brand is strong — but the numbers don’t justify the complexity or the price.
Two locations… and still not enough take-home.
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