How to Finance an Orangetheory Franchise: Studio Costs
By Marc Cornella
An Orangetheory franchise loan pays for much more than a franchise fee. Opening or buying an Orangetheory Fitness studio means financing a leased retail space built to brand standards, a floor of treadmills, rowers and strength equipment, heart-rate monitoring technology, a pre-sale membership campaign and enough cash to carry payroll while the studio fills its class schedule.
This guide explains what is publicly known about the cost of an Orangetheory studio, what the franchisor expects from new owners, the paths to ownership and how SBA, conventional, equipment and working capital financing may fit each one. It also covers how lenders evaluate an Orangetheory deal, the mistakes that slow approvals and the questions buyers ask most. US Professional Funding is not affiliated with, sponsored by or endorsed by Orangetheory Fitness; the name is used only to describe the business. Figures from the franchisor’s disclosure document and website can change, loan programs vary by lender and borrower, and every loan is subject to lender review and approval. Nothing here is legal, tax or investment advice.
Orangetheory Franchise Loan at a Glance
The facts below come from the franchisor’s own franchising pages and disclosure materials. Prospective owners should confirm every figure against the current Franchise Disclosure Document, or FDD, they receive.
- Founded: 2007, by physiologist Ellen Latham, according to the company
- Franchisor: a Delaware limited liability company formed in 2009 that began offering franchises in July 2010, headquartered in Boca Raton, Florida, according to its 2025 disclosure document
- Parent company: a multi-brand company with a portfolio of franchised fitness, health and wellness brands
- System size: more than 1,500 studios worldwide and franchises awarded in 25 countries, according to the company’s franchising page
- Financial requirements: $350,000 in liquid capital and a $1 million net worth, according to the company’s franchising page
- Ownership model: owner-operators who engage with the team daily; the company states that absentee ownership is not permitted
- Franchise fee, royalty, brand fund and total investment: disclosed in Items 5, 6 and 7 of the current FDD; review those items before building a loan request
- Franchisor financing: the 2025 disclosure document we reviewed states that the franchisor does not offer direct or indirect financing
- SBA Franchise Directory: listed as “Orange Theory Fitness” under code S1224, with no special directory notes
What Is Orangetheory Fitness?
Orangetheory began in 2007, when Ellen Latham, a physiologist, opened a studio built around a heart-rate-based interval workout. The franchise company formed two years later and began franchising in 2010. Today the brand reports more than 1,500 studios worldwide and nearly one million members, and it is owned by its parent company, which describes itself as a portfolio of fitness, health and wellness franchise brands.
The concept is a coach-led group class. The signature Orange 60 class is a one-hour total body workout that moves members between treadmills, rowers and a strength floor with dumbbells and suspension straps. Members wear a heart-rate monitor, and their effort appears on screens in the studio by zone, with the goal of spending part of each class in what the brand calls the Orange Zone. The company describes the formats as small studios designed for large groups.
That model matters to lenders. An Orangetheory studio is a leased retail unit, not a large-box gym, so the real estate risk sits mainly in the lease rather than in owned property. Revenue comes largely from recurring memberships and class packages, which lenders can track through the studio’s billing data. The cost side is concentrated in build-out, a large equipment package, coach payroll and rent.
Orangetheory Franchise Costs
The franchisor’s US franchising page does not publish a total investment figure. The authoritative source is Item 7 of the current Orangetheory FDD, which lists each category of startup cost with a low and high estimate and a total.
Initial Franchise Fee
Item 5 discloses the initial franchise fee for a single studio and any fees tied to multi-studio or area development rights. The fee is typically paid when the franchise agreement is signed, often before a site is secured, so many owners pay it from their own cash rather than loan proceeds. When a loan is used, lenders generally want to see the fee documented in the sources and uses of funds.
Real Estate and Build-Out
Orangetheory studios operate in leased retail space, so most owners finance leasehold improvements rather than a building. Build-out is usually the largest single cost: demolition, framing, flooring rated for treadmills and dropped dumbbells, rubber and turf areas, lighting, sound systems, HVAC sized for a room full of people exercising hard, locker and restroom areas, a lobby and the brand’s distinctive orange finishes. Tenant improvement allowances from the landlord can reduce what the owner must finance, so the lease negotiation and the loan request should be worked on together.
Equipment, Technology and Signage
Every studio needs a full complement of treadmills, rowers and a strength floor, along with the heart-rate monitoring system, in-studio displays, audio, computers and point-of-sale tools that the brand requires. Exterior and interior signage, furniture and fixtures round out this category. Equipment is the piece most easily financed separately, because the items have identifiable serial numbers and resale value.
Opening Costs and Working Capital
Orangetheory studios typically open with a pre-sale period, when the owner markets founding memberships before the doors open. That means payroll for sales staff and coaches, grand opening marketing, insurance, deposits, licenses, professional fees and training costs can all hit before meaningful revenue arrives. Item 7 includes an additional funds line that estimates the cash needed for an initial operating period; lenders will compare that estimate with the owner’s own projections and reserves.
Total Investment
Add the categories together and the total sits well above what most first-time franchise owners have in cash, which is why the franchisor sets a $350,000 liquid capital requirement and a $1 million net worth requirement. When reading Item 7, look for these line items and their ranges:
- Initial franchise fee
- Real estate costs, including rent and security deposits during build-out
- Leasehold improvements and construction
- Architectural, design and project management fees
- Fitness equipment, including treadmills, rowers and strength equipment
- Heart-rate monitoring system, audio-visual and computer systems
- Furniture, fixtures and signage
- Opening inventory of retail products
- Pre-opening and grand opening marketing
- Training expenses, including travel and lodging
- Insurance, licenses, permits and professional fees
- Additional funds for the initial operating period
Make sure your budget ties back to the FDD total and then adds a contingency for construction overruns and a slower ramp. Our SBA loan calculator can help translate a budget into estimated monthly payments for planning purposes; estimates are not an offer or approval.
Ongoing Fees and How They Affect Your Loan
Item 6 of the Orangetheory FDD lists the recurring fees owners pay after opening. Expect a royalty calculated on gross sales, a contribution to a brand or marketing fund, a local advertising requirement and technology or software fees, along with fees that apply only in certain situations, such as transfer, renewal, training of new managers and audits.
Lenders treat these fees as operating expenses that come off the top before debt service. When an underwriter builds a cash flow model for an Orangetheory franchise loan, the royalty and fund contributions are deducted from projected membership revenue along with rent, coach payroll and utilities. What remains has to cover the loan payment with room to spare.
Remodel and equipment refresh obligations deserve special attention. Franchise agreements commonly require owners to update the studio, its equipment or its technology over time, and fitness equipment wears quickly under constant use. Review the FDD for any refresh or remodel requirements and plan how those costs will be financed before they arrive, not after.
Franchisor Requirements for New Owners
Orangetheory’s US franchising page lists what it looks for in new owners:
- Liquid capital: $350,000
- Net worth: $1 million
- Experience: individual or group investors with solid entrepreneurial experience
- Involvement: an owner-operator who engages with the team daily; absentee ownership is not permitted
- Support: the ability to provide the required capital and dedicated studio management
- Commitment: willingness to follow an evolving system
The company also says that development opportunities are limited because of demand from existing franchise owners. In practice, many new studios are developed by existing operators, and many new owners enter the system by buying an existing studio. The approval process typically involves an application, financial qualification, interviews, review of the FDD and, for new development, site approval and lease review by the franchisor before construction begins.
Ways to Own an Orangetheory Studio
Opening a new studio. A new studio requires an approved territory, an approved site, a lease, construction and a pre-sale campaign. Financing is underwritten on projections, so the owner’s experience, liquidity and business plan carry more weight. Our page on start-up financing for fitness centers covers how new studios are typically funded.
Buying an existing studio. A resale comes with members, coaches, equipment and a billing history. The franchisor generally must approve the buyer, the landlord usually must consent to a lease assignment and the brand may require equipment or studio updates as a condition of transfer. Because a lender can review actual results, a resale is often easier to underwrite than a new build. See our page on fitness center acquisition financing for how purchase loans are structured.
Area development. Owners who commit to open several studios in a territory sign a development agreement with a schedule. Each studio usually needs its own financing as it is built, so the owner’s capacity to fund the whole schedule matters from the start.
Financing Options for an Orangetheory Franchise
SBA 7(a) Loans
SBA 7(a) loans are the most flexible SBA program for franchise owners. A single 7(a) loan may combine leasehold improvements, equipment, the franchise fee, opening costs and working capital for a new studio, or the purchase price, transfer costs and working capital for an existing one. Eligibility depends on the borrower, the use of proceeds, program rules and lender review.
SBA 504 Loans
SBA 504 loans finance owner-occupied real estate and long-lived fixed assets. Because most Orangetheory studios lease their space, the 504 program fits less often, but it may be relevant for an owner who buys the building that houses a studio or for long-lived assets that meet program rules.
Conventional Term Loans
Experienced multi-studio operators with strong cash flow, liquidity and history may qualify for conventional business loans. Compare offers on term, collateral, guarantees and prepayment provisions, not only the rate.
Equipment Financing
Treadmills, rowers, strength equipment, heart-rate monitoring hardware and audio-visual systems can be financed or leased separately from the main loan, using the equipment as collateral. That can preserve cash for build-out and working capital or fund a refresh later in the franchise term. Our page on fitness equipment financing and leasing explains how these structures work.
Working Capital and Lines of Credit
The pre-sale period and the months after opening are when studios need cash most: coaches and sales staff are on payroll before the class schedule is full, and marketing continues after the grand opening. Membership demand can also shift through the year as members join in waves and some cancel. A working capital loan or line of credit can smooth these gaps. See our page on working capital for fitness businesses.
Seller Financing on Resales
On the purchase of an existing studio, a seller may agree to carry part of the price as a note. A seller note is typically subordinate to the primary loan, and lenders and SBA program rules may limit its terms, including when payments can begin. Treat a seller note as one possible piece of the structure and confirm how your lender will view it before you rely on it.
SBA Loans for Orangetheory Franchisees
SBA-guaranteed loans are made by participating lenders, with the U.S. Small Business Administration guaranteeing a portion of the loan. For franchise borrowers, the SBA reviews whether the franchise relationship gives the franchisor so much control that the business would not be independently owned. To simplify that review, the SBA keeps a Franchise Directory of brands whose agreements have been reviewed.
Orangetheory appears on the SBA Franchise Directory as “Orange Theory Fitness” under code S1224, with no special notes attached to the listing. In plain terms, that means a lender can rely on the directory listing for the franchise agreement review and does not have to work around a brand-specific condition. A listing does not approve any borrower, project or loan; the lender still underwrites the owner, the studio and the use of proceeds. The SBA 7(a) program maximum is currently $5 million, and program rules can change.
A few tips make an SBA application for an Orangetheory studio stronger:
- Give the lender the full FDD and the franchise agreement early, along with any addenda you plan to sign
- Provide a signed or near-final lease, including the tenant improvement allowance and any personal guarantee terms
- Separate construction, equipment and working capital in your budget so the lender can match each to the right use of proceeds
- Explain who will manage daily operations, given the brand’s owner-operator expectation
- For a resale, deliver membership and billing reports along with tax returns
Our article on SBA loans for gyms and fitness centers covers the program in more detail.
How Lenders Evaluate an Orangetheory Deal
Personal Credit and Financial History
Lenders review each guarantor’s credit report, payment history, existing debts and any past bankruptcies, liens or judgments.
Net Worth and Liquidity
The brand’s $1 million net worth and $350,000 liquid capital requirements are a floor. Lenders will look at where the equity injection comes from, whether it is documented and how much liquidity remains afterward.
Industry and Management Experience
Fitness industry experience, multi-unit retail management, sales leadership and hiring experience all help. Because an Orangetheory studio depends on coaches and sales staff, lenders want to know who will recruit, train and retain them, and how involved the owner will be day to day.
Business Plan and Projections
A credible plan explains the trade area, the competition, the pre-sale goal, the membership ramp, assumed attrition, class utilization, coach staffing levels, rent and the fees disclosed in Item 6. Projections should show monthly cash flow through the first year at least, including the pre-opening months, and should include a downside case with a slower ramp.
The FDD and Franchise Agreement
Lenders read the term, renewal conditions, transfer provisions, default and termination clauses, any equipment or remodel obligations and Item 19, which tells you whether the franchisor provides financial performance representations. Underwriters generally want the loan term to fit within the remaining franchise and lease terms.
Site and Lease
The lease is a key document for a studio that does not own its space. Lenders review the rent schedule, the term and renewal options, the tenant improvement allowance, assignment provisions, the personal guarantee and whether the landlord will sign any agreement the lender requires.
Historical Financials for Resales
On a purchase, lenders review several years of tax returns, profit and loss statements and balance sheets, along with membership counts, membership mix, attrition, class attendance, accounts that are frozen or past due and coach payroll. Our article on buying a boutique fitness studio explains how class packs and instructor relationships affect the review.
Orangetheory Equipment and Technology
Equipment is central to the Orangetheory experience. Each studio is laid out in stations for treadmills, rowers and a strength floor, and the heart-rate monitoring system ties the workout together by showing each member’s effort on studio screens in real time.
From a financing perspective, that creates three questions. First, how will the opening equipment package be paid for: inside the main loan or through separate equipment financing or leasing? Second, what condition is the equipment in on a resale, and does the franchisor require replacements as a condition of transfer? Third, when will the equipment need to be refreshed during the franchise term, and how will that be funded? Treadmills and rowers in a busy studio run class after class every day, so wear is real and lenders know it.
Multi-Unit Growth and Development Agreements
Many Orangetheory owners grow beyond one studio, and the franchisor’s statement that development opportunities are limited because of demand from existing owners suggests that much of the system’s growth comes from operators already in it. Financing a second or third studio works differently from financing the first.
For an expansion studio, lenders look at the performance of the existing studios, the owner’s global cash flow, the management bench that will run the new studio and the combined debt across all locations.
Development agreements add a schedule. If the agreement requires a set number of studios by set dates, the owner should map the financing for each studio before signing, including the equity each one will need and the timing of construction. Our article on financing an area development agreement explains how owners fund a schedule one unit at a time.
Real-World Scenarios
A fitness manager opening a first studio. A former regional manager at a fitness company meets the brand’s liquidity and net worth requirements and secures an approved site. She uses an SBA 7(a) loan for the build-out, opening costs and working capital and finances the treadmills and rowers separately to keep more cash on hand during pre-sale.
A buyer purchasing an existing studio. A sales executive buys an established studio from an owner who is retiring. The lender reviews several years of tax returns and the studio’s membership and attrition reports, the franchisor approves the transfer and the landlord consents to the lease assignment. The purchase includes an equipment refresh required by the brand as part of the transfer.
An existing owner adding another studio. An owner with a stable studio signs a lease nearby. The lender reviews the combined cash flow, the manager who will run the new location and the liquidity left after the equity injection.
Common Mistakes to Avoid
- Building a budget from figures found online instead of Item 7 of the current FDD
- Signing a lease before confirming the tenant improvement allowance and financing timeline
- Underestimating the cash needed during the pre-sale period and the first months after opening
- Ignoring Item 6 fees when projecting the cash flow available for debt service
- Buying an existing studio without reviewing membership attrition, frozen accounts and coach turnover
- Overlooking equipment leases and refresh requirements on a resale
- Planning a semi-absentee role in a system that requires owner-operators
- Comparing loan offers only on rate instead of term, collateral and guarantees
For more, read the fitness center loan mistakes that cost owners the most.
Next Steps to Finance Your Orangetheory Franchise
Step 1: Confirm you meet the brand’s requirements. Compare your liquid capital, net worth and experience with what Orangetheory requires, and decide whether you will open a new studio or buy an existing one.
Step 2: Review the FDD with a franchise attorney. Focus on Items 5, 6 and 7 for costs, Item 10 for franchisor financing, Item 12 for territory, Item 17 for term, renewal and transfer, and Item 19 for whether financial performance representations are included.
Step 3: Build a detailed budget. Match each Item 7 category to your market, add a contingency and separate construction, equipment and working capital.
Step 4: Prepare your documents. Gather personal tax returns, a personal financial statement, a resume, proof of equity, the franchise agreement, the lease or letter of intent and, for a resale, the studio’s financial statements and membership reports.
Step 5: Talk with a financing specialist early. Discuss which structure fits before you sign a lease or a purchase agreement, so the loan timeline lines up with construction or closing.
Step 6: Coordinate franchisor, landlord and lender approvals. Each approval affects the others, so keep all three moving in parallel.
Step 7: Close and plan the opening or transition. For a new studio, plan construction draws and the pre-sale campaign. For a resale, plan the member communication, coach retention and any required updates.
Orangetheory Franchise Loan FAQs
How much does it cost to open an Orangetheory studio?
The franchisor does not publish a total investment figure on its US franchising page. The current estimate, broken down by category, appears in Item 7 of the Orangetheory FDD. Actual costs depend on the market, the site, the build-out and the tenant improvement allowance.
What is the Orangetheory franchise fee?
The initial franchise fee and any multi-studio or development fees are disclosed in Item 5 of the current FDD. Review the version you receive, because fees can change from year to year.
What royalty and marketing fees does Orangetheory charge?
Recurring fees, including the royalty, brand or marketing fund contribution, local advertising and technology fees, are listed in Item 6 of the FDD. Lenders deduct them from projected revenue when they calculate cash flow available for debt service.
How much liquid capital and net worth do I need?
Orangetheory’s franchising page lists $350,000 in liquid capital and a $1 million net worth. Lenders will also want to see enough liquidity left after your equity injection to carry the studio through opening.
Can I use an SBA loan for an Orangetheory franchise?
Possibly. Orangetheory is listed on the SBA Franchise Directory as “Orange Theory Fitness” under code S1224, with no special notes. Eligibility still depends on the borrower, the project, program rules and lender approval.
Does Orangetheory offer financing?
The 2025 disclosure document we reviewed states that the franchisor does not offer direct or indirect financing. Check Item 10 of the FDD you receive to confirm.
Can I finance the equipment separately?
Often, yes. Treadmills, rowers, strength equipment and heart-rate monitoring hardware may be financed or leased separately from the main loan, depending on lender review.
Can I buy an existing Orangetheory studio with a loan?
Yes, an acquisition loan may fund the purchase price, transfer costs and working capital. The franchisor must generally approve the buyer, and the landlord usually must consent to the lease assignment.
Can a first-time business owner get an Orangetheory franchise loan?
It can be possible, especially with strong management experience, the required liquidity and a credible plan. The franchisor looks for solid entrepreneurial experience, and lenders weigh management and sales leadership heavily.
How do I finance multiple Orangetheory studios?
Each studio is usually financed as it is developed or acquired. Lenders review the existing studios’ performance, the owner’s combined cash flow and the management team before approving the next one.
What documents do I need to apply?
Expect to provide personal tax returns, a personal financial statement, a resume, proof of equity, the FDD and franchise agreement, the lease or letter of intent, a business plan with projections and, for a resale, the studio’s financial statements and membership data.
How long is the Orangetheory franchise term?
The term, renewal conditions and transfer rules are set out in Item 17 of the FDD and in the franchise agreement. Lenders generally want the loan term to fit within the remaining franchise and lease terms.
Final Thoughts
An Orangetheory franchise loan is easiest to approve when the owner understands the full cost of the studio, meets the brand’s liquidity and net worth requirements with room to spare and arrives with a clear plan for the pre-sale period and the first year. Whether you are opening a new studio, buying an existing one or adding to a group, aligning the FDD, the lease and the financing early gives the deal its best chance.
US Professional Funding helps franchise owners and buyers finance new units, acquisitions, equipment and working capital. Learn more about our franchise financing programs and our financing for gyms and fitness centers.
