Overview of Orangetheory Fitness
Orangetheory is a fitness company focused on high-intensity interval training. Founded in 2010 by Ellen Latham, David Long, and Jerome Kern, Orangetheory offers 60-minute group workout classes based on treadmill running, indoor rowing, and floor exercises. The workouts aim to get participants’ heart rates into specific zones to promote maximum calorie burn.
Financial Success of Orangetheory
In 2017, Orangetheory reported $136 million in revenue from corporate-owned clubs and franchise fees, representing a 45% increase from the previous year. The company was also in the process of developing 500 new franchise locations.
Business Model and Investment Details
Orangetheory classes allow participants to adjust intensity to their own fitness level by power walking, jogging, or running on the treadmill, with base, push, and all-out intensity levels. The company focuses more on cardio compared to CrossFit, which emphasizes heavy strength training. Attending Orangetheory 3-4 times per week, along with being active on other days, can assist with weight loss through increased calorie burn.
The total investment to launch an Orangetheory franchise ranges from $327,600 to $634,100, including the initial franchise fee of $39,500, additional unit fees, 6% royalty fees, and 1% monthly marketing contributions. Orangetheory is a profitable business model, generating a net income of $24.8 million in 2020.