Franchisor Stories
Fitness Factory Health Club Franchise Costs, Fees, Profit and Data for 2025
Franchise Opportunity Deep Dive: A proven fitness brand with over two decades of experience offering a turnkey opportunity in a growing industry.
Fitness Factory Health Club is a full-service gym franchise with over two decades of experience delivering high-quality fitness experiences in the Northeast. Founded on the principles of customer service, operational excellence and community engagement, the brand offers a multi-revenue stream model that includes EFT memberships, personal training, juice bars and branded retail.
1. What Is the Brand Overview for Fitness Factory Health Club?
About the Brand
Fitness Factory Health Club was founded in 1997 by lifelong friends Dennis Cieri and Rich Scarpati. With strong backgrounds in real estate, finance and fitness, the founders launched the business to create a community-centered fitness concept focused on customer service, operational excellence and long-term value. The brand has served over 100,000 members across its corporate locations in Northern New Jersey and Westchester County, New York.
Mission: To help people reach their fitness aspirations by delivering top-tier service and empowering franchise owners with a proven business model and unmatched support.
Vision: To be a leader in the health club industry by expanding with passionate entrepreneurs and creating communities rooted in fitness, wellness and performance.
Unique Selling Points (USPs)
- 24 years of experience in fitness operations
- Strong customer retention through high-touch personal training
- Multiple revenue streams including EFT memberships, personal training, juice bars and retail
- Branded nutrition and apparel sold on-site and online
- Clubs customized to local markets for optimized member experience
2. What Are the Franchise Opportunity Details?
Why Franchise With Fitness Factory Health Club?
- Proven franchise model with successful corporate locations
- In-house construction and site selection support
- Strategic partnerships with vendors and service providers
- Comprehensive training programs pre- and post-opening
- Scalable business with multiple revenue channels
- Opportunity to join a brand with experienced leadership and established processes
Available Territories
Fitness Factory Health Club is currently offering franchise territories in New Jersey and Pennsylvania. The business is in the process of registering as a franchise in the state of New York and will eventually be offering territories there as well.
Investment Overview
Initial Costs: The estimated initial investment required to begin operation of a Fitness Factory Health Club franchise ranges from $404,500 to $1,060,000. The 2023 Franchise Disclosure Document (FDD) breaks these costs down as follows:
| Type of Expenditure | Min | Max |
| Initial Franchise Fee | $49,500 | $49,500 |
| Lease Review Fee | $2,500 | $2,500 |
| Lease Deposit | $15,000 | $40,000 |
| Construction Consulting Fee | $2,500 | $2,500 |
| Leasehold Improvements | $150,000 | $500,000 |
| Equipment, Fixtures, and Furnishing & Flooring | $100,000 | $250,000 |
| Pre-Sales | $25,000 | $30,000 |
| Permits & Licenses | $1,000 | $10,000 |
| Signs | $10,000 | $30,000 |
| Prepaid Insurance Premium | $6,000 | $15,000 |
| Bond | $0 | $10,000 |
| Grand Opening Advertising | $8,000 | $13,000 |
| Training | $1,000 | $2,500 |
| Computer System | $3,000 | $4,000 |
| Utility Costs & Deposits | $1,000 | $11,000 |
| Additional Funds (3 Months) | $30,000 | $90,000 |
Initial Franchise Fee: Franchisees who sign a Franchise Agreement to open a Fitness Factory Health Club are required to pay an initial franchise fee of $49,500 for the rights to operate one location. This fee is due before development begins and is fully earned upon signing the agreement. It is non-refundable under any circumstances. A separate agreement and fee are required for each additional facility.
Ongoing Fees: According to the 2023 FDD, franchisees are responsible for the following ongoing payments and fees:
| Type of Fee | Amount |
| Royalty Fee | The greater of $495 or 5% of gross revenues/month |
| National Advertising and Promotions Fund | Minimum of 2% of gross revenues/month |
ROI Potential: According to the 2023 FDD, the six gyms operating for the entirety of FY 2023 reported the following average monthly gross revenues:
Facility 1 | Facility 2 | Facility 3 | Facility 4 | Facility 5 | Facility 6 |
$199,052 | $106,575 | $131,487 | $140,229 | $86,191 | $115,886 |
3. What Franchisee Support Does Fitness Factory Health Club Provide?
Training Programs
Fitness Factory Health Club provides franchisees with extensive training and support to ensure a successful launch and ongoing operations. Before opening, franchisees participate in a comprehensive initial training program that covers all aspects of running the business. This includes pre-sales and opening training for both the franchisee and their manager, along with first-week onsite support to assist with the launch. Training continues beyond the grand opening with ongoing webinars and updates to keep franchisees informed and prepared.
Operational Support
Operational support is a key part of the brand’s franchise model. Fitness Factory assists with site selection and real estate, offering a prototypical floor plan and detailed specification manual to guide the buildout. Franchisees receive an operations manual and benefit from established strategic partnerships, which cover everything from construction to ongoing operational needs. A knowledgeable corporate support team is available to provide continuous guidance.
Technology and Tools
Franchisees also gain access to essential technology and tools, including robust club management systems that streamline daily operations. Marketing tools and support help drive awareness and membership growth, while detailed operational reporting systems allow for effective performance tracking. The brand’s EFT (Electronic Funds Transfer) system ensures seamless processing of recurring membership and service fees, supporting consistent revenue flow.
4. What Are the Franchise Requirements for Fitness Factory Health Club?
Eligibility Criteria
- Liquid Capital: $500,000
- Net Worth: $2 million
Fitness Factory is looking for individuals who are passionate about fitness, committed to delivering excellent service and ready to follow a structured, full-support franchise system. Fitness or business experience is preferred but not required.
Operational Commitments
- Full-time involvement preferred
- 12,000 - 20,000 sq. ft. facility required
- Semi-absentee ownership not specified
Funding Assistance
Fitness Factory does not provide any information on funding assistance.
5. What Is the Market Potential for Fitness Franchises?
The global health and fitness club market reached $101.45 billion in 2024 and is projected to grow to $157.6 billion by 2029 at a CAGR of 9.21%. The market is expected to continue expanding to $236.93 billion by 2034, driven by rising awareness of physical health, gym culture, and diversified fitness offerings.
Competitor Analysis
Fitness Factory competes with national brands like Anytime Fitness, Planet Fitness and Crunch. It differentiates itself through personal service, multiple revenue streams and its ability to tailor each location to local market needs.
6. What Is the Application Process for Fitness Factory Health Club Franchisees?
- Initial Inquiry: Submit an interest form on the Fitness Factory website.
- Qualification Review: The brand assesses financial and operational fit.
- Franchise Disclosure Document (FDD) Review: Prospects review key terms and costs.
- Discovery Day: Meet with the leadership team.
- Site Selection and Lease Signing: Fitness Factory supports real estate and buildout planning.
- Training and Pre-Sales: Full training and operational setup begins.
- Grand Opening: Open doors within ~270 days of signing.
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