OTF Franchisor, LLC is the franchisor. OTF Franchisor, LLC wholly owned by Ultimate Fitness Group, LLC. Orangetheory Studios is modern fitness studios that offers access to exercise equipment, including cardio and strength equipment, and other related services and ancillary merchandise related to the Orangetheory concept. Orangetheory Studios have a recognizable orange color scheme and trade dress.
For those franchisees for whom it is the first Orangetheory Studio, the franchisor will provide an initial training program on the operation of a studio for all owners who sign the agreement (including the managing owner, who must be a signatory on the agreement).
Currently, the duration of the initial training program is four days and is held in Boca Raton, Florida, at the franchisor’s headquarters. Partly the initial training program may be provided via the internet. Also the franchisor (or it's local) representative will provide Studio Launch Training. Studio Launch Training is free for eight fitness coaches and four sales associates and includes sales and operations training, OTFit certification training.
Before starting selling memberships in presales, new franchisees must attend and complete the initial Presales Training Program along with all owners and employees of their studio. Nowadays the Presales Training Program is four days long and held at an area representative’s certified training facility or the franchisee’s studio presales location.
The franchisor may require franchisees to attend any conferences or supplemental or refresher training programs provided by them, including its annual Orangetheory conference, its annual training summit, and its annual management training program at chosen locations. These events must be attended by franchisees (or their managing owner), their studio's lead trainer, and/or studio manager. If it is training programs, they must be successfully completed.
Territory Granted: Under the Franchise Agreement, the franchisee has the right to own and operate the sole studio at a specific location in the selected area approved by the franchisor. The franchisor will determine the geographic area for the franchisee after the site will be accepted.
The territory will be determined based on such facts as demographics, population and traffic flow, presence of businesses, competitors including other studios, other market conditions. The franchisor does not have for territory a minimum geographic or population size. The franchisor and its affiliates grant to not operate or authorize others to operate a studio under its trademark located in that territory, as long as the franchises abide by the Franchise Agreement.
An exception can be made for studios located in private businesses, governmental institutions, or other limited-access facilities within the territory. If franchises comply with the Franchise Agreement, their exclusive rights in the territory can be modified only by mutual written agreement signed by both parties.
Obligations and Restrictions: The franchisor recommends but does not require, that the studio must be supervised personally by franchisees or their managing owner. Franchisees must appoint an on-premise manager full-time.
The on-premise manager must meet three criteria:
- devote all his working time and effort to the daily work of the studio on the premises,
- has completed a management training program to the franchisor’s satisfaction,
- does not engage in other business other than passive investments that do not interfere with his or her managerial responsibilities).
In the studio can be offered services and products approved in writing by the franchisor. Franchisees must also offer the services, products, and classes that are required in the manuals or otherwise in writing.
Term of Agreement and Renewal: The duration of the initial franchise term is 10 years. Franchisees can renew the agreement for one more consecutive term of 10 years if they meet requirements.
Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease or obligations.