Orangetheory Fitness

Franchise agreement

You agree to establish and maintain at your own expense a bookkeeping, accounting, and recordkeeping system conforming to the requirements and formats (including, at our option, the accounting principles) that we prescribe from time to time in the Manuals and otherwise in writing.

Franchise agreement

In addition, we and our Affiliates may, through the Technology System or otherwise, have independent access to Member Information.

Franchise agreement

within 90 days after the end of each fiscal year, a profit and loss and source and use of funds statement(s) for the Studio for the recently completed fiscal year, and a balance sheet for the Studio as of the end of such fiscal year

Item 8

Currently, we are the only approved supplier of the Management Software and other prescribed Required Software and are one of the approved suppliers for a cloud-based customer relationship management system.

Franchise agreement

We have established a franchisee advisory council (“FAC”) to serve as an advisory council to us with respect to issues relating to advertising, marketing, operations, new products and services, and other matters relating to Studios.

Item 8

We may change approved and required suppliers from time to time, and we or our affiliates may be approved or designated suppliers for certain items.

Item 8

OTF Sourcing has arrangements with certain suppliers to receive rebates as a result of required purchases by franchisees from these suppliers.

Item 8

We estimate that the cost to purchase and lease all equipment, inventory and other items and services that we require you to obtain from us or our affiliates, from designated suppliers, or in accordance with our specifications is approximately 90% of the total cost to purchase and lease equipment, inventory, and…

Item 8

If you seek approval of a new supplier (or if the supplier applies directly to us for approval), we will require the supplier pay us a nonrefundable 22 fee of $300 before we will consider approving their application.

Item 8

If you would like to offer products or use any supplies, Operating Assets, or services that we have not approved or to purchase or lease from a supplier or service provider that we have not approved (but only for items for which we have not mandated a sole supplier), you must submit a written request for approval and…

Franchise agreement

You acknowledge that as between you and us, we have the sole rights to and interest in all Identifiers.

Franchise agreement

To the extent applicable, you must abide by: (i) the Payment Card Industry Data Security Standards enacted by the applicable card associations (as they may be modified from time to time or as successor standards are adopted);

Franchise agreement

We may periodically coordinate or conduct market research studies and similar programs for the Studio network, and you must assist us in collecting information (including by distributing surveys to your Studio's members and encouraging members to complete surveys on the System Website (defined in Section 7(g)…

Franchise agreement

We may at any time during your business hours, and without prior written notice to you, examine and audit the Studio's business, bookkeeping and accounting records, sales and income tax records and returns, and other records.

Item 17

But we can unilaterally modify the Manuals.

Item 8

We must approve the site for your Studio and the site must meet our then-current site criteria.

Franchise agreement

You may not establish or maintain any social media accounts utilizing any usernames, or otherwise associating with the Marks, without our advance written consent.

Item 7

You must conduct a presale/grand opening program we approve.

Franchise agreement

of the Term at least the greater of (a) 2% of the Studio’s Gross Sales from the prior month or (b) $2,500 on advertising, promotions and public relations within the Territory.

Franchise agreement

If an association of Studio franchise owners is established in a geographic area in which your Studio is located (the “Co-op”), you must join and actively participate in it.

Franchise agreement

(iii) be purchased or leased only from suppliers or service providers that we have expressly approved; and/or (iv) be purchased or leased only from a single source that we designate (which may include us or our Affiliates or a buying cooperative organized by us or our Affiliates).

Item 8

Currently, you must purchase marketing materials, certain construction materials for build-out such as lighting, rubber flooring, lockers, tile, bathroom and shower fixtures, plastic laminate, paint, corner guards, reception desk, retail merchandise display wall and interior logo sign, manuals, membership key tags…

Franchise agreement

You must sign and deliver to us the documents we periodically require to authorize us to debit your checking account automatically for the Royalty, Brand Fund Contributions, and other amounts due under this Agreement or any related agreement between us (or our Affiliates) and you at the dates specified in the Manuals…

Item 15

You must designate a full-time, on-premises manager who (a) devotes his or her full working time and best efforts to the day-to-day, on-premises operations of the Studio

Franchise agreement

System Standards do not include any mandatory requirements on your employee’s wages, working conditions, hours, staffing levels, shift timing or other terms of employment, but may specify uniforms and appearance to meet brand standards.

Franchise agreement

You must obtain, maintain, and use the hardware, software, other equipment, and network connections that we specify periodically in the Manuals, including the hardware, software, other equipment, and network connections necessary to operate our point of sale system, the membership management system, the accounting…

Franchise agreement

In addition, we and our Affiliates may, through the Technology System or otherwise, have independent access to Member Information.

Item 6

Refresher Training Currently, $250 per On demand We periodically may require you (or your Fees day per person Principal Owner) and/or, at our option, trained.

Item 6

Currently, we require attendance at our Convention (which we expect will be less than $1,000 per person in 2025) and training summit (which we expect will be less than $600 per person in 2025).