Burn Boot Camp Franchise in 2024: Costs, Fee & FDD
Explore the financial potential and growth of Burn Boot Camp in our in-depth analysis. Discover why this franchise stands out in the competitive fitness industry, and see if it’s the right investment opportunity for you.
Table of Contents:
Burn Boot Camp was founded in 2012 by Devan and Morgan Kline, a husband-and-wife team with a passion for fitness and community. Devan, a former professional baseball player, teamed up with Morgan to create a fitness brand that not only focuses on physical health but also fosters a strong sense of community among its members. Their vision was to create a supportive environment where people could push their limits and achieve their fitness goals together. Burn Boot Camp quickly gained traction and has become a significant player in the boutique fitness industry, known for its dynamic and engaging workouts.
The core product of Burn Boot Camp is its 45-minute high-intensity interval training (HIIT) workouts, which are designed to challenge both the body and mind. These workouts are led by certified trainers and are specifically tailored to be adaptable for all fitness levels, making it inclusive for everyone from beginners to seasoned athletes. In addition to the workouts, Burn Boot Camp offers nutritional guidance, one-on-one focus meetings with trainers, and a supportive community that keeps members motivated. The primary market for Burn Boot Camp is typically women, particularly busy moms looking for a flexible and effective workout routine, but the franchise is open to everyone.
As of now, Burn Boot Camp has grown significantly, with over 300 locations across the United States. The franchise has built a loyal customer base, with thousands of members attending sessions daily. The brand’s rapid expansion and popularity are a testament to its effective business model and the strong demand for its services. While Burn Boot Camp is currently focused on the U.S. market, its impact is felt across the country, with locations in almost every state, and it continues to grow.
Burn Boot Camp provides a comprehensive franchise support system to ensure the success of its franchisees. This includes an extensive training program that covers everything from workout routines to business management. Franchisees also receive ongoing support in areas such as marketing, operations, and member retention strategies. The brand’s commitment to community and support extends to its franchisees, ensuring they have the tools and knowledge needed to thrive. Additional highlights include the franchise’s emphasis on empowering women, creating flexible schedules for its trainers and franchise owners, and fostering a strong, inclusive community both in and out of the gym.
Burn Boot Camp Franchise Insights
- Burn Boot Camp’s year-over-year growth rate is 7%, which surpasses the industry average of 5%, demonstrating strong market demand and effective business strategies.
- In 2023, Burn Boot Camp’s median gross sales were approximately $731,350, representing a significant 49% increase from the previous year, highlighting the brand’s strong revenue potential.
- With over 300 locations across the United States, Burn Boot Camp has grown rapidly since its inception in 2012, making it one of the fastest-growing fitness franchises in the country.
Burn Boot Camp Franchise Key indicators
Growth YOY (%)
7%
vs industry 5%
Total U.S. Franchised Units
335
Failure Rate
12%
vs industry 9%
Sales-to-Investment ratio
1.8:1
How much does it cost to open a Burn Boot Camp franchise?
Understanding the potential investment size and capital requirements is crucial when considering opening a Burn Boot Camp franchise. These financial commitments, including initial franchise fees, equipment costs, and ongoing operational expenses, impact the feasibility and profitability of the venture. Thoroughly evaluating these factors ensures that potential franchisees are prepared for the financial responsibilities and can make informed decisions about their ability to sustain and grow the business, ultimately contributing to long-term success.
Min & Max Investment
Opening a Burn Boot Camp franchise involves several key costs, which are outlined in Item 7 of the Franchise Disclosure Document (FDD). you can see a breakdown of the costs to open a Burn Boot Camp below from the most recent Item 7 below:
| Type of Expenditure | Minimum Investment | Maximum Investment |
|---|---|---|
| Initial Franchise Fee | $60,000 | $60,000 |
| Technology Systems | $2,753 | $30,000 |
| Technology Fees (Pre-opening and 3-month period after opening) | $5,450 | $7,500 |
| Exercise and Safety Equipment, Furniture and Fixtures | $22,821 | $32,760 |
| Real Estate (Security deposit and 3 months’ rent) | $22,500 | $60,000 |
| Use Permits | $200 | $26,000 |
| Leasehold Improvements | $59,867 | $198,096 |
| Utilities | $1,000 | $5,100 |
| Exterior Signage | $9,321 | $26,360 |
| Initial Inventory Package | $4,460 | $7,488 |
| Operating Supplies | $3,978 | $5,393 |
| Grand Opening Marketing | $30,000 | $30,000 |
| Staffing (3-month period after opening) | $15,000 | $42,085 |
| Insurance (3 months’ premium) | $750 | $1,500 |
| Travel, Lodging and Meals for Initial Franchisee Education Program | $775 | $7,265 |
| Business Licenses, Certifications, and other Professional Fees | $500 | $4,132 |
| Additional Funds (3 months) | $10,000 | $30,000 |
| Total Estimated Initial Investment | $249,375 | $573,679 |
Item 7 in the Franchise Disclosure Document (FDD) is the “Estimated Initial Investment” section. It outlines the total costs a franchisee can expect to incur when starting a franchise, including the initial franchise fee, equipment, inventory, real estate, and other startup expenses. This section is crucial because it provides potential franchisees with a detailed understanding of the financial commitment required, helping them assess affordability and plan their investment strategy effectively.
Required Capital
To open a Burn Boot Camp franchise, the required capital involves both the initial investment costs and financial requirements set by the franchise. Let’s take a closer look below:
- Initial Investment The total estimated initial investment for a Burn Boot Camp franchise typically ranges from $249,000 to $574,000. This includes the franchise fee, costs for the build-out of the location, equipment, initial marketing, and working capital for the first few months of operation. Assuming that you will finance your franchise investment, you should plan to have 20% of the total investment amount in the form of equity (cash) for the investment.
- Liquid Assets Requirement Burn Boot Camp generally requires franchisees to have a minimum of $150,000 in liquid assets. This ensures that franchisees have the financial flexibility to manage the startup phase and any unexpected costs.
- Net Worth Requirement The overall net worth requirement for a Burn Boot Camp franchise is usually around $300,000. This figure includes the value of personal assets such as real estate, investments, and other valuable properties, minus any liabilities.
How much does a Burn Boot Camp franchise owner make?
Calculating the salary of a Burn Boot Camp franchise owner involves analyzing gross sales to determine total revenue, assessing operational efficiency to understand profit margins, and accounting for franchisor fees and additional expenses such as rent, utilities, and payroll. Effective management of these factors can significantly impact the profitability and financial success of a Burn Boot Camp franchise owner. This comprehensive financial analysis helps estimate net profits, from which the owner’s salary can be derived. A clear understanding of these factors ensures accurate salary projections and financial planning for sustainable business operations.
Burn Boot Camp Revenue & Gross Sales
In 2023, Burn Boot Camp franchises achieved a median gross sales of $731,350, reflecting a 49% increase from the previous year. This impressive financial growth highlights the brand’s strong market presence, strong recovery from COVID-19 lockdowns, and promising revenue potential for franchisees.
Which key factors impact the average revenue performance of Burn Boot Camp franchisees?
The significant growth in Burn Boot Camp’s U.S. franchisee median gross sales from 2022 to 2023 can be attributed to several key factors. First, the brand’s strong emphasis on community-building and personalized fitness experiences likely boosted member retention and engagement, leading to higher overall revenue. Additionally, Burn Boot Camp’s consistent innovation in workout offerings, combined with effective marketing strategies, likely attracted new members. The increased focus on health and wellness post-pandemic may have also driven more people to seek out fitness solutions like Burn Boot Camp, further contributing to the revenue growth. Finally, the expansion of franchise locations across the country could have played a role in increasing the brand’s visibility and customer base.
Burn Boot Camp Franchise Operational Costs
When opening a Burn Boot Camp franchise, it’s important to consider the ongoing operational costs that will be essential to maintain and grow your business. These costs ensure that your franchise runs smoothly and meets the brand’s high standards.
- Rent or Mortgage Payments The cost of leasing or owning the space where your Burn Boot Camp operates is a significant ongoing expense.
- Employee Salaries and Benefits Paying your staff, including trainers, administrative personnel, and support staff, is crucial for daily operations.
- Franchise Royalty Fees Typically, Burn Boot Camp requires franchisees to pay ongoing royalty fees based on a percentage of their gross sales, which helps maintain brand standards and provides continued support.
- Marketing and Advertising Allocating a budget for local marketing and participating in national campaigns is necessary to attract and retain members.
- Equipment Maintenance and Replacement Regular upkeep and eventual replacement of fitness equipment to ensure a safe and high-quality workout environment.
- Utilities and Insurance Monthly utility bills, such as electricity, water, and internet, along with insurance costs to protect your business and employees.
- Supplies and Inventory Purchasing fitness-related supplies, office materials, and any retail products you may offer.
Understanding and budgeting for these ongoing operational costs will be essential in managing the financial health of your Burn Boot Camp franchise and ensuring its long-term success.
Burn Boot Camp Franchise Fees
When considering the ongoing fees associated with operating a Burn Boot Camp franchise, it’s essential to understand the various costs that will impact your financial planning. Below are some key ongoing fees to be aware of:
- Royalty Fee 6% of Gross Revenues per Report Period. This fee is due by the date specified during each Report Period for the immediately preceding Report Period and is a standard cost for maintaining the franchise relationship and accessing continued support.
- System Brand Fee 2% of Gross Revenues per Report Period (with the possibility of increasing to 3%). This fee is due at the same time as the Royalty Fee and contributes to national marketing and brand development efforts.
- Graphic Design Fee Up to $200 per design (currently, $100 per design). This fee is incurred as needed for any graphic design services required to maintain the franchise’s visual standards.
- Tech Fee $860 per month. This fee covers the cost of essential technology services, ensuring that your franchise operates smoothly with the latest tools and systems.
- Additional Fees There might be additional fees that arise, such as those for training, local advertising, or equipment maintenance, depending on the specific needs of your franchise location.
Understanding these ongoing fees is crucial for effective budgeting and financial planning, ensuring that you can manage your Burn Boot Camp franchise successfully.
Burn Boot Camp Franchise Earnings
Based on the 2023 data for Burn Boot Camp, the financial potential of operating a franchise is promising, especially for those who are actively involved in the business. The median gross sales for a franchise in 2023 were $731,350, which is an impressive 49% increase from the previous year. For owner-operators who are deeply engaged in the day-to-day management, the estimated earnings were around $131,643. This significant growth indicates that active participation can lead to substantial profitability, benefiting from the strong brand presence and loyal customer base that Burn Boot Camp has cultivated.
For those who prefer a more hands-off approach, the semi-absentee model also offers solid returns. In 2023, semi-absentee owners earned approximately $109,703, which also reflects a 49% year-over-year increase. This shows that even with less daily involvement, the franchise can still be a lucrative investment. The consistent revenue growth for both models underscores the potential of Burn Boot Camp as a financially rewarding franchise opportunity, supported by the ongoing demand for specialized fitness services.
How to Open a Burn Boot Camp Franchise
Becoming a Burn Boot Camp franchisee involves a structured process that ensures both the franchisor and franchisee are well-prepared for a successful partnership. Here’s an overview of the key steps involved, from the initial inquiry to the start of operations:
- Initial Inquiry You or your franchise specialist submits an initial inquiry basic information about your interest and background. You should also conduct thorough research on the franchise, including seeing all of the information available on the Vetted Biz franchise intelligence platform, including access to the most recent Franchise Disclosure Document (FDD).
- Initial Consultation After your inquiry, you’ll typically have an initial consultation call with a Burn Boot Camp representative. This conversation is designed to discuss your background, financial qualifications, and your goals as a potential franchise owner. You’ll also learn more about the franchise opportunity and what it entails.
- Discovery Day After reviewing the FDD, you’ll be invited to a Discovery Day at Burn Boot Camp’s headquarters. During Discovery Day, you’ll meet the executive team, tour a Burn Boot Camp facility, and get a deeper understanding of the brand’s culture and operations. This visit helps you decide if Burn Boot Camp is the right fit for you.
- Franchise Agreement Signing If both parties agree to move forward after Discovery Day, you’ll sign the Franchise Agreement. This legally binding contract outlines the terms and conditions of your franchise ownership. Once signed, you officially become a Burn Boot Camp franchisee.
- Site Selection and Lease Negotiation After the agreement is signed, you’ll work with Burn Boot Camp’s real estate team to select a suitable location for your gym. The team will assist with site selection, lease negotiations, and ensuring the location meets Burn Boot Camp’s standards.
- Pre-Opening Training Burn Boot Camp provides comprehensive training for new franchisees, which covers all aspects of running the business. This includes training on operations, marketing, member retention, and the specific fitness programs offered. The training is typically conducted at the franchise’s headquarters and includes hands-on experience.
- Build-Out and Pre-Opening Preparations With the location secured, you’ll begin the build-out phase, which involves constructing and outfitting your gym according to Burn Boot Camp’s specifications. During this period, you’ll also work on hiring staff, executing local marketing campaigns, and preparing for the grand opening.
- Grand Opening Once your gym is ready and your team is trained, you’ll launch your business with a grand opening event. Burn Boot Camp provides marketing support to ensure your opening is a success, attracting new members and establishing your gym in the community.
- Ongoing Support and Operations After the grand opening, you’ll receive ongoing support from Burn Boot Camp in areas such as marketing, operations, and member retention. Regular communication with the franchisor and participation in network events help ensure your franchise remains successful and aligned with the brand’s values and standards.
Pros & Cons
Pros
Strong Brand and Community Focus: Burn Boot Camp has built a loyal customer base by fostering a strong sense of community, particularly among women and busy moms. This can lead to high member retention and consistent revenue.
Rapid Growth and Proven Success: With over 300 locations and a steady increase in gross sales, Burn Boot Camp is a growing franchise with a proven track record. The brand’s upward trend in revenue suggests potential for strong financial returns.
Innovative Workout Programs: The franchise’s focus on dynamic, high-intensity interval training (HIIT) workouts keeps members engaged and returning for more. This unique offering differentiates Burn Boot Camp from other fitness franchises.
Flexible Ownership Options: Burn Boot Camp offers both owner-operator and semi-absentee ownership models, allowing for flexibility depending on your level of involvement and lifestyle preferences.
Cons
Competitive Fitness Industry: The fitness industry is highly competitive, with many boutique gyms and fitness options available. Burn Boot Camp franchisees must be prepared to differentiate themselves and maintain strong local marketing efforts.
Demands on Time and Energy: Running a Burn Boot Camp, particularly as an owner-operator, can be demanding. It requires a significant time commitment, especially during the initial setup and growth phases.
Risk of Higher Failure Rate: The 3-year failure rate for Burn Boot Camp is slightly higher than the industry average, which may indicate potential challenges that could impact long-term success.
Dependence on Local Market Conditions: The success of your franchise can be heavily influenced by the local market and competition. Thorough market research is essential to determine if Burn Boot Camp is a good fit for your area.
