About Crunch Franchise
Crunch is a well known fitness franchise offering full service health club memberships under the Crunch brand name.
Locations provide cardiovascular equipment, weight machines, free weights, group fitness classes, personal training, tanning, and online nutritional programs.
The franchise fee is $25,000, and the company has been franchising since 2010 under Champion TopCo, LP.
Crunch Franchise Cost & Fees
Minimum Investment
$671K
Average Investment
$2.0M
Maximum Investment
$3.3M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $25,000 | One-time payment upon signing |
| Royalty Fee | 5.0% of monthly Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Up to 2% of monthly Gross Sales (Marketing Fund Contribution); minimum local marketing spend of $10,000/month for first year, then $8,000/month or 7% of Gross Sales (whichever is higher) for subsequent years. | National brand fund |
| Total Investment Range | $670,500 – $3,280,500 | Includes build-out, inventory, working capital |
The investment range of $671K–$3.3M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5.0% of monthly Gross Sales) and marketing fee (Up to 2% of monthly Gross Sales (Marketing Fund Contribution); minimum local marketing spend of $10,000/month for first year, then $8,000/month or 7% of Gross Sales (whichever is higher) for subsequent years.) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $25,000 | $25,000 |
| Training Expenses | $1,000 | $5,000 |
| Real Property, whether purchased or leased | N/A | N/A |
| Lease deposits | $5,000 | $50,000 |
| Leasehold Improvements | $400,000 | $1,500,000 |
| Construction Consulting Fee | $2,500 | $2,500 |
| Fitness equipment, fixtures, other fixed assets | $150,000 | $1,200,000 |
| Opening Inventory | $1,000 | $5,000 |
| Site Selection Travel Expenses | $500 | $3,000 |
| Security deposits, utility deposits, business licenses bonding (if required) and pre-paid expenses | $3,000 | $45,000 |
| Professional fees | $5,000 | $25,000 |
| Signs | $7,500 | $30,000 |
| Office equipment, computer system, furniture graphics package and supplies | $25,000 | $35,000 |
| Initial Advertising | $15,000 | $45,000 |
| Insurance | $5,000 | $20,000 |
| Additional Funds - 3 months of operations | $25,000 | $300,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $5,000, or actual cost including legal fees if higher |
| Renewal Fee | $12,500 |
| Technology Fee | Currently $0, but a reasonable fee is likely to be implemented this year. |
| Audit Fee | Estimated $5,000 to $20,000 if underpayment exceeds 2% |
| Performance Fee | $25,000 (one-time, after $50,000 monthly membership dues) |
| Relocation Fee | $5,000 |
| Additional Training or Assistance | Sales & Operations training: $500 per day + travel expenses; Group Fitness Training (minimum 3 days): $1,500 + travel expenses |
| Online Enrollment Processing | $5 per enrollment |
| Franchise Advisory Council | Any dues that may be accessed |
| Monthly Billing Processing and Credit Cards fees | Interchange Fees (set by card networks); Processor fees (usual and customary) |
| Tax Indemnity | Amount of any taxes franchisor must pay on franchisee payments (excluding income tax) |
| dotFit License | $195 per month |
| Approved Suppliers or Approved Products or Services Evaluation Fee | Standard fee $1,500, or actual cost if higher |
| Unauthorized Operations Fee | $1,000/per day |
| Offer of Securities Review Fee | $25,000 for public offering, $10,000 for private offering, or higher amount covering review costs |
| Document Review Fee | $1,500, or legal fees if higher |
| Past Due Service Charge on Overdue Amounts | 1.5% per month or maximum permissible rate, whichever is less |
| Club Management Software System | $130 per month to ABC plus transaction processing fees |
| IT Support Services | Up to $1,000 annually |
| Development Extension Fee | $10,000 per Franchised Business for which an extension is granted |
| Unauthorized Product/Service Fee | $250/day |
| Trade Dress Non-Compliance Fee | $250/day |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 5 days classroom, up to 10 days in-club, 2 days video/web-based |
| Classroom Training | 53 hours |
| On-the-Job Training | 137 hours |
| Training Location | Designated locations (including Portsmouth, NH and Jacksonville, FL), virtually, certified training clubs, existing pre-sale locations, and franchisee's own location. |
| Additional Training | Refresher courses or additional training may be required 1-2 times annually, lasting 1-3 days, covering operations, sales, personal training, group fitness, or other matters. A fee will be charged for additional training, estimated between $1,000 - $3,000, plus travel expenses. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | Yes |
| Territory Size | Approximately 75,000 persons for single-unit franchisees; minimum 100,000 persons for multi-unit and area developers. |
| Description | The geographic size varies, defined by state/county boundaries, city limits, population, and drive time. While no other Crunch health club will be physically located in the territory, other franchisees or affiliates may market within it. Crunch Signature clubs (larger, premium clubs) are not restricted from operating within the territory. Territory protection is not dependent on sales volume or market penetration. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 3 additional terms of 10 years each |
| Renewal Fee | $12,500 |
| Renewal Conditions | Franchisee must be in full compliance with all agreements, execute a general release of claims, sign the then-current form of franchise agreement (which may have different terms), provide 3-6 months' notice, and pay the renewal fee. May be required to remodel/renovate the business to current standards and accept adjusted territory boundaries. |
| Transfer Fee | $5,000, or actual costs including legal fees if higher |
| Transfer Conditions | Requires franchisor's prior written consent. Conditions include: proposed transferee acceptability (financial strength, business acumen, experience), franchisee not in default, all amounts due paid, general release signed, transfer fee paid, transferee completes initial training, and transferee assumes all rights/obligations. Transfers to competitors are prohibited. Franchisor has a 30-day right of first refusal. |
| Termination for Cause | Franchisor can terminate immediately without cure period for: bankruptcy, asset seizure, fraudulent misrepresentation, death/incapacity without proper transfer, actions adversely affecting goodwill, felony conviction, closure by authorities for health/sanitation, unapproved transfer, or abandonment for 5+ days. Curable defaults (e.g., failure to pay fees, unsatisfactory member service, other agreement breaches) have cure periods of 10 to 30 days. Failure to meet development schedule can also lead to termination or reduction of rights. |
| Non-Compete Period | During the term of the franchise and 1 year after termination or expiration |
| Non-Compete Details | During the term, franchisee and owners cannot own or be involved in a Competitive Business (health club services competitive with Crunch) in the Territory or other franchisees' territories without prior written approval. After termination or expiration, for one year, franchisee and owners cannot own or be involved in a Competitive Business within the former Territory or within 5 miles of any other Crunch health club then in existence. This one-year period is tolled if in breach. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The Franchised Business must always be under the direct on-site supervision of the franchisee, an Owner, or a manager who has successfully completed the initial training program. The franchisor has the right to approve or reject any manager. If a manager is terminated, a new one must be hired and trained within 30 days. Owners of an entity franchisee must sign an Owner’s Guaranty, though this may be waived for non-majority owners if majority owners have sufficient means. All owners must sign an Owner’s Acknowledgment. |
| Required Suppliers | Franchisor (for fitness equipment, tanning beds, hydro massage beds, lockers, flooring); Approved Suppliers (for opening inventory of t-shirts, drinks, promotional items); ABC Financial Services, Inc. (for computer software, membership management services, POS, club collections systems); Designated/Approved Marketing Supplier. |
| Supply Restrictions | Franchisor has the right to designate or approve suppliers and products/services. Franchisees must purchase from designated/approved suppliers or the franchisor/affiliates. Franchisor can require stopping distribution of products from non-approved suppliers. Criteria for supplier approval are not disclosed to franchisees. Franchisor can re-inspect and revoke approval. Franchisees must submit requests for alternative suppliers/products with information, specifications, and samples, and pay an evaluation fee ($1,500 or actual cost). |
| Franchisor Revenue from Suppliers | For fiscal year ending December 31, 2020, revenues from franchisee required purchases/leases were $5,372,654, representing 31.88% of total revenue ($16,853,912). Franchisor/affiliates may realize profit or receive payments/commissions/discounts (3% to 25%) from franchisee purchases from approved suppliers, and will profit from fitness equipment and tanning beds sold to franchisees. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee your note, lease or obligation. |
Crunch Franchise Earnings — Item 19
Revenue Range
$111K – $4.2M
Sample Size
180 units
Past financial performance does not guarantee future results. Individual results will vary.
Crunch Litigation & Risk Flags
1 Pending Action ListedReview the full FDD for details on pending litigation.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Crunch System Growth
Total Units
275
Franchised
252
Company-Owned
23
Crunch currently operates 252 franchised locations and 23 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2018 | 51 | 3 | 196 |
| 2019 | 35 | 6 | 225 |
| 2020 | 32 | 5 | 252 |
Transfers: 2 | Closures: 14
State Registrations
Registered in 15 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, OR, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$16.9M
Crunch Franchise — FAQ
The total investment to open a Crunch franchise ranges from $670,500 to $3,280,500, per their Franchise Disclosure Document. This includes the initial franchise fee of $25,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Crunch charges a royalty fee of 5.0% of monthly Gross Sales of gross sales, plus a Up to 2% of monthly Gross Sales (Marketing Fund Contribution); minimum local marketing spend of $10,000/month for first year, then $8,000/month or 7% of Gross Sales (whichever is higher) for subsequent years. contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Crunch Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Crunch to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Crunch franchise owners report . This is based on a sample of 180 units. Past performance does not guarantee future results.
Crunch has been franchising since 2010. The FDD shows an investment range of $670,500-$3,280,500, a 5.0% of monthly Gross Sales royalty, and includes an Item 19 earnings disclosure. There are 1 pending litigation action(s). Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $25,000 and the total investment ranges from $670,500 to $3,280,500 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Crunch and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Crunch or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com