Undercover Boss Season 4 Episode 14
Undercover Boss Season 4 Episode 14 last week was a gym (Retro Fitness which has a hideous colour scheme), They had something like 79 locations and stated the number of members+. I did the math when I watched it and it was an average of 3,333.33+ members per gym. $19.99 per member a month, and they claim on their site to be set to have 300 locations by 2016. 4 company owned locations, 75 franchisee owned.
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FRANCHISE COSTS
Total Investment: $861,250 - $1,522,499
Franchise Fee: $69,000
Ongoing Royalty Fee: 5%
Term of Franchise Agreement: 10 years, renewable
Financial Requirements
Net Worth: $1,500,000
Liquid Cash Available: $300,000
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CORPORATE INCOME
5.17 million and change in franchise fees yearly,
3.15 million and change via 5% of the memberships,
?.?? ??? via 5% on all the shake sales (which he said was 10% of their revenue)
They train you for a whopping 8 days as part of their franchisee program and best I can tell they have less than 25 corporate employees (actually looks like about FIVE corporate employees from what I've found).
So Eric Casaburi, the founder, is probably pocketing 3-4million a year after he covers corporate expenses and payroll. Nice work Eric!!!