F45 Training FDD Item 8 discloses every restriction on where and from whom a franchisee can purchase the goods, services, supplies, and equipment needed to operate the franchise. For a group functional training franchise that requires specific equipment for each daily workout, sourcing restrictions are particularly consequential. At Lopes Law LLC, we consistently find that Item 8 is one of the most financially impactful sections of the F45 FDD, because the equipment and technology requirements directly affect both the initial investment and ongoing operating costs.

F45 Training, the Australian-origin fitness franchise backed by investor and ambassador Mark Wahlberg, operates approximately 1,700+ locations globally. The brand’s class format depends on proprietary daily workout programming delivered through a technology platform, with each class requiring specific equipment configurations. This creates a sourcing dependency that goes beyond typical franchise restrictions: you need the right equipment for the right workout on the right day, and F45 controls what equipment that is. The brand has faced multiple lawsuits from franchisees alleging misrepresentation, and understanding the full cost implications of sourcing restrictions is essential to making an informed investment decision.

What Is FDD Item 8 and Why Does It Matter for F45 Training?

Item 8 of any Franchise Disclosure Document is titled “Restrictions on Sources of Products and Services.” It is required by the FTC Franchise Rule (16 C.F.R. Part 436) and must disclose every restriction on the franchisee’s ability to purchase supplies, equipment, inventory, or services from sources other than those designated or approved by the franchisor.

For F45 specifically, Item 8 matters because the franchise model depends entirely on a proprietary workout programming system and specific equipment. The F45 class experience is defined by 45-minute functional training sessions that use kettlebells, battle ropes, sleds, rowing machines, assault bikes, plyometric boxes, and other specialized equipment. Each day’s workout requires a specific equipment layout determined by F45 corporate through the technology platform. You cannot run an F45 class with substitute equipment without violating your franchise agreement.

The total investment for an F45 franchise ranges from $299,950 to $549,950, and equipment costs represent a substantial portion. When equipment must come from approved vendors at approved prices, the franchisee loses the ability to negotiate independently, which can add tens of thousands of dollars to the buildout cost compared to what an independent gym operator would pay for comparable functional training equipment.

What Sourcing Restrictions Does F45 Training Impose?

Proprietary Technology Platform

The F45 technology platform is the central nervous system of the franchise. It delivers daily workout programming, manages class scheduling, controls in-studio displays and timers, and integrates with member management systems. This platform is proprietary to F45 and cannot be substituted with third-party alternatives. The technology fees associated with this platform are ongoing and mandatory, as disclosed in Item 6 alongside the 7% royalty and 2% advertising contribution.

Equipment from Approved Vendors

F45 requires specific functional training equipment from approved vendors. This includes cardio equipment such as rowing machines, assault bikes, and ski ergs; strength equipment including kettlebells, dumbbells, and barbells; functional training equipment such as battle ropes, sleds, TRX systems, and plyometric boxes; and specialized branded equipment. The equipment specifications are tied to the workout programming, meaning that substitute brands or models may not be compatible with the daily class formats.

The cost implications are substantial. A full equipment package for an F45 studio can cost $100,000 to $200,000 or more. When these must come from approved vendors at set prices, the franchisee cannot shop the open market for competitive quotes. An independent functional training gym operator could potentially source comparable equipment at 20% to 30% less by negotiating directly with multiple manufacturers.

Branded Merchandise and Apparel

F45-branded merchandise, apparel, and retail items must be sourced from approved suppliers. Franchisees cannot produce their own F45-branded products. The margin on merchandise sales is constrained by the approved supplier pricing structure, and the 7% royalty on gross sales applies to merchandise revenue as well, further reducing profitability on retail items.

Does F45 Receive Revenue from Approved Vendor Arrangements?

Item 8 requires disclosure of whether the franchisor or its affiliates receive rebates, commissions, or other revenue from approved vendor purchases. This is one of the most important disclosures for prospective F45 franchisees to review. If F45 receives revenue from your equipment purchases, your technology subscriptions, or your merchandise orders, that revenue is effectively an additional cost of the franchise beyond the 9% already charged on gross sales.

For context, vendor rebate arrangements are common across the franchise industry. Franchise systems like Dickey’s Barbecue Pit (which recorded 27 SBA loan defaults) and Patrice & Associates (which showed a 31% failure rate) also have vendor restrictions that generate additional revenue for the franchisor. The key question for prospective franchisees is the magnitude of these arrangements and whether the approved vendor pricing is competitive with what is available in the open market.

How Do F45 Sourcing Restrictions Affect the Franchisee’s Bottom Line?

The financial impact of F45 sourcing restrictions operates on multiple levels. The initial equipment package is one of the largest line items in the buildout. When equipment must come from approved vendors at set prices, the franchisee cannot shop the open market for competitive quotes, potentially paying a 20% to 30% premium over independent market pricing.

Ongoing equipment replacement is also affected. F45’s high-intensity functional training classes put significant wear on equipment. Battle ropes fray, kettlebell handles wear, and cardio equipment requires regular maintenance and eventual replacement. All replacement equipment must come from approved sources at then-current prices, which the franchisee cannot control.

The technology platform fees represent another ongoing cost driven by sourcing restrictions. Because there is no alternative to the proprietary F45 platform, the franchisee has no leverage to negotiate pricing or switch to a lower-cost alternative. If F45 increases technology fees over the franchise term, the franchisee must absorb the increase or default on the technology requirement.

If you are already an F45 franchisee and sourcing costs are contributing to financial difficulty, a franchise exit audit can help you evaluate your options including transfer, negotiation, or exit strategies.

What Should Prospective F45 Franchisees Review in Item 8?

• Vendor rebate disclosures: Calculate the estimated financial impact of any vendor revenue received by the franchisor or its affiliates on top of the 9% fee on gross sales.
• Equipment replacement schedules: Determine the expected lifecycle of major equipment items and the cost of replacement from approved vendors.
• Technology fee escalation: Check whether technology fees are fixed or can increase over the franchise term without the franchisee’s consent.
• Merchandise margin analysis: Calculate the actual margin available on merchandise sales after accounting for approved vendor pricing, the 7% royalty, and the 2% advertising contribution.
• Alternative vendor approval process: Understand whether you can request approval for alternative vendors and the criteria and timeline for that process.
• Exclusive supplier arrangements: Determine whether any approved vendors have exclusive arrangements that eliminate competitive alternatives entirely.

Why Legal Review of F45 Item 8 Is Essential

F45 Training’s sourcing restrictions create a captive purchasing environment that amplifies the financial burden beyond the stated royalty and advertising fees. With the brand’s history of franchisee lawsuits and significant closures following rapid expansion, understanding the full cost structure including sourcing restrictions is essential to making a sound investment decision.

At Lopes Law LLC, our flat-fee FDD validation review is $3,000 and covers all 23 items of the FDD, including a detailed analysis of sourcing restrictions, vendor revenue arrangements, and their interaction with the overall fee structure.

Frequently Asked Questions About F45 Training FDD Item 8

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Last updated: March 11, 2026