F45 Training FDD Item 6 is the section of the Franchise Disclosure Document that lists every ongoing fee a franchisee will pay after the initial $50,000 franchise fee. For prospective F45 franchisees, this section reveals a fee structure that is among the most aggressive in the boutique fitness franchise industry: a 7% royalty on gross sales plus a 2% advertising fund contribution, for a combined 9% of gross sales going to the franchisor before you pay rent, staffing, equipment, or any other operating expense. At Lopes Law LLC, we have reviewed F45 FDDs for franchisees across the country, and the conversations about Item 6 are often where the financial reality of this franchise investment becomes clear.

F45 Training is an Australian-origin fitness franchise known for its 45-minute group functional training classes. Actor and investor Mark Wahlberg is a major investor and brand ambassador, which has driven significant awareness and expansion. The brand has grown to approximately 1,700+ locations globally. However, that rapid expansion has been accompanied by significant franchisee closures and multiple lawsuits from franchisees alleging misrepresentation. Understanding the fee structure in Item 6 is essential to evaluating whether the financial model can support a viable return on the $299,950 to $549,950 total investment.

What Is FDD Item 6 and Why Does It Matter for F45 Training?

Item 6 of any Franchise Disclosure Document is titled “Other Fees.” It is required by the FTC Franchise Rule (16 C.F.R. Part 436) and must disclose every recurring fee, contribution, or payment obligation the franchisee will owe during the term of the franchise agreement. Item 5 covers the initial fees. Item 6 covers everything that comes after.

For F45 Training specifically, Item 6 is critical because the percentage-based royalty structure means that the franchisor’s revenue grows in direct proportion to the franchisee’s gross sales, but the franchisee’s expenses grow at a different rate. A 7% royalty on gross sales is paid before any deduction for operating costs. Whether your studio generates a 20% profit margin or loses money, F45 takes 7% off the top line.

The total investment range of $299,950 to $549,950 is substantial for a boutique fitness concept, and the 9% combined fee on gross sales puts significant pressure on margins. For a studio generating $30,000 per month in gross revenue, the monthly fee to F45 is $2,700. That does not include rent, instructor salaries, equipment costs, insurance, or any other operating expense.

What Fees Does F45 Training FDD Item 6 Disclose?

F45 Training Item 6 contains a detailed fee schedule. Here is a breakdown of the major categories disclosed:

Fee Category	Typical Amount	When Paid
Royalty Fee	7% of gross sales	Monthly
Advertising / Marketing Fund	2% of gross sales	Monthly
Technology / Platform Fee	Varies; covers workout programming, software	Monthly
Equipment	Required branded equipment from approved vendors	Initial + replacement
Insurance	Required minimums (varies by state)	Annually
Transfer Fee	As disclosed in FDD	Upon transfer
Renewal Fee	As disclosed in FDD	Upon renewal
Late Payment Penalties	As disclosed in FDD	As incurred

The 7% Royalty: Higher Than Most Fitness Franchises

The 7% royalty on gross sales places F45 at the upper end of franchise royalty rates in the fitness industry. For comparison, Anytime Fitness charges a flat $799 per month (regardless of revenue), and many other gym franchises charge 5% to 6%. The 7% rate means that F45 extracts more revenue per dollar of franchisee sales than most competitors.

For a studio generating $40,000 per month in gross sales, the royalty is $2,800 per month or $33,600 per year. For a studio generating $60,000 per month, the royalty jumps to $4,200 per month or $50,400 per year. Because the royalty is percentage-based, it scales with revenue, which means your cost to the franchisor increases as you grow. This is in contrast to flat-fee models where the effective royalty percentage decreases as revenue increases.

The 2% Advertising Fund Contribution

In addition to the 7% royalty, F45 requires a 2% advertising fund contribution on gross sales. This fund supports national brand marketing, celebrity partnerships (including Mark Wahlberg’s involvement), digital advertising, and corporate marketing initiatives. The combined 9% of gross sales (7% royalty + 2% advertising) going to F45 is a significant ongoing obligation.

The advertising fund is managed by F45 corporate, and franchisees typically have limited control over how the funds are deployed. The association with Mark Wahlberg generates brand awareness, but brand awareness alone does not guarantee local studio profitability. Local marketing efforts, which the franchisee must fund separately, are often essential to driving membership in the specific market.

How Do F45 Item 6 Fees Add Up for a Typical Studio?

To illustrate the real financial impact of Item 6 fees, let us model a hypothetical F45 studio at two revenue levels:

Fee	$30K/Month Studio	$50K/Month Studio
Royalty (7%)	$2,100/mo ($25,200/yr)	$3,500/mo ($42,000/yr)
Advertising (2%)	$600/mo ($7,200/yr)	$1,000/mo ($12,000/yr)
Technology Fees	Varies per FDD	Varies per FDD
Insurance	~$500-$1,000/mo	~$500-$1,000/mo
Total F45 Fees (estimated)	$3,500-$4,200/mo	$5,500-$6,000/mo

At the $30,000 per month revenue level, approximately 12% to 14% of gross revenue goes to F45-related fees. At $50,000 per month, the percentage is approximately 11% to 12%. When you add rent (typically 10% to 15% of revenue for boutique fitness), instructor salaries (20% to 30%), and other operating expenses, the margin available to the studio owner becomes very narrow.

This is particularly concerning given F45’s history of significant franchisee closures. When margins are thin and the franchise fee burden is high, studios that encounter any headwind, whether from competition, seasonal membership drops, or economic softening, can quickly move from breakeven to losses. For comparison, Dickey’s Barbecue Pit recorded 27 SBA loan defaults, and Patrice & Associates showed a 31% failure rate. High ongoing fees contribute to franchise failure across all sectors.

Why Has F45 Faced Lawsuits from Franchisees?

F45 Training has faced multiple lawsuits from franchisees alleging misrepresentation of financial performance, failure to deliver promised support, and aggressive expansion that placed studios too close together. While lawsuits alone do not prove wrongdoing, the pattern of litigation is a red flag that prospective franchisees should investigate before committing capital.

The lawsuits are relevant to the Item 6 fee analysis because they raise questions about whether the revenue projections used to justify the fee structure are realistic. If franchisees are alleging that the financial performance presented during the sales process did not materialize, the 9% combined fee on gross sales may be unsustainable at the revenue levels many studios actually achieve.

At Lopes Law LLC, we review the litigation history of every franchise system as part of our FDD validation review. Item 3 of the FDD discloses litigation involving the franchisor, and cross-referencing that disclosure with Item 6 fees and Item 19 financial performance data gives a comprehensive picture of the franchise opportunity’s risk profile. If you are already an F45 franchisee experiencing difficulties, a franchise exit audit can help you understand your options.

What Should Prospective F45 Training Franchisees Watch for in Item 6?

When reviewing F45 Training FDD Item 6, focus on these specific areas:

• Total percentage burden: Add the 7% royalty, 2% advertising, and any technology or platform fees to calculate the total percentage of gross sales going to F45-related obligations. Compare this to competing fitness franchise models.
• Technology fee structure: Determine whether technology fees are fixed or percentage-based, and whether they can increase over the franchise term without the franchisee’s consent.
• Advertising fund transparency: Ask what reporting the franchisor provides on how advertising fund contributions are spent. Determine whether the fund primarily supports national brand building or local lead generation.
• Equipment replacement costs: F45’s group training model requires specific equipment sets for each workout class. Determine the expected replacement schedule and cost.
• Transfer fee amount: If you plan to eventually sell, understand the transfer fee and any conditions that could prevent or delay a sale.
• Late payment consequences: Understand the penalties for late fee payments and whether they can trigger default provisions.

Why Legal Review of F45 Item 6 Is Essential

The fee structure disclosed in F45 Training Item 6 represents contractual obligations for the full franchise term. With a 9% combined fee on gross sales, a total investment of $299,950 to $549,950, and the brand’s history of franchisee closures and litigation, thorough legal review is not optional. It is the minimum standard of due diligence for an investment of this magnitude.

At Lopes Law LLC, our flat-fee FDD validation review is $3,000 and covers all 23 items of the FDD. We analyze Item 6 fees in the context of Item 19 financial performance data, Item 12 territory provisions, and Item 17 renewal and termination terms to give you a complete picture of the total cost of ownership and the risks involved.

Frequently Asked Questions About F45 Training FDD Item 6

Reach out, we are friendly. Call now for a free consultation at (267) 777-9117 or schedule your free 20-minute consultation online.

Last updated: March 11, 2026