Orangetheory Fitness FDD Item 19 is the section of the Franchise Disclosure Document where the franchisor may provide financial performance representations, meaning actual revenue data, cost figures, or profitability metrics from existing studio operations. For prospective franchisees evaluating an investment of $587,476 to $1,660,640, Item 19 is the most direct source of data about what an Orangetheory studio actually earns. At Lopes Law LLC, we analyze Item 19 alongside Items 6, 7, and 17 to build a complete financial model of what the franchise opportunity actually looks like.

Orangetheory is backed by Roark Capital Group, the same private equity firm that controls Subway and Inspire Brands. Understanding the financial performance data in Item 19 is especially important for PE-backed franchise systems, where unit economics are closely managed and the data presented in the FDD may reflect the franchisor’s best-performing studios rather than the typical operator’s experience. This guide explains how to read, interpret, and validate the financial performance data in Orangetheory’s Item 19.

What Is FDD Item 19 and What Does Orangetheory Disclose?

Item 19 of any Franchise Disclosure Document is titled “Financial Performance Representations.” Under the FTC Franchise Rule (16 C.F.R. Part 436), a franchisor is not required to include any financial performance data in Item 19. If the franchisor chooses to provide data, it must have a reasonable basis for the representations, must include material assumptions, and must disclose the number and percentage of outlets that actually achieved the stated results.

For Orangetheory specifically, whether the FDD contains detailed revenue data, limited data, or no data at all varies by FDD version. Some franchise systems provide extensive Item 19 disclosures, including average gross revenue broken down by studio maturity, geographic region, or other categories. Others provide minimal information or state that they do not make financial performance representations.

Regardless of what Orangetheory discloses in Item 19, prospective franchisees need to understand what the data means, what it excludes, and how to supplement it with independent analysis. The revenue figure at the top of an Item 19 chart tells you nothing about profitability unless you subtract the fees in Item 6, the costs in Item 7, and the rent, labor, and operating expenses that the studio will incur.

How Does Member Retention Drive Orangetheory Revenue?

Member retention is the single most important revenue driver for any Orangetheory studio. The brand operates a premium membership model with monthly pricing typically ranging from $59 to $169 per month depending on the membership tier. Each paying member represents predictable monthly recurring revenue, and the studio’s financial health depends on maintaining a stable or growing member base.

The impact of retention on revenue is significant. A studio with 500 active members paying an average of $120 per month generates $60,000 in monthly revenue, or $720,000 annually. If retention drops and 50 members leave without being replaced, monthly revenue falls to $54,000, representing $72,000 in annual lost revenue. Over a 10-year franchise term, the compounding effect of retention differences can represent hundreds of thousands of dollars.

Item 19 data, if provided, rarely breaks down revenue by retention rate. This means that a top-performing studio with 90% annual retention and a struggling studio with 65% retention may both be included in the same average. The average revenue figure masks enormous variation in the underlying member economics. At Lopes Law LLC, we advise prospective franchisees to conduct validation calls with existing operators specifically to understand retention dynamics in their target market.

Class Capacity Utilization

Orangetheory’s group fitness model limits the number of members who can attend each class. The studio has a fixed capacity per session, typically determined by the number of treadmill stations and floor stations. Revenue is maximized when every class is full and there is a waitlist for popular time slots. Revenue suffers when classes run at 50% or 60% capacity, because the fixed costs of staffing and operating the class are the same regardless of attendance.

Capacity utilization is driven by scheduling optimization, coach quality, class variety, and the overall member experience. A studio that consistently fills its peak-time classes and maintains reasonable attendance during off-peak hours will generate significantly more revenue per square foot than a studio with uneven attendance patterns. Item 19 data typically reports gross revenue without breaking out capacity utilization metrics, so prospective franchisees need to ask existing operators about their class fill rates.

How Should You Model Orangetheory Revenue Against Item 6 Fees?

Item 19 tells you what studios earn. Item 6 tells you what you owe. The financial analysis that matters is the difference between those two numbers, minus your operating expenses. Here is a framework for modeling the economics.

Start with the gross revenue figure from Item 19, or from your own projections if Item 19 data is limited. Then subtract the ongoing fees disclosed in Item 6: the 8% royalty on gross sales, the 2% national advertising fund contribution, the local advertising minimum, the technology and software fees, and the equipment maintenance costs. For a studio generating $1.2 million in annual gross sales, the Item 6 fees alone total approximately $159,000 to $190,000 per year.

Next, subtract your operating expenses: rent (typically $96,000 to $180,000 annually for a boutique fitness space in a quality location), labor (coaches, front desk staff, management, typically $200,000 to $350,000 depending on market), utilities ($24,000 to $48,000), insurance ($10,000 to $18,000), and miscellaneous operating costs. The remainder is your gross profit before debt service and taxes.

This analysis is why Item 19 cannot be read in isolation. A studio generating $1.2 million in gross revenue sounds impressive until you subtract $160,000 in franchisor fees, $150,000 in rent, $275,000 in labor, $36,000 in utilities, and $15,000 in insurance. The resulting pre-debt-service, pre-tax income of approximately $564,000 in expenses against $1.2 million in revenue leaves approximately $636,000 in gross margin, but owner compensation, equipment reserves, and debt service will reduce the actual take-home further.

The experience of franchisees across other systems reinforces why this modeling matters. Dickey’s Barbecue Pit saw 27 SBA loan defaults among its franchisees when actual economics diverged from projections. Patrice & Associates documented a 31% failure rate among franchise placements it tracked. These outcomes are driven by gaps between the revenue expectations set by Item 19 data and the actual cost realities of running the business.

What Does Roark Capital’s Ownership Mean for Item 19 Interpretation?

Roark Capital Group’s involvement in Orangetheory adds a layer of complexity to Item 19 analysis. PE-backed franchise systems are managed to optimize unit economics at the system level, which affects the data in several ways.

PE firms often close underperforming locations before an FDD is issued, which removes the worst-performing studios from the data set and makes the averages look better. PE firms may also implement operational changes, pricing increases, or cost-cutting measures that temporarily improve metrics during the FDD reporting period. And PE firms are sophisticated about how Item 19 data is segmented, so the categories and time periods chosen for presentation may be optimized to show the most favorable picture.

None of this means the data is inaccurate. Franchisors are legally required to have a reasonable basis for their Item 19 representations. But the data may not represent what a new franchisee in a new market will experience. It represents what existing studios, in existing markets, during a specific reporting period, achieved under specific conditions. For a perspective on what to do when franchise economics do not meet expectations, see our franchise exit audit service.

How Does Orangetheory’s Financial Performance Compare to Other Fitness Franchises?

Comparing financial performance across fitness franchise brands is challenging because each system uses different Item 19 disclosure methodologies, different time periods, and different segmentation. However, some general observations are relevant.

Planet Fitness operates a high-volume, low-price model with $10 to $25 monthly memberships and generates revenue primarily through member count rather than premium pricing. Gross revenue per location tends to be higher because of the larger member base, but the margins are different. F45 Training operates a boutique model similar to Orangetheory but with a different workout format and lower royalty rates (5% to 7%). Barry’s Bootcamp and SoulCycle operate primarily as corporate-owned studios and do not provide franchise-level Item 19 data.

The relevant comparison is not revenue in isolation but revenue minus total fees and operating costs. A franchise brand with lower gross revenue but lower fees and lower operating costs may deliver better owner economics than a brand with higher gross revenue but higher fees and higher operating costs. This is the analysis that a comprehensive FDD review, covering all 23 items, is designed to produce.

What Should Prospective Orangetheory Franchisees Focus on in Item 19?

When reviewing Orangetheory’s FDD Item 19, focus on these specific areas:

• Data methodology: Understand exactly what studios are included in the data set. Are closed studios included? Are studios open less than 12 months excluded? Are corporate-owned studios included alongside franchised studios?
• Percentage achieving results: The FDD must disclose the number and percentage of studios that actually achieved the stated results. If the average gross revenue is $1.2 million but only 35% of studios achieved that figure, the data tells a different story than if 70% achieved it.
• Revenue segmentation: Look for whether the data is broken down by studio maturity (year 1 vs. year 5), geographic market, or studio format. Aggregated data across all studios may mask significant variation.
• Expense data: Determine whether Item 19 includes any expense data or only revenue. Revenue without expense context is insufficient for making an investment decision.
• Trend lines: Compare the current FDD’s Item 19 data to prior years if available. Is average revenue trending up, flat, or down? Changes in average revenue can signal market saturation, competitive pressure, or operational improvements.
• Member metrics: While Item 19 may not include member count or retention data, these metrics are available through validation calls with existing franchisees. Average revenue per member, member acquisition cost, and annual retention rate are critical inputs for your financial model.

Why Legal Analysis of Item 19 Is Essential Before Investing

Item 19 data is the foundation for your financial projections, and those projections determine whether a $587,476 to $1,660,640 investment makes financial sense. Misreading or misapplying Item 19 data can lead to an investment decision based on unrealistic expectations.

A franchise attorney can evaluate the data methodology to identify potential biases, cross-reference Item 19 revenue data against Item 6 fees to calculate the true take-home economics, compare the data to industry benchmarks and competing franchise systems, identify what the data does not include and advise on how to fill those gaps through validation, and build a range of financial scenarios (best case, most likely, worst case) based on the available data.

At Lopes Law LLC, Item 19 analysis is one of the most detailed components of our FDD validation review. We do not just read the numbers. We model them against the complete fee structure, compare them to market data, and present our clients with a realistic range of financial outcomes. Our flat-fee review is $3,000 and covers all 23 items.

Frequently Asked Questions About Orangetheory FDD Item 19

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Last updated: March 11, 2026