F45 Training FDD Review: What Franchise Buyers Need to Know in 2026
Meta Description: F45 Training FDD review: financial distress, massive unit decline, high-risk investment profile. What the numbers reveal before you sign.
You're looking at an F45 Training franchise and wondering if the brand can recover. The functional training concept was one of the hottest in boutique fitness. Then came the financial distress, executive departures and hundreds of studio closures. The FDD tells you whether what's left is worth buying into.
Here's the honest assessment. Also see our quick F45 risk analysis in our FDD library.
What Is the F45 Training Franchise?
F45 Training is a boutique functional fitness franchise founded in Australia in 2013. The brand built its model around 45-minute group training sessions combining functional movements, circuit training and team-based motivation. At its peak, F45 had over 700 US franchised locations and a global footprint spanning 60+ countries.
The brand went public via SPAC merger in 2022, but the timing was catastrophic. Post-pandemic headwinds, rising interest rates and an over-leveraged balance sheet sent the company into financial distress. The stock was delisted from the NYSE. CEO changes, missed payments to vendors and a debt restructuring followed. By 2024, US unit counts had contracted to roughly 450-500 locations, a loss of over 200 studios in under two years.
The fitness concept itself remains solid: functional training is a proven format with strong member retention when executed well. The problem is not the workout. The problem is the company behind it.
Key FDD Findings
The Franchisor's Financial Health Is the Central Risk
This is not a normal franchise risk discussion. F45 Training Holdings went through genuine financial distress. That means the corporate entity responsible for technology platforms, brand marketing, training support and franchise system management was fighting for its own survival while franchisees were trying to run studios.
Item 3 of the FDD reveals the litigation and financial history. When a franchisor is restructuring debt and losing executives, the downstream effects hit franchisees directly: reduced marketing spend, slower technology updates, weaker training support and diminished brand perception among consumers. You are not just buying a license to use a workout format. You are tying your business to a corporate partner, and that partner has been in trouble.
Compare this trajectory with Orangetheory Fitness and Anytime Fitness, both of which maintained financial stability through the same period.
Item 20 Shows a System in Contraction
The unit count data in Item 20 is alarming. F45 peaked above 700 US locations and has been losing studios at an accelerating rate. Hundreds of closures and terminations appear in recent FDD filings. This is not normal churn. A healthy franchise system grows net units or holds steady. A system losing 25-30% of its locations in two years has fundamental unit economics problems.
What the closures tell you:
- Franchisees couldn't make the model work. When hundreds of operators exit simultaneously, the common denominator is the economics, not individual operator failure.
- The brand lost consumer momentum. Empty studio locations in a market damage the remaining operators. Consumers notice when a brand is shrinking.
- Remaining franchisees are survivors, not proof of concept. The studios still open may be in the best locations with the best operators. That does not mean a new studio in a new market will replicate their results.
The Investment Range Does Not Reflect the True Risk
Item 7 lists a total initial investment of approximately $249,000 to $498,000. That is a moderate range for boutique fitness. But the investment figure must be evaluated against the probability of success, and F45's recent track record dramatically changes that calculation.
A $350,000 investment in a franchise system with stable or growing unit counts and a financially healthy franchisor is one thing. The same $350,000 in a system that has lost hundreds of units and went through financial restructuring is a fundamentally different risk proposition. The sticker price is the same. The risk-adjusted return is not.
The Fee Math
F45's fee structure:
- Royalty: 7% of gross sales
- Technology/Licensing Fee: Additional fee on top of royalty
- Ad Fund: 2% of gross sales
- Combined: ~9-10% of gross
At $300,000 annual revenue (struggling studio):
- Royalties + tech: ~$27,000-$30,000
- Ad fund: $6,000
- Total fees: $33,000-$36,000/year
At $500,000 annual revenue (performing studio):
- Royalties + tech: ~$45,000-$50,000
- Ad fund: $10,000
- Total fees: $55,000-$60,000/year
Boutique fitness studios have high fixed costs: rent, instructor payroll and equipment maintenance don't scale down when membership dips. At $300K revenue with $33,000+ in franchise fees, $4,000-$8,000/month rent and $6,000-$10,000/month in instructor costs, the margins collapse quickly. You need to sustain 150-200+ active members at premium pricing to make this work, and that requires a brand that draws people in.
Red Flags to Watch For
1. Franchisor financial instability is the biggest risk factor. A franchisor in financial distress cannot invest in the brand, technology or support systems the way a healthy one can. Read Item 21 (the audited financials) carefully and have an accountant review them.
2. The competitive landscape has shifted. F45 built its brand on functional training novelty. That novelty is gone. Competitors like Orangetheory, CrossFit affiliates and independent functional fitness studios now offer similar workouts, often without franchise fees. Your differentiation must come from execution, not concept exclusivity.
3. Territory saturation followed by contraction creates confusion. Markets that had 4-5 F45 studios and now have 1-2 carry brand damage. Consumers who saw studios close may associate the brand with failure. This perception takes years to reverse.
4. Lease obligations outlast franchise viability. A typical commercial lease runs 5-10 years. If the F45 brand continues to decline, you are locked into a lease for a concept that may not generate sufficient revenue to cover it. Negotiate lease terms with this risk in mind.
5. Technology platform dependency. F45's workout programming and member management run on proprietary technology. If the franchisor cannot maintain and update these platforms due to financial constraints, your studio operations suffer directly.
Questions to Ask Before Signing
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What are F45 Training Holdings' current financials, and has the company resolved its debt restructuring? Get the most recent Item 21 audited financial statements and have them reviewed by a CPA.
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What is the net unit trend for the most recent 12-month period? Has the contraction stabilized, or are studios still closing?
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Can you provide contact information for franchisees who opened studios in the past 24 months? You want to hear from operators who entered the system after the distress period, not legacy operators.
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What is the current technology roadmap, and what investments is the franchisor making in the platform? A financially strained franchisor may be deferring technology investment.
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What happens to my franchise agreement if F45 is acquired or goes through another restructuring? Understand the assignment and change-of-control provisions.
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What are the membership numbers and retention rates for studios in markets similar to mine? National averages are meaningless. You need local comparables.
Get a Full ClearFDD Analysis
F45 Training carries more risk than almost any franchise in our library right now. That does not mean it is impossible to succeed, but it means you need to go in with eyes wide open and a clear understanding of every risk factor in the FDD.
A full ClearFDD analysis delivers:
- Complete review of all 23 FDD items with emphasis on franchisor financial health indicators
- Breakeven model accounting for current unit economics and competitive landscape
- Franchise Agreement clause analysis focused on termination, transfer and change-of-control provisions
- 10 custom due diligence questions calibrated to F45's specific risk profile
- Our straight assessment of whether the risk-reward makes sense in your market
Starting at $497, delivered in 24 hours.
F45's workout format is proven. The question is whether the company behind it can support your investment for the next decade. The FDD has the answer. Read it carefully.