World Gym FDD – Franchise Information, Costs and Fees
Type of Business
The franchisor offers qualified individuals and entities a franchise for the right to independently own and operate a fitness Gym providing fitness training and equipment, related services and sale of nutritional items, exercise apparel and accessories utilizing their then-current proprietary marks, including their current primary mark WORLD GYM and the system of business operations developed by them. As of the Issue Date, a franchise may be awarded for the right to operate a franchised Gym utilizing System standards and specifications for a premises with typically either (a) a traditional footprint of between 20,000 and 30,000 square feet (a “Signature Model”), or (b) a smaller footprint that is between 7,500 and 11,000 square feet (a “Legacy Model”). They also offer qualified parties the right to develop multiple Gyms within a given geographical area they designate and in accordance with an agreed-upon and mandatory development schedule.
Corporate Information
World Gym International, LLC.was organized under the laws of Delaware as a limited liability company on December 17, 2008. Their principal business address is at 1901 Avenue of the Stars, Suite 1100, Los Angeles, California 90067. They have been offering franchises since June 2009.
Investment
The total investment necessary to begin operation of (a) s single Signature Model Gym ranges from $1,934,500 to $3,690,000, and (b) a single LegacyModel Gym ranges from $1,094,500 to $1,997,500. This includes $45,000 that must be paid to the franchisor or their affiliates. The total investment necessary to operate multiple Gyms under their form of area development agreement depends on the number of franchises they grant you the right to open. The total investment necessary to enter into a development agreement for the right to develop three (3) franchised Gyms is $2,009,500 to $3,810.000, which includes (i) the development fee amounting to $120,000 that is paid to the franchisor prior to opening, and (ii) the estimated initial investment to begin operation of your initial Gym (which their standard franchise offering expects will be a Signature Model.)
