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Show Notes

[00:02:55] - [First question] - What makes Orangetheory unique from their competitors

[00:04:47] - Orangetheory’s founder and origin story

[00:06:53] - What it looks like going from an initial concept to a franchise

[00:08:56] - Whether or not early franchises have pricing and adjacent benefits

[00:11:17] - How their franchisee numbers rank compared to their competitors

[00:13:09] - How their location numbers rank compared to their competitors

[00:15:39] - What it would look like applying for and becoming an Orangetheory franchisee

[00:17:52] - How much Orangetheory cares about their franchisees being good operators

[00:20:35] - Upfront franchise fees and other parent company revenue streams

[00:23:15] - How much revenue is actually going back to the Orangetheory parent company

[00:25:41] - Whether or not the parent company helps with upfront costs

[00:28:01] - Overcoming the barrier of upfront capital for a franchise

[00:29:33] - Unit economics and business models for fitness instructors

[00:30:53] - Rules of thumb and variables to break even on an Orangetheory franchise

[00:34:04] - The average cash flow generated by a mid-tier Orangetheory franchise

[00:35:16] - Where an owner might have to reinvest their profits into the business

[00:37:14] - Additional marketing and mandatory costs required of an owner

[00:38:47] - How franchisees are protected by new locations

[00:40:47] - The main risks to an ecosystem like Orangetheory over the next five years

[00:44:17] - Key takeaways for operators and investors from Orangetheory’s story