Investment Info and Estimated Start Up Costs

With good credit, a minimum net worth of $100,000 and available liquid funds of $50,000, you could become a Team Spirit Fitness Center Franchisee. Naturally, operators requesting more than one center will be required to have sufficient capital necessary to work through an agreed upon development schedule. The timing of the centers openings, site acquisitions, escrow deposits, construction and hiring of personal will determine the cash and capital needed, as well as the growth and development of previously opened centers. All of these items should be thoroughly discussed and analyzed prior to any development commitments.

We have provided these estimated start-up costs to help you evaluate all the potentially necessary items that will be needed to open a Team Spirit Fitness Center. These figures represent the estimated cost to open one (1) Team Spirit Fitness Center.

Description	Low Estimate	High Estimate
Franchise Fee	$35,000	$35,000
Real Estate/Rent	$750	$3,500
Utility Deposits	$0	$200
Leasehold Improvements	$1,000	$8,000
Furniture, Fixtures	$500	$1,000
Exercise Equipment	$18,000	$22,000
Software	$1,000	$1,500
Initial Inventory	$0	$1,000
Insurance	$1,400	$2,500
Signage	$2,500	$5,000
Office Equipment & Supplies	$500	$1,500
Grand Opening Advertising	$2,000	$4,000
Training (travel expenses)	$300	$1,000
Professional Fees	$500	$1,000
Licenses & Permits	$250	$500
Working Capital (3 months)	$10,000	$15,000
TOTAL	$73,700	$102,700

These start-up costs are just estimates. Actual costs may be higher or lower depending on your specific situation and location. The amount of working capital may also be higher or lower depending on many factors, including location, experience and motivation.

Facility sizes will vary by region and population density. You can choose from several different facility sizes and equipment packages to meet the needs of your community. Typical facility sizes range from 1,000 to 1,500 square feet. Some regions may have facility size requirements above 1,500 square feet. You should consult with your Area Representative or your Field Representative for facility size requirements in your region.

Educational and Background Requirements

As in other businesses, the success of a Team Spirit Fitness Center relies heavily on the entrepreneurial experience and energy of the operator. The ultimate success of the center hinges on many factors; location, quality, customer service, advertising and leadership. The indefinable qualities of the entrepreneur are often the difference between an outstanding center and a mediocre center. The net revenues of identical centers will vary dramatically depending on its operators. Though it's a benefit to have some fitness background, an astute business person may fare far better than an experienced trainer. The running of a Team Spirit Fitness Center business will require many more additional aspects than just client training. Accounting, payroll, tax filings, hiring and advertising are just some of the additional responsibilities. The learning curve for understanding the client training end of this business is often obtained quicker than the administrative end.

The success of your business will require both a properly run administrative end of the business (controlling cost of labor, cost of goods, etc.) and a properly run client service end of the business (controlling client retention, new starts, etc.).

LEGAL DISCLAIMER: This advertisement is not an offering for a franchise. An offering can only be made by a prospectus that has been filed with appropriate state agencies where applicable. To find out if we are offering franchises in your state, contact our franchise sales department at (702)222-0354.