From Inc · · 1m 30s
Orangetheory Fitness Closes 135 U.S. Studios by 2026
Orangetheory Fitness loses 135 U.S. studios in three years as high rents and competition squeeze franchisees.
In brief
Orangetheory Fitness loses 135 U.S. studios in three years as high rents and competition squeeze franchisees. Orangetheory Fitness closed 135 U.S. studios between late 2023 and June 2026 due to high rents, steep royalties, and competition from big gyms. Originally reported by Inc.
Orangetheory Fitness Closes 135 U.S. Studios
Orangetheory Fitness lost roughly 135 U.S. studios in less than three years, dropping from 1,333 to 1,198 studios by June 2026.
Franchisees Face Rising Costs
Rising rents, labor, and common-area charges squeeze franchisees as franchisors demand remodels and equipment upgrades.
Royalties Impact Profitability
Royalties are charged on gross sales, meaning franchisors get paid even if studios are unprofitable.
Lease Obligations Create Risk
Most franchisees signed 10-year leases that require paying rent even after studios close.
Boutique Model Not Broken
Beverly Bradshaw, counsel at Next Era Legal, says the 10 percent drop does not mean the boutique fitness model is broken.
Weakest Locations Close First
Studios that opened during aggressive franchise sales and cheap capital are the first to go when growth slows.
Closures Signal Shift in Strategy
The decline shows the 'open as many as possible' phase is over, and studios now must make money on their own.
Boutique Fitness Model Still Strong
Experts say the boutique fitness model isn't broken despite the closures, as the trend continues to grow.
What matters most
Orangetheory Fitness closed 135 U.S. studios between late 2023 and June 2026 due to high rents, steep royalties, and competition from big gyms.
