Fitness franchise accounting Accounting for Alloy Fitness franchisees. Seven percent to the brand, seven percent to marketing.
Alloy Personal Training franchisees pay a 7% royalty on gross sales and put 7% of revenue into marketing — 2% contributed to the system marketing fund and 5% spent on local marketing. Small-group training is sold in memberships and packages, so the books have to separate what was sold from what was trained, while the royalty follows the agreement’s definition. Kite keeps those rules for Alloy operators.
Operators of this brand run their back office on Kite
The rules that change the books
Packages are sold before they are trained
A training package or prepaid membership is a liability until the sessions are used. The studio software’s record of sessions delivered decides what is revenue at month end; the sale decides what was collected.
Marketing as two obligations
Of the 7% for marketing, 2% goes to the system fund and 5% is spent locally[1]. The first is a payment to reconcile against the brand’s draft; the second is spending to evidence. Keep them in separate accounts.
Where Alloy Fitness books go wrong
A strong month of selling mistaken for revenue
A launch promotion that sells a quarter’s worth of packages in a month looks like a record month unless the packages are deferred. The following quarter then looks like a collapse that never happened.
The card batch with no deposit
A membership draft or package sale that processed in the studio software but never settled to the bank looks like revenue that arrived. Matched batch to deposit daily, it is a named exception.
Local marketing without a home
Local spend coded to general advertising, events and supplies cannot be totalled against 5% of revenue without rebuilding a year of receipts.
Questions
Questions Alloy Fitness operators ask.
Does Kite connect to our club or studio software?
By export today, not by API — a day of sales by location dropped in and read, the same way a bank statement is. The banks, the cards and your ledger connect directly.
How does Kite book training packages?
To deferred revenue when sold, released at close as sessions are delivered, from the studio software’s earned-revenue report. The royalty is computed on whatever your agreement defines, with the clause quoted beside it.
Can we start with a few studios?
Yes. Two to five locations through one full month-end close, beside your current bookkeeper, at the same price.
Sources
- [1]Frequently asked questions — Alloy Franchise · the franchisor’s or a filer’s own document
Start with a few studios.
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