how much does it cost to buy a gym franchise

by Ivah Kozey Published 1 year ago Updated 1 year ago

How much does it cost to open a gym franchise?

The total upfront investment for a gym franchise can fall anywhere between $30,000 and $300,000, including the one-time franchise name fee (ranging from $15,000 to $30,000). Of course, some brands are less expensive than others. Ditto for some locations.

What makes a successful gym franchise?

Good franchises have systems in place to receive feedback from members as well as do extensive research to help identify opportunities for delighting customers. This is makes a fitness club a true personalized experience.

What to consider before buying a franchise?

What to Consider Before Buying a Franchise

Make Sure Your Family is On Board. Owning a franchise—or a business of any kind—is truly a family affair. ...
Count Your Cash. ...
Reach Out to Other Franchisees. ...
Do Some Soul Searching. ...
Test the Product. ...
Understand What You’re Getting Into. ...
Talk to a Franchise Consultant. ...
Come Up With an Exit Strategy. ...
Consult With Franchise Experts. ...
Do Your Due Diligence. ...

How to open up a gym franchise?

Start a gym by following these 10 steps:

Plan your Gym
Form your Gym into a Legal Entity
Register your Gym for Taxes
Open a Business Bank Account & Credit Card
Set up Accounting for your Gym
Get the Necessary Permits & Licenses for your Gym
Get Gym Insurance
Define your Gym Brand
Create your Gym Website
Set up your Business Phone System

How much does it cost to start a jazzercise franchise?

How much does it cost to start a special strong gym?

How to find the best fit for a gym?

What is cleanliness measure?

What are some special programs that can be done for kids?

What is special strong?

What education is required to manage a special strong?

See 2 more

Is owning a gym franchise profitable?

Yes, fitness franchises offer great profits but not as much as you might think. According to Investopedia, most franchise owners take home around $50,000 per year, but about 7% of franchise owners earn more than $250,000 per year.

How much does it cost to buy a franchise gym?

Which gym franchise is most profitable?

If you want to research the top fitness franchises, here's who made the Top 10 list in Entrepreneur's Franchise 500 for 2022:Crunch. ... Anytime Fitness. ... Burn Boot Camp. ... Club Pilates. ... The Exercise Coach. ... Pure Barre. ... 30 Minute Hit. Entrepreneur Franchise 500 Rank: 351st ... SPENGA. Entrepreneur Franchise 500 Rank: 380thMore items...•

Do gyms make money?

Yes, gyms make money from membership fees, but that's just the beginning. Classes, personal training sessions, and merchandising also play a part. Check out this guide to learn how gyms make money.

Is it hard to own a gym?

The fitness industry has become hyper-competitive and becoming a successful gym owner is getting harder and harder. In fact, while there is massive potential in owning a fitness business, 8 out of 10 of them will fail in their first year.

How can I get money to open a gym?

What gym financing options are available?Bank loan. One way to secure funding is by getting a business loan from the bank. ... Personal savings. ... Find a business partner. ... Pitch investors and lenders. ... Invest in a gym franchise. ... Fitness equipment financing. ... Monthly payments. ... Legal fees and insurance.More items...•

Is owning a Planet Fitness profitable?

Planet Fitness is a profitable business for the franchisor, with retained earnings of $210 million in 2021. Compared to $145 million in 2020, they saw an increase of 44% from 2020 to 2021. This is a good indication of high growth as a company overall.

What is the most profitable franchise to own in 2022?

Most Profitable FranchisesDunkin'7-Eleven.Planet Fitness.JAN-PRO.Taco Bell.Orangetheory Fitness.Great Clips.Mac Tools.More items...•

How much can you make owning an Anytime Fitness?

The average Anytime Fitness reported $384,958 in annual revenue. Revenue can be broken down into three main streams: membership revenue, which makes up a substantial portion of revenue; personal training revenue; and pay-per-visit revenue.

Where do gyms make the most money?

Gyms make most of their money through recurring membership fees. However, smart owners will implement new revenue streams like personal training, branded merchandise, premium amenities, and more to make owning a gym more profitable.

How Much Is a Planet Fitness franchise?

Planet Fitness's franchise fee is $10,000 for a 10-year renewable agreement, though the total investment ranges from $700,000 to $3.8 Million. Franchisees must also pay a 5% ongoing royalty fee on all sales to Planet Fitness. To open a gym, a franchisee must have of $3 million with $1,500,000 in liquid assets.

What is the toughest thing about being a gym owner?

Main Challenges Faced by Gym Owner:Finance Management: Managing finances is one of the most common problems that gym owners face. ... Staff Dealing: The next problem that gym owners face is dealing with staff. ... Lack of Client Base: Building a successful business is not easy. ... Keep Members Happy: ... Get a Good Location for Gym:

Is franchising a gym a good idea?

If you're going to invest your hard-earned money, you might as well secure it in a gym franchise. Later on, when you are financially stable, you can have the freedom to start your own business or continue expanding your franchise as it will most likely be a success. The bottom line is, gym franchises are profitable.

How much does it cost to buy a Gold's gym franchise?

Currently $500 per person per session, but could increase if the franchisor's costs increase....BFT (Body Fit Training)Name of FeeLowHighInitial Franchise Fee$40,000$40,000Travel and Living Expenses During Training$4,000$7,0003 Months' Rent$30,000$255,000Security Deposit for Lease$12,000$150,00010 more rows

How much does it cost to start a F45 gym?

The cost to start a F45 Franchise will include the following: Total Investment: The total investment necessary to begin operation of a “F45 Franchise” franchise ranges from $227,000 – $312,000. Initial Fees: Initial franchise fee: $50,000.

Is owning a Planet Fitness profitable?

What is franchising a gym?

Gym franchisors give you their business blueprints and show you how to build a fitness business from scratch. They’ll actively help you during the initial stages. This assistance is to help you develop a gym that meets their standards and to decrease your risk of failure.

What happens when you join a gym franchise?

When you join a franchise, you automatically become part of a more extensive network. Many franchises have hundreds of gyms throughout the country. The gym chain can put you in touch with other franchises in your state, which can give you insight into the local market and how to thrive there.

What is the most reputable gym brand?

Brands such as “Gold’s Gym” and “Planet Fitness” have a strong brand following, and these brands are the most reputable gym brands in the world. Fitness enthusiasts are actively looking for the branches of brand gyms in their city.

How much does a gym franchise make?

Conversely, a gym franchise might only make $100K a year if it’s a small gym in a small town.

How much royalty does a gym franchise have?

This cut is usually a fixed or a progressive fee on the gross profits, depending on the franchise. Most franchises have 5-10% royalty cuts, but some can be lower, and some are higher. If the franchise company uses a progressive scale, you’ll have to pay more as your gym gets successful.

What is a fitness studio?

A fitness studio software is essential to manage and operate your gym. The franchise will provide you with the best in class gym management software and have the software set-up to manage and run your gym seamlessly.

How to get a gym license?

You’ll have to hire a lawyer to help you deal with the city administration and gain permits for the gym. The licenses issue at the local level and the mayor’s office can help you get a license for your gym as a commercial entity.

How much did gym franchises contribute to the fitness industry?

And in 2019, gym franchises specifically contributed $4 billion to the $34 billion gym, health, and fitness industry.

How many locations does Anytime Fitness have?

Since their start in 2002, Anytime Fitness has opened over 4,000 locations on all seven continents. Their popularity mostly comes down to their unique business model: All Anytime Fitness locations are open 24 hours a day, seven days a week, and members can access any of those 4,000+ locations no matter where they are in the world. In addition to standard gym fare, Anytime Fitness locations offer a range of classes and services, like yoga, spin, cardio, Zumba, and personal training. Anytime Fitness also prides themselves on engendering a supportive environment for members and they prioritize employee wellness.

How much does it cost to open a Planet Fitness franchise?

With that in mind, Planet Fitness franchisees will need to pay for that international brand recognition—opening a Planet Fitness franchise may cost over $4 million. Royalty fees are 7% of the total gross monthly and annual membership fees, and advertising fees vary. Initial term lengths last 10 years.

What is the judgment free zone at Planet Fitness?

Planet Fitness trademarked the phrase “judgment free zone,” so that alone should give you a sense of this gym’s major value: inclusivity for all people, regardless of their fitness levels. With that accessible attitude in mind, Planet Fitness tries particularly to target the 80% of the American and Canadian population who don’t have gym memberships.

How many Orangetheory studios are there?

Currently, the Orangetheory franchise has over 1,100 studios in 49 U.S. states and 22 countries internationally (they started in 2010, for some context about just how quickly they’re growing). As an Orangetheory franchisee, you’ll be responsible for a monthly royalty fee of 8% of gross sales.

What is the UFC gym?

Owning a UFC Gym means owning a portion of the fastest growing sport in the world—a truly future-proofed business proposition.

How are royalties calculated for Anytime Fitness?

Royalty fees and advertising fees are generally calculated as a percentage of gross sales in franchise agreements, but Anytime Fitness’ rates are flat from month to month, which makes it easier for you to plan and organize your expenses. They’ll provide you with a personal support team, comprehensive training, and marketing support over the course of your franchise agreement’s six-year term (or 10, if you’re in California).

How much does Planet Fitness franchise cost?

Planet Fitness has the franchise fee of up to $20,000, with total initial investment from $969,600.

What is a planet fitness franchise?

Planet Fitness franchise is one of the largest fitness US chains by a number of members and locations. They provide an affordable, high-quality fitness experience in a welcoming environment. Planet Fitness franchise opportunities are proven by 1,500 clubs successfully operating worldwide. If you are thinking about how to open a Planet Fitness ...

How much money do you need to open a Planet Fitness franchise?

In order to open a Planet Fitness franchise, you must have a net worth of more than $3,000,000. Appreciate the investment required for a fitness club franchise. You will need to consider building and real estate costs, the cost of equipment and signs, the costs of licenses and permits, the cost of uniforms, the cost of insurance, etc.

How much is the area development fee?

If you acquire rights under our Area Development program, you will pay an Area Development Fee equal to $10,000 per location to be developed under the Area Development Agreement when you sign the Area Development Agreement. The Area Development Fee is uniform and non-refundable. The Area Development Fee is in addition to the then-current Initial Franchise Fee due for each location at the time the Franchise Agreement for that location is executed.

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How much does it cost to start a gym franchise?

Besides the initial fee you'll pay to join the franchise, a gym requires a great deal of equipment, as well as a large commercial space.

What are the pros and cons of owning a gym?

Pros of owning a gym franchise 1 Brand recognition: Franchises are well-known brands with a history of success. This makes finding members a cinch—there's already a built-in customer base. Plus, the franchisor will likely handle marketing for the entire franchise. 2 Training and ongoing support: If you've never owned a business before, there will be lots of things to learn. With a franchise, you'll have the ongoing support of your franchisor to walk you through every step of the process. 3 Higher profits: Franchises typically see higher profits than non-franchise businesses, as there is a loyal customer base and formula for success. While the initial investment to open a gym franchise can be high, you'll likely turn a profit more quickly.

What is a FDD in franchising?

If you move along in the application process, the franchisor will share their franchise agreement, which includes the franchise disclosure document (FDD). Both you and your business attorney should review this document carefully, as it will lay out exactly what both you and the franchisor are responsible for over the course of your business relationship. If all looks good, you're ready to sign and officially join the franchise family.

What should be included in a gym franchise plan?

There are some key points you want to make sure your business plan hits, including a market analysis of competition in the area and the need that your gym franchise will fill that's currently not being filled by competitors. You should also include other information like expected costs, how many people you expect to hire, what your role in the franchise will be, financial projections about how long until you expect to turn a profit and more.

How much does it cost to franchise a gym?

The total upfront investment for a gym franchise can fall anywhere between $30,000 and $300,000, including the one-time franchise name fee (ranging from $15,000 to $30,000).

How many hours does a gym open?

Remember, gyms typically have long hours—some are open 24 hours a day—so they're open when their customers want to work out.

What is the best location for a gym?

An easily accessible and convenient location for your gym is crucial. For most gym-goers, close to home or work is best. As to figuring out what constitutes “convenient” for your target membership, it all starts with studying the data available to you.

What are the obligations of a franchisor?

Obligations and Restrictions: The franchisor does not require, but does recommend, that franchisees (if they are an individual) or the managing owner (if the franchisee is an entity) participate personally in the direct operation of the facility. Franchisees must at all times retain and exercise direct management control over all aspects of the facility’s business and all amenities and other products and services it offers. Only an individual who devotes his or her full working time and best efforts to the day-to-day, on-premises operation of the facility, has satisfactorily completed our management training program, and is not engaged in any other business endeavor except passive investments which do not interfere with the performance of his or her duties as manager may manage the facility. Franchisees must offer all amenities and other products and services that the franchisor periodically specifies as being mandatory. Franchisees may not offer, sell, provide or otherwise distribute at the facility, the site or any other location any amenities or other products or services the franchisor has not authorized, and they must discontinue selling and offering any amenities and other products or services that the franchisor at any time disapproves in writing.

What is a territory granted in a franchise agreement?

Territory Granted: Franchisees will operate the facility at a specific site that the franchisor first must accept. If franchisees have not yet located an accepted site when they sign the Franchise Agreement, the franchisor will designate a “site selection area” when they sign that agreement. The franchisor typically identifies site selection areas either using city boundaries or as a circle with a radius of a specified distance that it determines from a specified intersection. There is no minimum size for a site selection area. Except as provided in the FDD, if franchisees are complying with the Franchise Agreement, then neither the franchisor nor its affiliates will, during the term of the Franchise Agreement, operate or authorize any other party to operate a Gold’s Gym facility the physical premises of which are located within (i) the site selection area (until the franchisor designates the territory) or (ii) the territory (once the franchisor has designated the territory). The territory is a circle with a radius of a specified distance that the franchisor determines from the facility’s main front entrance. The franchisor will determine that distance based on the factors that it deems relevant, which might include demographics, the character of the site and nearby businesses and residences. The minimum territory may be as small as one-eighth of a mile in a densely populated area, or in some rural areas, up to three miles.

How long is franchise training?

Currently, initial training consists of approximately 30 hours of classroom training and five hours of on-the-job training at the franchisor’s location in Dallas, Texas. If franchisees participate in one or more optional studio programs, additional training will be required. During the Franchise Agreement’s term, the franchisor may require franchisees and/or their personnel, including newly-hired managers and previously-trained and experienced employees at the facility, to attend and satisfactorily complete various training courses and programs that the franchisor chooses to provide periodically at the times and locations it designates. The franchisor also may require franchisees to conduct periodic training for facility personnel using the formats and procedures that it periodically specifies. Franchisees (or, if they are a business entity, one of their owners) or the facility’s general manager must attend each annual convention that the franchisor (at its sole option) organizes for Gold’s Gym facility operators.

What is a Gold Gym franchise?

Franchise Description: The franchisor is Gold’s Gym Franchise LLC. The franchisor’s parent company is RSG Group USA Inc. The franchisor grants franchises for health clubs which are primarily identified by the marks and use the franchise system. Gold’s Gym facilities will offer a full array of amenities, products and services to members. Currently, all new Gold’s Gym facilities must offer cardio training equipment, resistance training equipment, group fitness, personal training and locker room services, a kids’ club, and must have a “pro shop” including sales of clothing, accessories, drinks, bars, supplements, nutritional products and other items. (However, the franchisor may elect to waive some of these requirements if the Gold Gym facility is to be located in certain large, urban locations, such as Manhattan, New York.) New Gold’s Gym facilities also may offer other optional amenities, products and services that the franchisor currently authorizes, like cardio cinema, basketball, racquet and other courts, smoothie bars and juice bars.

How far is a franchisor's territory?

The minimum territory may be as small as one-eighth of a mile in a densely populated area, or in some rural areas, up to three miles.

How many hours of training is required for a franchise?

Does franchising offer financing?

Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease, or other obligation.

How many territories does Anytime Fitness have?

Largest presence of any fitness franchise - Anytime Fitness is the first franchise on all 7 continents, with over 4,700 territories sold and 4 million members worldwide.

How long is Anytime Fitness training?

With Anytime Fitness, the training never stops. Initially, we have a mandatory, two-week training course at our corporate office in Minnesota. Once the two-week training is complete, we provide daily or weekly assistance via the phone, onsite visits, email communications, and various publications. Assistance is available for as long as you need it. There is no additional cost for this valuable training and assistance.

How often do you have a new member at Anytime Fitness?

A new member every minute - At Anytime Fitness, we have a new member join one of our clubs every minute of every day.

How much liquid capital do you need to invest in a company?

Interested parties should have at least $100,000 in liquid capital to invest.

What is marketing support?

MARKETING SUPPORT - We conduct an analysis of area demographics, market factors, and competition in your desired territory. We’ll also assist you in creating marketing assets and optimizing your digital presence.

Is Anytime Fitness a business?

We offer a business and product that people need and enjoy, in an industry that continues to grow every year. With Anytime Fitness, you're in business for yourself, not by yourself.

What Does a Crunch Fitness Franchise Cost?

Franchisees can expect to make a total investment of $304,500 - $1,395,500. *

What is crunch franchise?

And the Crunch Franchise business represents the most progressive and competitive fitness model in the industry, one created by a management team that literally helped build the industry from the ground up. Crunch is one of the hottest fitness clubs, in one of the best industries there is.

What are the financial requirements for a crunch franchise?

Q. What are the financial requirements for a Crunch Franchise?#N#A. Requirements are to have at least 1 million in net worth and $300K-$400K liquid capital to be eligible for additional financing if needed.

Can you build a crunch club?

A. Yes. Once you’re a franchise e we provide you with a construction manual. This will help you build your Crun ch club. We also will ask for a CAD/PDF drawing of your location so we can put together a floor plan and equipment layout for your club.

Initial Costs to Buy a Franchise

When buying a franchise, there is always an initial cost to own the business. There is no “one-price-fits-all” when purchasing a franchise and can range from 10,000 to a few million dollars.

Franchise Disclosure Document

If all of this information about fees and costs to start a franchise seems daunting, check out this Franchise Disclosure Document (FDD). This will lay it all out for you. Once you decide what kind of franchise you want to run (Hotel, fast food, restaurant, service, retail, etc.), you can then inquire about the FDD for a particular franchise.

Work with MVision

Here at MVision Franchising, we want to help our clients succeed. But, unfortunately, all of the information about franchising, costs and fees, and royalties can make you feel overwhelmed from the start. That is where we come in.

How much does it cost to start a jazzercise franchise?

Investment costs will vary depending on the company you choose. Franchises like Jazzercise have an initial fee as low as $1250. This number seems incredibly low because you don’t need an actual gym or equipment to start this particular franchise, as it relies primarily on the instructor qualifications.

How much does it cost to start a special strong gym?

Average startup costs for gym franchises range from $250,000 to $500,000, while Special Strong startup costs range from just $25,000 to $50,000.

How to find the best fit for a gym?

To find the best fit, make sure you are on par with the brand you choose and its values. Some gyms may prioritize certain things like a fun and inclusive brand culture, while others may highlight endurance and high-intensity workouts.

What is cleanliness measure?

Cleanliness measures: Day-to-day items such as locker room upkeep, cleaning supplies, hand sanitizer, etc., as well as more in-depth cleaning and sanitizing (especially cleaning floors, deep cleaning equipment, etc.) that should be taken care of less often.

What are some special programs that can be done for kids?

You may also consider special programming, such as classes like Zumba and pilates, including a kids club and making personal training available to anyone. These types of services are all great ways to make sure you are meeting expectations of clients and going above and beyond to satisfy their wants and needs.

What is special strong?

Special Strong provides adaptive fitness for children, adolescents, and adults with mental, physical and cognitive challenges. Start your own Special Strong gym franchise today and create a lasting impact on your community.

What education is required to manage a special strong?

Educational requirements: Managing a Special Strong requires a high school diploma or equivalent and relevant experience. Training clients requires personal trainers to be NCAA accredited and have relevant experience and education.