how much does it cost to open a gym franchise

How Much Does It Cost To Open A Gym Franchise

Full Answer

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.

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

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.

Is running a gym a profitable business?

To be profitable, a gym model typically revolves around several key revenue streams. The most basic is the gym membership. However, membership dues or fees are typically not enough to make gym owners rich.

Do gym franchises make money?

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 profitable is owning a gym?

Market research across the USA shows that a gym owner of a medium-sized gym could earn around $150,000 per year. The general setup costs for a medium-sized gym is around $100,000. But your profits for the first financial year could be as little as $50,000.

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...•

How do I start a gym franchise?

10 steps to starting a gym franchiseAssess your interest. Before you begin, make sure you're getting into this business for the right reasons. ... Do your research. ... Contact your top choices. ... Call franchisees. ... Find a location. ... Obtain financing. ... Sign an agreement. ... Get permits and insurance.More items...•

Is gym a good investment?

A gym franchise gets most of its revenue from membership fees, but it can also provide plenty of other ways to earn extra income. Personal training, classes, selling gym apparel, consumables and health and weight-loss products are just some of these ways.

How do small gyms make money?

How To Make Money With A Gym. There are three primary ways that gyms make money: from membership fees, from selling classes and personal training packages, and from selling extra goods and services.

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.

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 much does it cost to invest in a gym?

It can cost you anywhere from $8,000 for a studio to $50,000 for a large gym with all the equipment you could need. While investing in gym equipment make sure you look out for the best quality equipment so that you do not have to keep maintaining it.

How much does it cost to start a F45?

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 a gym a good business to start?

After a year, a successful gym will generate at least $20,000 per month. According to the AFS 2016 Marketing Best Practices Research Report, a typical small fitness center in the U.S. makes $63 per SqFt., or up to $200,000 to $300,000 per year. Larger gyms can make up to 10 times as much money.

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:

Why are gyms so profitable?

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 does a Planet fitness owner make?

How Much Do Planet Fitness Franchise Owners Make?FRANCHISED ONLYBOTTOM THIRDUPPER THIRDAverage Annual EFT Revenue-$1,022,241$2,210,892Median Annual EFT Revenue-$1,050,049$2,098,704High Annual EFT Revenue-$1,316,182$4,370,9401 more row•Jul 19, 2022

How much does it cost to open a gym?

According to recent figures published by Sage, you could pay anything between $50,000 and $1 million in total. This depends on the type of gym you want to open,

What to consider when building a gym?

For example, one of the first things to consider is where your gym will be based. This will have an impact on the property costs of the building. After that, it’s time to consider what will go inside the gym. This will include what kind of equipment and facilities you will need.

How to clarify gym equipment cost?

To help clarify your gym equipment cost, the first step would be to establish exactly what kind of activities will be on offer. This will help to guide you as to whether physical equipment is a priority, or whether you’d rather start out by investing in mirrors and lighting for studios.

How much does a lawyer charge for a lease?

For legal fees, you could pay around $200 an hour for processing lease agreements, finalizing a sale, and negotiating other business contract terms. Of course, it is likely that you might need to engage with a lawyer throughout the running of your business. So, it is a good idea to set aside some resources to cater for this as an ongoing maintenance cost.

Why is access control important in gyms?

This is because, depending on the type of facility you’re opening, you may also want to create a sense of exclusivity for your members.

Is it possible to give an exact number when it comes to gym costs?

Of course, it’s impossible to give an exact number when it comes to costs. Every gym will have different priorities and will be based in different areas. However, in this article, we will provide some rough figures based on recently available information to give you an overview of some of the costs to consider.

Is health and wellness a fast growing industry?

Health and wellness is a fast-growing industry around the world. With more of a focus on taking care of our physical health, it makes sense that you might want to start your own health and fitness facility. But, how much does it cost to open a gym? Of course, it’s impossible to give an exact number when it comes to costs.

How Much Does It Cost To Start Up a Gym Franchise?

Getting a franchise is the easier option, especially if you do not have a lot of experience in running a gym business. It does come with its drawbacks, as shown in the following table:

How much does it cost to open a gym?

Opening your own gym can cost from $50,000 for a cycling studio to over $1 million for a fully-kitted gym—it all depends on how big you want to go.

Is it better to franchise or opt for an individual gym?

The first decision you have to make is whether you want a franchise or opt for an individual gym. Getting a franchise is the easier option, especially if you do not have a lot of experience in running a gym business. It does come with its drawbacks, as shown in the following table:

Gold's Gym Franchise Opportunities

Gold's Gym International, Inc. is an American chain of international co-ed fitness centers (commonly referred to as gyms) originally started by Joe Gold in Venice Beach, California. Each gym offers a variety of cardio and strength training equipment as well as group exercise programs.

How to open a Gold's Gym franchise?

Ensure you have adequate capitalization. In order to open a Gold's Gym franchise, you must have a net worth of more than $2,218,000.

Support Options

On-The-Job Training: 4+ hours Classroom Training: 29 hours Additional Training:: Advanced training & staffing training Absentee Ownership Allowed

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.

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).

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 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.

How much does it cost to franchise Gold's Gym?

Gold’s Gym also requires that potential franchisees have a minimum of $1 million in net worth and $400,000 in liquid assets.

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.

Why should I start my own gym franchise?

Starting your own business from scratch is difficult. You won’t have the expertise, training, support or contacts that some of your competitors might have. In an industry as dynamic as the gym and fitness sector, this can make a huge difference.

Who can open a gym franchise?

Whether you are a hands-on owner with a background as a trainer, or a physical therapist desiring to extend your client base - even a business professional with excellent time and operational management experience - the gym franchise sector is flexible and welcomes you with whatever background you have.

What skills do you need to start a gym franchise?

To head up a fitness franchise, several different skills will help you manage your operation smoothly. Often, as a business owner, these skills are:

How to assess your competition?

Remember the saying: keep your friends close, but your enemies closer. To succeed as a gym franchise owner, you must know what you are up against, your competition.

How to choose your gym customers?

One of the reasons why new startups fail is because they lack focus. Don't become a Jack of all trades, master of none, and prioritise selecting customers over others. Therefore, identify and list the customer groups you can see in your desired area that your fitness facility will cover. Below are some examples to get you started.

Open a gym with a winning business plan

One of the most crucial aspects when designing your business plan is creating synergies between the different sections of your franchise makeup. This means that when you use the Business Model Canvas template for your business model, think of the whole model rather than the individual parts. Here are the different parts of Business Model Canvas:

How much to open a gym?

Certain franchisors don't accept unsecured governmental funding, while others do. While, some franchise opportunities have requirements on your liquidity and net worth. Nevertheless, a gym franchise in the UK depending on size, location, and franchisor has a total investment between £185,000 and £315,000.