Anytime Fitness is the largest fitness franchise in the world with more than 3,500 clubs worldwide and more than 2,000,000 members.
So, owning and operating an Anytime Fitness franchise must be quite profitable, right?
The average Anytime Fitness franchise owner with 500 members to their club can expect to make a net income of $29,100 (EBITDA) and an owner of a club with 1,150 members can expect to make a net income of $206,800 (EBITDA). These results are from the Anytime Fitness FDD, 2019.
This suggests that the average Anytime Fitness franchise owner can make good money off of their investment depending on the number of members they retain.
In this brief tutorial, we will be discussing exactly how much you can make from owning an Anytime Fitness Franchise.
How Much Does An Anytime Fitness Franchise Make in Total Revenues?
Looking again at the 2019 FDD, Anytime Fitness reports that an owner can expect to make, on average, $528 dollars per year in total revenue per club member.
This means that a club owner with:
- 500 members can expect an average total revenue about $264,100, and
- 1,150 members can expect an average total revenue of about $607,400
In a more recent filing, the 2021 FDD, Anytime Fitness reported that
- The average owner reported between $10,000-20,000 per month in total revenue in 2020
- The highest earners averaging at or over $100,000 in total revenue per month.
Is Owning An Anytime Fitness Franchise Profitable?
Anytime Fitness does not report franchisee net income data in their FDD.
Unfortunately, because each franchise has a different debt structure, depreciation & amortization schedule, and because taxes vary so widely across states and localities, it is almost impossible to estimate average net income for franchise owners.
But using the data we have, we can reasonably assume that owning an Anytime Fitness franchise is profitable if the franchise owners adheres to the system provided.
A positive EBITDA means that the franchise is providing positive cash flow to the owner.
If nothing else, a positive EBITDA means that the franchise is profitable from operations, meaning that revenues are greater than expenses.
For more information about sales, net profit and EBITDA in the fitness franchise business, you are invited to go here:
Are Fitness Franchises Profitable? (Sales vs EBITDA)
Is Anytime Fitness a good investment?
Now for the biggest question, is an Anytime Fitness Franchise a good investment?
There are a lot of ways to preemptively calculate this. The average initial investment to start an Anytime Fitness center ranges from from $69,342 to $705,419. An obvious wide range. The average here is $387,381.
If the average startup cost is $387,381, using the smallest reported EBITDA in the Anytime Fitness FDD (500 participants at $29,100), owning an Anytime Fitness franchise produces a 7.5% return per year. Comparing this to a 10-year US Treasury note which is currently returning about 3%, and after an average inflation rate of 2%, the real return is 1%.
In this case, an Anytime Fitness franchise out-earns the traditional risk-free rate and would be considered a good investment, earning a higher return.
There are many big benefits of investing into an Anytime Fitness franchise of your own and you are encouraged to have a conversation with them directly.
It is possible to potentially lower the start up costs by building your own gym from scratch. If you choose this option, you would be missing out on Anytime’s recognizable branding and marketing, considerable buying power, the support team provided to you as a franchise owner, and their already successful business model.
For more information about starting your own gym, you are invited to visit this helpful tutorial: