How Much Is It to Own a Gym Franchise? (+Comparisons)

Gym and fitness franchising has long served as the ideal career opportunity for professionals looking for a new income stream or a career change.  

According to an IBISWorld Gym & Fitness Franchises Report, fitness franchises generate approximately a whopping $4 billion in annual revenue; employing over 60,000 people, and accounting for 7,200-plus operations.

How much is it to own a gym franchise?
If you want to own a gym franchise, there are many options, variables and costs. Generally, to buy a gym franchise the total minimum investment range is $91,000 for a 9Round fitness franchise up to about $2.2 Million for a Gold’s Gym fitness franchise, with many options in between.

Therefore, even if you don’t have a formal fitness background or education, buying a gym franchise offers you a purposeful career to make a difference in people’s lives. 

So, how much is it exactly to own a gym franchise? This article will cover everything you need to know about the cost implications of owning a gym and fitness franchise.

How Much Is It to Start a Gym Franchise?

The costs of starting a gym franchise largely depend on the business model you choose since different models have distinct capitalization levels. Nonetheless, it would be advisable to be overqualified financially rather than being “just” qualified when starting a gym. 

Leasing a strategically located commercial space, soft-cost financing, and purchasing gym equipment requires sufficient capital.

First, you’ll be required to pay the franchise fee for your gym to be operational, which can run anywhere between $25,000 and $60,000. In addition, you’ll need startup costs which can range from $30,000 to $300,000 depending on your gym size and business model. 

But generally speaking, you’ll need a capital investment of about $500,000 to $3 million, depending on the gym size, to build and run your gym franchise until it breaks even.

What Factors Affect The Cost Of Owning A Gym Franchise?

Factors that influence the cost of owning a gym franchise include license fees, royalty cuts, marketing, operational expenses, human capital, equipment used, and facility size. 

For instance, a small-sized gym could demand an investment of about $30,000 to $100,000. On the other hand, a mid-range gym could ask for an investment of $100,000 to $200,000, while a high-end gym could cost between $500,000 and $ 1 million.

It’s worth noting that your franchisor will also demand a progressive or a fixed cut from your gym’s gross profit. Most franchisors charge 5% to 10% royalty cuts, although some charge lower and others higher than that. Here are the top gym franchise companies and their royalty cuts:

Do Gym Franchises Make a Lot of Money?

According to Fitness Franchise Industry Report 2018, the gym franchise is one of the fastest-growing franchise sectors worldwide, with an annual growth trajectory of 5.2%. 

Here is a careful review of Anytime Fitness and some of their financial metrics

The sector’s impressive growth and vitality can be attributed to health-conscious consumers, new technologies, fresh business models, attractive prices, and trainers’ professionalism. Hence, owning a gym franchise can be profitable if properly managed and well-thought-out.

Many gyms franchises have a proven track record of generating significant profit margins. For instance, solid performing gym franchises’ annual gross revenue ranges between $513,000 and $5,554,000, with merchandise, card memberships, and monthly memberships being ways these franchises make money. Nonetheless, you must be willing to risk resources, time, and energy for your gym to be as successful and cash-flow-positive.    

How Much Does a Franchise Gym Owner Make?

How much you make as a franchise gym owner depends on the number of consumers you serve, the size of your facility, and the success of your gym. While gym and fitness franchises offer huge economic potential, the fail rate can be very high. Nevertheless, once you overcome these initial entrepreneurial hurdles, you’ll emerge a stronger entrepreneur and will be able to handle most of the gym ownership challenges.

Typically, owning a high-end gym franchise could earn a very successful owner and or operator a very healthy net profit each year if you endure entrepreneurial challenges and grow your franchise. However, it would help to point out that an average gym franchise owner makes about $65,685 annually. Here is an overview of how much a franchise gym owner makes monthly and annually:

Frequently Asked Questions related to How Much Is It to Own a Gym Franchise?

Question 1: How much capital is needed to purchase a gym franchise?

The amount of capital needed to purchase a gym franchise varies depending on the franchise. Some smaller franchises may require less than $50,000, while larger franchises may require more than $1 million.

The size of the franchise and the location will affect the amount of capital required. For example, a franchise located in a high-traffic area may require more capital than one located in a rural area. Additionally, the amount of capital needed to purchase a franchise may depend on the type of franchise. For instance, a full-service gym franchise may require more capital than a specialty gym franchise.

In addition to the franchise fee, potential franchise owners must also consider the cost of equipment and any other startup costs associated with the franchise. Equipment costs can range from a few thousand dollars for a small gym to more than $100,000 for a larger gym. Additionally, some franchises may require a royalty fee that must be paid to the franchisor. This fee is typically a percentage of the monthly or yearly revenue generated by the franchise.

Before deciding to purchase a franchise, potential franchise owners should carefully consider the amount of capital they have available and the amount of capital they will need to purchase the franchise and meet the startup costs. It is also important to consider the potential return on investment and the risks associated with owning a franchise.

Question 2: What are the fees associated with owning a gym franchise?

The fees associated with owning a gym franchise vary depending on the franchise and the location of the franchise. Generally, potential franchise owners must pay a franchise fee to the franchisor, which is typically a one-time fee based on the size of the franchise. Additionally, some franchises may require a royalty fee that must be paid to the franchisor on a regular basis. This fee is typically a percentage of the monthly or yearly revenue generated by the franchise.

In addition to the franchise fee and the royalty fee, potential franchise owners must also consider the cost of equipment and any other startup costs associated with the franchise. Equipment costs can range from a few thousand dollars for a small gym to more than $100,000 for a larger gym. Additionally, some franchises may require additional ongoing fees for marketing and advertising.

Before purchasing a franchise, potential franchise owners should carefully consider the fees associated with owning a franchise and the potential return on investment. It is also important to consider the risks associated with owning a franchise.

Question 3: What is the expected return on investment for owning a gym franchise?

The expected return on investment for owning a gym franchise varies depending on the franchise and the location of the franchise. Generally, potential franchise owners can expect to make a return on their investment within two to five years. However, it is important to note that the expected return on investment can vary depending on the size of the franchise, the type of franchise, and the location of the franchise.

It is important to note that the return on investment for owning a gym franchise is not guaranteed. Potential franchise owners must carefully consider the costs associated with owning a franchise and the potential risks before deciding to purchase a franchise. Additionally, potential franchise owners should research the local market and the competition in order to determine the potential for success.

Overall, owning a gym franchise can be a lucrative investment, but potential franchise owners should carefully consider the costs associated with owning a franchise and the potential risks. Additionally, potential franchise owners should research the local market and the competition in order to determine the potential for success.

Conclusion

In retrospect, franchising is an ideal business model for many entrepreneurs. 

But with the prevailing prospects in the fitness sector, gym franchising is particularly an interesting option if you are a healthy lifestyle enthusiast. 

Fitness franchising’s consumer trends, market conditions, and business opportunities make the franchising category an astute investment for both immediate and long-term gains.

For more helpful information about buying a gym or a franchise, go here:

Gym Franchise