One of the most important investments a person can make is in their physical health and well-being. But for most people, setting and sticking to a workout routine can feel like a tough workout in its own right. Not everyone knows their way around fitness equipment, and not everyone is able to self-motivate and stick to their goals.
With that in mind, it’s no wonder the health and fitness franchise industry is worth over $7 billion, according to IBISWorld. Opening a health and fitness franchise represents a giant opportunity for anyone interested in health and fitness and looking to one day own their own business.
Franchise ownership comes with a number of benefits—most notably, leveraging the power of an established brand and customer base. In this article, we’re taking an in-depth look at health and fitness franchises in particular, answering important questions like:
How much does a fitness franchise cost, and are gym franchises profitable?
How much money can you make owning a gym franchise?
What are the top fitness franchises to invest in?
If I want to purchase a health and fitness franchise, where should I start?
Is Owning a Fitness Franchise Profitable?
While there’s no such thing as a surefire investment, fitness franchise owners can generally turn a profit. According to Exercise.com, a gym owner in the United States can expect to make between $50,000 and $75,000 annually. These figures vary significantly by state, with North Carolina at the low end ($49,000) and Washington at the high end ($82,275).
How Much Does It Cost to Open a Gym Franchise?
According to data collected by NerdWallet, “the total upfront investment for a gym franchise can fall anywhere between $30,000 and $300,000, including a one-time franchise fee (ranging from $15,000 to $30,000).” This is a very wide range…but that just goes to show that there are franchising opportunities for any investment level!
When it comes to the cost of getting a gym franchise up and running, you’ll have to consider the “total upfront cost” which consists of franchise fees, startup costs, and recurring fees. We’ll discuss these next.
What Are Franchise Fees?
When you apply to run your own franchise location, you’ll be required to pay a franchise fee. These fees typically range from $20,000 to $50,0000, according to the U.S. Small Business Administration (SBA). Paying it grants you the right to own and operate a franchise under the umbrella of a recognized brand.
Essentially, you’re paying for the right to use the brand name. It also grants you access to the proprietary business systems you’ll need to run a successful operation, as well as various types of support to help you hit the ground running.
What Are Startup Costs?
Startup costs refer to the expenses associated with launching the franchise location and readying it for customers. Startup costs can vary quite wildly, but commonly include things like…
Purchasing and/or improving a real estate property.
Stocking essential supplies and equipment, including workout machines, lighting fixtures, point-of-sale (POS) payment technologies, and more.
Securing the necessary types of insurance related to health and fitness franchises, such as worker’s compensation and property/casualty insurance applicable to the franchise’s physical location.
Recruiting, hiring, and training employees.
Developing advertising, promotion, and marketing campaigns.
Having enough working capital to cover day-to-day expenses and operating costs (especially in the first few months you’re open).
What Are Recurring Fees?
Some of the most common recurring fees a franchisee should expect include…
Royalties, which are often based on a set percentage of the franchise location’s gross revenue—typically between 4% and 12%.
Advertising and marketing fees, which the franchisee might either opt (or be required) to pay the franchisor in exchange for marketing support—often a modest rate between 2% and 5%.
Read our guide to franchise fees for a more detailed look at the costs associated with purchasing a franchise. At FranchiseOpportunities.com, you can also browse available health and fitness franchises and even sort them by investment level—from as little as $10,000 to as much as $500,000 and beyond.
How Much Does a Gym Franchise Owner Make?
While gym franchise owners’ salaries vary depending on size, state, and other factors, they can generally expect to earn a decent amount of money—even early on in their careers. For example, a Planet Fitness franchise owner salary can be around $50,000 in their first year. Anytime Fitness franchise owners, meanwhile, make just over $100,000 on average according to Glassdoor. These numbers give a general idea of what you could expect to make as a gym franchise owner, but this doesn’t account for factors like:
The viability of a specific franchise location
The amount of brand recognition associated with the franchise
The competitive landscape within the industry
The size of staff needed for successful operations
The franchisee’s general level of business acumen
How committed a franchisee is to stand out from competitors and run a successful business
Is It Better to Own a Gym or Franchise a Gym?
As you might expect, there are advantages and disadvantages to consider between owning a gym or franchising a gym. We’ve already discussed the general benefits of franchising, which include the independence to be your own boss while leveraging the larger brand’s pre-built brand awareness and customer base. These are hugely compelling advantages, especially for first-time gym or gym franchise owners.
What Are the Disadvantages of Gym Franchise Ownership?
Despite its popularity and compelling benefits, franchise ownership isn’t for everybody. Suppose you’re highly motivated to make a name for yourself or have a well thought-out idea for a unique health- or fitness-related business, for example. In that case, you might feel constrained within a franchisee-franchisor relationship.
Even if this describes your thought process, you shouldn’t discount the potential of franchising. As you research different franchising opportunities, it’s important to evaluate how much freedom you might have to “make it your own,” as some brands will be more open to this than others. You can learn more by contacting the franchisor directly through their website or requesting information about one or more franchises at FranchiseOpportunities.com.
What Is the Largest Fitness Franchise in the US?
In terms of how many locations are currently operating, some of the largest gym franchises in the US include:
Jazzercise | With over 8,300 U.S. locations, Jazzercise is an incredibly popular fitness franchise (and the largest gym chain on our list). Known as “the original dance party workout,” Jazzercise has been around for decades without seeing its popularity wane. By investing in a Jazzercise franchise, you could get in on this “pulse-pounding, beat-pumping, body-blasting fitness program” that promises fast results!
Anytime Fitness | There are currently over 3,000 Anytime Fitness franchise owners throughout the United States and over 25 additional countries across all 7 continents. The biggest reason for the popularity of Anytime Fitness is the fact that their locations are open 24 hours a day, 7 days a week, and that their members are granted access to all of their locations.
Planet Fitness | There are over 2,400 Planet Fitness franchise locations across all 50 states as well as a few select countries outside of the United States. Planet Fitness attracts new members every day who are looking for a change of pace in their workout space, and appreciate the “Judgment-Free Zone®” Planet Fitness prides itself on providing.
F45 Training | With their first location launching back in 2013, today there are over 1,800 F45 Training locations across over 45 different countries. In addition to their highly-regarded workout classes, F45 Training takes an innovative approach to motivating their members and keeping them engaged, by leveraging various technologies to book classes, guide participants through their workouts, provide workout feedback and even nutritional recommendations, and more.
Orangetheory | With over 1,500 locations across at least 27 countries, Orangetheory Fitness is another great health and fitness franchising opportunity. One of the biggest advantages of becoming an Orangetheory franchisee is the brand’s dedication to empowering franchisees with everything they need to succeed—including comprehensive training and franchisee support across categories like operations, sales, marketing, technology, design, and more.
Club Pilates | A leading provider of Pilates training with over 800 studios in operation across North America, Europe, Asia, and Australia, Club Pilates is another growing health and fitness franchise. In addition to the benefits of their profitable brand, Club Pilates franchisees can expect to receive extensive help with various elements of franchise ownership, including finding an ideal location, designing an effective facility, sales and marketing support, instructor recruitment and training, and more.
Pure Barre | Roughly 20 years after Pure Barre was founded, there are nearly 600 operational locations today. Members are attracted to their straightforward offerings, “a range of effective, low-impact, high-intensity, full-body workouts that target strength, agility, and flexibility for people of all levels.” As one of the most popular boutique fitness franchises, Pure Barre’s strong national brand is a major asset for any franchisee looking to make a splash in the fitness industry.
Crunch Fitness | There are over 400 Crunch Fitness franchise locations in operation today, where the brand’s trademark “#NoJudgments” philosophy creates an environment of positivity, inclusivity, and fun. Crunch Fitness stands out from other gyms by emphasizing that everyone can set—and crush—fitness goals without requiring an overly-expensive gym membership or a team of drill instructors barking at them.
Burn Boot Camp | With over 300 locations and counting, Burn Boot Camp is an up-and-comer in the health and fitness franchise industry that’s making a splash among women and their families throughout the United States. Burn Boot Camp locations provide members with workouts suited to any intensity or fitness level, typically 45 minutes at a time. In addition to these easy-to-schedule classes, Burn Boot Camp also offers nutrition courses, training consultations, online workouts, and complimentary childcare. Especially if their mission, “to ignite a global health transformation through empowering women and their families” sounds like something you want to be a part of, Burn Boot Camp is a great opportunity.
CycleBar | In business for nearly 20 years, there are currently over 250 CycleBar locations in operation. CycleBar is known for its indoor cycling classes, which offer participants “a variety of low-impact, high-intensity indoor cycling workouts that are inclusive of all fitness levels.” Within a crowded industry, CycleBar is focused on building immersive, dynamic workout experiences, featuring specially-trained instructors, thrilling music playlists, and rider-specific performance tracking.
Note: The franchises referenced in the above list were taken from Entrepreneur’s 2023 list of the best gym franchises to buy, and then ordered by the number of current locations.
Is Now a Good Time to Buy a Health and Fitness Franchise?
Yes! If you are passionate about health and fitness and can cover (or finance) the upfront costs, it’s as good a time as ever to get in on the game. Overall, the gym and fitness franchise market size exceeds $7 billion (up 2.6% from 2022). And it’s not just 2023: from 2018 to 2023, the market size has grown by nearly 1% each year!
Like most industries, the health and fitness industry isn’t just growing, it’s growing more specialized—largely in response to customers’ increasingly diverse interests, expectations, and preferences. A recent Health Club Management survey identified a number of emerging and niche fitness interests that represent opportunities within the market, such as:
Specific training regimen(s), such as strength training with free weights, body weight training, High-Intensity Interval Training (HIIT), or working with a dedicated personal trainer.
Specific areas of focus or health objectives, such as tech-enhanced training, fitness programs tailored to adults or seniors, functional fitness, weight loss, and outdoor training.
Flexible workout schedules, in terms of class lengths, how frequently different classes meet, and the general availability of qualified trainers and high-quality equipment.
Opportunities to fit any budget, as people are increasingly looking for either budget-effective memberships at one end of the spectrum, more expensive or “boutique” experiences at the other.
How Has COVID-19 Impacted Gym Franchises?
To address the not-so-fit elephant in the room, the COVID-19 pandemic has had an impact on the health and fitness industry—as is true with most modern industries. At one point in August 2021, 22% of gyms had closed their doors permanently, largely due to people losing their jobs (and therefore their budget flexibility) and being less willing to share a common space with strangers (for fear of catching or spreading the virus).
At the time, a vast majority of people who identified as “active exercisers” expressed a commitment to return to their gym or gyms of choice as soon as they felt comfortable doing so. Meanwhile, however, it has been reported that “42 percent of U.S. adults gained weight during the pandemic,” and “excessive alcohol consumption” increased by 21%.
Post-COVID: The Return
Slowly but surely, workout enthusiasts have been returning to their gyms, or even using the lapse of time as an opportunity to see what other gyms might have to offer. This presents a great opportunity for franchisees to help those in their communities re-commit themselves to their overall health and well-being by providing the kinds of workout experiences that will motivate them and keep them coming back.
How Should I Evaluate Health and Fitness Franchise Opportunities?
So, what’s the best gym franchise to own in 2023? That depends on a lot of factors, including your personal reasons for getting into the industry, the type of customers you want to attract, how a particular gym stands up to its competitors, and more. That being said, here are a few things to look for as you evaluate your opportunities:
Popularity | Choosing to open a popular franchise comes with its advantages and disadvantages. On one hand, a popular franchise with hundreds or thousands of locations can feel like a pretty safe bet, and you won’t have to expend much effort in generating brand awareness. On the other hand, the more popular the franchise brand is, the less independence you might have to “make it your own.” In 2022, the most popular gym chain in America was Planet Fitness, followed by LA Fitness, 24 Hour Fitness, Gold’s Gym, and Anytime Fitness.
Competition | As you narrow down your list of potential gym franchises to explore, you’ll want to consider how much competition you might face within the industry and in your geographical area. Seeing a lot of competition isn’t necessarily a bad thing, as long as you’re up for the challenge of standing out. Similarly, if you don’t see much competition, that’s not necessarily a good thing; after all, maybe there’s a reason people aren’t opening a lot of gyms in your area.
Mission | Even though you, as a franchisee, aren’t tasked with developing a brand identity and mission statement, you’ll be expected to represent it. In order to prevent frustration down the road, spend a little time researching different health and fitness franchises. Pay special attention to their official mission or vision and how they promote themselves as a potential franchisor. Many gym chains’ websites will prominently feature this information.
Cost | This should go without saying, but even with a number of financing options available, it’s important to make sure you don’t overextend yourself. When you’re trying to get your gym up and running, the last thing you want is to immediately feel like you’re stuck on a treadmill. Always consider not only the franchise fees, but the upfront and recurring costs, as well.
Vibe | What does your day-to-day look like when you envision yourself as a franchise owner? Find a franchise that seems like the kind of idea or approach you would have come up with in your dream arrangement. What gets you up in the morning, ready to work? What energizes you about entrepreneurship and leadership? What are your strengths and weaknesses as they relate to business acumen? As you review the details of different health and fitness franchises, try to zero in on the “little things” that matter most to you. Do your research, and don’t be afraid to ask questions as you work through the process!
The Top 5 Gym Franchises Worth Your Consideration
By considering key factors related to individual health and fitness franchises—like popularity, competition, mission, cost, and fit—you can start generating your own list of ideal franchise opportunities. Based on these factors, here are the top 5 gym franchises you should consider:
Anytime Fitness
F45 Training
Club Pilates
Pure Barre
CycleBar
Next, we’ll briefly highlight what makes each of these brands unique, when each was founded, and how much you’ll need to invest to get in on the action.
Anytime Fitness
If you want to own a popular gym franchise that promises to be “Real AF” with its members and create an environment supportive of their entire well-being, Anytime Fitness could be a perfect fit for you.
Founded: 2002
Minimum Cash Required: $40,000
F45 Training
If you prefer a dynamic, intense workout environment, F45 Training might be a great fit. F45 promises its members “innovative, high-intensity group workouts that are fast, fun, and results-driven.”
Founded: 2011
Minimum Cash Required: $60,000
Club Pilates
Club Pilates has built a following by providing its clients with “the best full-body Reformer Pilates classes, transforming thousands of lives.”
Founded: 2007
Minimum Cash Required: $50,000
Pure Barre
Whether someone is a beginner, an expert, or something in between, Pure Barre offers low-impact, full-body workouts that can transform a person both “physically and mentally.”
Founded: 2001
Minimum Cash Required: $100,000
CycleBar
While it may be the most famous, SoulCycle’s not the only cycling-centric fitness provider. CycleBar offers a range of “interval-packed, rhythm-based” workouts in a vibrant environment.
Founded: 2004
Minimum Cash Required: $100,000
Ready to Find Your Ideal Opportunity?
FranchiseOpportunities.com is home to countless franchises across several industries and investment levels. To learn more about the franchises that are available for purchase today, browse our list of health and fitness franchises.
If you’re still not sure whether franchising is for you, you can also browse our resources page. There, you’ll find more in-depth information about franchise ownership, financing options, frequently asked franchising questions, and more.
