Many fitness professionals, from personal trainers & powerlifting coaches to yoga instructors & martial arts teachers, dream of becoming business owners. It isn’t always their first choice, but opening a fitness franchise could be the best one for success, stability and growth.
Why is this? Some of the most popular and successful franchises in the United States are gyms and other fitness businesses. In fact, many cracked Entrepreneur’s 2023 Franchise 500 list. Another figure for context: The fitness franchise industry makes up about $6 billion of the broader $35 billion fitness industry.
Before you begin your journey, however, you should know that opening and operating a franchise business is different from opening an independent gym. There are different hurdles, obligations and expectations, and, of course, financial realities. Franchising a gym requires a large investment and a long commitment. Below, we cover what that investment entails, the pros & cons of opening a fitness franchise, and a list of the 10 top gym & fitness club franchises to own.
Why Open a Gym Franchise?
There is a level of give and take to consider when opening a fitness franchise. Here is a list of points to think about.
Pros:
**Name Recognition: ** One of the most difficult aspects of running an independent fitness business is building your brand and reputation in a sea of competition. This difficulty sorts itself out when you franchise a well-known fitness brand with an established member base.
Marketing: The franchisor most likely handles all the marketing and advertising, from the high-level messaging to seasonal promotions.
Set business model: Established franchises already know how to build a successful business and sell gym memberships.
Consistent Support & Growth: Franchisees can count on the regular support of their franchisor, from the initial stages of opening and onward. Resources and consistent training on new software, hardware, equipment, strategies, rules and regulations are always available.
High Profit Potential: The initial investments required to open certain gym franchises can be high, but franchises usually see higher profits than other kinds of gyms. This is because they have an established name, formula and membership base.
Cons:
Lack of Independence & Autonomy: This is probably the biggest on the list. While you may own your franchise location, you are still beholden in many ways to your franchisor. As we mentioned above, franchises have formulas that work, and they like to stick to them. They have the final say on things like your business strategy, marketing, location, decor and equipment.
Costs: Despite the higher profit potential of franchises, the initial investment required to open one can be very high. You may be priced out altogether if you don’t have the necessary capital or don’t qualify for a bank loan. There are also several ongoing fees you’ll have to pay to your franchisor, from royalties to term renewal fees.
How to Open a Gym Franchise
After weighing the general pros and cons of franchising a gym or fitness business, do some research into the franchises that make the most sense for you. Learn the different terms, conditions, requirements and fees connected to each franchise. Speak to franchise owners for their input and guidance on the franchising process.
Get the Process Started
Now that you’ve figured this out, it’s time to contact your finalists for more information. The process is straightforward. Fill out a preliminary application on the franchise’s website, after which the franchisor will contact you with more information. Thus begins the application & interview process.
This is more than proving to them that you are financially fit and capable of running a location. Use this time to see if their franchise is the right fit for you as well. Ask pointed questions about rules, agreement length, fees and other aspects.
Eventually, a franchise representative will share their franchise agreement, which includes your:
Franchise Disclosure Document (FDD): Sometimes referred to as Uniform Franchise Disclosure Document, the FDD is a legal requirement and details how the business relationship between the franchisee & franchisor will be conducted.
Term of Agreement: Your term of agreement is the length of time your franchise agreement will last. Franchise terms can be anywhere from 5–20 years but may depend on factors such as the term of your lease. You may have the option to renew your agreement at the end of your term, which often requires a smaller fee than the original franchise fee.
At this point, you will want your business attorney present to review all materials carefully.
Choose Your Franchise’s Location:
This would also be a suitable time to formulate your own business plan. Yes, franchises already have tried and true business plans, but there are other factors to consider—such as where to open your franchise location.
Think about what’s best and most convenient for your target members. In fact, who are your target demographics and who are your competitors? Is the town or city you have your eye on the right market for a Pure Barre or Club Pilates? Or is it better suited to HIIT-based franchises like Orange Theory or F45? The area may already be flooded with Planet Fitness locations and independent gyms, but maybe there’s a demand for yoga franchises, like YogaSix or CorePower. What are the age and gender demographics for the areas you are considering?
A well-thought-out business plan will answer these questions. Speaking of budget & costs…
Gym Franchising Costs
Opening any kind of business can be daunting, especially when considering the many costs you face. These are broken down into several different types, the amounts of which vary per franchise.
Preliminary Gym Franchising Costs:
Initial Franchise Fee: This is a one-time cost paid upfront by a franchisee to a franchisor to join their system. The initial franchise fee is typically due at the signing of the franchise agreement and covers the right to use the franchisor’s trademarks, name & related business systems. It may be a flat fee, though the cost can vary based on factors such as territory size and experience. The initial franchise fee is included in the initial investment amount. Initial Investment: The initial investment is the amount necessary to begin operating the franchise. It includes such startup expenses as real estate, equipment, supplies, business licenses & working capital. It’s possible to take out different business loans to cover your fitness equipment and supplies. Net Worth Requirement: This refers to the minimum net worth you must have to qualify as a franchisee. Figuring out your net worth is straightforward. Take the value of your assets (cash, stocks, retirement accounts, real estate, etc.) and subtract your liabilities (mortgages, car payments & debt). Cash Requirement: This is the minimum capital you must have available to qualify as a franchisee. The term used here is liquid capital, also called quick capital, which refers to assets that can quickly be converted into funds. Ongoing Gym Franchising Costs:
Royalty Fee: Using that well-known brand name had to cost something, right? A fitness franchise’s royalty fee is an ongoing fee paid to a franchisor. This is usually a percentage of your weekly or monthly gross sales, but can also be a flat weekly, monthly or annual fee. Ad Royalty Fee: The ad royalty fee is paid regularly to the franchisor to support system-wide advertising, marketing & brand promotion. It can be taken as a percentage of weekly or monthly gross sales, or can be a weekly, monthly or annual fee.
Top 10 Fitness Franchise Opportunities
From traditional gyms to boutique rowing studios, HIIT, yoga and Pilates, these franchises are some of the most well-known and are experiencing the most growth in terms of new locations opened over the last three years.
The numbers below reflect data as of 2022, and were compiled by Entrepreneur.com’s 2023 Franchise 500 List. We suggest checking out each of these franchises’ websites for more updated and in-depth information.
1. Crunch Fitness
Initial investment: $399K–$7M
As of 2022, there were 408 Crunch Fitness locations operating (+45% over 3 years).
Perhaps known best for their variety of fun and energizing group workout sessions (HIIT Zone being a popular one), Crunch Fitness also offers personal and small group training, as well as plenty of weights and machines. In addition to standard Crunch Fitness health clubs, the franchise also offers Crunch Signature studios equipped with a wider array of equipment & amenities.
2. Anytime Fitness
Initial investment: $382K–$784K As of 2022, there were 5,072 Anytime Fitness locations operating (+12.2% over 3 years).
Boasting workouts and a customer experience that is “Real AF,” Anytime Fitness is a gym that also offers personal training and group workout classes. What truly defines them is their community-based culture, and the free, personalized Get Started Plan that every member gets when they join. Perhaps as a sign of its success, Anytime Fitness gives you the choice to own a single franchise or multiple franchises as a master franchisee.
3. Planet Fitness
Initial investment: $1.6M–$4.9M
As of 2022, there were 2,324 units in operation, up from 1,835 (+25% over the last 3 years) in 2019.
The judgement-free zone. Planet Fitness is instantly recognizable for their logo and iconic ad campaigns. Planet Fitness provides casual to intermediate-level fitness training services, as well as plenty of strength training equipment, treadmills & ellipticals. It is consistently dubbed one the fastest growing fitness franchises in the United States, and the numbers back this up. Planet Fitness is also currently offering new franchisee opportunities worldwide.
4. Orangetheory Fitness
Initial Investment: $589K–$1.6M
As of 2022, there were 1,510 Orangetheory Fitness locations operating (+23.3% over the last 3 years).
OT, as it is colloquially called, combines rowing, cardio & strength building in a heart-pounding 60-minute circuit training workout. In fact, your heart rate will go through 5 different zones defined as resting, easy, challenging, uncomfortable and “All Out.” Each workout is different from the next based on which trainer is conducting the class that day, but the goal is the same: Spend 12 minutes or more with your heart rate elevated in “The Orange Zone” to boost your metabolism, burn fat and burn more calories.
A heart rate monitor worn during one-on-one sessions or group classes records members’ workout results.
5. Pure Barre
Initial Investment: $214–$457K
As of 2022, there were 621 Pure Barre locations (+18.5% over 3 years) in operation.
Also a premium activewear brand, Pure Barre offers musically driven full-body workout classes based on the barre technique: low-impact, high-intensity movements that strengthen and tone your body in 50 minutes or less. Pure Barre fitness studios offer four main workout variations, each with a slightly different focus: Pure Barre Foundations™, Pure Barre Align™, Pure Barre Classic™ and Pure Barre Empower™.
A low-cost option in terms of the required investment, Pure Barre is organized under the Xponential Fitness umbrella, which is the largest global franchise group of boutique fitness brands across a variety of verticals.
6. Row House
Initial Investment: $247K–$483K
As of 2022, there were 93 Row House locations operating (+416.7% over 3 years).
The boutique indoor rowing space is growing in popularity and Row House proves it. Row House’s music-driven group rowing classes are an efficient, full-body strength-building and cardio-enhancing workout for any fitness level. In fact, Row House’s workouts claim to engage over 86% of the body’s muscles. Row House offers multiple class types that incorporate recovery, stretching, core work & interval training.
Like Pure Barre, Row House is a low-cost option organized under the Xponential Fitness umbrella.
7. YogaSix
Initial Investment: $295K–$499K
As of 2022, there were 155 YogaSix studios in operation (+638% over 3 years).
YogaSix styles itself as a modernized yoga brand that promotes accessibility. Studios offer several different class types, including restore, Hot, Power, and Sculpt & Flow. Teachers are also trained in the YogaSix methodology and can choose between 200- and 300-hour training programs.
Like Row House and Pure Barre, YogaSix is organized under the Xponential Fitness umbrella.
8. F45 Training
Initial Investment: $350K–$565K
As of 2022, there were 1,749 F45 Training studios in operation (+66.3% over 3 years).
Founded in 2011, F45 seamlessly blends circuit training and HIIT-style workouts for a functional, fast-paced & heart-pounding hybrid workout. In fact, the F in the name stands for functional and 45 is the number of heart-pounding minutes for each workout. F45 offers franchising opportunities in the US and worldwide.
9. Club Pilates
Initial investment: $186K–$388K
As of 2022 there were 750 Club Pilates locations in operation (+35.4% over 3 years).
Club Pilates is an international fitness brand that emphasizes members’ wellness and offers full-body Reformer-based group Pilates classes. Reformer workouts are also enhanced with other equipment, including mat, TriggerPoint, TRX(R), springboard and EXO-chairs. Club Pilates offers different class variations, including Reformer Flow, Cardio Sculpt, Center + Balance and Restore.
Club Pilates is another comparatively low-cost franchise that falls under the Xponential Fitness umbrella.
10. UFC Gym
Initial Investment $199K–$4.2M
As of 2022, there were 141 UFC Gyms in operation (+8.5% over 3 years).
UFC Gyms are owned by the Ultimate Fighting Championship (UFC), the largest and most recognized mixed martial arts (MMA) promotion in the world. UFC Gyms offer boxing, kickboxing, Brazilian jiu jitsu and youth-based martial arts programs, as well as high-intensity interval training, group fitness classes & virtual personal training services. Certain locations also offer recovery services such as cryotherapy and compression massage therapy.
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Franchising a gym or fitness center brings its own set of challenges but can also be incredibly rewarding for fitness professionals who aspire to own their own business. It just takes the right finances and a lot of research to find the best gym for you. The choice to enter the fitness franchise industry is, ultimately, a deeply personal one based on your expectations and values.
Turning your own gym into a multi-location franchise is also an option for many independent fitness professionals. Vagaro's fitness studio software has all the tools to help grow your gym into a successful multi-location brand, from shared appointment booking, payment processing, gym membership management and marketing tools, to the free Vagaro Marketplace that brings in over 12 million bookings each year for businesses. If you’re thinking of expanding, or if you just want to take your fitness business to the next level, sign up for a free 30-day trial and discover everything Vagaro can do for you!
