Some of society’s most goal-oriented people live and thrive thanks to a health and fitness lifestyle. However, simply going to a gym is not nearly the same as owning the gym that others visit. As 2023 passes by, many people are looking to bounce back post-pandemic. This transition leads them into the sportiest of spaces to satisfy their hunger for gym-driven habits.
Fortunately, having future gym owners like you keeps interests in opening, managing, and utilizing health and fitness franchises alive. As people return to fitness centers, getting their weekly reps in, they have franchisees to thank along the way! All things considered, exactly how successful are gym owners? Let’s delve deeper into the world of fitness franchises, stretching not only the muscles of your body, but equally the muscles of your mind.
Is Owning a Fitness Franchise Profitable?
Owning a fitness franchise can be quite profitable when you establish a productive, working relationship with your franchisor throughout the process.
Generally speaking, most franchisees earn around $50,000 each year, while about 7% of franchisees take home more than $250,000 a year. The average gym profit margin for franchise gyms sits at an even 10% as the demand for large fitness facilities fluctuates back into favor in 2023 and beyond.
For other varieties of gyms, the average profit margin can range from anywhere between 10% and 30%, but here’s a quick list to help you get the gist:
- For independent gyms, the IHRSA reports an average profit margin of 10-15%.
- Pilates and yoga studios have a 20-30% average profit margin.
- Aquatic centers have a profit margin of 10-15%.
- Crossfit boxing studios and boutique fitness centers have a profit margin of 30%.
According to Statista, over 50% of gyms open for no more than three years reported notable profitability in the United States as of November 2020. Likewise, nearly 70% of gyms that are eight years or older reported they were profitable as well. In essence, investing in a gym franchise can certainly be profitable.
But, there is much to be said about the varying amount you could passively earn when investing in a fitness franchise.
Is Owning a Gym Passive Income?
The short answer is yes, but becoming a franchisee with a fitness franchise is merely one small step on the path to a profitable project. If you manage your business investment properly, gym franchises can be an excellent source of passive income..
Passive income often implies that you’re gaining funds while doing very little. While income accrued from owning a gym franchise can be passive, this isn’t always the case if you’re running your gym with barely any assistance. The opportunities to increase your passive income begins with a helping hand or two. As a franchisee, you may not be expected to hire a team to assist you in running your gym, but the impact of assembling a dedicated staff is greatly beneficial long term—and it can move you toward creating a passive income stream.
Additionally, investing in a franchise often removes a lot of the uncertainties that come with running a profitable business. You’ll spend less time focusing on how to run your fitness franchise, permitting you more chances to increase its profitability with your handcrafted team!
How Profitable Is Owning an Anytime Fitness?
Yes, owning a gym franchise, like Anytime Fitness, is profitable! However, the most successful Anytime Fitness centers usually have a fair amount of funds put into the initial investment by the franchisee.
If you put aside the size of the brand, that often still leaves you with one important question unanswered: is it worth it to own a franchise like Anytime Fitness? It absolutely can and will be worth it to own a fitness franchise as long as you have all the tools to invest with success.
How Do You Go About Investing in a Gym Franchise Successfully?
Investing in a gym franchise may have its trials, but there are several steps you can take to ensure success once you’ve invested. Before getting started, every potential franchisee is required to review and sign a Franchise Disclosure Document (FDD). This legal document essentially lays out all the details of the agreement between the franchisor and their prospective franchisee.
As the franchisee, the FDD you sign highlights everything you’ll receive in this collaborative partnership with the franchisor. Franchisors are expected to offer support once you seal the deal, but that support could resemble virtually anything, so it’s important to review this document carefully. Here are some of the ways in which franchisors may provide support to franchisees:
- Offering management training at various levels.
- Providing brand recognition.
- Sharing a business model that is pre-built, ensuring that the franchisee won’t need to draw up plans on their own.
- Giving the franchisee a support system with easy access to ask tough questions.
Overall, there’s an undeniable understanding of success you experience when signing and working with a franchisor. If you’re opening a gym independently, you’re far less likely to experience this because you won’t have a proven business model behind you
What’s the Best Gym Franchise?
Franchise Opportunities provides visitors with an extensive catalog of health and fitness franchises to pick from. No two individuals will have identical fitness endeavors, making it crucial to consider your personal goals before selecting a gym franchise to invest in. The options for fitness franchises also vary in cost and fees, so your decision should center whatever budget you might have in mind.
The best gym franchise to own and invest in will depend on your passion and willingness to expand and learn under a well-recognized brand. The Franchise Opportunities catalog guides you with a convenient search tool for your specific location, industry, and amount you intend to put in your investment. With Franchise Opportunities, the list of fitness and gym franchises is substantial. Your next challenge is choosing just one!