The most profitable gym franchises of 2024

Gym franchises seem to be popping up everywhere these days. If you’ve noticed that in your community, it stems from a growing demand for facilities where people can play sports, swim, work out on fitness equipment, and/or participate in classes that range from yoga and pilates to aerobics and Zumba – and gym franchises fill that need. But with so much diversity of gym and fitness options, how do you choose the right option for your investment goals, lifestyle, and expertise? And how can you choose the most profitable option? 

In this article, we cover those questions and more by discussing:

• What makes a great gym franchise
• Why you should invest in gyms
• The most profitable gym franchises of 2024

Read on to find out what you need to know about researching your options.

What makes a great gym franchise?

Gym franchises have a few factors that differentiate them from other types of franchises; but ultimately, they are franchise businesses. Because of that, many factors that make a typical franchise profitable will also apply to gyms.

Strong margins

When looking for the most profitable gym franchises, strong margins matter. Since most gyms and fitness businesses operate on monthly subscription models, you can use subscription business metrics like monthly recurring revenue (MRR) and annual recurring revenue (ARR) to get an idea of how profitable a gym is.

A gym franchise’s typical expenses will be rent, utilities, and staff payroll, plus payments on leased or capitalized expenses such as equipment. But because gym businesses run on subscription, the accounting and cash flow for these businesses is predictable. That makes it easier to maintain standard, profitable margins. 

Proven systems

All franchises succeed through well-oiled systems that owners can replicate for success. For gyms, the most important systems enable acquiring and retaining members.

You can look at a gym franchise’s average attrition rate or ask about metrics like average revenue per user. You can also examine the gym’s LTV:CAC ratio, which refers to the lifetime value of a customer (LTV) divided by the customer acquisition cost (CAC). Another option is to review the franchise’s marketing and business plan, as it will outline how locations become and remain profitable.

Likewise, these proven systems criteria apply to the process of franchising. How does the franchise train new franchisees? Do they offer training and support for hiring and vetting staff like front-desk workers and physical trainers?  

Network availability

Network reach and availability are important to franchise success. Choose a franchise that balances a well-established regional presence with sufficient network availability – which matters for many reasons. Local regulations can interfere with the systems a gym has in terms of setup or operations, and well-recognized brands also make it easier to acquire new customers.

Strong network availability across diverse locations is often an indication of growth potential.

Demonstrated growth

While gyms can have diverse revenue streams, the majority of a gym’s revenue should come from monthly membership subscriptions. When evaluating potential gym franchises, make sure membership subscriptions have trended upward over time.

As you scrutinize a gym franchise’s number of signups, pay attention to the attrition rate. If a gym is consistently churning members across franchise locations, it could be a red flag. Look closely at growth numbers to ensure customer retention holds up. For added context, review the cancellation process of a gym; restrictive membership contracts might obscure attrition rates. Overall, make sure the brand has a strong reputation for creating happy, long-term customers.

Why invest in gyms?

Along with putting your money toward a sector that promotes community longevity and health, there are plenty of other reasons to invest in gym franchises. Let’s take a look.

Benefits of gym businesses

Investors often choose gym and fitness franchises for the benefits of the business model.

Subscription model business: The subscription model that most gym franchises follow has many advantages. For example, it keeps revenue predictable, making it easier for the franchise to make strategic investments in new equipment or staff, and that leads to expanded offerings. This relative stability of subscription model businesses makes it a more reliable business model.

Diverse revenue streams: Gym franchises can benefit from more than just one offering. As gateways into the greater health and wellness industry, gym franchise owners can diversify their offerings with nutritional coaching, personal training, group classes, mindfulness and meditation classes, and massage therapists, among others.

Health and wellness growth: According to a November 2023 news release from The Global Wellness Institute, the health and wellness industry reached $5.6 trillion in 2023 and is projected to hit $8.5 trillion by 2027. Obviously, this is an industry that’s primed for massive growth, and while the best time to get in was a few years ago, the next best time is now.

Most profitable gym franchises of 2024

Now that you know why gyms can make great investments, here are our picks of the most profitable gym franchises of 2024.

Workout Anytime

Douglasville, Georgia-founded Workout Anytime offers 24-hour gyms so members can work out anytime. Most locations offer a mixture of personal training, free weights, cardio and strength equipment, and group training classes, with select franchises offering services like cryoLounges and hydromassages.

Fast facts

• Locations: 179
• Founded: 1999
• Franchised: 2005
• EBITDA: Not disclosed
• Startup cost: $784,950 – $2,073,050
• Franchising fee: $35,000

P-Fit

Platinum Fitness, often called P-Fit, is committed to combating the rising obesity crisis in America through one gym at a time. Although P-Fit has a low number of open locations, the company’s EBITDA speaks for itself – and this is one franchise to watch as it grows.

Fast facts

• Locations: 2
• Founded: 2016
• Franchised: 2020
• EBITDA: $226,549
• Startup cost: $155,500 – $370,000
• Franchising fee: $40,000

Orangetheory Fitness

Orangetheory Fitness is a massive gym franchise with locations on every inhabited continent except Africa. Its massive growth can be attributed, in part, to the company’s unique model that uses a full-body heart rate zone and strength training workout in a fitness class setting.

Fast facts

• Locations: 1281
• Founded: 2010
• Franchised: 2010
• EBITDA: Not disclosed.
• Startup cost: $613,129 – $1,644,519
• Franchising fee: $59,950

Fitness: 1440

Fitness: 1440 is a 24-hour gym that offers many of the standard extras of modern gyms – like saunas and group fitness classes – with an extra treat: the ability to watch your favorite films on high-definition TVs while exercising in the “cinema.”

Fast facts

• Locations: 31
• Founded: 2009
• Franchised: 2011
• EBITDA: Not disclosed.
• Startup cost: $50,000
• Franchising fee: $369,000 – $1,942,000

SPENGA

Spenga combines the three pillars of fitness – “ride,” “rep,” and “revive,” corresponding to spin, strength training, and yoga – to create the “Best. Workout. Ever.” With 60+ active locations across the United States and growing, this is one gym franchise to watch.

Fast facts

• Locations: 300
• Founded: 2014
• Franchised: 2015
• EBITDA: $186,423
• Startup cost: $287,077 – $861,122
• Franchising fee: $49,500

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