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Buying a Fitness Franchise Rate Quotes
Have you ever dreamed of opening a gym? Imagine the dual benefit of becoming your own boss and helping people in your community achieve their fitness goals.
Because health care is a booming industry - even in tough economic times - gyms and health clubs are popular franchise opportunities. They offer significant earning potential with the added benefit of built-in name recognition.
Cost to Start a Fitness Franchise
There are a variety of fitness franchises from which to choose and startup costs vary from one brand to another. The total upfront investment is usually anywhere from $30,000 to $300,000, depending on the franchise and location.
Included in that cost is what's known as the initial franchise fee. This is the fee you pay in exchange for using the company's name. Most often, franchise fees range from $15,000 to $30,000 for fitness franchises.
Most gym franchises publish a list of the fees and costs associated with starting a franchise. Below is a sampling of the estimated total startup costs for several popular franchises:
- Koko Fit Club, a newer chain that offers automated personal training, estimates the total upfront investment to be $143,000 to $258,000. The franchise fee is $30,000.
- Anytime Fitness, a 24-hour key club, estimates that the total initial investment is $44,074 to $300,074.
- The initial investment to start a Snap Fitness, another 24/7 key club, begins at $77,000 and usually doesn't exceed $250,000, including all necessary working capital. The franchise fee is $15,000.
- The initial cost to open a Curves, a gym designed for women, is $24,000, plus an additional $2,000 to $3,000 for delivery of equipment.
Keep in mind that some fitness chains only award franchises in multiples. Koko Fit Club, for example, requires owners to start with at least two clubs. The company also requires the owners to have liquid assets of at least $300,000.
Cost to Own a Fitness Franchise
In addition to the startup costs, you'll also be expected to pay recurring fees known as royalties. Royalties pay for continued use of the brand name, as well as advertising, and other support from the parent company.
Some fitness franchises collect a percentage of your gross revenues as royalties. These can be billed on a weekly, monthly or annual basis. Other gym franchises charge flat monthly fees, per-customer fees, or a combination of both.
- Koko Fit Club charges a flat rate of $395 per month, plus an additional $4 per month for each club member.
- Anytime Fitness charges a flat rate of $499 per month.
- Snap Fitness charges a flat rate of $449 per month.
- Curves charges 5% of your gross revenue, with a minimum of $195 per month and a maximum of $795. The company also charges a 3% advertising fee with a minimum of $95 per month and a maximum of $395 per month.