How much do top gym owners make?
| Annual Salary | Monthly Pay | |
|---|---|---|
| Top Earners | $122,000 | $10,166 |
| 75th Percentile | $104,000 | $8,666 |
| Average | $70,185 | $5,848 |
| 25th Percentile | $29,000 | $2,416 |
Not only can opening a gym be profitable, but it can also be very satisfying. Getting started in the fitness industry is not difficult if you have the know-how and equipment to start this type of business. You will first need to have some experience in the fitness industry to open your own gym.
According to Investopedia, most franchise owners take home around $50,000 per year, but about 7% of franchise owners earn more than $250,000 per year. You have to be aware of some fees and additional costs because these will quickly cut into your profit margins.
So, do gyms make money? Yes, they certainly can. However, it is important to keep in mind that running a gym is a business, and like any business, there are costs associated with operating the business. In order to make a profit, gyms need to bring in enough revenue to cover all of their costs and then some.
According to a report by ZipRecruiter, a Gym Owner in the USA can make anywhere from $17,000 to $187,500 per year depending on the above-mentioned factors. A good average would be $69,794 per year which makes $5,816 per month. These figures can also vary due to the area or state in which the gym is operating in.
#1: Planet Fitness
They used those two insights to create the environment, both in attitude and format, for their gym.
- The cost of maintaining a gym can be expensive, especially if you need to purchase or lease equipment on a set time table.
- You may need to hire staff to help run the gym, which can add to your expenses.
It can be difficult owning a gym when members cancel their memberships or choose not to renew. Acquiring members has its highs and lows depending on the time of the year as well, which can be stressful when new memberships are lacking.
Opening a gym can be tough and the first year of running any small business is a steep learning curve, especially the first time of asking. There will be a lot of challenges and adversity along the way and moments where you feel like giving up.
For example, in our 2021 study we found that 85.3 percent of the gyms that spend over $20,000 a month are profitable, while only 65.7 percent of gyms that spend at least $6,503 turn a profit. This data doesn't imply that prosperous gyms are successful because they spend more than their counterparts.
What percentage of gyms are successful?
| Characteristic | Share of gyms |
|---|---|
| Less than 3 years | 52% |
| 3 to 5 years | 68% |
| 5 to 8 years | 63% |
| More than 8 years | 68% |
The bottom line is that while a franchise can make you independently wealthy, it isn't a guarantee. Choosing the right business in the right industry, and going in with preexisting entrepreneurial experience and/or existing wealth can help, but your income-generating potential may still be somewhat limited.
Higher profits: Franchises typically see higher profits than non-franchise businesses, as there is a loyal customer base and formula for success. While the initial investment to open a gym franchise can be high, you'll likely turn a profit more quickly.
When you go to sell a Gold's Gym franchise based on the median multiple of . 67 and net sales in 2021 of $1,268,000, it would sell for $849,560.
Keeping all members happy all the time is a difficult part of owning a gym. As a gym owner, you genuinely want to offer the best experience for each and every member, but as each one's needs are different it can be very challenging. Consistently unhappy members can be a challenge to retain.