Are Fitness Franchises Profitable in 2025?

The fitness industry isn’t slowing down—it’s evolving. According to IBISWorld, there were about 93,500 gym, health, and fitness club businesses in the U.S. in 2024, with projections nudging up slightly to 93,900 in 2025. At the same time, research from L.E.K. Consulting shows that 77 million Americans held health club memberships in 2024—a sign of strong, ongoing consumer demand.

For many independent gym owners, breaking through the noise might feel overwhelming. That’s why many entrepreneurs are turning to fitness franchises. Names like Anytime Fitness, Planet Fitness, Orangetheory, Crunch, and Fitstop come with instant recognition, proven systems, and built-in support. Anytime Fitness even became the first franchise to operate on all seven continents—a sign of just how far franchising can take you.

But here’s the big question: Are fitness franchises profitable in 2025? And if so, what makes them a smarter bet than going it alone?

In this article, we’ll unpack what a fitness franchise really is, the factors that drive profitability in today’s market, and which brands are leading the way in 2025.

What is a Fitness Franchise?

First, at its core, a franchise is a business model where the owner (the franchisor) grants another person (the franchisee) the right to operate a location under their brand. The franchisee follows the franchisor’s systems, pays fees and royalties, and benefits from the brand’s reputation and infrastructure.

In fitness, that means you’re running your own gym or studio—but with the backing of a recognizable name. Fitness franchising offers a head start in a competitive market because you’re not building from scratch.

Opening a fitness franchise in 2025 usually involves:

• Signing a Franchise Disclosure Document (FDD) that outlines rights and responsibilities.

• Paying upfront franchise fees and ongoing royalties.

• Training your staff in the franchisor’s standards.

• Using approved equipment, technology, and marketing tools.

The trade-off? You gain brand power, proven systems, and expert support, but you give up some creative freedom. For example, you can’t just reinvent the class schedule or launch a new app if it conflicts with the brand’s consistency.

And the truth is: even with a strong franchise name, success isn’t guaranteed. It still needs hustle, smart operations, and community connection. Realistically, the franchisor provides the playbook—but it’s your execution that determines profitability.

Are Fitness Franchises Profitable in 2025?

So, to answer the question, “Are fitness franchises profitable’ the short answer is: yes—but it depends.

Our industry research indicates that gym franchise owners typically earn between $65,000 and $90,000 annually, with top performers reaching $200,000 or more, and some rising as high as $399,000 depending on brand, location, and operational skill.

• Planet Fitness, for example, continues to dominate with thousands of locations and healthy profit margins. Its model of low prices and high volume consistently drives strong returns.

• Fitstop, an Australian-born chain now expanding globally, generated more than $1.2 million in weekly revenue across its studios in 2024—proof that well-run franchises can scale fast.

• On the flip side, Mayweather Boxing + Fitness lost over half its U.S. locations by 2025, leaving some franchisees with heavy losses. Celebrity-backed doesn’t always mean sustainable.

The takeaway? Franchises can absolutely be profitable—but choosing the right brand and operating it well makes all the difference.

Startup and Upfront Costs

Next, franchise profit potential comes with significant costs. So, before you ever welcome your first member, expect to pay for:

• Franchise fees 
•  
• Royalty fees (often 5–8% of monthly gross revenue).

• Real estate and build-out (prime locations mean higher costs).

• Equipment and technology (sometimes franchisor-approved vendors only).

For context:

• Anytime Fitness requires a $42,500 fee plus $699/month royalties.

• Planet Fitness charges a one-time $10,000 fee, but takes 7% of gross sales.

• Crunch Fitness requires a net worth of $1 million and liquid capital of $300–400K.

Compared to opening an independent gym (which can cost $10K–$50K), franchising is a bigger upfront commitment—but often comes with faster ROI.

What Affects Your Profit Margins?

Next, even under a strong brand name, profitability isn’t automatic. Margins are shaped by several factors, starting with location. For example, urban areas tend to come with higher rents but also greater traffic potential. Just as important is operational excellence: clean facilities, well-trained staff, and attentive customer care can set a franchise apart. 

And, while franchisors provide national or regional campaigns, local marketing—from social media engagement to community events—often makes the difference in building loyalty. 

Next, profitability also increases when owners establish diversified revenue streams, such as personal training packages, recovery services like saunas or cryotherapy, merchandise, and hybrid memberships. 

Finally, strict cost control—through smart rent negotiations, regular equipment maintenance, and efficient class scheduling—helps protect and maximize margins.

What Factors Make Fitness Franchises Profitable?

1. Brand Recognition
   Consumers know what to expect, making acquisition faster and easier.

2. Established Customer Base
   Strong brands often come with loyalty programs and built-in demand.

3. Proven Business Model
   Following a tested playbook means fewer mistakes and quicker profitability.

4. Equipment Deals
   Franchise networks secure bulk discounts on equipment and software.

5. Training & Support
   Franchisors provide staff training, systems, and ongoing education.

6. Expert Resources
   From marketing teams to real estate advisors, franchisees get access to expertise that independents rarely have.

In 2025, many franchisors also include digital platforms (apps, CRMs, livestream options), which give franchisees an edge in the hybrid fitness landscape.

5 of the Most Profitable Fitness Franchises in 2025

1. Planet Fitness

• Franchise fee: $10,000 (10-year renewable agreement)

• Royalty fees: 7% of monthly/annual membership sales

• Known for high volume + affordable pricing model

2. Anytime Fitness

• Franchise fee: $42,500

• Royalty fees: $699/month

• Over 5,000 clubs worldwide, spanning all seven continents

3. Crunch Fitness

• Franchise fee: $25,000

• Requirements: $1M net worth, $300K+ liquid

• Royalty fees: 5% gross monthly sales

• Known for affordability + variety in classes

4. Orangetheory Fitness

• Franchise fee: $42,500–$49,500

• Royalty fees: 8% of gross sales

• Premium boutique with tech-driven workouts

5. Fitstop (emerging global player)

• Franchise fee: varies by market

• Weekly revenue: $1.2M+ across network in 2024

• Growing rapidly in the U.S., Australia, and beyond

(UFC Gym, Gold’s Gym, and Pure Barre remain solid options, but the five above dominate 2025 profitability conversations.)

Final Thoughts on Franchises and Profitability

Running a fitness franchise in 2025 can be profitable and rewarding. But it’s not a golden ticket. You’ll need to weigh upfront costs, ongoing royalties, and operational demands against the benefits of brand recognition and proven systems.

The most successful franchisees are those who:

• Choose the right brand for their market.

• Diversify revenue streams beyond memberships.

• Leverage franchisor support while building strong local communities.

So, with the right approach, owning a fitness franchise in 2025 has a strong potential to turn competition into opportunity—and deliver the profits you’re after.

💡 Pro tip: Gym management software like ABC Glofox can help you streamline operations, manage staff, track analytics, and grow your bottom line faster. Book a free demo to get started.