The fitness franchise industry is experiencing robust growth, driven by consumer preferences and innovative business models. As health consciousness rises and workout habits shift, the sector shows promising opportunities. Recent data reveals several key trends shaping the future of fitness franchising.

  1. The number of franchise establishments in the U.S. grew by 2.2% in 2023, reaching 806,270 units, with a projected increase to 821,589 units in 2024. Americans spend an average of $286 per month on health and fitness-related activities and services (Franchise Clues).
  1. According to IBISWorld, fitness franchises saw a 4.9% annualized revenue growth over the past five years, reaching $2.9 billion. Projections indicate that revenue could increase at a 5.4% annualized rate to $3.7 billion as we approach 2025, with demand driven by a growing base of gym-goers, especially among baby boomers and younger generations (Guidant Financial).
  1. 73% of fitness franchises perform best in areas with median household incomes above $75,000 and population densities of at least 50,000 within a 5-mile radius (Franchise Times Market Analysis).
  1. The global fitness industry is projected to reach $115.6 billion by 2026, growing at a compound annual growth rate (CAGR) of 7.3% (Sharpsheets).
  1. About 89% of successful fitness franchises offer hybrid membership models combining in-person and digital services, up from 35% in 2019 (Fitness Industry Technology Council).
  1. In 2023, the total revenue generated by the U.S. franchising industry was estimated at $858.5 billion, with a forecast of $893.9 billion for 2024, indicating a steady growth trajectory (Franchise Clues).
  1. Recent fitness industry data shows a striking pattern in gym membership growth. While mid-range facilities charging $24-74 monthly saw modest success, the extremes of the market experienced the most dramatic expansion. According to the Health & Fitness Association, premium gyms ($75-99 monthly) enjoyed a robust 21% increase in memberships. Even more remarkable was the budget segment (under $25 monthly), which surged by 69%. Meanwhile, traditional mid-market health clubs posted a modest 2% growth.
  1. Average profit margins for fitness franchises range between 16.5% to 22.8%, with premium boutique concepts achieving higher margins up to 30% (FranData Industry Analysis).
  1. The average initial investment for a fitness franchise typically ranges between $250,000 and $500,000 depending on the brand, location, and size of the facility, with factors like franchise fees, leasehold improvements, equipment costs, and initial marketing expenses all contributing to the total amount needed to open a gym franchise (Franchise Business Review).
  1. The average time to achieve positive ROI for fitness franchises is 2.3 years, with low-overhead models reaching profitability in as little as 18 months. (Entrepreneur Magazine’s Franchise 500).

This article originally appeared in ATN’s Fitness & Wellness Franchise Outlook Report, which explores the essential questions that can help determine if a franchise aligns with your personal and professional aspirations. Download the free report.