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Anytime Fitness Franchise ProfileFitness Franchises > Gyms |
What Are the Initial Investment Requirements for an Anytime Fitness Franchise?
To open an Anytime Fitness franchise, you should expect to make an initial investment ranging from $397,516 to $973,121. The initial franchise fee is $42,500, which grants you access to the brand and its support. In addition to this upfront cost, you will need a cash reserve of at least $42,500 and a net worth between $200,000 and $300,000 to qualify for ownership. This financial commitment lays the foundation for your franchise journey.
What Are the Ongoing Fees Associated with an Anytime Fitness Franchise?
Owning an Anytime Fitness franchise comes with ongoing fees that are crucial to budget for. The royalty fee is set at 7% of your gross revenue, providing you with continued access to the brand's resources and support. Additionally, a marketing fee of 2% is required to help promote the brand and attract new members. These fees are essential for maintaining the franchise's competitive edge in the fitness industry.
What Is the Average Revenue Potential for an Anytime Fitness Franchise?
An Anytime Fitness franchise has impressive revenue potential, with an average annual revenue of $495,359 per unit. The median annual revenue stands at $438,422, showcasing the brand's ability to generate income. While the lowest reported annual revenue is $306,705, some units achieve as much as $757,612. This range indicates a robust business model with opportunities for growth, especially in well-selected markets.
What Is the Expected Timeline for Profitability with an Anytime Fitness Franchise?
Franchisees can anticipate a breakeven time of approximately 18 months, which is relatively quick in the franchise world. After reaching breakeven, the investment payback period is estimated at 28 months. This timeline suggests that with effective management and marketing strategies, franchisees can start seeing a return on their investment in a reasonable timeframe, making it an attractive option for aspiring business owners.
Anytime Fitness Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Anytime Fitness Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 2347 | 2330 | 2310 |
| Net Change YoY | -17 | -20 | |
| Franchised Units | 2334 | 2318 | 2298 |
| Net Change YoY | -16 | -20 | |
| Corporate Units | 13 | 12 | 12 |
| Net Change YoY | -1 | 0 |
Franchise Overview
Anytime Fitness is a global fitness franchise known for its 24/7 gym access, catering to a wide demographic of fitness enthusiasts. Founded in 2002, the brand has rapidly expanded, boasting thousands of locations worldwide. With a focus on convenience and community, Anytime Fitness provides members with a supportive environment to pursue their health and fitness goals, making it a popular choice for both new and seasoned fitness enthusiasts.
Investment Details
Starting an Anytime Fitness franchise requires a significant investment, with initial costs ranging from $397,516 to $973,121. The initial franchise fee is set at $42,500, and franchisees are subject to a 7% royalty fee on gross sales, along with a 2% marketing fee. Prospective franchisees should also have a net worth between $200,000 and $300,000, ensuring they are financially equipped to launch and sustain their business.
Financial Performance
The average annual revenue for an Anytime Fitness unit is approximately $495,359, with a median revenue of $438,422. Revenue can vary significantly, with the lowest at $306,705 and the highest reaching $757,612. Franchisees can expect a breakeven period of about 18 months, and an investment payback period of approximately 28 months, making it a potentially lucrative opportunity for dedicated operators.
Operational Insights
Franchisees face average annual operating expenses of $337,884, which include costs such as rent, personal training expenses, and royalties. Key expenses include $116,451 for rent and common area maintenance, and $103,511 for personal training. Understanding and managing these costs effectively is crucial for maximizing profitability and ensuring the sustainability of the franchise.
Franchise Growth
Anytime Fitness has maintained a strong presence in the fitness market, with a slight decline in the number of franchised units from 2,334 in 2021 to 2,298 in 2023. Despite this, the franchise continues to expand its footprint and adapt to market demands, indicating a resilient brand that remains committed to its franchisees' success.
Support and Training
Franchisees of Anytime Fitness benefit from comprehensive support and training provided by the franchisor. This includes assistance in site selection, marketing strategies, and ongoing operational guidance. The franchise’s commitment to supporting its franchisees fosters a collaborative environment, helping new owners navigate the challenges of running a fitness center while focusing on member satisfaction and retention.
Frequently Asked Questions
The initial investment for an Anytime Fitness franchise ranges from $397,516 to $973,121. This includes the franchise fee of $42,500 and other startup costs such as equipment and leasehold improvements.