How Much Does It Cost To Start A Fitness Facility? (In 2024)
Looking to start a fitness facility?
But curious about:
- how much it costs to start a fitness facility?
- what are the typical fitness facility startup costs?
- or the actual cost of starting fitness facilities?
Well, we have the data to prove it, supported by real fitness facilities and how much they actually cost to start.
Let's go over it.
What is the average cost of starting a fitness facility?
Based on our data reported by actual fitness facility founders, the average cost of starting a fitness facility is between $20,000 and $150,000.
Additionally, our data shows that the the median startup costs for a fitness facility are around $90K.
Remember, though, not all fitness facilities are the same - and neither are people's budgets. It's important to distinguish between different levels or types of fitness facilities
Real World Examples: How much does it cost to start a fitness facility?
We asked real fitness facility founders and business owners how much it actually cost to get started?
Here is what they said:
Paul Dickey and Alec Abend
Founder of Hexbox Fitness ($20K/month)
"Paul and I put in $80,000 of our own and received a personal loan of another $50,000."*
Alec Abend and Paul Dickey are the co-founders of Hexbox Fitness, a state-of-the-art fitness facility offering branded classes and 24-hour member access.
Bryan Greene
Founder of The LOOK Fitness ($40K/month)
"My initial start-up capital came from my very first business and a small SBA loan of $150,000."
Bryan Greene is the founder of The LOOK Fitness, a boutique fitness facility that caters to executives, business owners, and everyday gym-goers in Newport Beach, California.
Kyle Bergman
Founder of Sweat from Home ($25K/month)
"Our startup costs were initially zero. As an adjunct professor at NYU, I was able to use my Zoom account with the school to hold online classes."
Kyle Bergman is the founder of Sweat from Home, an interactive live-streaming group fitness business that started in 2020 and averages $25,000 in monthly recurring revenue.
Ann Rivera
Founder of Sweet n Salty Body Works ($10K/month)
"Machines cost from $1,000 to upwards of $50,000, including training."
Ann Rivera is the founder of SAS Body Works, a body contouring spa that provides a range of specialized services including cavitation and cryo body sculpting.
Jake Rowzee
Founder of Arsenal Health and Fitness ($130K/month)
"Since we would be providing healthcare, we began by working with a legal firm to make sure we went about creating our business the right way. In all, this cost about $15,000 for legal services, setting up the LLC, and drafting the appropriate contracts/documents. This was personally funded from savings."
Jake Rowzee is the co-founder of Arsenal Health and Fitness, a comprehensive health optimization business that brings in around $130,000 per month.
John Zarbock
Founder of BioFit ($20K/month)
"So I opened a personal training studio with $40,000 of used CrossFit equipment I purchased from a Box that closed down and was looking to liquidate everything."
John Zarbock is the founder of BioFit, a personal training studio business that focuses on High-Intensity Training (HIT) with Adaptive Resistance Exercise (ARX) machines.
Enjoyed reading these real world examples?
Our platform is full of case studies of successful fitness facilities that you can learn from.
Starting a fitness facility - what you should know:
Starting a fitness facility requires understanding various costs that can make a substantial difference to your initial investment.
Location Costs
Where you set up your fitness facility significantly affects your startup costs. Urban areas tend to be more expensive, with rental costs ranging from $20 to $50 per square foot annually. In contrast, suburban or rural locations may offer more affordable rates, typically between $10 and $20 per square foot. Remember, a prime location might attract more clients but comes at a higher cost.
Equipment Expenses
The type and quantity of equipment you plan to offer will also impact your budget. Basic setup costs for essential machines like treadmills, ellipticals, and weight stations can range between $50,000 to $100,000. Specialized equipment for niche markets, such as CrossFit or Pilates, may increase your expenses by an additional $10,000 to $30,000.
Licensing and Permits
Don't overlook the costs related to obtaining proper licenses and permits. These can vary by location but typically range from $1,000 to $5,000. This includes business licenses, health permits, and fire safety permits.
Staffing Requirements
Hiring qualified staff is crucial but can also be one of your largest recurring expenses. Personal trainers typically charge between $20 and $40 per hour, and front-desk staff may cost around $10 to $15 per hour. Offering competitive salaries and benefits can help you retain high-quality staff but will increase your monthly expenses by several thousand dollars.
Marketing and Advertising
Initial marketing efforts are crucial for attracting clients. A comprehensive marketing campaign, including online ads, flyers, and social media promotions, could cost anywhere between $5,000 and $15,000 in the first few months. Budget for consistent ongoing marketing to maintain and grow your client base.
Utilities and Maintenance
Ongoing facility costs such as utilities and maintenance should not be ignored. Monthly utility costs usually range between $1,000 and $5,000 depending on the size of your facility and the intensity of use. Regular maintenance for your equipment can add another $500 to $2,000 per month to your expenses.
By understanding these various costs, you can better plan and budget for the successful launch and operation of your fitness facility.
Potential Costs of Starting a Fitness Facility
Starting a fitness facility involves a variety of costs, from initial setup expenses to ongoing operational fees. Below is a detailed table that outlines the potential costs you might incur when establishing a fitness facility.
Item | Description | Estimated Cost |
---|---|---|
Premises | ||
Lease/Rent | Monthly rent for location | $5,000 - $15,000/month |
Security Deposit | Initial security deposit for the lease | $10,000 - $30,000 |
Renovation/Build-Out | Customizing the space to meet your gym's needs | $50,000 - $200,000 |
Utility Setup | Deposits for electricity, water, gas, etc. | $1,000 - $3,000 |
Equipment | ||
Cardio Machines | Treadmills, ellipticals, stationary bikes, etc. | $20,000 - $50,000 |
Strength Training | Free weights, benches, and machines | $10,000 - $35,000 |
Functional Training | Kettlebells, medicine balls, resistance bands | $5,000 - $15,000 |
Flooring | Specialized gym flooring for different areas | $10,000 - $30,000 |
Technology | ||
Management Software | Gym management and booking software | $50 - $200/month |
Website & Hosting | Domain registration, web hosting, and design | $2,000 - $10,000 (one-time) |
Internet | High-speed internet service | $100 - $200/month |
Sound System | Quality sound system for music and announcements | $1,000 - $5,000 |
Security System | Surveillance cameras and security monitoring | $1,500 - $5,000 initial, $50/month |
Staffing | ||
Manager Salary | Annual salary for facility manager | $40,000 - $60,000/year |
Trainers & Instructors | Annual salary for personal trainers and class instructors | $30,000 - $50,000/year each |
Front Desk Staff | Salaries or hourly wages for administrative staff | $25,000 - $40,000/year |
Cleaning Staff | Cleaning and maintenance staff | $20,000 - $35,000/year |
Marketing | ||
Initial Marketing Campaign | Launch marketing, local advertising | $5,000 - $15,000 |
Ongoing Marketing | Monthly marketing efforts: ads, promotions | $500 - $2,000/month |
Licenses & Permits | ||
Business License | Local business operation license | $200 - $500 |
Health & Safety Permits | Compliance with health and safety regulations | $500 - $1,500 |
Insurance | ||
Liability Insurance | Coverage for accidents and injuries | $1,000 - $3,000/year |
Property Insurance | Coverage for property damage or theft | $1,000 - $2,500/year |
Miscellaneous | ||
Office Supplies | Desks, computers, phones, and office necessities | $2,000 - $5,000 |
Cleaning Supplies | Cleaning products and equipment | $500 - $1,000/month |
Membership Retention | Loyalty programs, merchandising | $1,000 - $2,000/month |
This comprehensive breakdown ensures that you have a clear understanding of the various financial commitments involved in starting a fitness facility.
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Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
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