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Cost of Starting a World Gym Franchise

How Much Does It Cost to Start a World Gym Franchise?

Do you want to open a gym franchise with one of the leading innovators in the fitness industry? Since opening its first gym in Muscle Beach in 1976, World Gym has been a pillar in the health and fitness industry across the U.S. and globally. Entrepreneurs and investors looking to own a gym can choose from a variety of approaches, such as constructing a new, independent fitness center or opting for a franchise partnership with an established brand like World Gym. Opting for the franchise route offers several advantages, including corporate backing, pre-designed marketing assets, and more stable, lower operating costs. Here's a breakdown of the startup expenses you can expect when becoming a World Gym franchise owner.

There are multiple variables affecting the overall cost of opening a World Gym franchise, such as new construction vs. converting an existing gym, location, and size The most common path investors take is building a new gym from the ground up. Instead of establishing an independent gym, as a World Gym franchisee, you'll leverage our tried-and-true business blueprint and have the support of our seasoned team every step of the way. We'll assist you in every facet of your fitness venture, from identifying the ideal real estate broker and location to overseeing construction, staffing, and employee training.

Gym Size, Features and Floorplan

As a World Gym franchisee, you'll have access to our 47 years of industry expertise, spanning diverse markets both in the United States and internationally. We have insights into the optimal gym size and popular amenities tailored to specific demographic and geographic areas.

World Gym’s optimal size, called our Signature Footprint, is a full-service health and fitness facility of 20,000-30,000 square feet. The Signature Footprint includes our state-of-the-art Studio X powered by World Gym, strength training equipment, cardio equipment, Booty Boulevard ™, weight rooms, Ab Zone, locker rooms, Pro Shop, hydromassage and recovery areas, Barbell Café, and more. Our Legacy Footprint of 7,500-11,000 square feet is available in market areas too small to support a full-service gym. The smaller Legacy Footprint is designed to focus on strength training and weightlifting.

The estimated initial investment range to start up a newly built World Gym franchise is $1,139,500 - $3,715,000, varying by gym size and geographic markets. Converting an existing gym to a Signature or Legacy Model is estimated to cost $262,500 -$412,500. Regardless of the size of your new health club franchise, you can rely on our team to provide essential financial start-up resources and budget forecasting.

Here are details of some of the costs associated with setting up a new World Gym franchise:

  • Property Costs: Lease Deposit or Down Payment –Your property costs will be the most significant initial and ongoing expense and depend on the size and location of your gym facility. Commercial landlords often require a deposit of between three and six months. We budget an initial investment from $50,000 to $100,000 to lease premises for a new World Gym.

  • Gym Equipment: World Gym franchise owners have access to the latest top-of-the-line equipment from our preferred vendor partnerships. You will have the option of either purchasing or leasing new equipment for your gym. Leasing equipment allows investors to avoid significant upfront costs and update the equipment frequently. Whether you intend to purchase or lease your equipment, you can expect your initial investment to range between $500,000 and $1,395,000 for a new World Gym establishment. Alternatively, converting an existing gym to a World Gym brand would cost you between $125,000 and $200,000.

  • Licensing, Permits and Professional Fees: All commercial business owners are subjected to several licensing and permitting fees. With any business, it’s essential to adhere to all legal requirements. Before the doors of your new franchise can welcome members, you must complete and submit paperwork for a business license, health and safety certification, and employer registration. You can anticipate spending between $2,500 and $25,000 on licenses and bonds for a newly constructed gym. Moreover, both new and converting franchisees are estimated to face professional fees ranging from $2,500 to $20,000.

  • Build-out and Leasehold Improvements: A substantial benefit of franchising with World Gym over building and operating a standalone fitness facility is our state-of-the-art gym layouts and branded amenities. Our experienced operations and marketing team will work with you every step of the way to help design and lay out the best set-up for your space. Expect your investment for build-out and leasehold improvements to range from $300,000 to $1,000,00 for a new gym or $25,000 to $50,000 for a gym conversion.

  • FF&E, Signage, and Inventory: World Gym franchise owners benefit from our marketing department's state-of-the-art branded signage and contemporary furnishings and equipment (FF&E). In terms of technology, franchisees gain access to World Gym's member management platform, a member app, and point-of-sale systems. For a newly built World Gym, the estimated costs for FF&E, including audio/video equipment and inventory for your Pro Shop, range from $82,000 to $680,000. For a gym conversion, these costs are estimated to be between $45,000 and $80,000.

  • Working Capital: Once you’ve opened the doors to your new World Gym, you will need working capital to fund operations until you reach breakeven. While each gym breaks even at different times, we estimate your working capital needs will be $100,000 to $250,000 for the first 6 months of operations of a newly built gym or $25,000 for a converted gym.

The Ideal Franchise Owner

At World Gym, we’re expanding aggressively across the U.S. and internationally with franchise owners who are passionate and excited about health and fitness and want to improve lives through fitness in their communities. Whether you’re a budding entrepreneur, a experienced franchise operator, or veteran investor, our gym franchise may be a perfect fit. Past fitness industry experience isn’t required! However, we have found that candidates familiar with franchises, the rules of being a franchisee, or have service or hospitality backgrounds is helpful.

The financial requirements to becoming a World Gym franchisee are:

  • $400,000 Minimum Required Liquid Capital
  • $1,000,000 Minimum Required Net Worth

Getting Started with Your Health Club Franchise Investment

When you partner with the World Gym family, you’ll gain access to unparalleled support and resources. Our team will work with you through every step of the process, ensuring you fully understand the financial requirements so you can make informed decisions. If you’re considering opening a gym or other franchise business, take a look at the support you’ll receive as a World Gym franchise owner:

  • Financial Start-Up Resources and Budget Forecasting
  • Territory Analysis
  • Real Estate Representation
  • Facility Layout and Design Support
  • Pre-Construction and Build-Out Guidance
  • Exclusive World Gym Franchisee Equipment Discounts
  • Multiple Online and In-Person Revenue Streams
  • Marketing/PR, National Advertising, and Sales Support
  • Monthly Workshops and Seminars Across All Core Areas of the Business
  • Peer-to-Peer Networking and the Annual Work Gym Convention

Invest In Your New Fitness Franchise

If you’re ready to help the people of your community, take the next step toward living a healthier, active life, then you have a bright future as a World Gym franchisee. We have several franchise options for those looking to build a new facility or convert an existing gym. Reach out today to learn more about the process and cost of starting a World Gym franchise in the U.S. or internationally.