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Top 5 Fitness Franchise Brands

Projections for fitness franchise industry in the next five years bring revenue up to $3.7 billion. We've outlined the top 5 brands you should be considering for a new business.

Whether it’s because of a New Year’s resolution, a cultural shift to health and wellness, a desire to flaunt a svelte physique, or to fight a health condition, people are flocking to gyms and fitness centers. In fact, in most cities and towns around the country, you’ll find a fitness franchise in each strip mall, shopping center or downtown corridor. To prove it, just look at the industry numbers: Revenue of $2.9 billion in 2015 and annual growth of 5.4 percent for the last 15 to 20 years. And projections for the next five years bring revenue up to $3.7 billion, according to an IBISWorld industry report. Safe to say, the trend is strong and growing stronger, just like all of those gym-goers in their new running shoes.

So who are the main fitness franchisors flexing their business savvy? We’ve outlined the top five fitness franchise brands, based on their market share:

5. 9Round Fitness

Based in South Carolina and founded in 2007 by a female professional kickboxer, 9Round Fitness has 388 franchises in the U.S.. The company has experienced rapid growth in the last year especially, with 205 new franchise units, or 84 percent growth. The concept behind 9Round Fitness is kickboxing circuit-training. Personal trainers supervise the participants, who move between 9 different stations in 30-minute intervals. Currently, 9Round Fitness ranks number 121 in the Entrepreneur Top 500 Franchises listing.

Ready to franchise a 9Round Fitness facility? You’ll pay an initial franchise fee of $24,000 and $449 per month in ongoing royalty fees.

4. OrangeTheory Fitness

Founded in Florida in 2010, OrangeTheory Fitness runs 409 franchises in the U.S., and 129 of those have been added in the last year alone. The fitness franchise focuses on the idea of pushing participants to the “orange zone” of their heart rate, a target zone intended to stimulate metabolism and increase energy. In fact, the gym even has participants strap on heart rate monitors to measure their progress. Trainers lead exercisers through group classes that incorporate weights, treadmills and rowing machines. Currently, OrangeTheory is number 19 in Entrepreneur’s Top 500 Franchises, and has grown just over 314 percent in the last three years.

Intrigued by OrangeTheory’s different fitness model and off-the-charts growth? Expect to pay a franchise fee of $49,500 with ongoing royalty fees of 7 percent.

3. Snap Fitness

Based in Minnesota, Snap Fitness holds approximately 13 percent of the market share, with just under 950 franchise units in the U.S. in 2014. Snap Fitness keeps fees low for its gym-goers by keeping amenities lean (think no pool or extras). The company has revealed strong growth in the last few years, jumping from a position of 170th place in the Franchise Times listings to 154th place (out of the top 500 franchises) in 2014. Revenue increased at an annualized rate of nearly 14 percent to $385.7 million from 2009 to 2014.

If you’re interested in snapping up a Snap Fitness franchise, you’ll pay a fee of $19,500, and an ongoing royalty fee of $449 per month.

2. Anytime Fitness

Anytime Fitness, which was founded in 2001, has 2,207 U.S. franchises as of 2016, according to an Entrepreneur report. This gym giant, who holds 20 percent of the market share, was founded in 2001 and focuses on its 24-hour model of affordability and convenience. The company operates all over the world, with locations from North America to Asia. Headquartered in Minnesota, Anytime Fitness was ranked No. 1 in Entrepreneur’s top 500 franchises of 2014. Looking at revenue, it’s increased at an annualized rate of just over 20 percent to a total of approximately $6 million from 2009 to 2014.

Is now the time to franchise an Anytime Fitness? The initial investment can range from approximately $80,000 to $490,000. The model consists of a flat fee of $499 per club per month instead of a more typical percentage of the revenue commonly offered by other franchises. And, according to Entreprener.com, 40 percent of franchisees own more than one unit.

1. Planet Fitness

Founded in 1992, Planet Fitness has 1,059 fitness franchises in the United States, as of 2016. Based in New Hampshire, the fitness franchise currently holds the market share with nearly 37 percent, and is “one of the fastest-growing franchises in the country, tripling its size in the past five years,” according to an IBIS report. The Planet Fitness model focuses on the “regular Joe” instead of the avid gym-goer. And the strategy seems to be working: Planet Fitness increased at an annualized rate of 15.2 percent to a total of $1.1 billion from 2009 to 2014.

Are you ready to get in the Planet Fitness game? The franchise fee is $10,000, and ongoing royalty fees are 5 percent.

Fitness Industry Snapshot Infographic

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