Gold’s Gym Franchise Costs, Fees & Owner Salary (2023)

INVESTMENT

$1,478,000

-

$3,647,000

LOCATIONS

221

Tanya

Updated

May 2, 2024

Is

Gold’s Gym

a franchise?

Yes,
Gold’s Gym
currently
accepts
franchise
applications

Headquartered in Dallas,Texas, Gold’s Gym is an international chain of co-ed fitness franchise centers.

Gold’s Gym was founded by Joe Gold in 1965 in Venice Beach, California.

Its studios offer a variety of cardio and strength training equipment as well as group exercise programs, resistance training equipment, personal training and locker room services, a kids’ club, and a "pro shop" selling clothing, drinks, accessories, supplements and nutritional products.

Gold’s Gym began franchising in 1980 and currently it operates more than 600 studios in the US.

How many

Gold’s Gym

franchises

are there?

In 2022, there were
221
outlets in
the United
States, of which
158
are franchises, and
63
are corporate-owned.

What are the

Gold’s Gym

franchise

fees?

Advertising fee

2% to 5%

Initial Franchise Fee

The initial franchise fee for a new Gold’s Gym Facility is $40,000, which is paid in a lump sum when signing the Franchise Agreement.

If you operate an existing Gold’s Gym Facility under a franchise agreement that is about to expire and are signing the Franchise Agreement and Renewal Addendum to renew your rights to operate that Gold’s Gym Facility, then you will pay a successor franchise fee of 50% of the initial franchise fee the franchisor then charges for new Gold’s Gym Facility franchises (currently would be $20,000).

Royalty Fee

The royalty fee is the greater of 5% of the Facility’s Gross Revenue each month or $2,000 per month. The first royalty payment is the greater of $2,000 or 5% of the Facility’s Gross Revenue beginning when the first Gross Revenue was generated.

Marketing Fee

The marketing contribution is the greater of 2% of the Facility’s Gross Revenue each month or $1,350 per month. The first marketing contribution payment is due when your first royalty payment is due and will include all Gross Revenue derived at any time prior to the Actual Opening Date (including Gross Revenue derived during presale).

Other Notable Fees:

  • Transfer Fee: $2,500 for non-control transfer and $10,000 for control transfers.
  • Management Fee: Due only if the franchisor manages your Facility after your death, disability, or default, or while they are considering whether to exercise a purchase option.
  • Indemnification: Will vary under circumstances.

Note: The fees presented here can be found in the Item 5 of the Franchise Disclosure Document. For a complete list of all the fees borne by the franchisee, please consult the Franchise Disclosure Document.

How much does

it cost

to start a

Gold’s Gym

franchise?

It costs between
$1,478,000
and
$3,647,000
to start a
Gold’s Gym
franchise.
Type of Expenditure Amount
Initial franchise fee $40,000
Travel and living expenses during training $4,000 to $7,000
3 months’ rent $30,000 to $255,000
Security deposit for lease $12,000 to $150,000
Leasehold improvements and construction costs $1,000,000 to $2,000,000
Selectorized equipment and free weights $100,000 to $400,000
Cardiovascular equipment $150,000 to $300,000
Signage $40,000 to $85,000
Initial inventory, other equipment and supplies $12,000 to $45,000
Computer system and Gym Management System $20,000 to $35,000
Advertising and marketing $25,000 to $120,000
Miscellaneous opening costs $10,000 to $65,000
Additional funds – 3 months $40,000 to $100,000
TOTAL ESTIMATED INITIAL INVESTMENT (excluding real estate purchase costs) $1,483,000 to $3,602,000

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Does

Gold’s Gym

provide

training

to its

franchisees?

Yes,
Gold’s Gym
provides
training

Studio Programs

Gold’s Gym offers different studio programs such as Gold’s Fit (strength and endurance training), Gold’s Cycle (cardiovascular workouts), and Gold’s Burn (full-body, high-intensity cardio and strength training). The franchise may periodically remove, add, or amend rules applicable to each of the Studio Programs

Amenities and Services

All new Gold’s Gym Facilities are required to offer a full array of amenities and services. This includes cardio training equipment, resistance training equipment, group fitness, personal training, and locker room services. Additionally, facilities must have a "pro shop" selling clothing, accessories, drinks, bars, supplements, nutritional products, and other items. However, some requirements may be waived for facilities in certain large, urban locations.

Does

Gold’s Gym

provides

territory

protection?

Gold's Gym does offer some form of territory protection to its franchisees.

Can a

Gold’s Gym

franchise

be run as

a passive

investment?

Running a Gold's Gym franchise requires active involvement and management, and it may not be suitable as a passive investment.

Related Posts