Gold’s Gym Franchise FDD, Profits, Costs & Fees (2024)
Gold’s Gym is a leading fitness brand, founded in 1965 by Joe Gold in Venice Beach, California. Known as the “Mecca of bodybuilding,” it quickly became a global icon in the fitness industry. The brand started franchising in 1980 and is now headquartered in Dallas, Texas.
The franchise sets itself apart with its comprehensive offerings, including modern equipment, personalized transformation plans, and diverse group exercise programs.
Gold’s Gym is famous for its advanced fitness facilities and a strong community vibe, attracting top athletes and celebrities. Amenities vary by location but often include cardio and resistance equipment, personal training, basketball courts, and smoothie bars.
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Initial Investment
How much does it cost to start a Gold’s Gym franchise? It costs on average between $1,478,000 – $3,647,000 to start a Gold’s Gym franchised business.
This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount depends on various factors, including the type of gym you choose, the location, and whether the franchisee chooses to lease or purchase the property.
| 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 $500,000 |
| Cardiovascular equipment | $150,000 to $250,000 |
| Signage | $40,000 to $85,000 |
| Initial inventory, other equipment and supplies | $7,000 to $40,000 |
| 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 | $1,478,000 to $3,647,000 |
Average Revenue (AUV)
How much revenue can you make with a Gold’s Gym franchise? A Gold’s Gym franchised center makes on average $1,419,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $1,173,000 yearly revenue for similar gym franchises. Below are 10 Gold’s Gym competitors as a comparison:
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Gold’s Gym Franchise Disclosure Document
Frequently Asked Questions
How many Gold’s Gym locations are there?
As of the latest data, Gold’s Gym has approximately 210 locations in the United States. Of these, 158 are franchised locations, while 52 are affiliate-owned locations.
The gym also has a significant global presence, with around 68 company-owned gyms and about 520 franchised gyms internationally across various countries, including Australia, Germany, Japan, and the United Kingdom
What is the total investment required to open a Gold’s Gym franchise?
The total investment required to open a Gold’s Gym franchise ranges from $1,478,000 to $3,647,000.
What are the ongoing fees for a Gold’s Gym franchise?
Gold’s Gym franchisees are required to pay a royalty fee of 5% on gross sales. Additionally, there is a marketing fee set at 2% of gross sales, which contributes to national or regional advertising campaigns to support brand visibility and customer outreach.
These fees are designed to support ongoing brand development and franchisee support efforts.
What are the financial requirements to become a Gold’s Gym franchisee?
To qualify as a Gold’s Gym franchisee, you need a minimum net worth of $3 million and at least $1 million in liquid capital. These financial requirements ensure that franchisees have the necessary resources to cover the initial investment, startup costs, and successfully operate their business.
How much can a Gold’s Gym franchise owner expect to earn?
The average gross sales for a Gold’s Gym franchise are approximately $1.42 million per location. Assuming a 15% operating profit margin, $1.42 million yearly revenue can result in $213,000 EBITDA annually.
Who owns Gold’s Gym?
Gold’s Gym is owned by RSG Group, a global fitness and lifestyle company. RSG Group acquired Gold’s Gym in 2020 after the gym chain faced financial challenges due to the COVID-19 pandemic, including filing for Chapter 11 bankruptcy.
Rainer Schaller, the owner of RSG Group, purchased Gold’s Gym for $100 million, integrating it into their portfolio and revitalizing the brand globally.
Disclaimer
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