LA Fitness Franchise FDD, Profits, Costs & Fees (2024)

LA Fitness was founded in 1984 in Southern California, with the goal of offering accessible fitness services to a broad range of members. The company is headquartered in Irvine, California, and operates more than 800 clubs across the United States and Canada.

It provides a variety of amenities, including personal training, group fitness classes, swimming pools, sports courts, and state-of-the-art gym equipment. The brand serves members under different banners, such as LA Fitness, Esporta Fitness, and City Sports Club.

Although LA Fitness is not primarily a franchise-based model, it has pursued growth through strategic partnerships. One notable collaboration is with Xponential Fitness, which introduced boutique fitness experiences within existing LA Fitness locations.

This approach has expanded the range of services available to members. The company differentiates itself by offering a wide array of fitness options, catering to diverse preferences, while keeping memberships affordable and widely accessible.

Initial Investment

How much does it cost to start a LA Fitness franchise? LA Fitness does not offer franchise opportunities, as all of its locations are company-owned.

Therefore, it is not possible to start a LA Fitness franchise, and there is no associated cost for franchising with the company.

For similar fitness franchises, however, the initial investment is on average $423,000.

In comparison, for example, Basecamp Fitness (a high-intensity interval training (HIIT) franchise brand) requires an investment upfront of $536,000 up to $853,000 for a franchised location.

Average Revenue (AUV)

How much revenue can you make with a LA Fitness franchise? Since LA Fitness does not franchise its studios and all locations are company-owned, LA Fitness does not publish a Franchise Disclosure Document. Therefore, it does not disclose the average revenue of its studios.

However, a similar fitness studio franchise makes on average $401,000 in revenue (AUV) per year. For example, a Basecamp Fitness franchised studio makes on average $486,000 in revenue per year.

Here are 10 competing franchise brands as a comparison:

Frequently Asked Questions

How many LA Fitness locations are there?

As of recent data, LA Fitness operates over 700 company-owned locations across the United States and Canada. The company continues to expand, with gyms branded under LA Fitness, Esporta Fitness, and City Sports Club.

Most of these locations are in the U.S., with a presence in more than 27 states. The number of locations may fluctuate as the company opens new clubs or rebrands existing ones, such as transitioning some LA Fitness locations to Esporta Fitness.

What is the total investment required to open a LA Fitness franchise?

LA Fitness does not offer franchise opportunities and therefore, it is not possible to establish the initial investment to start a LA Fitness franchise.

However, the total investment required to open a franchised fitness studio similar to the LA Fitness franchise ranges from $2,000 to $2,273,000.

What are the ongoing fees for a LA Fitness franchise?

Since LA Fitness does not offer franchises and all studios are company-owned, the ongoing fees such as royalty fees or advertising fees associated with franchising the brand are not readily available.

Yet, similar retail franchises in the industry charge an average of 8% in royalty fees and 8% in advertising fees ( e.g. Starting Strength).

What are the financial requirements to become a LA Fitness franchisee?

All LA Fitness locations are company-owned, and the brand does not offer opportunities for independent ownership or franchising. Therefore, it is not possible to meet any financial requirements or apply to become a franchisee with LA Fitness.

For fitness studio franchises similar to LA Fitness, the minimum net worth required typically ranges from $500,000 to $1.5 million. The liquid capital requirement (cash or assets that can be easily converted to cash) generally falls between $100,000 and $500,000.

These financial requirements ensure that potential franchisees have the necessary resources to handle startup costs, initial fees, and ongoing operational expenses.

How much can a LA Fitness franchise owner expect to earn?

Since LA Fitness is entirely company-owned and does not operate as a franchise, there is no earning disclosure for a LA Fitness franchise.

Now, assuming the average gross sales for a fitness studio franchise similar to a LA Fitness franchise of $401,000 per store. And assuming a 15% operating profit margin, $401,000 yearly revenue would result in about $60,000 operating profit per year.

Who owns LA Fitness?

LA Fitness is owned by Fitness International, LLC, which is a private company. The ownership structure primarily includes co-founders Chin Yi and Louis Welch, who have been instrumental in the company’s growth since its inception in 1984. Louis Welch serves as the President and CEO, playing a significant role in the company’s operations and strategic direction.

Disclaimer

Disclaimer: This content has been made for informational and educational purposes only. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.

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