INDUSTRY BENCHMARK · 33 SYSTEMS · FISCAL 2017–2025
Are fitness franchises a good investment?
Across 33 fitness franchise systems (10,326 franchised units), franchisees exited at an annualized rate of 3.4% in their latest FDD Item 20 filings, while new outlets opened at 7.8%. The median buy-in: a $45K franchise fee, 7.0% royalty, and a total investment of $309K–$629K.
People search for a “fitness franchise failure rate,” but no such official number exists. What franchisors must disclose — in the Item 20 outlet tables of the FDD — is how many franchised outlets were terminated, not renewed, or “ceased operations — other reasons” each year. That annualized exit rate is the honest, measurable proxy: it slightly overstates failure (some exits are retirements or sales) and slightly understates distress (struggling units often sell before they close), but unlike survey numbers it comes from legally mandated disclosures.
3.4%
332 exits / 9,895 units at start
7.8%
775 outlets opened
33
verified FDD extractions
10,326
at latest fiscal year end
$45K
FDD Item 5
7.0%
FDD Item 6
$309K–$629K
FDD Item 7
24/33
systems disclosing an FPR
SOURCE: FDD ITEM 20 OUTLET TABLES FILED WITH STATE REGULATORS (MINNESOTA CARDS) · 33 SYSTEMS · 33 FILINGS · FISCAL 2017–2025
| Signal | Brand | Verdict |
|---|---|---|
| STRONGEST | Club Pilates | Proven & strong |
| STRONGEST | Stretch Lab | Proven & strong |
| STRONGEST | FITNESS MACHINE TECHNICIANS FMT | Proven & strong |
| WEAKEST | MOMS ON THE RUN LLC | Too new to judge |
| WEAKEST | Body20 | Too new to judge |
| WEAKEST | 30 Minute Hit | Too new to judge |
VERDICTS SOURCED FROM EACH BRAND'S OWN FDD ITEM 20 FILING · METHODOLOGY
Fitness franchise questions, answered from the filings
What percentage of fitness franchises fail?
There is no official failure rate, but FDD Item 20 filings show the honest proxy: across 33 fitness franchise systems, 332 franchised outlets left their systems (terminations, non-renewals, and "ceased operations — other") out of 9,895 open at the start of the year — an annualized exit rate of 3.4% in fiscal 2017–2025. Not every exit is a failure (some are retirements or sales), but it is the measurable floor.
How much does a fitness franchise cost?
Across the latest FDD filings of 33 fitness systems, the median initial franchise fee is $45K (Item 5) and the median total investment range is $309K–$629K (Item 7).
What royalty do fitness franchises charge?
The median ongoing royalty across 33 fitness franchise systems is 7.0% of gross sales, per Item 6 of their latest FDD filings.
Are fitness franchises growing or shrinking?
In the latest Item 20 filings, fitness systems opened new franchised outlets at an annualized rate of 7.8% while franchisees exited at 3.4%. Openings currently outpace exits in this industry.
What is the healthiest fitness franchise?
By the Watch Desk verdict system (computed from FDD Item 20 with an evidence gate), the strongest verified fitness system tracked is Club Pilates.
A broker is paid by the franchisor to place you. I'm paid by you — and the job is pressure-testing the numbers, including talking you out of a bad deal.