Which Fitness Franchises Generate the Most Revenue?

The fitness industry is as competitive as they come, from gyms to bootcamps and weight-loss systems, consumers have many options to choose from. For business owners, having a brand that people recognize and trust can be the edge needed to succeed and run a profitable enterprise. Fitness franchises come in every conceivable form, so we dug into the numbers to find the ones that consistently generate high sales to give potential franchisees a short list to investigate.

We've ranked fitness franchises by their average unit revenue (AUR) as reported in their franchise disclosure documents. More on our methodology.

Our Methodology

The goal of any franchise owner is to run a profitable business. The franchise model is advantageous for entrepreneurs because it offers a proven business model that can be opened in new markets with reasonable expectations of financial performance. While the performance of existing franchise units is not a guarantee that a new unit will perform as well, it is safe to use average unit revenues to compare different franchise opportunities.

Taking expected unit revenue in context with a thoughtful business plan to include expected operating costs and expenses can give entrepreneurs a methodology to compare potential profitability and return on investment of a given franchise venture.

In this report we rank franchises based on the average revenue generated by a single franchise unit or territory to highlight opportunities with the greatest sales potential.

What Is Average Unit Revenue?

Franchises report unit revenues in slightly different ways, but all generally refer to the total average sales of a single business unit, territory, or similar language that represents the exclusive market of a franchise owner.

Where Does the Data Come From?

The FTC's franchise rule permits franchisors to provide information on actual or potential franchise revenue of franchisee and/or corporate owned units. While franchises are not legally required to report average unit revenue, most do. This allows potential franchisees to estimate the volume they may expect from opening a new franchise business.

How Do We Measure It?

We use data provided by the franchisors in the Franchise Disclosure Document (FDD). As much as possible, we look for revenue of franchised units rather than corporate owned units. Often this data is directly available based on a subset of franchise units that are representative of typical unit performance. In some cases, we may derive average unit revenue from corporate royalty revenue and number of total franchise units.

The following table includes notes from the FDD on the source of AUR provided.

Why It's Important

Sales or revenue volume is central to determining the financial viability of a franchise investment. Expected unit revenues combined with a reasonable estimate of operating expenses can help potential franchisees determine the return on their initial investment, and the potential earnings of a franchise opportunity. To learn more about researching franchises, seethe articles in our Franchise Learning Center.

Want to see more franchises actively opening in new markets? See our Franchise Directory.