The short answer: Gyms sell for roughly 2.44× SDE (independent studios run 2.48×, 2.93×), or about 0.72× revenue. Expect ~10% down on an SBA 7(a) loan with a 1.15×, 1.25× DSCR. The number that actually decides whether the deal works is member churn, fitness operators lose roughly a third of their membership base every year, and that recurring EFT revenue is what you're really buying. Equipment leases and, for franchises, franchisor transfer approval are the two hidden variables buyers miss.
Why a gym is a subscription business wearing a barbell
Most first-time buyers price a gym like they'd price a car wash or a laundromat: revenue, some equipment, a lease, done. That's the wrong mental model. The overwhelming majority of gym revenue is recurring membership dues billed via EFT (electronic funds transfer), a bank or card draft pulled automatically every billing cycle through a processor like ABC Fitness (formerly ABC Financial, the largest fitness billing and software platform in the industry) or a comparable club-management system. You are not buying a room full of dumbbells. You are buying a subscription base, and subscription bases churn.
That distinction changes everything about how you diligence and price the deal. A gym with $800,000 in trailing revenue and a healthy member base can be worth meaningfully more, or less, than the same top-line number at a competitor down the street, depending entirely on how sticky those memberships are and how much of the equipment is actually owned free and clear.
A gym doesn't sell you square footage and dumbbells, it sells you a stack of EFT drafts that may or may not still be drafting in six months.
Franchise vs. independent, and boutique vs. big-box
Gyms split along two axes that both affect price, financing, and your day-to-day control.
- Franchise vs. independent. Big national brands, Anytime Fitness, Planet Fitness, Orangetheory Fitness, and others, offer a proven system and brand recognition, but come with franchise fees, ongoing royalties, and a franchisor who must approve you as the buyer before any transfer closes. Orangetheory charges an initial franchise fee of roughly $59,950 plus an 8% royalty on gross sales and a 3% brand-fund contribution; Planet Fitness charges a $10,000 one-time fee plus 7% of gross sales; Anytime Fitness runs a flat monthly fee near $799 (with the right to convert to a percentage-of-revenue royalty). In 2024, Orangetheory's parent and Anytime Fitness's parent (Self Esteem Brands) merged into Purpose Brands, now operating 7,000+ combined locations.
- Boutique vs. big-box. Boutique studios (CrossFit, F45-style HIIT, cycling, yoga) run smaller footprints, higher per-class pricing, and, per industry benchmarking, net profit margins in the 20%, 40% range. Big-box, equipment-heavy gyms typically run 10%, 15% margins on much larger revenue bases. Neither is inherently better; they're different risk/return profiles.
Buying an existing franchise location (a resale) is usually easier to finance than opening new, because you're underwriting real trailing financials instead of a franchisor's projections, but you still need the franchise agreement, the current Franchise Disclosure Document (FDD), and written franchisor approval before your SBA lender will fund.
What gyms cost
Two benchmarks anchor gym pricing, and they should roughly agree for a healthy target.
| Metric | Typical range | Anchor |
|---|---|---|
| SDE multiple | 2.44×, 2.93× | ~2.44× |
| Revenue multiple | 0.50×, 1.00× | ~0.72× |
| Owner / SDE margin | 10%, 40% | ~20%, 24% |
| SBA down payment | 10% | 10% |
BizBuySell's benchmark data shows gym and fitness-center deals averaging a 0.72× revenue multiple (range 0.50×, 1.00×), while independent-gym-focused valuation shops report SDE multiples clustering 2.48×, 2.93×, both consistent with the 2.44× anchor used across the industry. 2025 saw a wave of smaller gyms trade hands, pulling median deal size down, while 2024 posted a 23% jump in median sale price as larger, better-run clubs sold. See live comps on our gym multiples page, and price a specific target with the valuation calculator.
Price a gym in 60 seconds
Enter revenue, SDE, and a multiple, get a defensible value range.
Member churn, the number that sets the price
This is the single most important diligence item in a gym deal. According to Health & Fitness Association (formerly IHRSA) benchmarking, fitness operators lose roughly a third of their member base every 12 months, and separate industry data puts annual retention around 66%, 71% (meaning 29%, 34% attrition). The early window is brutal: about half of new members cancel within their first six months, and roughly 14% cancel before their first full month is even billed. Average member tenure across the industry runs close to 18 months.
Why it matters for you as a buyer: the seller's trailing revenue reflects members on file today. If churn is running at industry-average rates and the club isn't actively backfilling with new sign-ups, that revenue base erodes fast after close, during the exact period you're also servicing new acquisition debt. Ask for month-by-month active-member counts (not just "members on file"), new-member sign-ups, and cancellations for the trailing 24 months, and build your own churn-adjusted revenue forecast rather than trusting the seller's top line.
Diligence that matters in a gym deal
Beyond the standard financial and lease review, gym deals live or die on these gym-specific items:
- EFT drafts, decline rates, and delinquency. Pull the billing processor's (e.g., ABC Fitness) reports on draft success rate, decline rate, and past-due accounts. Gyms with strong collections keep delinquency under 5%; weaker operators can lose meaningfully more of expected revenue to failed drafts and non-payment.
- Active members vs. "on file," and frozen or paid-in-full (PIF) accounts. "On file" counts everyone under a contract, including delinquent and frozen accounts that generate little or no cash. PIF memberships (paid up front for a discounted term) show as past revenue, not future cash flow, confirm how many active members are on a PIF term with no further billing coming.
- Personal-training and class revenue mix. Recurring group-class and PT revenue is stickier and higher-margin than pure access dues. Understand what share of revenue rides on the seller's own training relationships versus staff trainers who'll stay.
- Equipment owned vs. leased. Get a full equipment schedule tagged owned or leased, with remaining lease terms and buyout amounts. Leased equipment doesn't add to the business's asset value, and an unassigned or non-transferable lease is a liability you inherit without an offsetting asset.
- Deferred maintenance. Cardio and strength equipment wears fast under commercial use. Budget for replacement cycles the seller may have deferred to flatter trailing earnings.
- Franchise transfer approval and FDD (if applicable). Confirm the franchisor's approval process and timeline early, it runs in parallel with, not after, your SBA underwriting.
"On file" is not "active"
A seller quoting "1,200 members" without breaking out active, frozen, delinquent, and PIF status is giving you a vanity number, not a diligence answer. Insist on the breakdown before you price the deal.
How to structure the deal
Because the asset you're really buying is a churning subscriber base, smart structures tie price to what survives the transition:
- Retention-based earnout or holdback. A slice of price (commonly 10%, 20%) adjusts based on active-member retention through the first 90 to 180 days of your ownership.
- Seller note. Keeps the seller financially exposed to the same churn risk you're taking on, and helps bridge the equity gap on an SBA deal.
- Transition period with member introductions. Especially in boutique/coaching-heavy gyms where the seller has personal relationships with top members, a 30 to 90 day handoff protects retention.
Financing a gym
Gyms are financeable SBA 7(a) candidates, lenders like the recurring EFT revenue and, for franchises, a brand on the SBA Franchise Directory. Plan for roughly 10% down and a DSCR of 1.15×, 1.25×. Two things slow gym deals down relative to other small-business acquisitions: leased equipment gets factored into your total debt picture even though you don't own the asset, and franchise transfers require the franchisor's written approval before a lender will fund, build that into your closing timeline, not as an afterthought.
The money pages
Want the earnings math? See how much gym owners make and what it costs to buy one, with worked examples.
Frequently asked questions
No. There's no industry-wide license to own a gym. Trainer certifications (NASM, ACE, NSCA) apply to the people delivering sessions, not the owner. The exception is franchises, the franchisor must approve you as the buyer before the transfer closes. Confirm local business licensing and health-department rules for your facility type.
Roughly 2.44× SDE as a market anchor, with independent studios ranging 2.48×, 2.93× and BizBuySell putting the revenue multiple at 0.50×, 1.00× (0.72× median). Strong retention and low owner dependence earn the top of the range.
Member churn. Operators lose roughly a third of their member base every 12 months, and half of new members quit within six months. Since dues bill on recurring EFT drafts, that revenue can evaporate member by member after close. Leased equipment liabilities are the second-biggest risk.
Yes, typically ~10% down with a 1.15×, 1.25× DSCR on an SBA 7(a) loan. Equipment leases count against your debt load even though you don't own the asset, and franchise locations need franchisor approval of the transfer before a lender will close.
Sources
- Gym & fitness center revenue and earnings multiples, BizBuySell Valuation Benchmarks (2025 to 2026); Peak Business Valuation.
- Member attrition, retention, and tenure, Health & Fitness Association (formerly IHRSA).
- EFT billing, decline rates, and delinquency management, ABC Fitness; ABC Fitness collections guide.
- Franchise fees and royalties, Orangetheory FDD analysis; Anytime Fitness FDD analysis; VettedBiz fitness franchise data.
- Boutique vs. big-box profit margins, Exercise.com gym profitability data.
- SBA franchise transfer approval, Pursuit Lending SBA Franchise Financing guide.
