Last Updated on September 22, 2023
So, you just searched about “LA Fitness franchise cost” because you intend to open one. Since that’s why you’re here, we’re not going to waste your time on it. But first, a little background story about the fitness franchise.
LA Fitness is a well-known Health Club company based in Irvine, California, in the United States. It aims to promote a healthy lifestyle and give people from all over the world access to excellent fitness equipment, sports courts, clubs, and leagues. The ownership of this company mainly belongs to private equity firms called Seidler Equity Partners and Madison Dearborn Partners.
Now, here’s the deal. Opening a franchise isn’t a big deal as the La Fitness franchise offers aspiring entrepreneurs an opportunity to join a prosperous gym chain and enter a thriving market. The first LA Fitness gym was started back in 1984 in the United States, and ever since then, the brand has been growing rapidly. Most of the LA Fitness locations are in the US and Canada, but there are also some franchises in other countries.
We can tell you want to know more, so keep reading to get every info you need about opening a La Fitness Franchise.
Is LA Fitness a Franchise?
LA Fitness is a type of business known as a franchise. It’s the name of a gym chain called LA Fitness International LLC, based in the United States. The company is privately owned by two investment firms, Seidler Equity Partners, and Madison Dearborn Partners.
The company was founded on November 1st, 1984, by Chin Yi and Louis Welch, who were its chief executive officers. It started as a single gym at the intersection of Arrow Highway and Hollenbeck Avenue in Los Angeles, California.
Since then, LA Fitness has grown from just one gym into many fitness centers and health clubs across the US, Canada, and other countries. The company’s main headquarters is located in Irvine, California.
In 1995, they introduced a versatile sports and fitness club that became their signature model at that time.
The company expanded significantly by acquiring several larger clubs in different countries. Some of these include 171 clubs from Bally Total Fitness, 33 clubs from Lifestyle Family Fitness Clubs, Buffalo and Rochester Athletic Clubs in New York, and 10 Vision Quest Sport and Fitness clubs in the Seattle area.
LA Fitness has become very popular worldwide and is a well-known and trusted brand, attracting business people interested in health and fitness ventures.
They offer a wide variety of amenities, making it one of the most affordable and friendly fitness centers. Some of their services include modern fitness equipment, kids’ clubs, sports leagues, locker rooms, juice bars, and courts.
LA Fitness Franchise Cost
Opening an LA Fitness franchise can be quite expensive. You’ll need to invest in fitness equipment, facilities, and maybe even a swimming pool. Let’s break this down into:
- Initial costs
- Operational costs
Initial costs can range from $77,000 to $500,000 and more. Depending on the size of the franchise you have in mind.
On top of that, there’s a franchise fee you have to pay, which can be anywhere from $15,000 to $30,000, also depending on how big your fitness center will be. You’ll also need at least $50,000 in liquid capital before they consider working with you.
In addition to these costs, you’ll have to pay other fees like legal and royalties, which can be around $400 to $500 per month. These amounts may vary based on the size of your franchise, as the company doesn’t have fixed standards for them.
- Franchise Fee: $15,000-$30,000
- Initial Investment: $77,000-$500,000
- Required Liquid Capital: $50,000
Now, let’s talk about the costs of running the fitness franchise after you’ve set it up:
Staffing and Salaries
Still on LA Fitness franchise cost, you’ll need to hire people to work at your gym, like fitness instructors and front desk staff. Of course, you’ll have to pay them salaries and maybe offer some benefits to keep them happy and motivated.
Rent and Utilities
Since you’re using a space for your fitness center, you’ll have to pay rent to the place owner. And, don’t forget about utility bills like electricity, water, and heating, which are necessary to keep your gym running smoothly.
Maintenance and Repairs
Another aspect of LA Fitness franchise cost is maintenance and repairs. Like any place with equipment, your fitness center will need regular maintenance to keep everything in good working condition. Sometimes, you may need to fix things that break, and that will cost money too.
Note: These costs can vary depending on how big your gym is and where it’s located.
What About the Paperwork?
When it comes to paperwork, you’ll need to contact LA Fitness directly through their website to learn about the specific requirements and terms of the franchise agreement. If you’re interested in renewing the franchise later on, you can also reach out to the company for information.
Having considered LA Fitness franchise cost above, we’d be going into some other important aspects you need to know about this franchise.
How Does a LA Fitness Franchise Work?
The La Fitness franchise works by allowing individuals or investors, like you, to open and run their own fitness centers using the La Fitness brand and business model. La Fitness usually provides standardized fitness programs, training methods, and equipment, ensuring consistency and quality across multiple locations.
Here’s a simple breakdown to make you understand better:
The Company & Franchisor (LA Fitness)
La Fitness is the company that came up with the idea of fitness centers and has made it successful. They have a well-known name, proven fitness programs, and lots of loyal customers. They are the “franchisor” in this case.
You (The Entrepreneur & Franchisee)
If you want to start a fitness center and choose to go with LA Fitness, you need to pay them a fee to use their name and business model. You become a “franchisee.”
Finding the Right Place
You work with LA Fitness to find a good location for your fitness center. It should be in a place with lots of people and potential customers who are interested in staying fit. But they won’t put you too close to another LA Fitness center to avoid any form of ‘in-house’ competition.
Setting Up and Learning
La Fitness helps you figure out how to set up your fitness center, like how it should look and what equipment to use. They provide good support and training for their franchisees. They offer financial aid, help with equipment installation, marketing support, and advertising assistance.
Getting the Word Out
La Fitness supports you with marketing materials to attract new customers. They use their popular name and national ads to bring people to your fitness center.
Running the Show
You are in charge of running your fitness center day-to-day. This means hiring and training your staff and making sure everything runs smoothly.
How You Make Money
People sign up for fitness classes and programs at your La Fitness Center. They pay membership or class fees. You get some of that money, and some go to La Fitness as their share.
Being part of La Fitness means you benefit from their well-known name, which can help your fitness center grow faster than if you started from scratch. For La Fitness, having franchisees helps their brand reach more places without having to open all the centers themselves.
You’ll face competition from other fitness centers, both from other La Fitness centers (in other locations) and independent gyms. To succeed, you need to provide great services and keep your customers happy, so they think highly of the La Fitness brand.
How to Start a LA Fitness Franchise?
Having known LA Fitness franchise cost, how do you get into LA Fitness franchise and make the most money? Let’s find out.
1. Get to Know LA Fitness
Before you start your own fitness center, learn all about the LA Fitness brand. Understand what makes it different from other gyms. Understanding the ins and outs of the business will make you stand out during those late-night gym talks with potential members.
2. Check if You’re Ready
Opening an LA Fitness franchise requires meeting certain requirements in three areas:
a. Financial Readiness
- Consider your initial investment. It can be expensive, ranging from $77,000 to $500,000. This includes rent, equipment, and other facilities. You’ll also need money for insurance, licenses, and employee salaries at the beginning.
- Net worth and liquid assets. LA Fitness wants you to have a good amount of net worth. Some of it must be in easily accessible funds for business needs. You generally need at least $50,000 in available money before they’ll work with you.
b. Operational Standards
LA Fitness has certain standards you need to meet to maintain the brand’s reputation:
- Gym and equipment standards. Your facilities and equipment must meet their criteria. Your franchise should be well-kept, insured, and have all the necessary tools for happy customers.
- Staffing and gym operations. It’s your job to hire staff, including instructors. You’ll be managing the operations within your franchise location.
c. Legal Obligations
You have legal responsibilities too:
- Insurance. You need enough coverage for your operations, including liability insurance.
- Compliance. Follow all federal, state, and local laws and regulations. This includes employment and tax laws, and any industry-specific rules.
- Contractual Agreements. When you become an LA Fitness franchisee, you sign a legal agreement. You must fulfill all the duties and responsibilities outlined in the contract.
3. Start the Application Process
a. Do Your Research
As previously mentioned, dig deep into the LA Fitness franchise model. Look at all the resources available online and offline. If you can, talk to current franchise owners. This way, you’ll fully understand the business, the money involved, and what’s expected of you.
b. Get in Touch
You have a formal engagement with LA Fitness when you visit the LA Fitness website at https://www.lafitness.com and fill out their franchise intention form. They’ll get back to you with more details and answer any questions you have about the franchise.
How Much Does an LA Fitness Franchise Make?
While it’s not possible to give an exact figure for the profits of an LA Fitness franchise, the amount of money it makes depends on various factors. The location and size of the franchise play a significant role in determining its profitability. The company doesn’t provide specific details about potential earnings, but you can reach out to other franchise owners to get an idea of their experiences and success.
Moreover, the success of your LA Fitness franchise also relies on how well you manage the business, the level of demand in your area, and your ability to attract and retain members. By offering excellent services and creating a welcoming atmosphere, you can increase the chances of higher profits for your fitness center.
Why Consider Opening an LA Fitness Franchise?
There are several compelling reasons to think about opening an LA Fitness franchise:
LA Fitness is a widely recognized gym chain with a strong presence in many countries. Joining a well-known brand can give you a head start in the fitness industry, as people are likely to trust and choose a familiar name for their fitness needs.
When you become a franchisee, LA Fitness provides support in various aspects of running the business. They offer guidance on setting up the center, marketing strategies, and operational know-how. This ongoing support can be immensely helpful, especially if you’re new to the fitness business.
The health and beauty care industry, including fitness, has experienced significant growth in recent years, especially with increased awareness of health and wellness after the Covid-19 pandemic. This trend indicates a promising market for fitness centers like LA Fitness.
Owning an LA Fitness franchise allows you to provide a valuable service to your community. You’ll be helping people lead healthier and more active lives, which can be personally fulfilling and rewarding.
Be Your Own Boss
Opening a franchise allows you to be your own boss and run your own business. You’ll have the opportunity to showcase your entrepreneurial skills and make decisions that impact the success of your fitness center. It’s a chance to take charge of your future and have control over your professional path.
Is LA Fitness a Good Franchise to Own?
Before you go ahead to open a La Fitness franchise, you must know that; while some fitness brands are cheaper than La Fitness. Their business model might not be sustainable in the long run compared to La Fitness.
You also need to remind yourself that; while a gym business can be profitable, it is not a quick-fix business model. Those who are successful in this business are those who are willing to put in the effort required to succeed. Working hours will typically be extended, including early mornings and late nights.
Franchise Comparisons: LA Fitness Vs Anytime Fitness Vs Planet Fitness
|Particulars||LA Fitness Franchise||Anytime Fitness Franchise||Planet Fitness Franchise|
|Initial Investment||$77,000 – $500,000 (depends on location and scale of operation)||$94,430 – $600,000(depends on location and scale of operation)||$700,000 upwards|
|Franchise Fee||$15,000 – $30,000||$25,000 – $42,500||$20,000 – $25,000|
|Monthly Royalty Fee||$400 – $500||$699||5% of gross sales|
|Net Worth Requirement||Not specified||$350,000||Not specified|
|Liquid Cash Requirement||$50,000||$100,000||$10,000,000 (for up to three locations)|
|Business Model||Fitness Center Franchise||Fitness Center Franchise||Fitness Center Franchise|
|Training and Support||Yes, comprehensive training and operational support||Yes, includes a comprehensive training program||Yes, initial training and ongoing support|
Note: The provided information is based on currently available data and may vary depending on the specific franchise location and terms. You need to thoroughly research and verify the details before making any investment decisions.
Frequently Asked Questions
Is it better to start your own gym or franchise?
Starting a franchise can be more profitable than opening your own gym. Franchises usually have a loyal customer base and a proven formula for success, leading to higher profits. Though the initial investment for a gym franchise can be high, you’ll likely start making money faster.
How much can you make with a gym franchise?
Running La Fitness franchise can make you a millionaire if you know what you are doing.
Final Thoughts on LA Fitness Franchise Cost
We hope you enjoyed learning about the LA Fitness franchise cost. Keep in mind that success in the fitness world goes beyond money. It needs passion, dedication, and a good sense of humor to keep you motivated through tough times.
So, put on your sneakers, turn up the music, and begin your fitness franchise journey with the energy of an over-caffeinated squirrel. Happy franchising!
- LA Fitness. Wikipedia
- Xponential Fitness, Inc. Announces Exclusive Strategic Development Agreement with the Operator of the LA Fitness and City Sports Club Brands. LA Fitness
Read also: Top Low Cost Franchises Under 500