Most retail franchises need big cities and high-traffic locations.
A-Plus strip centers with high rents right next to Starbucks & Lululemon.
These concepts don’t work in the thousands of small towns across America.
Enter Anytime Fitness.
A legacy franchise that’s been quietly dominating small markets for 20 years, becoming the largest fitness company in the United States.
They’ve proven their model works in towns as small as 7,000 people.
Here’s why:
People aren’t willing to drive far for a gym. 15-20 minutes maximum.
Everyone wants convenience.
Approximately 20% of the US population is a member of a gym.
With a population of 7,000, the “total addressable market” is 1,400 people.
The average Anytime has ~730 members (see chart below)
Compared to Planet Fitness, which averages 6,000 to 7,500 members per location!
Also, small markets have lower rent, the biggest fixed cost.
Labor-Light Model
Members have access 24/7 with key fobs.
But you only need 1 to 3 employees to operate the front desk and upsell memberships.
Someone calls out sick? The gym still operates.
The Numbers:
Total investment varies significantly depending on the amount of leasehold improvements.
$458K – $907K initial investment (Item 7 of the 2025 FDD)
In 2024, franchisees received an average of $20 per square foot in tenant improvement (TI) dollars from landlords.
For example, on a 5,000-square-foot studio, that’s $100,000 of TI toward renovations, paid back incrementally through the lease.
Rough math: $600K build-out – $100K TI = $500K net costs.
A bank will typically finance 80% of the net costs, requiring a 20% down payment, $100,000 in this example.
Earnings Potential
From the 2025 FDD Item 19.
Franchisee data is split into two tables based on their “operating system”. 1,656 studios are on the “Coaching Suite” which averages $442k in revenue per location, with the top quartile doing $742k.
Currently, they recommend franchisees run their “SmartCoaching” program, which includes strategies & tools to increase sales & retention.
297 gyms are reported using this new program.
They average $531K in revenue, with the top quartile at $865K.
What are the margins?
They don’t report any franchisee data but do provide itemized financials for 11 corporate studios in 2024.
They averaged $529K revenue with $144k EBITDA (27%)
Top studios averaged $716K with $242k EBITDA (34%)
With 2,600 locations, there are plenty of franchisees to validate sales, expenses, & support.
But here’s where it gets interesting – scalability:
The largest franchisee operates 230+ locations across the country.
With 2,300 clubs in the US, this creates massive roll-up opportunities for other serious operators.
The playbook is simple: start with one location.
Either a new build or resale.
Once you can profitably operate one location, buy or build your next location.
After 2, jumping to 4 isn’t a huge leap.
Then 8-10 through acquisition
After 10 locations, you’ll have the systems to reach 20+
This is exactly how I grew my franchise business
The risks
Operating gyms comes with challenges.
It’s a capital-intensive business with expensive equipment that must be replaced & maintained.
Members have high expectations for cleanliness & safety.
Competing on price against Planet Fitness and other low-cost gyms is a slippery slope.
That said, the model works when executed well
Want to learn more?
My team can help you explore if Anytime makes sense for your situation:
- Check if territories are available in your market
- Introduce you to the franchise development team
- Share my “Franchise Buyers Toolkit” with resources to help with due diligence
If Anytime isn’t the right fit, we work with dozens of other franchise brands and can explore alternatives that match your goals and capital.
Click here to start the process (no cost or obligation)
Cheers!
Brian
