The Cost of Opening a Gym (Brief Look)
Factors that affect the cost of opening a gym include the type (e.g., small studio vs. commercial gym), location, necessary renovations, the quality and quantity of gym equipment, licenses and permits, legal expenses, insurance premiums, and member amenities. You can expect to spend from $10,000 for a basic setup to $100,000+ for a complete gym.
11 Factors that Determine the Cost of Opening a Gym
1. Type of Gym
The type of gym or training facility you want to open will determine the necessary space (and associated renovation costs), equipment, permits, insurance, and miscellaneous expenses.
It will also significantly impact ongoing expenses.
Some common gym options include:
- Home gym or at-home personal training services
- Small studio (e.g., yoga, pilates, or group fitness)
- Small personal training gym (where you work alone or with one employee)
- Powerlifting gym (where the primary focus is on free weights)
- Commercial or franchise gym (we’ll talk more about these options below)
For example, the cost of opening a small studio with some basic equipment like yoga mats, suspension kits, bands, and a few pairs of dumbbells will be far lower than that of an 8,000 square-foot gym complete with free weights, machines, benches, and squat racks.
2. Location
The location of your gym will be another factor that significantly influences the cost of purchase (or lease) and ongoing expenses.
Lease is typically listed as dollars per square foot per year, and the specific number can vary significantly based on:
- The state of the space (i.e., does it need a lot of work, or is it renovated)
- What city is it in (e.g., Dallas will be cheaper than New York on average)
- What part of the city is it located in (i.e., is there high demand in the area)
For example, if a property is listed at $10/sqft/yr, rent alone will cost you $40,000 per year for a 4,000-square-foot space. Read this article for more information on renting, usable square footage, and lease structures.
Beyond the cost of rent, expenses associated with location include property taxes (in case you purchase a space), insurance (typically arranged by the landlord and passed on to the tenant), and salaries for potential employees.
When looking to lease a space, consult with a commercial real estate agent who understands the area well and can point you toward a suitable place based on the type of gym you want to open.
Professional guidance can go a long way in helping you make a better decision that ultimately leads to a more successful business and potentially lower ongoing expenses.
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3. Interior Design and Renovation
Interior design and renovation costs vary greatly, even more than rental costs based on location. Factors like the size and condition of the space, the amount of customization needed, and the quality of the materials used will influence the cost.
First, assuming the walls are in good condition and need only paint, that can cost $1.50 to $3.50 per square foot or $6,000 to $14,000 for a 4,000-square-foot space.
However, remember that any custom structures you want (for example, building a unique reception area) can significantly increase the cost.
Contractor quotes typically involve labor and materials, but the cost can vary if the walls need some work (e.g., filling small holes or cracks) or if you want multiple paint coats to achieve a richer color.
You must also consider the expenses of putting together bathrooms and shower areas (which we’ll discuss later). Setting up the necessary pipe system, installing toilets and showers, and tiling the floors and walls can cost considerably.
Second, we have flooring, typically costing $2 to $5 per square foot, and will set you back $8,000-20,000 for 4,000 square feet. You may save some money here, as you wouldn’t need to cover every square inch with a high-quality gym tile.
However, the cost may increase further if you add deadlift platforms, which are typically made with more durable materials and designed to take a serious beating from the weights.
Moving on, mirrors are another significant expense. Their price typically includes delivery and installation, but it’s best to clear things up beforehand. The cost depends on the brand, thickness, and overall quality of the mirror.
For instance, this company offers 6’ x 8’ mirrors for $499, including delivery and installation. So, if you install five of these, you’re looking at $2,500 in mirror expenses alone.
Next up, we have lighting, our fourth big expense. Like with other things, the cost can vary greatly depending on the type, luminosity, brand, and number of units you want to install (typically based on the square footage of the space).
Heating, ventilation, and air conditioning (HVAC) is another thing to consider if the space you decide to lease doesn’t have it installed.
Landlords typically opt for a shared responsibility clause in the lease agreement, where both parties cover some initial and ongoing expenses. Clarify that before putting your signature anywhere, and get quotes from suppliers to estimate initial and ongoing expenses.
The final considerable expense that comes to mind is the sound system––every good gym needs one. Installing TVs and speakers can also set you back a few thousand dollars or more, depending on the number of units and the brands.
4. Gym Equipment
We’ve secured the ideal space at a good location and done all the interior design and renovations needed to turn the place into an actual gym.
It feels like we’re at the home stretch, right? Well, not so much because now comes the next behemoth of an expense, which is the training equipment.
Again, this will largely depend on the type of gym you want to build, the amount of space you can work with, and the quality of training equipment you want to purchase.
The quality of workout equipment alone can significantly impact the total cost. Take squat racks as an example. A single Monster rack from Rogue Fitness can cost anywhere from $900 to $2,600+ without attachments (e.g., a dip bar).
In contrast, brands like REP Fitness and Titan Fitness offer cheaper equipment.
The same goes for any other equipment you want: free weights (dumbbells, kettlebells, barbells, weight plates, etc.), gym machines, and cardio machines (e.g., treadmills and ellipticals).
Brands like Yanre Fitness, Life Fitness, Precor, and Technogym offer discounts when making large orders (such as fully equipping your new gym), so it’s best to reach out and ask for quotes.
Equipping your gym can cost from as little as $8,000-10,000 for a smaller studio to over $100,000 for an arsenal of new, commercial-grade machines and free weights.
5. Licenses, Permits, and Firm Registration
So far, we’ve mostly focused on the obvious expenses of leasing, renovations, and equipment, but we can’t forget these smaller costs that can add up tremendously by the time your gym is open for business.
Let’s break down some of the more common expenses:
- Business registration – the cost of registering a business entity like an LLC can vary significantly based on the state. It typically costs $35 to $500.
- Gym business license – this is necessary for gym owners to run a business and typically costs $50-400.
- Music license – the most practical way for your gym to comply with copyright laws is to get a license from a performance rights organization (PRO), such as BMI. This typically costs up to $400 per year.
- Seller’s permit – this is necessary if you plan on selling taxable goods or services, such as gym memberships, personal training sessions, supplements, sports drinks, coffee, and food. You may even need to obtain a food vendor’s license.
It’s important to note that some license and permit obligations vary from state to state, so it’s crucial to research these for your area, make a list, and calculate the potential expenses.
6. Legal Expenses
As you saw in the previous point, opening a gym requires numerous permits and licenses, which can be difficult to understand and track, especially if you’re new to entrepreneurship.
You can research the whole thing yourself and secure all the necessary documents, but that comes with some risks. Failing to get your paperwork fully in order can leave you liable for potential fines or penalties that can set you back quite a bit.
Because of that, it might be better to seek help from a legal professional who can explain the ins and outs and guide you through these challenges.
Legal support can also be valuable when negotiating your lease, as plenty of landlords know loopholes and would be happy to take advantage of inexperienced tenants.
This can result in you getting locked into an expensive lease where you must pay for many expenses, such as maintaining the HVAC system. You can also contact a legal professional for help when looking to get the necessary insurance or create a brand or trademark.
Legal fees vary significantly, but you can expect to pay $250-300 per hour for solid legal guidance.
7. Insurance
As a future gym owner, you must educate yourself on the different insurance types and options that offer legal protection and minimize the risks of leasing a commercial space.
First, we have general liability insurance, which serves as a legal shield in case a former client sues the gym because of an injury or accident. The average price is $1,000 annually, but it can be higher if your gym offers special activities or services that may be deemed higher risk.
Professional liability insurance is another big one. It offers legal protection for yourself and your employees if a client claims negligence, harm, or incompetence. This one also costs around $1,000 per year, but it could be more, depending on the service provided and the number of personal trainers you employ.
Next, we have property insurance, which is more complex. Laws dictate that the landlord is responsible for securing and paying for this type of insurance. However, it’s common practice to pass the expense to the tenant in the lease agreement.
This is something to look out for and negotiate before signing the lease.
The final big one for a gym owner is workers’ compensation insurance, which covers the medical expenses and injury leave of employees who get hurt on the job. The cost of this type of insurance primarily depends on the number of employees, the annual payroll, and the kind of work done.
According to Investopedia, the average monthly cost for this type of insurance is $45 or $540 annually.
Related article: Navigating Insurance for Personal Trainers: Tips & Advice
8. Point-of-Sale System (POS)
A point-of-sale (POS) system or terminal is a way to collect payments from cards and mobile services like Apple Pay, Google Pay, and Venmo. It can also integrate the revenue into your gym management software (more on that below) and allow you to manage your memberships, class bookings, and more.
You can pick from multiple providers and choose the one that best fits your business needs, as some are better suited for large businesses with more employees, independent contractors, and fitness classes.
For instance, Clover is claimed to be a great provider for small gyms. The cost per device (e.g., a credit card magnetic reader, a mobile barcode scanner, and a receipt printer) ranges from $49 to $1,799.
The Colver Essentials plan is the most affordable monthly subscription option at $14.95.
In contrast, Vagaro is suggested to be a better POS provider for large gyms, as it offers an all-in-one gym management system and built-in booking and membership management options.
Plus, it offers add-ons that could help you expand your gym business, though each costs extra. Options include:
- MySite – a custom website for class and personal training booking ($20/month)
- Online store – sell merchandise and other products (an extra $10/month)
- Email and text marketing – send out marketing messages and texts ($20/month)
I highly recommend this article for a more in-depth breakdown of POS providers, costs, and how to choose the best for your own gym.
9. Member Amenities
Amenities are essential for a more enjoyable gym experience and add to the perceived value of your facility.
Secure lockers are a must-have for gym members, as they allow people to store their belongings without worrying that something could go missing.
Basic wooden or metal lockers can cost as little as $100-150, whereas more sophisticated ones (i.e., those with digital locks) generally cost $500+.
Depending on the size of your gym, lockers alone could set you back $2,000 (for 20 basic lockers) or $10,000+ (for a larger number of higher-end lockers).
A shower facility is also something to consider for your gym, as it provides even more convenience, allowing members to work out, shower, and go about their days without needing to go home to clean up. This can be highly beneficial for people who train before work or during their lunch break.
Installation costs can vary greatly (similar to the expenses related to renovations and interior design) as they depend on:
- The existing pipe system (i.e., does the space come with the necessary pipe system to install showers)
- The quality of showers you use
Offering towels in the shower facility and for workouts is also a good idea. You will have to consider the initial cost of purchasing towels, as well as the ongoing expenses of laundry and the replacement of worn-out towels.
Regular WiFi access is also a must-have for your gym members. This comes with the initial cost of setting up routers, as well as higher monthly payments for internet access to provide a good connection for your gym members, even during peak hours.
While there are endless other amenities your gym could offer, we’ll mention one last thing before moving on: hygiene products in your bathrooms and shower areas. These include the must-haves (toilet paper and soap) and the nice-to-have shampoo and shower gel.
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10. Emergency Equipment
Emergency equipment ensures the safety and well-being of your gym members and employees, reduces the risk of excessive property damage in case of a fire breakout, and ensures compliance with local laws.
First, ensure that your gym has a fully stocked first aid kit with bandages, antiseptics, pain relievers, and other essential medical supplies in case of a minor injury. The cost of a kit typically ranges from $50 to $100.
Second, have an automated external defibrillator (AED). While this is something you will hopefully never need to use, having one can make a huge difference if a client or employee suffers a cardiac event.
Plus, at least 13 states in the US require gyms and health facilities to have at least one AED, so it’s important to read up on local laws. One of these will generally set you back $1,200-1,300, but there are also more expensive options.
Third, get fire extinguishers––the number will largely depend on your gym’s square footage and layout. You can pick up decent ones for $50-70 each.
11. Miscellaneous
Last on our list, we have miscellaneous expenses. These include:
- Gym management software – this type of software is designed for gym owners to keep track of memberships, class bookings, personal trainer schedules, and billing, as well as communicate with members in bulk and send reminders (such as for upcoming payments or booked classes).
Such software is not mandatory (you can always use spreadsheets if you prefer), but it makes it far easier to track internal operations, especially as your gym business grows, and streamline the administrative work.
Pricing generally starts around $80-90 per month for up to 100 active gym members. - Client coaching software – this type of software can assist you and the trainers you employ in coaching clients. For example, Hevy Coach allows you to create workout plans (or use one of the pre-made ones in the library), assign them to clients, and track each client’s performance and adherence from a single dashboard, eliminating the need for complicated spreadsheets.
The cheapest plan (up to ten clients) costs $25 monthly. - Employee uniforms – having uniforms for your employees is not mandatory, but it’s a relatively small expense that promotes brand consistency and makes your gym appear more professional and established.
The cost varies depending on the number of employees and the fabric quality. - Branded merchandise – selling or giving away (such as to winners of fitness challenges or as part of an incentive program) branded merchandise like water or shaker bottles, t-shirts, or gym bags can be an excellent way to build awareness for your brand.
- A website – a professional-looking website can be fantastic for building a presence online and gaining some popularity in the fitness industry. It can serve as an online hub where people can learn about upcoming events, deals, work hours around holidays, and the team behind the gym, as well as educate themselves through blog posts.
You can build a website with a builder tool (read our article on the best ones) or pay a professional.
For example, MyPersonalTrainerWebsite offers a basic setup for $500, with ongoing support costing $49/month.
While less important than the above gym startup costs, these are also some things to consider, if not immediately, within weeks or months of opening your gym.
Real Talk: It’s Always More Expensive Than Planned
The goal of this breakdown isn’t to provide exact figures for potential expenses. Instead, it’s to give you an overview and help you better understand what expenses you will encounter when opening your gym for business.
As you saw above, the cost of almost anything gym-related can vary significantly based on numerous factors. There are simply too many things that influence the cost of everything.
For instance, even equipment costs can vary based on the supplier, what deal you can strike for a bulk order, and whether you get everything new.
So, before you pull the trigger on a space and sign a lease, get quotes for as many things as possible, ideally from two or more contractors or suppliers.
This will help you estimate startup costs to get your fitness business up and running. It can also help you negotiate a fairer lease rate, especially if the space needs a lot of work to become a gym.
But even with good preparation and patience, understand that there will always be unexpected expenses related to securing a permit, fixing something in your gym space, purchasing equipment, acquiring insurance, or handling miscellaneous costs.
You can’t figure out or foresee every expense from the start, but you can do something else. In one of his articles, James Clear discusses the idea of margin of safety. It refers to the fact that uncertainty is an integral part of life and the way to prepare ourselves for it is by building a buffer. In his words:
“All information—no matter how bulletproof it may seem—comes with some degree of error. The future is uncertain and life always seems to get more complicated. A margin of safety acts as a buffer against the unknown, the random, and the unseen.”
One option is to estimate the cost of opening a gym and add 10-15% to cover some unexpected expenses that will inevitably pop up. If you estimate you’ll need $60,000 to open your gym, except that the number will likely be $66,000-69,000+.
Conclusion
As you can see, opening a gym is no small project because it comes with a lot of uncertainty, several large expenses, and numerous, often unforeseen, small expenses that add up.
This isn’t to say you shouldn’t open a gym because of the inherent risk. Our goal is simply to prepare you for it and help you better understand that unexpected expenses will come up, it will likely take you more time than planned, and you may have to make some compromises along the way.
Create a buffer (having 10-15% more funds than estimated), ask for quotes from multiple suppliers for your bigger expenses, and negotiate for a fair lease rate because this will be one of your most significant ongoing expenses.
With that, we wish you luck with the project and hope that our guide has shed some light on what it truly takes to open your gym.
Before you go, check out Hevy Coach––our all-in-one coaching platform, where you can build workout plans, assign them to your clients, and track how everyone is doing from a single dashboard.
Even better? You can communicate with clients through the built-in chat and make quick changes to their training plans when necessary.
FAQs
1. What is the average cost to open a gym?
The average cost to open a gym can range from as little as $10,000 for a basic studio to $100,000+ for a fully equipped training facility.
2. What are the ongoing operational costs of running a gym?
Utilities, staff salaries, equipment maintenance, marketing, rent, accounting, legal services, insurance, gym and coaching software, and keeping the gym clean are some common expenses of running a gym.
3. What unexpected costs might arise when opening a gym?
Structural repairs during renovations, higher utility costs, changes in insurance premiums, and legal fees (and complications) can be higher than first anticipated when opening your gym.
4. How much should I set aside for emergency repairs?
General guidelines dictate setting aside at least 1-2% of your gym’s initial setup cost for emergency repairs. If you spend $60,000 to open your gym, expect at least $600-1,200 in yearly costs to handle unexpected issues.
