Analysis
Anytime Fitness Franchise Cost: 11.7% SBA Default Rate
Anytime Fitness costs $397K-$973K with $112K avg net income and a -0.9% unit decline. The 11.7% SBA default rate across 1,108 loans is more than double the fitness category average.
Anytime Fitness is the world's largest gym franchise by unit count, with 2,310 locations across the United States. The 24-hour access model and low-staffing requirements have made it a perennial favorite among first-time franchise buyers. But the 2024 FDD tells a more complicated story than the brand's marketing suggests.
The investment
Opening an Anytime Fitness costs $397,516 to $973,121 per the 2024 FDD. The franchise fee is $42,500. Here is the breakdown:
- Leasehold improvements: $150,000 to $500,000 (the biggest swing factor)
- Equipment and fixtures: $100,000 to $200,000
- Franchise fee: $42,500
- Signage, technology, working capital: $50,000 to $130,000
The midpoint investment of roughly $685K puts Anytime Fitness below Orangetheory ($935K midpoint) but above the Health & Fitness category average of $585K. For a small-format gym that typically occupies 4,000-6,000 square feet, the upper end of $973K is steep.
Revenue: below the category average
Anytime Fitness reports average gross sales of $441,894 per location. The average net income is $112,687, which translates to a 25.5% net margin.
That revenue figure sits 38% below the Health & Fitness category average of $715,555. The margin is reasonable for a membership-based business with low labor costs, but the absolute dollar amount of net income creates a problem: at $112,687 per year and a midpoint investment of $685K, the payback period stretches to 6.1 years. At the high end of the investment range, payback could exceed 8 years.
The system is shrinking
This is the number that should give every prospective buyer pause. Anytime Fitness went from 2,334 franchised units to 2,298 to an estimated 2,310 over the past three years. That is a -0.9% year-over-year contraction. More locations are closing than opening.
For context, Planet Fitness grew 4.2% over the same period. When the largest gym franchise in the country is net-negative on unit growth, it signals either market saturation, franchisee distress, or both. The FDD does not break out closure reasons, but when a 2,310-unit system cannot grow, the implications for new franchisees are clear: you are buying into a mature system with limited upside geography.
SBA performance: concerning
Anytime Fitness has 1,108 SBA 7(a) loans on record with an 11.7% charge-off rate. That is more than double the Health & Fitness category average of 5.4% and significantly worse than Planet Fitness (0.0%) or Orangetheory (1.6%).
| Metric | Anytime Fitness | Fitness Category Avg |
|---|---|---|
| Avg. gross sales | $441,894 | $715,555 |
| Avg. net income | $112,687 | -- |
| Investment (midpoint) | $685K | $585K |
| Franchise fee | $42,500 | -- |
| Unit growth (YoY) | -0.9% | -- |
| SBA default rate | 11.7% | 5.4% |
| SBA total loans | 1,108 | -- |
With 1,108 loans, this is not a small sample. It is one of the largest SBA loan datasets for any franchise brand. An 11.7% charge-off rate across that volume is a statistically significant warning sign. View the full SBA data on our SBA loan explorer.
Litigation and regulatory history
The 2024 FDD discloses litigation involving a Spanish franchisee breach-of-duty lawsuit currently on appeal, plus regulatory actions from Illinois and New York related to FDD disclosure and compliance. Regulatory actions from two state attorneys general are not routine. They suggest the franchisor has had material compliance gaps in how it presents information to prospective franchisees.
Radius-based territory: standard but limited
Anytime Fitness provides radius-based territory protection around each location. This is standard for the fitness category and puts it on par with Planet Fitness and Sport Clips. The 6-year initial term, however, is notably short. Most fitness franchises offer 10 years. A shorter term means less time to recoup your investment before renewal negotiations, where the franchisor can change terms.
Who should consider Anytime Fitness
The 24/7 model with minimal staffing requirements appeals to semi-absentee owners. If you can secure a second-generation gym space at the low end of the investment range ($397K), the math improves considerably: $112K net income on a $400K investment is a 28% cash-on-cash return with a 3.5-year payback. That is a reasonable outcome.
But if your build-out pushes toward $700K or above, the 6+ year payback period, declining unit count, and 11.7% SBA default rate combine into a risk profile that is hard to justify, especially when Planet Fitness offers higher revenue, faster growth, and a 0% SBA default rate at a comparable investment level.
The bottom line
Anytime Fitness is a recognizable brand with a proven membership model, but the data tells a story of a franchise system past its peak growth phase. Shrinking unit counts, below-average revenue, and an 11.7% SBA default rate across 1,108 loans are not metrics you can explain away with market timing or COVID effects. The system is contracting because the unit economics, for many franchisees, are not working.
Compare Anytime Fitness against other fitness options on our Anytime Fitness profile and the fitness franchise screener.
Related franchise research
Continue your research with our Planet Fitness franchise guide, Orangetheory franchise breakdown, and best non-food franchises ranking.
Research Anytime Fitness further
- 📄 Download the Anytime Fitness FDD summary — $5 per brand
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- 📊 Category profitability report — $99. See how Anytime Fitness ranks against every competitor.
Frequently Asked Questions
- How much does an Anytime Fitness franchise cost?
- An Anytime Fitness franchise costs $397,516 to $973,121 in total investment, per the 2024 FDD. The franchise fee is $42,500. The wide range is driven by leasehold improvement costs, which vary based on whether you're converting an existing gym space or building from scratch.
- How much does an Anytime Fitness franchise owner make?
- Anytime Fitness reports average gross sales of $441,894 and average net income of $112,687 per location. At a midpoint investment of approximately $685,000, that represents a cash-on-cash return of about 16.5% with an estimated payback period of 6.1 years.
- How many Anytime Fitness locations closed last year?
- Anytime Fitness's unit count has been declining at -0.9% per year, indicating a mature system with closures outpacing new openings. The 11.7% SBA default rate across 1,108 loans is more than double the fitness category average, signaling systemic unit-level challenges.
- Is Anytime Fitness better in urban or suburban markets?
- Anytime Fitness's 24-hour access model performs best in suburban residential areas where convenience matters most. Urban markets face intense competition from boutique studios and budget gyms. The small-format model (5,000-10,000 sq ft) works in strip malls and standalone locations.
- How do gym membership retention rates affect Anytime Fitness franchisee revenue?
- The fitness industry averages 50-60% annual member retention, meaning gyms lose roughly half their members each year and must constantly acquire replacements. For Anytime Fitness franchisees earning average gross sales of $441,894, even a 5-10% improvement in retention can add $22K-$44K in annual revenue without additional marketing spend. The 24-hour access model helps with retention compared to limited-hours gyms, but the 11.7% SBA default rate suggests many franchisees still struggle with the churn economics.