Anytime Fitness Franchise Cost: An Above-Average SBA Risk

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 $539,329 to $905,482 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 39% below the Health & Fitness category average of $727,045. 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 10.4% 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 modestly above the Health & Fitness category average of 10.4% and meaningfully worse than Planet Fitness (0.0%) or Orangetheory (1.6%).

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 0.0% 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.

How Anytime Fitness compares to competitors

The fitness franchise landscape has shifted considerably since Anytime Fitness dominated the mid-2000s expansion wave. Planet Fitness now offers higher average revenue ($1.89M vs. $441K), a 0.0% SBA default rate, and 10.4% annual unit growth. The trade-off is a significantly higher investment ($1.5M-$5.2M range), but the revenue-to-investment ratio still favors Planet Fitness. Read the full breakdown in our Planet Fitness franchise guide.

Orangetheory Fitness targets a different segment (boutique group fitness) with a $935K midpoint investment and a 1.6% SBA default rate across 455 loans. For buyers specifically drawn to the 24/7 unstaffed model, Snap Fitness (also owned by Lift Brands, Anytime Fitness's parent company) offers a similar concept at a lower investment point. The key question is whether the Anytime Fitness brand name justifies the $685K midpoint when the system is contracting and competitors are growing.

Key risks to consider

Beyond the SBA data and unit decline, prospective Anytime Fitness buyers face several structural risks. First, the 6-year initial term is among the shortest in the fitness category. With a 6.1-year average payback at the midpoint investment, many franchisees will reach the end of their initial term before fully recouping their capital. Renewal terms are at the franchisor's discretion, creating leverage asymmetry at the exact moment your investment breaks even.

Second, the commoditization of 24-hour gym access has eroded Anytime Fitness's original competitive advantage. When the brand launched, round-the-clock access was a differentiator. Today, Planet Fitness, Crunch, EOS Fitness, and dozens of regional players offer the same model. The brand must now compete on price, equipment quality, and location convenience rather than access hours. Third, member acquisition costs are rising across the fitness industry, with digital marketing CPAs increasing 15-25% annually in most metro markets. For a gym averaging $441K in revenue, the margin pressure from rising acquisition costs is proportionally larger than for higher-revenue competitors. See our franchise red flags guide for what to watch for in any declining franchise system.

Related franchise research

Continue your research with our Planet Fitness franchise guide, Orangetheory franchise breakdown, and best non-food franchises ranking.