Unveiling the Truth: Inside the Franchise Model of 24 Hour Fitness

AvatarByGenny Wilkinson Fitness

As the fitness industry continues to thrive, many individuals are considering the possibility of owning their own gym or fitness center. With so many popular franchises available, it can be overwhelming to choose the right one. One name that often comes to mind is 24 Hour Fitness. This well-known gym has been in operation for over 35 years and has over 400 locations worldwide. However, the question remains: Is 24 Hour Fitness a franchise? In this article, we will delve into the details of this popular gym chain and explore whether it offers franchise opportunities or not. So if you’ve ever considered owning a 24 Hour Fitness location, keep reading to find out more.

What is a franchise?

A franchise is a business model in which a company (the franchisor) licenses its trademark, products, and services to an individual or group of individuals (the franchisee) in exchange for ongoing fees and royalties. This type of agreement allows the franchisee to use the established brand and business model of the franchisor, while also providing support and training. Franchises can be found in various industries such as restaurants, retail, fitness, and more.

What is 24 Hour Fitness?

24 Hour Fitness is a chain of gyms and fitness centers with locations all over the United States. The company was founded in 1983 by Mark S. Mastrov and Leonard Schlemm. It offers a variety of amenities, including state-of-the-art equipment, group exercise classes, personal training services, and more. With its name suggesting round-the-clock access to its facilities, 24 Hour Fitness aims to provide convenience to its members by staying open 24 hours a day.

Is 24 Hour Fitness a franchise?

Yes, 24 Hour Fitness is a franchise. The company operates on a franchising model where each location is owned and operated by an independent franchisee. This means that each location may have different ownership but follows the same business model and brand standards set by 24 Hour Fitness.

The benefits of owning a 24 Hour Fitness franchise

As with any other franchising opportunity, there are several benefits that come with owning a 24 Hour Fitness franchise. Here are some of them:

Established brand recognition

One major benefit of being a part of a well-known brand like 24 Hour Fitness is the established brand recognition it brings. The company has been in operation for over three decades and has built a strong reputation in the fitness industry. This can help attract potential customers and make it easier for franchisees to penetrate the local market.

Proven business model

Another advantage of owning a 24 Hour Fitness franchise is having access to a proven business model. The company has been successful in its operations and has a solid system in place for its franchisees to follow. This includes policies and procedures, marketing strategies, supply chain management, and more. This can save franchisees time and effort in developing their own business plans, as they can simply adapt the existing model.

Training and support

Franchisees receive comprehensive training and support from 24 Hour Fitness headquarters. They provide initial training programs for new owners, as well as ongoing training for staff members to ensure they are equipped with the necessary knowledge and skills to operate the business successfully. Additionally, franchisees have access to ongoing support from the franchisor’s team of experts in areas such as marketing, operations, and finance.

Access to resources

As part of a larger network of franchises, 24 Hour Fitness franchisees have access to various resources that can help them run their business more efficiently. This includes bulk purchasing power for equipment and supplies, as well as access to technology platforms used by the franchisor for operations and customer management.

The costs associated with owning a 24 Hour Fitness franchise

While there are many benefits to owning a 24 Hour Fitness franchise, there are also costs involved. Here are some of the expenses that potential franchisees should consider:

Initial investment

The initial investment cost for opening a 24 Hour Fitness franchise can range from $136,550 to $470,850 depending on factors such as location and facility size. This includes the initial franchise fee, equipment purchases, renovations or build-out costs, among others.

Ongoing royalties and fees

Franchisees also pay ongoing royalties and fees to the franchisor. This includes a monthly royalty fee of 6% of gross sales and a monthly marketing fee of 2% of gross sales.

Other expenses

There are also other expenses that franchisees need to consider, such as rent, payroll, utilities, insurance, and more. These costs may vary depending on the location and size of the facility.

How to become a 24 Hour Fitness franchisee

If you are interested in becoming a 24 Hour Fitness franchisee, here are the steps you can take:

Step 1: Research

Start by doing thorough research on the fitness industry and franchise opportunities in general. This will help you determine if owning a 24 Hour Fitness franchise is the right choice for you.

Step 2: Reach out to the franchisor

Once you have decided to pursue a 24 Hour Fitness franchise, reach out to the company directly through their website or by contacting their franchise development team. They will provide you with information on available locations, initial investment costs, and other requirements.

Step 3: Attend an orientation

The Basics of 24 Hour Fitness Franchise

24 Hour Fitness is a popular chain of fitness centers that provides 24-hour access to its members. It was founded in 1983 by Mark Mastrov and Leonard Schlemm. Since then, it has expanded to over 420 locations across the United States and has become one of the largest privately owned fitness franchises in the world.

What Makes 24 Hour Fitness Unique?

There are several factors that make 24 Hour Fitness stand out among other fitness franchises. The most notable one being its round-the-clock access to its facilities. This allows members to exercise whenever it is convenient for them, regardless of their busy schedules.

Another unique aspect of 24 Hour Fitness is its wide range of amenities and services. These include state-of-the-art equipment, group exercise classes, personal training sessions, sauna and steam rooms, basketball courts, and swimming pools. The franchise also offers virtual workouts and personalized fitness plans through its app, making it even more accessible to its members.

Moreover, 24 Hour Fitness prides itself on creating a welcoming and inclusive environment for people of all ages and fitness levels. This has helped the franchise attract a diverse member base over the years.

Is 24 Hour Fitness Really a Franchise?

Many people wonder if 24 Hour Fitness is truly a franchise since all locations are owned by the same parent company. However, according to the Federal Trade Commission (FTC), as long as each location pays an initial fee and ongoing royalties to the parent company, it can be considered a franchise.

Technically speaking, each individual location is a separate business entity with its own set of employees and management team. Therefore, from a business standpoint, it can be classified as a franchise.

The Benefits of Owning a 24 Hour Fitness Franchise

If you are considering investing in a fitness franchise, 24 Hour Fitness has several benefits that may make it an attractive option for you. First and foremost, the brand recognition and reputation of 24 Hour Fitness are already well-established, making it easier for you to attract new members.

Another advantage is the ongoing support and resources provided by the parent company. This includes marketing materials, operational guidance, and access to a large network of franchisees. These resources can help you run your business more efficiently and effectively.

Furthermore, 24 Hour Fitness offers a proven business model that has been successful for over three decades. This increases the chances of your franchise being profitable in the long run. Additionally, with its flexible membership options and affordable pricing, 24 Hour Fitness appeals to a wide range of customers, increasing its potential for success.

Requirements to Become a 24 Hour Fitness Franchisee

Before considering investing in a 24 Hour Fitness franchise, it is essential to understand the requirements set by the parent company. These include a net worth minimum of $2 million and liquid assets of at least $1 million. Additionally, prospective franchisees must be willing to open multiple locations within their designated territory.

Moreover, having previous experience in the fitness industry is beneficial but not required. What matters most is that potential franchisees have strong business acumen and are dedicated to upholding the values and brand standards of 24 Hour Fitness.

The Cost of Owning a 24 Hour Fitness Franchise

The initial franchise fee for owning a 24 Hour Fitness location can vary depending on factors such as location, size of the facility, and other market considerations. On average, this fee can range from $95,000 to $340,000.

In addition to the initial fee, there are ongoing royalties that must be paid to the parent company. These typically range from 4% to 6% of gross sales. Other ongoing expenses include marketing and advertising fees, equipment maintenance costs, and rent or mortgage payments for the facility.

Overall, 24 Hour Fitness is a highly successful fitness franchise that offers unique benefits to its members and potential franchisees. Its reputation, proven business model, and support from the parent company make it a desirable option for those looking to invest in the fitness industry. However, it is essential to carefully consider all requirements and costs before making the decision to become a 24 Hour Fitness franchisee.




24 Hour Fitness FAQ

Frequently Asked Questions (FAQs) on ‘Is 24 Hour Fitness A Franchise’

1. Is 24 Hour Fitness a franchise?
Yes, 24 Hour Fitness is a franchise with over 400 locations across the United States.

2. What is the process for becoming a 24 Hour Fitness franchisee?
To become a 24 Hour Fitness franchisee, you must go through an application process and meet certain financial and operational requirements.

3. Are there any territorial restrictions for opening a 24 Hour Fitness franchise?
Yes, territories for new franchises are based on market demand and availability in specific areas.

4. Do I need to have prior experience in the fitness industry to open a 24 Hour Fitness franchise?
While prior experience in the fitness industry is not required, it is preferred. Applicants with related experience such as business management or customer service are also considered.

5. What are the initial investment costs for opening a 24 Hour Fitness franchise?
The initial investment costs vary depending on location and size of the facility, but ranges from $40,000 to $50,000.

6. Do I have to pay ongoing royalties or advertising fees as a 24 Hour Fitness franchisee?
As a franchise owner, you will be required to pay both ongoing royalties and advertising fees. These fees typically range from 4-6% of monthly gross revenue.


In conclusion, 24 Hour Fitness is not a franchise but rather a private company that owns and operates all of its locations. This means that all decisions and operations for the company are made by the corporate headquarters, rather than individual franchise owners. However, 24 Hour Fitness does have partnerships with various companies to provide access to their gyms through employee benefits programs or as part of a larger franchising arrangement.

Furthermore, the fact that 24 Hour Fitness is not a franchise does not diminish its success in the fitness industry. With over 400 locations worldwide and millions of members, it is clear that their business model has been successful in attracting and retaining customers. Additionally, 24 Hour Fitness offers a wide range of amenities and services to cater to different fitness goals and preferences, making it a popular choice among gym-goers.

One key takeaway from this discussion is the importance of thoroughly researching a company before investing in it. While franchises may offer more autonomy for individual owners, non-franchise companies like 24 Hour Fitness can still be successful with a well-developed business model and strong leadership.

It is also interesting to note how 24 Hour Fitness has evolved from its early beginnings as one club in San Leandro, California to becoming one of the largest fitness chains in the world.

Author Profile

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Genny Wilkinson
Genny Wilkinson began her journey into Ashtanga yoga in 2000 while working as a journalist in her native New York City. Initially drawn to the practice for its physical benefits, Genny soon discovered the profound mental advantages, especially during the challenging period following the 9/11 terror attacks.

Which she covered as a journalist for Reuters. Her professional career took her to Singapore, where she wrote for Time Magazine, and then to Paris, before she finally settled in London.

As her family expanded to include four boys, Genny decided to leave full-time journalism to immerse herself in yoga studies. She achieved certification as a Shri K Pattabhi Jois Ashtanga Yoga Institute Authorised Level 1 teacher, a British Wheel of Yoga teacher, and a Yoga Alliance-certified teacher.Genny’s passion for yoga philosophy led her to pursue a Master’s Degree in the Traditions of Yoga and Meditation at SOAS in London.

From 2024, Genny Wilkinson has started writing an informative blog on the “Niche Name” niche. She writes informative posts and answers queries on topics that people seek in the niche. This transition marks a significant shift from her previous focus on journalism and traditional media to a more interactive and digital form of communication.

Genny’s blog aims to provide valuable information and foster a community of yoga enthusiasts who can learn and grow together. Her extensive background in both journalism and yoga practice ensures that her content is both authoritative and engaging.