I looked into this, in order to turn a decent profit you must own the equipment and own the building. The building could be mortgaged and still make profit but, it has to be less than renting a space. Also 25-30% down to buying the building. So around 130k out of pocket to start a OK sized gym with good equipment. The majority of gyms that fall have way to much over head AKA leased equipment, rent, bad rent contract, bad management poor advertizing.... There are a lot of better things to invest that much money into and pull a faster bigger profit. Franchises take most chance at profit so they are not worth it as most anything start your own label.

I know several people that own or have owned gyms and they all have 2nd or 3rd jobs. It's not an investment and it won't provide much if any income. Headaches for sure. Money not so much.

Here is an interesting article that breaks down the economics of the current gym market:

http://nypost.com/2015/03/06/nysc-owner-seeks-a-sale-but-alls-not-gym-da...

it depends on location and what type of gym, the 24 hour box gyms here are kicking off massively, people are making mass profits, it will also depend on how much cash you have up front, and how much you have to borrow, as stated below the out going rates just on lease, power and water not to mention the HUGE insurance and liability costs, you will be pushing shit up hill if you have to pay the bank a heap as well, plus if its a franchise, they want their cut too lol, think about it, work out the maths, these contracts are worth about 25 bux a fortnight? work that out by the month? you would need 200 members paying that to make just ten grand. im in australia by the way so costs may vary.

Opening a gym is a loser as an investment, sorry brah.

We own the equipment at my gym. We found a few nice companies in Cali that refurbish and sell packages of equipment. These guys will work with you. They will sand blast and repaint the machines so that they're basically brand new. Stuff comes with a decent warranty too.

As someone who's been on the inside of the gym business for a few years now, I can say that I'd never own a gym for profit. My place is really nice and bright and clean. It smells good. We cater to a certain clientele. And no one is getting rich. Hell, rent and power alone are about $6500/ month. I make almost all my money from training.

If I ever own a place that's all mine, it's gonna be hot in the summer, cold in the winter, smell bad, and look like a dungeon. The kind of place where if you don't like the music, too fucking bad, find another gym. LOL