What Is My Gym or Fitness Business Worth?

Fitness is a $35 billion industry in the U.S. and private equity has noticed. Whether you own a boutique studio, a CrossFit box, a traditional gym, or a personal training operation, there's real buyer demand — if your numbers are right.

But gym valuations are tricky. Recurring revenue models, member churn, lease terms, and equipment depreciation all play a role. Here's how to think about what your fitness business is actually worth.

How Fitness Businesses Are Valued

Most fitness businesses sell based on a multiple of SDE (Seller's Discretionary Earnings) or EBITDA, depending on size.

Typical ranges:

• Boutique fitness studios (yoga, Pilates, barre, cycling): 2.0x–3.5x SDE
• CrossFit boxes and functional fitness: 1.5x–2.5x SDE
• Traditional gyms (larger footprint, equipment-heavy): 2.0x–3.0x SDE
• Multi-location operations: 3.0x–5.0x EBITDA

The wide range comes down to a few key factors that buyers obsess over.

What Drives a Higher Multiple

Recurring Revenue and Member Retention

Buyers love predictable income. If you run a membership model with strong retention (monthly churn under 5%), your business is significantly more valuable than one that relies on class packs or drop-ins.

What helps:

• Auto-pay memberships with 12+ month average tenure
• Low monthly churn (under 5% is good, under 3% is great)
• Multiple revenue streams (memberships, personal training, retail, nutrition coaching)

Lease Terms

This is the silent killer in fitness deals. A buyer needs confidence that the lease will survive the transition. If your lease expires in 18 months with no renewal option, your valuation takes a hit — regardless of how good your numbers are.

Ideal scenario: 5+ years remaining on the lease, or a landlord who's willing to extend on favorable terms.

Owner Dependence

If you're coaching every class and managing every aspect of the business, a buyer sees risk. The more the gym runs without you, the more it's worth.

Ask yourself: if you took a month off, would revenue hold? If the answer is no, that's a problem worth solving before you go to market.

Equipment Condition

Unlike a services business, gyms come with significant physical assets. Buyers will inspect and discount for aging or worn equipment. A $50K equipment replacement bill right after closing can crater a deal.

Keep maintenance records. Replace what needs replacing before listing. It's one of the few areas where spending money pre-sale directly increases what you walk away with.

What Buyers Look For

Buyers of fitness businesses — whether they're individual operators, multi-unit owners, or PE-backed platforms — are evaluating a few core things:

1. Member count trend — is it growing, flat, or declining?
2. Revenue per member — are you maximizing spend through add-ons and upgrades?
3. Staff stability — will trainers and coaches stay post-sale?
4. Brand strength — do you have real community, or is it just a gym?
5. Scalability — can the model be replicated or expanded?

The Community Premium

One thing that's unique to fitness: a genuine community is worth money. If your members refer friends, show up consistently, and would follow you (or your brand) anywhere, that's a moat. Buyers know that community-driven gyms have lower churn and higher lifetime value.

This is hard to put on a spreadsheet, but it shows up in the retention data.

Common Mistakes When Selling a Gym

Not separating personal training income. If you're personally generating $100K in PT revenue, that doesn't transfer to a buyer. Be honest about which revenue follows you out the door.

Ignoring deferred maintenance. A gym that looks tired sells for less. Deep clean, replace worn flooring, fix broken equipment. First impressions matter in fitness facility tours.

Waiting until the lease is almost up. Lease leverage is everything. Sell with 5+ years remaining, not 18 months.

Not having clean financials. Running personal expenses through the business is common in the industry. Clean it up at least 12 months before listing.

When to Sell

The best time to sell a fitness business is when:

• Membership is growing or stable (not declining)
• You have a strong lease position
• Revenue per member is optimized
• The business runs without you day-to-day
• You still care enough to present it well

The worst time is when you're burned out, membership is declining, and you've let things slide. If you're feeling that pull, better to move now than later.

What to Do Next

If you're thinking about selling your gym or fitness studio, the first step is understanding your numbers. Know your SDE, know your churn, know your lease terms. If those three things are solid, you're probably in a better position than you think.

I work with fitness business owners across Southern California. If you want a confidential conversation about what your business might be worth, book a call.