PureGym is a market-leading global gym franchise with a portfolio of 555 gyms globally, comprising 1.7m members. Its core focus is offering high-quality, low-cost gym memberships to customers who value flexibility and affordability.
Investing in PureGym franchise opportunities could enable you to turn over a profit of over £10,000 a month if you choose the right location and venue.
The benefits and opportunities of becoming
a PureGym franchise owner
PureGym focuses on providing affordable, low-cost health and fitness services in markets where there is high demand. Statistics show that budget gyms are increasing their market share in the UK, from 5% in 2012 to 27% in 2019.
Aside from a growing industry, just some of the key reasons to consider PureGym franchise opportunities include:
- Be part of a new and fast-growing franchise model which already has 130 new franchise site agreements.
- Leverage the existing reputation of the PureGym brand which first launched in 2008 and is the UK’s largest private gym operator with celebrity endorsements.
- Choose from small, medium or large box sites (10,000 sq ft up to 20,000 sq ft in footprint), allowing appropriate levels of custom and growth potential for your location.
- Benefit from low cost per acquisition (CPA) thanks to the lean, tech-first business model that reduces the cost of expansion for an affordable investment.
- Get access to PureGym’s web-first customer communication platforms that are ready out of the box, requiring less investment in communication and marketing.
- Benefit from low staff costs (around 50% of the industry average) at typically 9-12% of revenue, to keep overheads low and maximise your bottom line.
- Benefit from lower running costs than traditional F&B franchises for a more lucrative investment
- Choose a health club format to match the needs of your local demographic, with locations throughout England, Scotland, Wales and Northern Ireland (and globally)
- The PureGym brand is already highly respected in the UK, and the company has plans to grow the franchise both in the UK and overseas, particularly in Switzerland and the Middle East.
How does the PureGym franchise model work?
The PureGym franchise model is a step-by-step process that first ensures that potential franchisees have the experience, capital, and vision to open a PureGym franchise.
Next, franchise owners work closely with PureGym to create a business plan that’s tailored to the location and demographics selected by the franchisee.
1. PureGym franchise requirements
Before you can open a PureGym franchise, you’ll have to prove that you meet the minimum requirements for the brand and undergo an onboarding process. This includes:
Financial investment
You’ll have to show a healthy cash flow and financial background, with a minimum net worth of $2,000,000 and minimum liquid assets of $500,000.
Experience check
Ideally, you’ll have professional experience working in the fitness industry, especially within a management role, along with a proven commitment to helping people lead healthier lives.
Aspirations
PureGym will seek to find out about your investment plans, including the number of gyms you wish to open and location to help them ensure your goals are consistent with their growth plans.
Onboarding
A more thorough onboarding process will help PureGym ensure you pass their feasibility checks and regulatory requirements while assisting you in your business planning.
2. Minimum cost or investment to buy and own a PureGym franchise
One of the biggest hurdles to opening a PureGym franchise is the minimum amount of capital that you’ll have to demonstrate you and your business partners have.
PureGym states that the minimum net worth that you must have to open a PureGym franchise is $2,000,000 while holding a minimum of $500,000 in liquid assets. This figure may help a potential PureGym franchisee to ascertain the level of PureGym investment they may be expected to make.
3. Initial PureGym franchise start-up fees
PureGym hasn’t published any official PureGym franchise fees online, although it’s likely that starting a PureGym start-up fee is less than many other fitness franchises due to their relatively low-cost business model. Similar gym franchises to PureGym cost in the region of £50,000 to £200,000 to start up.
4. Expected PureGym franchise revenue
PureGym does not currently publish the average revenue made by their franchisees, although it’s possible to extrapolate some information from the state of the PureGym brand as a whole. In 2017, the average LTM EBITDA (the pre-tax revenue over a 12-month period) of a mature PureGym venue was £571,000.
The revenue of PureGym franchise venues since 2017 may well have increased since then. In 2022, PureGym reported a generally healthy turnover topping £300 million from a total of 500 venues across the UK and Europe, which is up 11% on the previous year. This shows that PureGym remains competitive and shows an average revenue of around £600,000 per site owned by the franchise. This estimate also aligns with PureGym’s published data on average gym memberships and revenue per membership, which suggests that PureGym venues make, on average, around £55,000 a month.
However, it’s important not to assume that this figure reflects the average income of a PureGym franchise owner. PureGym revenue will vary greatly between sites, and established sites are more likely to turn over large amounts of money than brand-new franchises.
5. Costs associated with running a PureGym franchise
After revenue, it’s important to consider the costs of running a PureGym franchise, which will impact your final profits. Over the group as a whole, in 2021 PureGym’s operating expenses were around £190 million from total revenue of £307 million.
Some of the PureGym franchise fees that you will have to pay out of your revenue include:
Royalty fees
These are fees that you pay to PureGym for using their brand name. These can vary from around £500 per month to £2,000 per month.
Rent and utilities
You will have to ground rent for your premises as well as pay for electricity and gas to power and heat the gym.
Staff
You will have to pay staff, including trainers, administration staff, and caretakers, which is around 50% of the industry average for PureGym.
Marketing
To market your new gym, you will need to cover the cost of marketing materials and promotional campaigns. As a PureGym franchiseé, you benefit from their web-first approach which reduces costs.
As well as these monthly costs, it’s also important to know that if you decide to put up your PureGym franchise for sale at a later date, you will likely have to pay a franchise resale fee which sees a proportion of your sale profits go to PureGym.
6. Predicted average profit of a PureGym franchise owner
PureGym franchises are still in their infancy so there are no recorded profit figures available. The above costs will come out of the total revenue of a PureGym facility, but your profit may be very healthy if your franchise follows a sound business plan and marketing and acquisition strategy.
PureGym states that both their old and newer UK sites achieve over 34% ROCE, with revenue up 58% and memberships up 8% over the last year, indicating a good return for investors.
The total operating expenses of the group as a whole are roughly 61.5% of total revenue, but franchiseés will also pay royalty fees to the company on top of operational expenses.
Royalty fees, utilities and staff costs can add up to between £20,000 and £40,000 per month or higher, depending upon the size of your gym, the number of staff you hire and other factors. This significantly cuts the average revenue of PureGym venues, which stands at around £50,000 per month, but it does leave the possibility of earning up to £10,000 in profits per month or more as a franchise owner for PureGym.
New franchise owners are likely to make less than this, at least to begin with. According to Investopedia, most franchise owners earn around $50,000 per year, with just a small minority earning over $250,000.
A look at the PureGym franchise agreement and policies
When you’re considering PureGym franchise opportunities, it’s important to understand what you’re taking on when you sign a contract to become a PureGym franchisee and what PureGym may expect from you as a franchise owner.
Key areas to consider include:
1. Brand
You’ll be expected to work within the PureGym brand and only open and operate gyms that adhere rigidly to the brand guidelines of the company.
This usually means that you must use gym equipment and other items approved by the company and train your staff to follow PureGym policies and standards.
You will also have to operate using the PureGym business model and fee structure, which is intentionally low-cost to customers.
2. Location
PureGym is the UK’s largest private gym operator and currently owns and operates 333 gyms here, with a further 210 in Europe. The chain has set itself a target of doubling this figure by 2030. The brand has stated its intentions to reach between 700 and 900 clubs in the UK by 2028.
New franchise owners will have to commit to opening a PureGym club in a location that fits this expansion plan and does not invade the territory of existing PureGym clubs. Thanks to its large share of the market, you’ll have access to 100s of site templates and layout schematics to base your business around, for ease of setup.
However, its large spread across the UK may also mean that your chosen location may not be available, hence something to keep in mind, too.
3. Performance
As a fitness brand that’s currently performing well and making over £3 million in revenue per year, PureGym will expect new franchisees to match this performance in terms of both annual revenues and profits.
You will likely have to sign an agreement that specifies the minimum performance targets for your franchise and you may lose the right to renew your franchise or be liable to pay a fee if you don’t meet these standards.
What are the franchise terms of agreement and
renewal for PureGym?
PureGym does not currently publish its franchise terms of agreement and renewal publicly. However, it’s likely that the PureGym franchise agreement covers a number of factors including franchise territory, performance standards, and fees.
Is PureGym a good fit for you?
Owning a PureGym franchise isn’t for everyone, and it’s important that you ensure that PureGym suits your goals and ambitions before you take steps to open a franchise.
1. The target market of the average PureGym franchise
PureGym’s competitiveness in the market is based on its low-cost gym memberships, convenient 24/7 gym access and tech-first business model.
PureGyms usually offer monthly membership with lower fees than most other gym chains, and they achieve this by cutting down on essential gym luxuries that drive up the price of membership in other gyms.
PureGym targets a large customer base at the premium end of the value sector, stating that “beginner or a pro, young or old, everybody is welcome”.
However, key target demographics include young professionals, students and women aged 35 plus who want to save money without compromising on health and fitness. Their target customers are looking for a no-frills gym and don’t want to pay extra for additional services like cafés or saunas.
2. Is a PureGym fitness franchise right for your chosen location?
There are already over 300 PureGym clubs across the UK, which means that many major cities are already well-catered for. PureGym may be looking to expand into smaller cities and towns, or open fitness clubs in the suburbs of larger cities.
Locations with a healthy population of young professionals and students who may not already have access to budget gyms like PureGym will be the most promising sites for new PureGym clubs. Franchisees interested in establishing health clubs in Switzerland or the Middle East may have more success because PureGym has already identified these markets as underserved by low-budget gyms.
3. Other factors to consider when deciding whether a PureGym fitness franchise is right for you
Other factors to consider if you’re thinking of becoming the owner of a PureGym franchise include the difficulty of operating a gym with a unique, low-cost business model. Gym managers and trainers with experience working in the industry, for example, may not be used to running a gym with such low membership fees and therefore may struggle to keep overheads low enough to turn a healthy profit.
Are you a good fit for the PureGym franchise?
It’s important to ask whether you are right for the PureGym brand as well as consider whether PureGym is right for you. The cost to buy and own a PureGym franchise is significant, and only investors with the required capital and risk appetite should consider becoming a PureGym franchisee.
As part of the franchisee registration process, you’ll be interviewed by a panel of PureGym executives who will assess your suitability for the PureGym brand. They’ll want to see that you’re able to work within the PureGym business model, incorporating technology into your management style to keep costs low and embracing the brand’s web-first approach to customer acquisition and communications.
The process of starting a PureGym franchise
The process of starting a PureGym franchise is a simple, seven-step process from first contact to signing the contract.
1. First contact
First, reach out to PureGym by filling in their online contact form. This simply involves providing your contact details as well as some information about your current capital, liquidity and the number of PureGym sites that you wish to open and where.
2. Virtual meet
Attend a virtual meeting with a representative from PureGym, review the franchise introduction presentation, and ask any questions you have about starting a PureGym franchise. At this stage, if you want to proceed, you’ll have to sign an NDA.
3. Initial modelling
If you’re still keen to continue, you will then work with PureGym to model local feasibility and regulations in the region where you want to open a PureGym club to assess the suitability of the market in the location you’re proposing.
4. Business planning
At this stage, you’ll start local market mapping and create a tailored business plan that outlines the development process that you plan to follow and what your business model will look like.
5. Partner meetings
The next stage of opening a PureGym franchise is meeting with a partner in the UK, EU, or US. At this stage, you’ll agree on the commercial terms of your franchise agreement and establish a final development plan.
6. Final negotiations
The penultimate stage of starting a PureGym franchise is settling upon the final details of the franchise. You’ll learn how resources work within the business and carry out final negotiations to agree upon the final terms and conditions of your franchise agreement.
7. Development
Once you’ve agreed on terms, you’ll sign the contract and become a franchisee of PureGym. At this stage, you can start developing your new site and recruit staff for your new PureGym health club.
Conclusion
If you’re looking to open and operate a gym or health club in the UK or Europe under a lean, value-end business model, opening a PureGym franchise could be a good fit for you.
PureGym is currently expanding with a desire to hit 400 sites in the UK by the end of 2023. They are also expanding internationally and will be keen to work with franchisees who have the capital and experience to cover the PureGym franchise start-up cost and meet the brand’s performance targets.
FAQs
Find out more about how to start a PureGym franchise and what it’s like to own a PureGym franchise in these frequently asked questions.
1. How to start a PureGym franchise?
To start a PureGym franchise:
- Contact PureGym with your details
- Attend a virtual meet
- Establish the suitability of your location and outline a business plan
- Meet with partners
- Negotiate the final terms of your agreement
- Sign the contract and start development
2. How much does owning a PureGym franchise cost?
The PureGym franchise cost of ownership will differ between sites and locations, for example, because ground rents in the north of England will be significantly lower than ground rents in London.
However, when calculating the total cost of owning a PureGym franchise, you should consider:
- Start-up fees or PureGym franchise price
- Ongoing royalty fees
- Rent and utilities
- Marketing costs
- Staff and labour costs
3. Is a PureGym franchise profitable?
The healthy revenues posted by PureGym recently combined with the brand’s appetite for expansion indicates that PureGym is financially healthy and therefore a profitable brand to partner with.
Exactly how much PureGym franchise revenue you can expect to make from your PureGym health club will depend on the suitability of the site you choose as well as your marketing and management success.
4. What questions to ask when buying a PureGym franchise?
If you’re considering buying a PureGym franchise, make sure you ask the right questions to determine whether this franchise opportunity is right for you, such as:
- What kind of business support can I expect from PureGym?
- What fees will I have to pay: at start-up, ongoing, and when exiting the franchise?
- What is the PureGym franchise owner’s average profit?
- What other conditions will I have to meet as a franchisee?
