How Much Does a Gym Franchise Cost? A Simple Breakdown
For Stepz Fitness, the startup cost for a new gym franchise begins at $350,000. That figure is the starting point for establishing the club, not a promise that every site will open for exactly the same amount. The final investment can change with the premises, lease, floor area, building condition, equipment plan and approvals required.
That distinction matters. A headline figure is useful for deciding whether an opportunity is within reach, but a sound financial decision needs a line-by-line budget. You need to know what is included, what is additional, when each payment is due and how much cash remains after the doors open.
This guide explains the costs behind a gym franchise in Australia, using the Stepz starting investment as the reference point. It also covers the expenses that can push the total higher, the ongoing costs of running the club and the practical work involved in protecting your investment.
The $350,000 starting investment: what it needs to cover
The clearest way to understand the $350,000 figure is to separate the project into cost categories. The exact amount assigned to each category will depend on the approved site and the current franchise offer, so prospective owners should obtain a personalised written breakdown before committing.
| Cost category |
What to confirm in the budget |
|---|---|
| Franchise entry and establishment | The right to operate under the brand, initial training, access to systems, operational processes and establishment support described in the franchise documents. |
| Site, lease and occupancy setup | Lease deposit or bank guarantee, advance rent where required, lease review and site-related costs. Incentives negotiated with the landlord can change the cash required. |
| Design, approvals and professional fees | Plans, certifiers, consultants, council or private approvals, legal review and other professional work required before construction and opening. |
| Building and branded fit-out | Flooring, lighting, walls, electrical work, bathrooms or amenities, reception, training zones, painting, mirrors, signage and compliance work. |
| Commercial gym equipment | Cardio, strength, free-weight and functional-training equipment, plus delivery, assembly and any required finance or lease setup. |
| Technology, access and security | Membership software, 24/7 access control, CCTV, internet, computers, audio, payment systems and related installation. |
| Pre-opening and launch | Recruitment, initial training, pre-sale activity, local marketing, opening promotions, uniforms, cleaning supplies and other opening requirements. |
| Working capital and contingency | Cash available for wages, rent, utilities, marketing and unexpected costs while membership revenue is building. |
1. Franchise fee and access to the system
The initial franchise fee is only one part of the total investment. It generally covers the right to trade under the Stepz brand and access the operating model, training and support described in the franchise agreement. It should not be confused with the total cost of opening the gym.
Before signing, confirm what the initial fee includes and which services attract separate charges. Ask whether training travel, extra attendees, site visits, additional support or renewals create further costs. The written franchise documents should be the source of truth.
2. Finding and securing the right site
The premises can materially change both the opening budget and the club's monthly break-even point. Rent is only part of the calculation. The lease may require a security deposit or bank guarantee, advance payments, legal review and make-good obligations at the end of the term.
A cheaper site is not automatically better if visibility, access, parking or the local population make membership growth harder. Equally, a premium address can put too much pressure on fixed costs. The decision should be based on local demand, competition, catchment size and realistic membership projections, not rent alone.
Sydney sites often bring higher occupancy costs and more complex council, parking or noise considerations than some suburban and regional markets. Those lessons are useful nationally: check the permitted use, building services, trading-hour conditions and approval pathway before the lease becomes unconditional.
3. Fit-out and building condition
Fit-out is usually one of the largest parts of a gym project because the site must be converted into a safe, functional and brand-consistent club. The scope may include flooring, mirrors, lighting, electrical capacity, ventilation, plumbing, bathrooms, accessibility works, reception, signage and separate training zones.
The condition of the premises matters as much as its size. A previously fitted gym may reduce some work, while an empty shell or a site with inadequate power, ventilation or amenities may require a larger build. Request a detailed scope so you can see what is included, what is provisional and what can change once construction begins.
4. Equipment and technology
Commercial equipment must suit the Stepz hybrid model, which combines 24/7 gym access with functional group training. The equipment plan may include cardio machines, pin-loaded strength equipment, racks, free weights, benches and functional training gear. Freight, installation, warranties and ongoing servicing should be considered alongside the purchase price.
Technology is part of the operating infrastructure, not an optional extra. Access control, CCTV, member management, billing, communications, reporting and lead follow-up systems all need to be ready before opening. Confirm which platforms are mandatory, whether equipment is bought or financed and which subscriptions continue after launch.
5. Pre-opening marketing, staffing and training
A gym starts incurring costs before it starts collecting a full month of membership revenue. Pre-opening activity can include recruiting staff, owner and team training, local awareness campaigns, lead generation, pre-sale offers, signage, events and community outreach.
The aim is to build a membership base before opening, but the result depends on the territory, timing, offer and sales follow-up. Include the full pre-sale period in the budget and confirm which marketing activity is funded through the project, which is supplied by the franchisor and which must be paid locally.
6. Working capital and contingency
One of the most important parts of the budget is the money left after the gym opens. Membership revenue takes time to build, while rent, wages, utilities, insurance, software and marketing continue from the beginning. Working capital provides room to operate without relying on an immediate break-even result.
A contingency serves a different purpose. It covers legitimate changes such as extra electrical work, construction variations, approval conditions, delivery costs or a delayed opening. Keep both items visible rather than using the same pool of cash twice. Your accountant can help model the amount needed under conservative, expected and stronger membership scenarios.
What can push the investment above $350,000?
Because $350,000 is a starting point, the total can be higher where the proposed club requires more space, construction or upfront cash. Common variables include:
A larger premises or a layout requiring additional training, reception or amenity areas.
A site delivered as a bare shell rather than an existing fitness or retail space.
Upgrades to power, air conditioning, ventilation, plumbing, accessibility or fire services.
Higher commercial rent, security deposits or bank-guarantee requirements.
Council, planning, acoustic, traffic, parking or building approval conditions.
A larger equipment package, different finance structure or higher freight and installation costs.
Construction delays, landlord delays or variations identified after work begins.
Additional working capital based on the owner's personal drawings or the local sales forecast.
This is why the most useful number is not simply the advertised minimum. It is the total cash requirement for your site, including setup, finance costs, contingency and the first months of operation.
Costs that may sit outside the headline investment
Even a detailed establishment budget may not include every personal or financing cost. Prospective owners should ask specifically about the following before deciding how much capital they need:
GST treatment and the timing of input tax credits.
Loan establishment fees, interest during construction and equipment-finance repayments.
Independent legal, accounting and business advice.
Personal living expenses while the business is being built and membership is growing.
Lease guarantees, deposits or other security that ties up cash without being an expense.
Insurance premiums, licences, registrations and compliance costs.
Additional local marketing beyond the agreed opening campaign.
Unexpected construction variations and price changes after the original quote.
Ask for each proposed cost to be marked as included, excluded, estimated, fixed or subject to finance. This creates a much more useful budget than a single total at the bottom of a page.
Ongoing costs after the gym opens
The startup budget gets the club open. The operating budget determines whether it can remain financially healthy. Build a monthly forecast that includes all fixed and variable costs, with assumptions that can be tested as real member data comes in.
| Ongoing area |
Items to model |
|---|---|
| Occupancy | Rent, outgoings, utilities, cleaning, waste, repairs and any scheduled rent increases. |
| People | Wages, superannuation, payroll costs, contractors, recruitment and staff development. |
| Design, approvals and professional fees | Royalty fees , marketing fund, software, technology or other fees stated in the current disclosure document and agreement. |
| Building and branded fit-out | Local advertising, promotions, events, referral activity and sales follow-up. |
| Commercial gym equipment | Insurance, accounting, merchant fees, internet, music licensing, security, consumables and professional services. |
| Technology, access and security | Equipment servicing, repairs, replacements and future refurbishment requirements. |
| Pre-opening and launch | Loan or equipment repayments, interest, GST, PAYG obligations and other taxes relevant to the business. |
How to calculate the membership level you need
A useful financial model connects the cost base to membership rather than relying on a general promise about profitability. Start with total monthly operating costs, add the owner's required wage and debt repayments, then compare that figure with expected gross profit per member and other reliable revenue streams.
This is a planning tool, not a guaranteed break-even calculation. The model should account for membership discounts, failed payments, cancellations, GST, direct service costs and the timing of cash receipts. Run more than one scenario so you can see what happens if member growth is slower or costs are higher than expected.
Finance: capital required is not the same as project cost
Some owners combine personal funds with business lending or equipment finance. This can reduce the amount paid upfront, but it does not reduce the total cost of the project. It moves part of that cost into future repayments and interest.
When comparing finance options, look beyond the monthly repayment. Check the deposit required, interest rate, term, security, personal guarantees, early repayment conditions and whether repayments start before the club opens. Preserve enough accessible cash for working capital rather than committing every available dollar to the fit-out.
The owner's time commitment also has a cost
A gym franchise is a people and operations business. During launch and the early trading period, the owner may be closely involved in membership sales, team management, local marketing, member service, financial review and maintaining standards. Even where staff handle daily shifts, ownership still requires oversight and decisions.
A 24/7 access model does not mean the business runs without active management. Unstaffed access can reduce the need for overnight supervision, while staffed hours remain focused on sales, service, coaching and community. Technology can reduce repetitive administration and improve reporting, but it does not replace leadership.
If you intend to keep another job or appoint a manager, include that structure in the financial model from the start. Manager wages, reporting processes and the time you can realistically contribute may all affect the membership level the club needs.
What does the franchise model provide in return?
The reason some investors choose a franchise over an independent gym is that part of the development work has already been done. The value should be assessed against the actual support, systems and obligations in the franchise documents, not the logo alone.
Stepz combines 24/7 access, functional group training and personal training within one club format. The model offers recurring membership revenue that can be tracked and forecast, a broader member proposition than access-only or class-only formats, and systems covering areas such as site selection, fit-out, marketing, technology and operations. The repeatable format may also support future multi-site ownership for owners who establish a strong first club.
The Stepz network currently includes 27 gyms and 17,000 members across NSW, QLD, ACT and SA. The business recorded 31% year-on-year revenue growth and 38.9% year-on-year membership growth, with seven new clubs added in the last 12 months. The operating approach has been refined over 27 builds.
Leadership is another part of the offer. Sam Waller ranked #11 in Australia's Top 30 Franchise Executives 2026, and Stepz was named a 2026 Franchisor of the Year Finalist. These credentials provide context, but prospective owners should still complete their own due diligence and assess the opportunity against their financial position and local market.
Questions to ask before committing
Request the current information pack, disclosure document, franchise agreement and a site-specific establishment budget.
Mark every line item as included, excluded, fixed, estimated or subject to finance.
Confirm which costs are payable before signing, during the build, before opening and after trade begins.
Ask what landlord contributions or rent-free periods are assumed and what happens if they are not secured.
Check whether the fit-out quote includes approvals, services upgrades, professional fees, freight and construction variations.
Confirm all ongoing royalties, marketing contributions, software fees, supplier requirements and refurbishment obligations.
Review the sales forecast, member pricing, churn assumptions and break-even model with an independent accountant.
Have a franchise lawyer review the agreement and the lease, including renewal, exit, transfer and make-good obligations.
Speak with current and former franchisees about startup costs, unexpected expenses, hours worked and the support received.
The ACCC advises prospective franchisees to understand total setup and operating costs, read the disclosure document and agreement, talk to current and former franchisees, and obtain independent legal, accounting and business advice before signing or paying money. Read the ACCC guidance.
Gym franchise cost checklist
Verified total startup estimate for the proposed site
Franchise fee and inclusions
Lease deposit, guarantee, legal costs and occupancy schedule
Design, approvals and professional consultants
Detailed fit-out scope and contingency
Equipment purchase or finance terms
Technology, security and software setup
Pre-opening recruitment, training and marketing
Working capital for the ramp-up period
Owner living costs and drawings
Full monthly operating budget
Ongoing franchise and supplier fees
Independent financial and legal review
FAQ
How much does a Stepz Fitness franchise cost?
The verified startup cost for a new Stepz Fitness franchise begins at $350,000. The final investment depends on the approved site, lease, size, condition, fit-out, equipment, approvals and finance structure.
Is $350,000 the franchise fee?
No. The franchise fee is one component of the broader startup investment. The full project can also include the premises, fit-out, equipment, technology, launch activity and working capital.
Does the starting cost include working capital?
Do not assume it does. Ask for a written site-specific budget showing the working-capital allowance and every inclusion and exclusion. Your accountant should then test whether that allowance is suitable for your circumstances.
Why can two clubs cost different amounts?
Different premises can require different levels of construction, services upgrades, approvals, equipment, deposits and professional work. Lease terms and landlord incentives can also change the upfront cash required.
What ongoing fees should I expect?
Ongoing costs can include franchise fees, marketing contributions, technology, rent, wages, utilities, insurance, merchant fees, local marketing and equipment maintenance. Confirm the exact current structure in the disclosure document and franchise agreement.
Can I finance part of the investment?
Finance may be available depending on the owner, lender, equipment and project. Borrowing changes the cash timing but adds repayments, interest and potentially personal guarantees. Obtain independent finance advice before committing.
Do I need fitness industry experience?
Fitness experience can help, but business management, sales, people leadership and community engagement are also important. Review the training and support provided and identify any skills you will need to hire into the team.
Is a gym franchise guaranteed to be profitable?
No. Results depend on the site, lease, member growth, pricing, retention, staffing, finance and management. Review realistic scenarios and do not rely on a single revenue or break-even estimate.
A clearer way to assess the opportunity
The most useful answer to 'How much does a gym franchise cost?' is not a single number without context. For Stepz Franchise, the starting point is $350,000. The decision becomes clearer when that figure is supported by a site-specific budget, a realistic operating forecast and enough working capital to manage the opening period.
If you are considering gym ownership, get in touch with Stepz Fitness Franchising to request the current information pack and discuss the investment for an available territory. Then review the complete proposal with independent legal, accounting and business advisers before making a commitment.
