Gold’s Gym Franchise Costs, Fees & FDD

Year Business Began: 1965

Franchising Since: 1980

Headquarters: Dallas, Texas

Estimated Number of Units: 580

Franchise Description: The franchisor is Gold’s Gym Franchise LLC. The franchisor’s parent company is RSG Group USA Inc. Gold’s Gym facilities will offer a full array of amenities, products and services to members. Currently, all new Gold’s Gym facilities must offer cardio training equipment, resistance training equipment, group fitness, personal training and locker room services, a kids’ club, and must have a “pro shop” including sales of clothing, accessories, drinks, bars, supplements, nutritional products and other items. (However, the franchisor may elect to waive some of these requirements if the Gold Gym facility is to be located in certain large, urban locations, such as Manhattan, New York.) New Gold’s Gym facilities also may offer other optional amenities, products and services that the franchisor currently authorizes, like cardio cinema, basketball, racquet and other courts, smoothie bars and juice bars.
Training Overview: Franchisees (or, if they are a business entity, their managing owner or other manager whom they designate and the franchisor approves) and one other individual associated with the facility whom they designate, including the individual who will act as the facility’s general manager, must complete the initial training program to the franchisor’s satisfaction. Currently, initial training consists of approximately 20 hours of classroom training and 12 hours of on-the-job training at the franchisor’s location in Dallas, Texas. If franchisees participate in one or both optional studio programs, additional training will be required. During the Franchise Agreement’s term, the franchisor may require franchisees and/or their personnel, including newly hired managers and previously trained and experienced employees at the facility, to attend and satisfactorily complete various training courses and programs that the franchisor chooses to provide periodically at the times and locations it designates, although currently none are planned. The franchisor also may require franchisees to conduct periodic training for facility personnel using the formats and procedures that it periodically specifies. Franchisees (or, if they are a business entity, one of their owners) or the facility’s general manager must attend each annual convention that the franchisor (at its sole option) organizes for Gold’s Gym facility operators.

Territory Granted: Franchisees will operate the facility at a specific site that the franchisor first must accept. If franchisees have not yet located an accepted site when they sign the Franchise Agreement, the franchisor will designate a “site selection area” when they sign that agreement. The franchisor typically identifies site selection areas either using city boundaries or as a circle with a radius of a specified distance that it determines from a specified intersection. There is no minimum size for a site selection area. Except as provided in the FDD, if franchisees are complying with the Franchise Agreement, then neither the franchisor nor its affiliates will, during the term of the Franchise Agreement, operate or authorize any other party to operate a Gold’s Gym facility the physical premises of which are located within (i) the site selection area (until the franchisor designates the territory) or (ii) the territory (once the franchisor has designated the territory). The territory is a circle with a radius of a specified distance that the franchisor determines from the facility’s main front entrance. The franchisor will determine that distance based on the factors that it deems relevant, which might include demographics, the character of the site and nearby businesses and residences. The minimum territory may be as small as one-eighth of a mile in a densely populated area, or in some rural areas, up to three miles.

Obligations and Restrictions: The franchisor does not require, but does recommend, that franchisees (if they are an individual) or the managing owner (if the franchisee is an entity) participate personally in the direct operation of the facility. Franchisees must at all times retain and exercise direct management control over all aspects of the facility’s business and all amenities and other products and services it offers. Only an individual who devotes his or her full working time and best efforts to the day-to-day, on-premises operation of the facility, has satisfactorily completed the management training program, and is not engaged in any other business endeavor except passive investments which do not interfere with the performance of his or her duties as manager may manage the facility. Franchisees must offer all amenities and other products and services that the franchisor periodically specifies as being mandatory. Franchisees may not offer, sell, provide or otherwise distribute at the facility, the site or any other location any amenities or other products or services the franchisor has not authorized, and they must discontinue selling and offering any amenities and other products or services that the franchisor at any time disapproves in writing.

Term of Agreement and Renewal: The initial franchise term expires 10 years after the facility first opens for member workouts. If franchisees (and their guarantors) have substantially complied with the Franchise Agreement during its term and is then in full compliance, they may acquire one successor franchise under the then current form of Franchise Agreement (which may be materially different from the Franchise Agreement, including on territory and fees).

Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease, or other obligation. The franchisor currently offer new franchisees who qualify as a veteran a 20% discount on the initial franchise fee.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$40,000	$40,000
Travel and Living Expenses During Training	$4,000	$7,000
3 Months' Rent	$52,000	$320,000
Security Deposit for Lease	$15,000	$110,000
Leasehold Improvements and Construction Costs (assuming no pool)	$1,250,000	$2,750,000
Selectorized Equipment and Free Weights	$125,000	$625,000
Cardiovascular Equipment	$150,000	$250,000
Signage	$40,000	$85,000
Initial Inventory, Other Equipment and Supplies	$7,000	$40,000
Computer System and Gym Management System	$10,000	$25,000
Advertising and Marketing	$50,000	$120,000
Miscellaneous Opening Costs	$10,000	$65,000
Additional Funds - 3 Months	$40,000	$100,000
ESTIMATED TOTAL (excluding real estate purchase costs)	$1,793,500	$4,537,000

Other Fees

Type of Fee	Amount
Royalty	Greater of 5% of facility’s gross revenue each month or $2,000 per month.
Marketing Contribution	Greater of 2% of facility’s gross revenue per month or $1,350 per month.
Cooperative Contributions	Amount that the cooperative determines, up to 3% of gross revenue.
Marketing Spending Requirement Shortfall	Difference between marketing spending requirement and amount the franchisee spent.
Studio Program Training Fee	Currently $250 per trainee. If the franchisor provides field-based training, $1,250 for a minimum of five trainees plus instructor travel expenses (estimated to be $1,500 to $3,000).
Relocation Expenses	Actual out-of-pocket costs and expenses incurred by the franchisor in inspecting the proposed new site.
Convention Registration Fees	Currently, $500.
Fee for Ongoing Training	Currently, $500 per person per session.
Transfer Fee	$2,500 for non-control transfer and $10,000 for control transfers.
Successor Franchise Fee	50% of initial franchise fee then charged for new Gold's Gym facility franchises (currently would be $20,000).
Interim Operations Fee	3% of gross revenue plus direct out-of-pocket costs and expenses.
Costs and Attorneys' Fees	Will vary under circumstances.
Indemnification	Based on amounts awarded and the franchisor’s actual costs.
Administrative Fee and Interest	$100 administrative fee and interest at 1.5% per month or highest interest rate the law allows, whichever is less.
Follow-up Inspection Fee	The franchisor’s cost (estimated to be $300 to $500 per inspection, but could increase if costs increase).
Supplier Testing Fees	Approximately $500 to $5,000.
Insurance Costs	Amount of premiums the franchisor pays on the franchisee’s behalf plus its costs and expenses.
Audit Expenses	Cost of auditing the franchisee’s books and records.
Liquidated Damages Upon Royalty Franchise Agreement Termination	Will vary.

The above information has been compiled from the FDD of Gold’s Gym. Year of FDD: 2025.
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