World Gym Franchise Costs, Fees & FDD

Year Business Began: 1976

Franchising Since: 1982

Headquarters: Los Angeles, California

Estimated Number of Units: 230

Franchise Description: The franchisor is World Gym International, LLC. The franchisor’s parent company is World Fitness Services, Limited, a Taiwan public company. The franchised gym will be authorized to offer and provide (a) fitness training and related fitness instruction, wellness and recovery services, on-demand fitness platforms, and any other fitness-related services the franchisor requires or authorizes franchisees to provide in writing, which may include certain outdoor fitness activities if permitted by the premises and its landlord; and (b) workout equipment, nutritional menu items including drinks, shakes, bars and supplements, branded apparel, accessories and other merchandise, as well as any other products the franchisor requires or authorizes for retail sale.
Training Overview: The initial training program may be provided by the franchisor through a number of different methods, including: (a) remote training via the franchisor’s online learning management system, webinars and/or similar methods of online instruction, (b) instruction that takes place at a designated training gym or location, and (c) on-site instruction and assistance that the franchisor’s training personnel provides to franchisees and their designated trainees at the approved premises of the franchisee’s gym closer to the time franchisees are ready to open. In addition to the remote instruction/classes and the portion of the initial training program that is provided at the franchisor’s training gym, the franchisor will send one or more of its trainers to the franchised business to provide additional on-site instruction and assistance. This on-site assistance will typically take place at or close to the time franchisees are authorized to open their franchised business, and such assistance will typically last one day. The franchisor may offer, and require franchisees, their designated manager and/or any authorized coach to attend and/or participate in, additional training programs and/or refresher courses, as the franchisor deems necessary in its sole discretion.

Territory Granted: Once franchisees have secured the premises of their franchised business, the franchisor will define the designated territory on the data sheet attached to the Franchise Agreement. The designated territory will be located in all or a portion of a listed town, city, or county. The size of the designated territory may vary from other system franchisees based on the location and demographics surrounding the premises. During the term of the Franchise Agreement, and provided that franchisees are not in default of their Franchise Agreement, the franchisor will not open another gym, or grant the right to anyone else to open a gym, from a physical location within the designated territory. Franchisees will not receive an exclusive designated territory.

Obligations and Restrictions: While the franchisor recommends that franchisees personally participate and manage the day-to-day operations of their franchised business, they may hire a designated manager to manage daily operations with the franchisor’s prior written consent. Franchisees may offer all and only the approved products and approved services that the franchisor expressly authorizes through the franchised business, and may only offer these products and services at the premises and in the manner prescribed in the Franchise Agreement and manuals.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If franchisees wish to renew and they satisfy the required pre-conditions to renew, the franchisor will offer them an additional 10-year term. Franchisees have the option to renew their agreement for two additional, consecutive terms of 10 years each.

Financial Assistance: Neither the franchisor, nor its affiliates or agents offer direct or indirect financing to franchisees, nor does it guarantee a franchisee’s obligations. The franchisor offers a 15% discount on the applicable initial franchise fee to honorably discharged veterans of U.S. Armed Forces who otherwise meet the requirements.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$25,000	$25,000
Pre-Opening Sales Program	$30,000	$60,000
Build-out and Leasehold Improvements	$250,000	$900,000
Lease Deposits	$20,000	$60,000
Initial Inventory	$40,000	$50,000
Equipment Costs	$250,000	$850,000
Audio/Visual Equipment	$15,000	$300,000
Furniture and Displays	$15,000	$20,000
Signs and Branding	$25,000	$90,000
Food & Beverage Equipment & Supplies	$7,000	$25,000
Office Equipment and Supplies	$5,000	$15,000
Insurance	$15,000	$50,000
Utility Deposits	$5,000	$15,000
Professional Fees	$5,000	$20,000
Initial Training Expenses	$5,000	$10,000
Licenses and Bonds	$2,500	$25,000
Additional Funds (3-6 months)	$75,000	$250,000
ESTIMATED TOTAL (new gym)	$789,500	$2,765,000

 
Other Fees

Type of Fee	Amount
Royalties	$1,250 per month, with a $50 per month increase upon each one-year anniversary of the effective date of the Franchise Agreement.
Brand Development Fund Contribution	Not currently assessed.
Local Advertising Requirement	Not currently assessed.
Technology Fee	Currently, $165/month (per gym).
Third-Party Required Software	Then-current amounts charges by the approved supplier(s) for any required software the franchisor designates.
Renewal Fee	$2,500
Transfer Fee	$5,000
Audit Expenses	Amount of the franchisor’s costs for conducting the audit.
Annual Franchisee Convention Registration Fee	Not currently assessed.
Evaluation Fee (if and as applicable)	The franchisor reserves the right to charge a fee in connection with the evaluation of any (a) alternate supplier to substitute for a current approved supplier, and/or (b) any product or item that is not an approved product, amounting to $500.
Relocation Fee	The franchisor reserves the right to charge a fee up to $2,500, plus actual costs/expenses incurred in connection with evaluating the proposed relocation site.
Interest on Late Payments	18% per annum or maximum amount allowed by law, whichever is less.
Declined Payment Charge	Currently, the greater of (a) $35 or (b) the franchisor’s actual expenses.
Indemnification	All expenses and liabilities from, relating to, or connected to the operation of the gym, including, for example, claims for errors or omissions of franchisees or their employees, contractors, officers, directors, managers, shareholders, members, invitees and vendors.
Attorney’s Fees and Costs; Enforcement-Related Costs	The franchisor’s costs and expenses.
Management Fee	The then-current fee, which is currently 8% of the gross sales of the franchised business during the time period that the franchisor’s representatives are operating the franchised business, plus all reasonable costs and overhead that the franchisor incurs in connection with its operation of the franchised business.

The above information has been compiled from the FDD of World Gym. Year of FDD: 2025.
Franchise Direct's Disclaimer