Franchise Deep Dive: Crunch's Franchise Costs, Fees, Profit and Data

Crunch Fitness is a gym with a “No Judgments” philosophy. What started modestly as one small gym in a basement studio in New York City’s Greenwich Village in 1989 has turned into a welcoming place for a diverse group of people to get fit. Gyms also offer features such as proprietary group fitness classes, pressure-free enrollment, complimentary tanning, HydroMassage® and personal/small-group training.

Crunch has continued to experience dynamic growth in the high-value, low-price fitness industry, increasing membership by 60% from the onset of the pandemic until now, including opening more than 100 new clubs and selling more than 300 new franchise rights.

How Many Locations Are There?

There are currently 450 Crunch gyms worldwide in 41 states, the District of Columbia, Australia, Canada, Costa Rica, Portugal, Puerto Rico, and Spain. In 2022, Crunch marked the milestone of reaching 2 million members.

The franchise expects 2024 to be a milestone year as it celebrates its 35th anniversary and projects to increase its franchise footprint to 500 gyms worldwide and aims to hit 3 million members by the end of the year.

What Is the Business Model?

The Crunch business model is centered around presenting your community with “No Judgment” value at a competitive price. Although there are plenty of players in low-price fitness, Crunch says it sets itself apart by “jam-packing the gym with real value-building features and amenities,” such as:

Pressure-Free Enrollment: Getting people to join Crunch can be as easy as letting them have a look around, says the brand.
Flexible Membership Options: Crunch offers bang-for-your-buck membership packages. For $9.99, members get access to state-of-the-art equipment, online nutrition and one free Personal Training session. For $10 more, they have access to proprietary group fitness classes, small group training, streaming workout videos, indoor cycling, multi-club access, unlimited guest privileges, tanning and HydroMassage®.
Proprietary Group Fitness: Classes—including Belly, Butt and Thighs Bootcamp, Barre Bootcamp, BodyWeb with TRX®, Tread N’ Shred, Yoga Body Sculpt, Pound®, Zumba®, and HIITZone—give franchisees a way to draw in new members.
HIITZone Functional Training Ground: Exclusive to Crunch, the HIITZone provides everything necessary for a high-intensity interval workout, including proprietary multi-station training unit, turf and equipment.
Club Design: Crunch specializes in having the right amount of cardio and strength-training equipment, expansive functional/small-group/personal training areas, large group fitness rooms, indoor cycling studio and locker rooms with showers.

How Much Can Crunch Franchise Owners Make?

Earnings for Crunch franchise owners are not publicly available. However, third-party website SharpSheets estimates that Crunch Fitness clubs make an average of $618,909 in profits per year.

How Much Does It Cost to Open a Crunch Franchise?

The initial investment is between $668,000 and $3,488,000, excluding real estate costs.

Requirements are for all Crunch franchise partners to have at least a combined $2 million in net worth and $400,000 to $500,000 available of liquid capital to be eligible for additional financing if needed.

Crunch provides financing assistance. The company will help franchisees review finances and recommend financing through a network of lenders. However, each franchisee is responsible for obtaining its own financing.

Royalty fees are 5% on monthly gross sales and franchisees will contribute 2% of monthly gross sales to a Brand Marketing Fund. Additionally, Crunch requires franchisees to spend a minimum of $15,000 in monthly local advertising for their first year of operation, and the higher of $10,000/month or 7% of gross sales in subsequent years of operation.

What Is the Franchise Fee for Crunch?

The franchise fee for Crunch is $25,000, according to Entrepreneur.

Who Are the Leaders of Crunch?

What Helpful Articles Can I Read to Learn More?

Want to learn more about franchise opportunities on 1851 Franchise? Be sure to visit our Power Rankings to read more on brands making moves.

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Every great franchisee had help buying a franchise. Want to learn more about how 1851 helps franchisees find the right franchise opportunity? Visit www.1851growthclub.com and start your journey.

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