Buying a gym franchise in Australia: 24/7 gyms vs boutique fitness studios

• 114 of 119 fitness profiles that answered include a restraint of trade, and 44 of 122 say the franchisor can vary the agreement on its own.
• In September 2026 the ACCC said a fitness franchisor had narrowed its restraints, cut a high late-payment interest rate and removed an early termination fee after the ACCC raised unfair contract terms concerns.
• Membership contracts are consumer contracts: unfair terms are banned, and the ACCC's 2026–27 priorities focus on harmful cancellation, automatic renewal and early termination terms.
• Some states add their own fitness rules. Queensland, for example, requires a 48-hour cooling-off period in new membership agreements.
• If you employ staff, the Fitness Industry Award 2020 covers fitness centres, and full-time and part-time staff earn 125% on Saturdays and 150% on Sundays.

Both sell memberships, but they make money in different ways. Compare the models on these points before you compare brands.

• Floor space and fit-out: a 24/7 gym generally needs more floor space for weights and cardio machines, while a boutique studio can run a single training style in a smaller space built around classes.
• Equipment: a 24/7 gym carries a wide range of machines, racks and cardio units; a studio carries equipment specific to its format, which may need replacing if the program changes.
• Staffing: a 24/7 gym relies on access control, cameras and limited staffed hours, while a studio needs a qualified coach for every class.
• Revenue model: a 24/7 gym depends on a large base of lower-priced memberships and low cancellations; a studio depends on higher-priced memberships or class packs and strong attendance.
• Owner's role: a 24/7 gym still needs someone to sell memberships, fix faults and handle complaints, and a studio needs an owner or manager close to the coaching team.
• Competition: a new gym nearby can undercut your prices, so ask what territory protection you get and what the franchisor knows about planned competitors.
• Unstaffed hours: ask how the system handles emergencies, security and member safety when no staff are on site.

A gym's revenue is recurring, but so are its costs. Work through these numbers with the franchisor and with current franchisees.

1. Members needed to break even: divide your monthly fixed costs, such as rent, fees, loan repayments, wages, software and utilities, by the average net membership income per member.
2. Illustration: if fixed costs are $30,000 a month and each member brings in $65 a month after fees (about $15 a week), you need about 462 paying members just to cover fixed costs.
3. Ramp-up: ask how many months existing sites took to reach break-even membership, and hold enough cash to cover that period.
4. Cancellations: ask what share of members leave each month and why, because that sets how many new members you must sign just to stand still.
5. Failed payments: ask how many direct debits fail each month and how the system recovers them.
6. Pricing: find out what nearby gyms charge and whether the franchisor sets or limits your prices.
7. Wages: if you employ trainers or front desk staff, the Fitness Industry Award applies to fitness centres, casuals get a 25% loading, and award wages rose 4.75% from 1 July 2026.
8. Extra income: personal training, merchandise and supplements, and who keeps that revenue under the agreement.

Your members sign consumer contracts, so the Australian Consumer Law applies, and some states add their own fitness industry rules.

• Unfair contract terms: since 9 November 2023 businesses have been banned from proposing, using or relying on unfair terms in standard form contracts with consumers and small businesses.
• Penalties for unfair contract terms can reach the greatest of $50 million, three times the benefit obtained or 30% of adjusted turnover.
• The ACCC's 2026–27 compliance priorities include unfair contract terms in consumer and small business contracts, with a focus on harmful cancellation terms, automatic renewals, early termination fees and non-cancellation clauses.
• Queensland: new membership agreements must include a 48-hour cooling-off period, members must get a plain English written statement of total fees before they sign, and they can't be made to prepay more than the first 12 months.
• Queensland ongoing agreements: at least 2 months before the initial period ends, you must write to the member explaining when it ends, that the membership will continue and how to end it.
• NSW: Fair Trading advises fitness businesses to keep contracts clear, list fees separately and make cancellation simple, noting that a simple letter should be enough to cancel for a valid reason.
• Other states and territories: check with your fair trading agency before you finalise your membership terms.
• Advertising: claims about government funding or links with government agencies must be accurate, which was part of the ACCC's September 2026 fitness case.

On 1 September 2026 the ACCC reported that it had finalised negotiations with a fitness franchisor, which it did not name, over potential unfair terms in its franchise agreements. The franchisor agreed to make these changes.

• Broad restraints on where and how former franchisees could work were narrowed.
• A high late-payment interest rate, which the ACCC was concerned amounted to a penalty rather than a true estimate of the franchisor's loss, was reduced.
• A term requiring franchisees to pay remaining service fees if the agreement ended early was removed.
• Website content that may have misled consumers about the business's relationship with the National Disability Insurance Agency, and about NDIS funding for some services, was removed or amended.
• The ACCC said franchisors should review their contracts so terms are fair and reasonably necessary to protect genuine business interests.
• For buyers, the lesson is to have a lawyer check the restraint, late-payment interest and early exit clauses in any gym franchise agreement before you sign.

• Match the lease to the franchise term: 116 of 122 fitness profiles on the Register list a term of 5 years or more, so check the lease and its options cover that period.
• If the franchisor or an associate leases the premises to you, it must give you the head lease or a summary of its commercial terms before you sign.
• Equipment finance: ask who owns the equipment, what happens at the end of the finance term and whether you must use particular suppliers. 100 of 123 fitness profiles restrict where you can buy goods or services.
• Disclosure documents created from 1 November 2025 must say whether the franchisor will require significant capital expenditure during the term, such as a refit or equipment upgrade.
• The franchisor can require significant capital expenditure only if it was disclosed, is needed to comply with the law, you agree to it, or all or most franchisees incur it and a majority approve.
• Ask what make-good obligations apply when the lease ends, because removing a heavy fit-out can be expensive.
• Ask what 24-hour operation adds to power, air conditioning and security costs.

FranchiseScope analysed 126 fitness and wellbeing franchisors' profiles on the Franchise Disclosure Register, captured on 19 August 2026. The answers are self-reported by franchisors.

• Setup costs: the median low estimate was $249,800 (101 profiles) and the median high estimate was $496,400 (100 profiles).
• System size: the median profile reported 9 franchisees (122 profiles).
• Restraint of trade: 114 of 119 profiles (95.8%) include one.
• One-sided changes: 44 of 122 profiles (36.1%) say the franchisor can vary the agreement on its own, above the 27.6% across all categories.
• Supply restrictions: 100 of 123 profiles (81.3%) restrict where franchisees buy goods or services.
• Goodwill: 12 of 111 profiles (10.8%) say franchisees have rights to goodwill they generate.
• Arbitration: 50 of 99 profiles (50.5%) provide for arbitration of disputes, below the 63.8% across all categories.

• Choose between a 24/7 gym and a boutique studio based on your budget, your hours and how hands-on you want to be.
• Get membership, cancellation and ramp-up figures from at least three current franchisees.
• Have a lawyer review the franchise agreement's restraint, late-payment and early exit clauses.
• Check your membership contracts against the unfair contract terms rules and your state's fitness rules.
• Compare the lease term, options and make-good costs with the franchise term.
• Price the equipment package independently and read the finance terms.
• Read the capital expenditure disclosure for future refits and equipment upgrades.
• Get independent legal and accounting advice before you sign.