Thinking of Buying a Gym in Australia? Here Are 3 Vital Questions to Ask

Australia’s gym industry is regaining momentum, shaped by rising health awareness, hybrid fitness models, and changing consumer expectations.

In 2025, the sector is forecast to generate $2.8 billion in revenue, with annual growth of 1.3% projected through to 2030.

Memberships contribute 58% of income, while personal training and class-based services offer strong margin potential.

Prospective buyers must evaluate financial health, local demand alignment, and operational readiness to secure success in a competitive and evolving fitness landscape.

1. Is the Business Financially Healthy and Resilient?

Why It Matters:

Gym businesses rely on recurring revenue from memberships, supplemented by classes, casual visits, and product sales.

With labour representing over 25% of revenue and rent as the second-largest expense, tight cost control and consistent member retention are essential.

Higher-margin services like personal training and classes can significantly boost profitability if utilised effectively.

What to Check:

• Revenue streams: What percentage of income comes from memberships, personal training, casual visits, and retail sales?
  
  

• Churn and retention: What is the member turnover rate and how are inactive or casual users re-engaged?
  
  

• Cost structure: Are wage costs, equipment depreciation, and rent aligned with industry averages and sustainable long-term?
  
  

• Cash flow: Are memberships billed monthly, and how stable is income throughout the year?

2. Does the Gym’s Offering Fit Its Location and Target Market?

Why It Matters:

Location and demographics heavily influence the success of gym models.

Budget gyms may thrive in suburban and lower-income areas, while boutique and premium offerings succeed in affluent or urban communities seeking personalised experiences.

The right mix of equipment, classes, and amenities should reflect local expectations and lifestyle trends.

What to Check:

• Service relevance: Do classes, equipment, and training services meet the needs of the area’s demographic profile?
  
  

• Competition proximity: How many other gyms or studios are within a short radius, and what is this gym’s point of difference?
  
  

• Facility quality: Is the fit-out modern, clean, and well-maintained to attract and retain members?
  
  

• Location strength: Is the site easy to access, visible, and supported by high foot traffic or strong parking availability?

3. Is the Business Aligned with Fitness Trends and Scalable for Growth?

Why It Matters:

The gym industry is rapidly evolving, with hybrid memberships, virtual training, and boutique community models gaining momentum.

Gyms that adopt tech tools, offer flexible membership options, and keep services fresh are more likely to attract modern consumers.

Scalability also hinges on operational systems and the potential to diversify or extend services.

What to Check:

• Technology integration: Are there access control systems, mobile apps, CRM tools, and online booking capabilities in place?
  
  

• Trend alignment: Does the gym offer hybrid access, small group training, or wellness-related services that reflect current demand?
  
  

• Staff capability: Are trainers certified, engaged, and equipped to offer high-value classes and digital programs?
  
  

• Expansion potential: Can the business grow through new service streams, extended hours, or franchising without major capital reinvestment?

Ready to Invest in a Thriving Gym Business?

Australia’s gym industry is regaining strength. Buyers who embrace consumer-focused services, flexible offerings, and community-driven models can position themselves for sustainable, long-term growth.

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