How Much Does a GYMGUYZ Franchise Owner Make?

The official disclosure reports Gross Sales, not owner earnings, for a selected mature franchised-location cohort. In 2025, the 79 included locations generated $11,239,587 in total Gross Sales. The median location produced $89,610, the highest produced $1,692,924, and the lowest produced $11,460. Only 19 locations, or 24.05%, met or exceeded the disclosed average measure. GYMGUYZ 2026 FDD, Item 19, pp. 34–36.

The table also reports $137,274 of average Gross Sales per full-time-equivalent trainer. That is a trainer-productivity measure, not average unit revenue and not owner income. Dividing total cohort sales by 79 locations produces a separate, compatible derived average of approximately $142,273 per location.

Which locations were excluded from the sales cohort?

The FDD excludes 35 franchised locations open for less than 12 months and 17 locations that were operated part-time or did not consistently report sales. That leaves 79 mature, active, full-time locations from 131 year-end franchised locations. This exclusion improves comparability for established operations, but it also means the figures do not describe new-unit ramp-up, part-time operations, or inconsistent reporters.

Item 20 adds another caution. During 2025, the system recorded 35 openings, nine terminations, one non-renewal, and ten franchisor reacquisitions, ending with 131 franchised outlets. The FDD's special-risk page also states that more than 30% of franchised outlets were terminated, reacquired, or otherwise ceased operations during the prior three years. These outlet movements are not an earnings measure, but they increase the importance of interviewing both current and former franchisees. GYMGUYZ 2026 FDD, Special Risks and Item 20, pp. v and 36–42.

The estimate uses three revenue cases and a reproducible expense bridge. The conservative case uses the official median location. The base case uses the derived average per location. Because Item 19 does not disclose quartiles, the upside case is an explicit analytical assumption equal to 120% of the derived average; it is not an FDD-reported percentile or forecast.

• Revenue anchors: $89,610 conservative; $142,273 base; $170,728 upside.
• Other disclosed operating-cost proxy: 43.17% of sales, derived from the 2025 affiliate table's payroll wages, payroll taxes, payroll processing, vehicle, merchant-processing, insurance, and legal/professional expenses. Advertising and the separate managerial-salary line are excluded from this ratio; payroll taxes could not be separated by employee type.
• Current recurring percentage fees: the greater of 7% of Gross Sales or $300 biweekly for royalty, plus the greater of 2% of Gross Sales or $40 biweekly for the Brand Development Fee.
• Local advertising: $21,000 annually in all three cases because the FDD requires the greater of $1,750 per month or 4% of monthly Gross Sales after year one, and each modeled revenue level is below the $525,000 annual crossover point.
• Required systems and conference: approximately $13,663 annually, including Technology, POS, SEO, one VOIP line, one microsite, hiring platform, the current upper-end social-posting fee, and the mandatory conference fee.
• Manager-run case: subtracts $43,750, the 2025 affiliate location's disclosed managerial-salary amount. The owner-operator case adds that labor value back because the owner performs the management role.

Annualized fixed-fee basket used in the model

The $13,663 fixed-fee input annualizes current Item 6 amounts for one standard territory. It assumes one VOIP line and one microsite, uses the current upper end of the social-posting range, and excludes tax on the hiring platform.

In the owner-operated base case, the $142,273 derived average revenue falls to approximately $33,386 after the modeled operating costs and current recurring obligations. This is not a franchisor-reported profit statement; it is a bridge built from the one affiliate expense table and current Item 6 requirements.

Owner involvement is the decisive difference in this model. Item 15 requires the franchisee to participate full-time in day-to-day operations unless GYMGUYZ approves semi-absentee participation and the franchisee appoints a manager. The official franchise FAQ likewise states that this is not a passive business at the outset and describes owner responsibilities such as marketing, hiring trainers, and networking. See the official GYMGUYZ franchise FAQ on passive ownership.

The owner-operated figures are therefore labeled owner-operator benefit, not pure business profit. They combine residual operating profit with compensation for management labor. The manager-run figures remove that labor component by applying the affiliate location's $43,750 managerial-salary expense. At the base sales level, the model moves from approximately $33,000 of owner-operator benefit to an approximately $10,000 manager-run loss.

Manager-run residual

Cash remaining after modeled operating expenses, current recurring franchise obligations, and a paid-manager proxy, before financing and personal taxes.

Owner-operator benefit

Manager-run residual plus the value of management labor performed by the owner. It is not passive income.

Owner draw

A cash withdrawal by the owner. A draw does not prove that the business generated the same amount of economic profit.

After-tax take-home pay

Not estimated. It depends on entity structure, jurisdiction, deductions, other income, and the owner's tax circumstances.

The confidence label is Limited because the FDD does not report franchised-unit operating profit, EBITDA, net income, owner compensation, or cash flow. The cost proxy comes from one GYMGUYZ, LLC affiliate-operated location with $1,240,715 of 2025 Gross Sales—far above the $89,610 franchised-location median and $142,273 derived average. Expense ratios from a high-volume affiliate operation may not scale cleanly to a lower-volume territory.

The affiliate table also reports $0 of occupancy expense and $0 of “all other expenses” in 2025. The mobile model can reduce facility cost—the official U.S. franchise overview states that the business does not require a brick-and-mortar office—but real franchisees may still incur home-office, storage, additional vehicle, recruiting, certification, travel, repair, bookkeeping, and local compliance costs. Any omitted cost would reduce the scenario results. The owner-operator case also retains the full disclosed payroll-tax ratio because the FDD does not isolate payroll taxes attributable to the manager, which may modestly understate owner-operator benefit.

The model also excludes optional or contingent items such as the training application, telemarketing, an advertising cooperative, remedial training, audit costs, and financing. Current recurring fees should be verified against Item 6 and the franchise agreement. The official GYMGUYZ investment page confirms the 7% royalty, 2% national marketing fee, and current biweekly technology fee, but the FDD controls the offer.

What is excluded from the earnings range?

The estimate is before personal income taxes, financing principal, financing interest, depreciation, major capital expenditures, and owner distributions. No debt structure is assumed because the FDD does not provide sufficiently defined financing terms. A financed buyer should subtract actual annual interest and principal payments separately from operating cash flow.

For context on how Item 19 financial performance representations are regulated and substantiated, review the Federal Trade Commission Franchise Rule Compliance Guide. Buyers localizing the paid-manager assumption can also compare the FDD proxy with current regional data in the U.S. Bureau of Labor Statistics OEWS wage tables.

The most useful next evidence is territory-level substantiation and franchisee records, not another generic margin benchmark. The FDD states that written substantiation for the Item 19 sales figures will be made available on reasonable request.

• Request the written substantiation behind Item 19, including the location-level sales data, FTE-trainer calculations, inclusion rules, and treatment of transfers or closures.
• Ask mature franchisees for 2025 and trailing-12-month profit-and-loss statements, then reconcile trainer payroll, payroll burden, vehicle costs, merchant fees, advertising, software, insurance, and owner compensation.
• Separate owner-operated and manager-run franchisees. Ask how many owner hours are required for sales, hiring, scheduling, networking, quality control, and administration.
• Verify whether each technology and vendor fee is mandatory, optional, per user, per line, per territory, or subject to tax and annual increases.
• Confirm whether the $1,750 monthly local-advertising minimum is sufficient in the target territory or whether actual operators spend materially more.
• Interview former franchisees and owners of reacquired or terminated outlets listed through Item 20, focusing on sales ramp, trainer retention, cash needs, and reasons for exit.
• Model actual debt service separately and test a slower ramp than the mature Item 19 cohort, because new and part-time locations were excluded from the disclosed sales population.

The strongest defensible answer is an independent owner-operator benefit range of approximately $7,000 to $47,000 per mature territory per year, with a base scenario near $33,000. It is scenario-based, not an official Item 19 owner-earnings figure. A manager-run territory appears substantially less favorable in the same model, from an estimated loss of about $37,000 to residual profit of about $3,000.

The most important driver is sales relative to trainer and management labor. The largest unresolved uncertainty is whether the single high-volume affiliate location's expense structure is comparable to a typical franchised territory. Before making a decision, a buyer should verify Item 19 substantiation, obtain actual mature-franchisee profit-and-loss statements, and compare active-owner and approved semi-absentee operations in franchisee interviews.