Fitness studios in Illinois — whether boutique studios, traditional gyms, or franchise locations — are typically valued at 2x to 4x SDE. Membership-based businesses with long-term contracts and high retention rates command the premium end. Studios heavily dependent on drop-in revenue or month-to-month members present more risk to buyers.
Membership Quality Over Quantity
A studio with 400 members paying $80/month on annual contracts is worth far more than one with 600 month-to-month members at the same average rate. The predictability of annual contracts materially reduces buyer risk and supports SBA loan qualification. Buyers will scrutinize cancellation rates, average member tenure, and churn rate carefully.
Franchise Considerations
Franchise fitness concepts (Orangetheory, Anytime Fitness, F45, Club Pilates) have active resale markets with established transfer processes. Franchise buyers must be approved by the franchisor, and transfer fees apply. Independent boutique studios trade on local brand strength and instructor talent retention.
Equipment condition and remaining lease term are major factors. A studio with a 5-year lease at below-market rent is meaningfully more valuable than one facing imminent renewal at higher rates.