Why gyms are a top choice to diversify your franchise portfolio

The UK fitness industry is currently the healthiest it’s ever been. It reached an all-time high value of £6.5 billion in 2025 as well as soaring to record membership levels; 16.6% of the UK population how have a gym membership. (2025 State of the UK Fitness Industry Report)

People may read that out loud and think 16.6% seems quite low, which is the most exciting thing about it. This untapped potential of the fitness industry is increasingly attracting the attention of experienced franchisees looking to diversify their portfolio, here’s why:

They’re key to the growth of the industry

Gym franchises play a significant role in getting more people active. When you look at the top ten UK private gym operators by number of locations, gym franchises currently occupy three of those positions.

As we all know, the franchising industry allows us to be agile and scale quickly, often quicker than corporate-owned businesses.

The rise of ‘Generation Active’

Millennials and Generation Z present a hugely exciting opportunity for gym operators; they love their fitness and the stats back it up. The two generations, dubbed ‘Generation Active’, currently make up 80% of all gym go-ers worldwide. (Les Mills 2021 Global Fitness Report).

Evidence is increasingly showing that working out is becoming the new going out in the UK. A recent survey by ukactive found that 23% of 25 to 34-year-olds prioritise investing in gym memberships and fitness services, compared to eating out or drinking socially, which was only prioritised by 6 per cent.

These numbers are expected to grow further and shows an exciting future for the industry.

Lower impact of rising costs

Particularly in the service and hospitality industries, businesses are being hit hard by rising operational costs. Whether its food and ingredient prices, packaging or minimum wage, this combination of increases is contributing to ever-narrowing profit margins.

While gyms aren’t immune to these rises, experienced franchisees are increasingly recognising that their lean staffing models and lower cost of sale make them an attractive investment prospect. This is why it’s becoming increasingly common to see individuals with franchises such as KFC and Costa Coffee also having a gym franchise in their portfolio.

It’s a passion point

While the numbers must stack up, investing in a gym franchise can be driven by emotional reasons. If you’re on your own personal fitness journey, the industry provides the platform to create a business that can improve the health and wellbeing of local communities.

Gyms are full of inspirational stories from members that have turned their lives around due to being active. As an owner, it will feel incredibly rewarding knowing you’re at the heart of it.

Given the unpredictable economic landscape, new and experienced franchisees are increasingly being drawn to alternative industries. While the huge, household names in the retail and quick service sectors continue to be in high demand, the great news for the broader franchise sector is that there’s increasing room for other businesses in franchisees’ portfolios.