Wealthy Gym Owners - 77 - Evaluating a Market for a Second Location

Get more at WealthyGymOwners.com How to Evaluate a Market Before Opening Your Gym's Second Location Doug and Pat discuss a framework for evaluating a market before opening a second gym location, emphasizing that not every "good deal" is a yes. Key criteria include household income by the specific age bracket you serve, using the gym's annual membership cost and aiming for it to represent roughly 3–5% of target clients' income; Doug suggests $120K–$150K household income as a practical floor for a ~$4,000/year model. Second, prioritize proximity to location one to avoid cannibalization, reduce owner travel time, leverage existing brand awareness, and simplify staffing coverage. Third, ensure real estate affordability, keeping rent around 10–15% of revenue and avoiding costly build-outs that crush margins. They also note market-dependent population density, the value of high-visibility sites, confirming zoning, and using local online groups to uncover local issues and upcoming developments. 00:00 How to Pick Market Two 01:15 Income by Age Bracket 03:22 Income Benchmarks to Target 05:07 Proximity to Location One 09:28 Rent and Buildout Costs 12:13 Density and Visibility Factors 16:47 Zoning and Local Groups 20:29 Wrap Up and Next Steps