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Wealthy Gym Owners - 67 - Know These 3 Numbers Before Scaling Your Gym

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3 Numbers That Decide If Your Gym Can Scale

Doug and Pat discuss the three key numbers that determine whether a gym can scale: profitability using the 40/30/30 framework, retention, and average revenue per client (ARPC). Doug explains 40/30/30 as allocating 40% of gross revenue to payroll (including the owner's replacement-value pay), 30% to base operating expenses, and aiming for 30% profit before expanding to multiple locations. They emphasize that retention, typically around 4–6% monthly attrition in competitive markets, is a critical indicator of…

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