The verdict in three sentences
For a franchisor with 24 gyms and 28,000 members, software is not a front-desk tool but the revenue engine: billing, dunning, access and churn all run through it. A unified system for memberships, recurring billing, QR code access control and franchisor reporting costs USD 77,000 to 165,000 as a custom build. The return comes mainly from two levers: cutting failed payments and lowering churn by a few tenths of a point per month.
The economics of a gym franchise network
The Miami franchisor has opened locations across South Florida and Central Florida. Each franchisee currently runs its own tool, which prevents a consolidated view and makes royalty calculation tedious. With memberships between USD 30 and 50, monthly recurring revenue exceeds one million dollars.
| Network metric | 2026 value (order of magnitude) | Comment |
|---|---|---|
| Active members | 28,000 | Average 1,170 per gym |
| Average membership | USD 39 per month | Range USD 30 to 50 |
| Monthly recurring revenue | USD 1,092,000 | About USD 13.1M per year |
| Monthly churn | 4% | 1,120 cancellations per month |
| Failed payment rate | 3 to 5% | Card declines and ACH returns in month M |
| Unrecovered bad debt | 1 to 1.5% of revenue | USD 130,000 to 195,000 per year |
| Franchisor royalty | 5 to 7% of revenue | Calculated manually today |
Every point of churn saved represents about 280 members retained per month, close to USD 131,000 of annual revenue for that month's cohort alone.
Software architecture and budget
The system serves three audiences: the member (app or web portal), the franchisee (running the gym) and the franchisor (running the network). Multi-tenancy, where each gym sees only its own data, is essential.
| Module | Functions | Custom budget (USD) |
|---|---|---|
| Memberships and plans | Plans, contracts, freezes, online cancellation | 13,000 to 27,000 |
| Recurring billing and dunning | Cards and ACH, retries, SMS and email reminders | 13,000 to 26,000 |
| QR code access control | Dynamic QR, turnstile link, opening hours | 11,000 to 24,000 |
| Member app | Class booking, access pass, payments | 16,500 to 38,500 |
| Franchisee back office | Sales, coach schedules, point of sale | 10,000 to 20,000 |
| Franchisor reporting | Consolidation, royalties, churn by gym | 9,000 to 18,000 |
| Churn scoring | Inactive member detection, targeted outreach | 4,500 to 11,500 |
| Indicative total | 77,000 to 165,000 |
Kolonell builds custom applications from 2.5 to 15M+ FCFA (EUR 3,810 to 22,870+) depending on complexity; a full network of this size, including integration with existing turnstiles, is quoted after an audit.
Two compliance points to watch
The FTC click-to-cancel approach and Florida's health studio rules push gyms to offer cancellation as easy as sign-up: the member portal needs a visible cancel path. Biometric access carries growing privacy liability in several US states, hence the choice of a dynamic QR code refreshed every 30 seconds to stop screenshot sharing.
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Daniel, franchisor of a 24-gym network based in Miami, has 28,000 members at USD 39. Churn scoring flags members with no check-in for 21 days each month and triggers a coach call. Churn drops from 4% to 3.6%, i.e. 112 more members retained each month. Over 12 months, taking average member lifetime into account, the gain exceeds USD 280,000 of network revenue. Automated payment retries cut bad debt from 1.4% to 0.7%, recovering USD 92,000. For a USD 130,000 project, payback comes in under 7 months.
FAQ
Can we keep our existing turnstiles?
Yes in most cases: recent turnstiles accept a QR reader or a relay command. Adapting them usually costs USD 350 to 900 per gym, far less than full replacement.
How do we migrate 28,000 stored payment methods?
Card tokens can usually be migrated between processors under PCI rules, and ACH authorizations remain valid. Migration often fits into a weekend, with a test billing run on one pilot gym.
How long to roll out across 24 gyms?
Allow 5 to 7 months of development, then a 4-week pilot on 2 gyms. Network rollout follows in waves of 5 to 6 gyms per week.
Should franchisees pay for the software?
Common practice is a technology fee of USD 170 to 450 per gym per month. For 24 gyms, that is USD 49,000 to 130,000 a year to fund maintenance and new features.
How does this compare with off-the-shelf gym software?
SaaS platforms charge roughly USD 1 to 2.20 per member per month, or USD 340,000 to 740,000 a year for 28,000 members. Custom software costs more upfront but becomes much cheaper from year two.
Let's scope your project. Tell us your number of gyms, members and access hardware, and we will propose a scope, an indicative budget and a rollout schedule. Detailed quote within 48 h. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
