CrossFit affiliate ownership is a very appealing business venture to most perspective gym owners. The costs for entry may appear to be very low at first, and in relation to many other businesses they actually are. Here is a list of some of the costs you should be aware of when thinking about opening your own CrossFit gym.
1. Affiliation. Currently, as of July 2013 CrossFit affiliation costs $3,000 per year. This is a cost that must be paid up front and is a reoccurring expense each year you wish to remain a CrossFit Affiliate.
2. Insurance. Every CrossFit gym must have an insurance policy covering it's owners, trainers, facilities, and members.
There are several companies out there that will insure a CrossFit gym, but make sure you choose the right one. Most traditional fitness insurance policies are not structured to cover the unique activities performed in a CrossFit gym. CrossFit Risk Retention Group is probably the most popular company out there and they offer affordable prices as well. The average cost for CrossFit insurance will run you between $1,000 - $3,000 per year depending on the size of your facility, number of members, and a variety of other factors.
3. Permits. Obtaining the right permits for your gym can be one of the most frustrating pieces of owning your new business. Make sure you hire the right real estate agent and learn the regulations of the area in which you will be operating. Permits for a CrossFit gym can cost anywhere from $100 up to $10,000.
4. Property. Finding the right location for your gym is important so that you can provide a safe and adequate area for your members to work out. You will need enough square footage to allow you to fit enough clients to pay your bills, but you don't want so much space that the cost is too high for you to afford to pay your rent. Remember to budget up to 4 months rent (first two months and last two months) as a down payment. Some property managers will accept less, but be prepared to pay out some cash up front regardless. Rent on a CrossFit facility can cost you anywhere from $1,000 - $20,000+ depending on the size and location of your facility.
5. CrossFit Level 1 Certificate. Every CrossFit affiliate owner must obtain the CrossFit Level 1 Trainer Certificate before being approved for affiliation. The cost for this certificate is currently $1,000. The certificate is good for 5 years, at which point you must pass the certification test again.
6. Equipment. Depending on the size of your facility and number of members you start with, you will need some equipment to run your workouts when you open your doors. For a minimal equipment list, you can see an example here: CrossFit Equipment. You should budget anywhere from $5,000 - $20,000+ for your initial equipment purchase.
7. Technology. You will need a computer with some type of management software and at least a Microsoft Office Package in order to keep your CrossFit gym organized. You will probably want a printer and scanner as well in order to be able to print receipts, documents, and any other paperwork you might need to during the daily operations of your gym. Budget $1,000 for these type of technology items to be safe.
The costs to open a CrossFit affiliate may seem small to some, and large to others. It is important to properly budget your finances prior to opening your gym. Proper planning prior to opening will allow you to focus on the important things once your doors are open, like training your members and creating a positive and motivating environment within your box.
Rick DiCarlo is the owner of Aliso CrossFit in Aliso Viejo, CA. He served in the U.S. Marine Corps for 12 years. He also recently created the website, http://www.startabox.net to help new and prospective affiliate owners open a CrossFit gym.
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