Expanding a private-sector gym business to a second location can be exciting yet daunting. While the success of the first gym may serve as a foundation, opening another location brings new challenges and opportunities.

Before taking the leap, it's crucial for gym owners to thoroughly assess various factors to ensure a smooth and successful expansion.

When we opened our second location, we made A LOT of mistakes. Many of these problems could have been solved if I had adhered to the list below. Just because you have success in one location doesn’t necessarily mean you’ll have it in two. 

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We often see the replication of facility #1 without refining systems, hiring practices, marketing, or financial acuity, leading to more complications, burnout, or failure. 

Here are the 10 COMMANDMENTS OF SCALE for private sector gym owners before opening their second location:

1. Market Research

Know your WHO, WHAT, WHY, and HOW…

Before you go to a second location and spread yourself and your management team thinner make sure you have a crystal-clear picture of WHO you serve, WHAT problems they face, WHAT products you have to help solve those problems, WHY your product/service is the clear choice for them, and HOW you are going to deliver it day after day effectively! 

Conduct comprehensive market research to identify potential locations with high demand for fitness services. Analyze demographics, competition, and local trends to understand the target market's preferences and needs. A thorough understanding of the new market will inform decisions on location, services offered, and pricing. 

We were VERY surprised to see just how different each gym's community was, even though they were only a few (NJ Miles) apart. 

2. Financial Planning

Have a sound budget and stick to it! 

This is where we made a HUGE mistake on facility #2.  We had a loose budget and BLEW it! We spent too much money on fluff - like equipment that our WHO didn’t really need and custom artwork that did nothing to help solve the problems of our clients. 

What we should have done was put that money into the launch marketing so we could convey the right message to the right potential client…and fill up our gym! 

When we opened the doors, we had ZERO clients and had to scramble. A mistake we will never make again…Facility #3 opened with 92 full paying clients BTW.  Facility #4 will open Day 1 at Max Capacity! 

Evaluate the financial viability of expanding to a second location. Calculate the costs involved in leasing or purchasing space, equipment, staffing, marketing, and operational expenses. Develop a detailed budget and financial projections to determine the return on investment and ensure sufficient capital to support the new location's growth.

3. Operational Scalability

When we created the original VH, it was our passion project. We held on to a lot of old ideologies, products, our huge facility, and frankly people because it was…”just how we do business.” 

Many of those are simply impossible to scale. 

When we decided to open another location, we only took the best and most profitable products and practices with us. 

Assess the scalability of your current operational processes and systems. Determine whether your existing infrastructure can support the needs of multiple locations efficiently. Implement standardized procedures and utilize technology solutions to streamline operations and maintain consistency across all locations.

Remember the golden rule…SIMPLE, PROFITABLE, AND FUN! 

4. Staffing and Management

The greatest thing we’ve EVER done as a company has been to pour into our employee development and recruiting. We quickly realized that if we wanted to grow it would be heavily reliant on people. 

Picking the right people becomes a critical component and in many cases the gym owner is one “call out” or “I Quit” from being back on the training floor 40 hours a week.  

Ensure you have a competent and reliable team in place to manage the new location.

Develop experienced managers who can oversee day-to-day operations, handle staffing requirements, and maintain quality standards.

Provide adequate training and support to ensure consistency in service delivery and customer experience and create a pipeline through a great internship program. 

5. Branding and Marketing

This is one area I see many gym owners treat as an expense instead of an investment. 

Having a clear brand identity and marketing that is focused on bringing that identity to life to help your potential clients will pay you back 10x…maybe 100x on every dollar you spend here. 

Develop a strategic branding and marketing plan to promote the new location and attract customers.

Leverage your existing brand identity while customizing marketing efforts to resonate with the target market in the new location.

Utilize a mix of online and offline marketing channels, such as social media, local advertising, signage, and community outreach, to raise awareness and drive foot traffic.

6. Customer Experience

How are you exceeding the expectations of your customers and what makes you different?

Every day the goal should be…”Man, I can’t believe my gym did that for me!”

Everyone has weights, dumbbells, and bars…and every gym owner says their community is amazing, so what sets you apart?

Prioritize customer experience to build loyalty and retention at both locations.

Focus on delivering exceptional service, personalized interactions, and value-added offerings to exceed customer expectations such as workshops, seminars, experts, or just a fun member social.

Implement feedback mechanisms to gather insights and continuously improve the overall experience for members. We like to survey our community once a quarter to see what the pulse is at that time. 

7. Build an Advisory Team Outside Your Gym

Far too many gym owners try to go at it all on their own. You need support. If I could go back and change anything it would have been to hire a gym business consultant (gratuitous plug) right from the beginning. 

As an expanding business you’ll need some people to help you that are not emotionally attached to the idea or process and can give you an unbiased opinion on what you are doing. 

Here’s my short list of advisory team members:

  • Gym business consultant. Preferably someone who has done what you are trying to do.  If you want to open multiple gyms, they should have already been there done that. 
  • Accountant. When you are ready to scale, it’s probably time to ditch H&R Block for a real firm you can grow with. Our accountant has been an integral part of lease negotiations, partnership agreements, and, of course, helping us reduce our tax burden.   
  • Financial Advisor. This is self-explanatory. Start paying yourself and investing your money right away, otherwise it WILL get spent and you’ll be another gym owner who poured their life into the business and forget to put some away for themselves. 
  • CFO. A CFO differs from your accountant as they are helping to manage the money in real time, make budgets, and set clear financial objectives for you to hit. We would not be where we are today without our CFO. 
  • Lawyer. Every business has legal questions and concerns. It's super important to have a great lawyer on your advisory team. 

8. Facility Design and Layout

As we have grown, we have become much clearer about NEEDS vs. WANTS and that our training is NOT the training of our clients. 

As with the case of many gym owners, they have a WANT for cool toys and gear.  I get it, but we have a strict rule now. If our clients don’t need it and it doesn’t scale within our small group model for multiple locations, WE DON’T BUY IT! 

EliteFTS has helped us tremendously optimize our space, creating a custom feel & aesthetics, while giving us the functionality we need at a cost-effective price. 

Overspending on equipment is a rookie gym owner's mistake…If you are thinking about scale, it’s time for MAJOR LEAGUE BALL. 

Design the new gym facility to optimize space utilization, flow, and functionality.

Consider the specific needs and preferences of the target market, such as equipment preferences, group exercise offerings, locker/bathroom amenities, and accessibility features.

Create a welcoming and inspiring environment that aligns with your brand and encourages member engagement.

9. Technology Integration

Are you still tracking your training and clients’ payments in a yellow notebook? 

I did for years, but it’s 2025, and there are some powerful technologies that systemize and speed things up so you can focus on what matters…marketing, leading your team, and creating world-class experiences for your clients. 

Embrace technology solutions to enhance operational efficiency, member engagement, and business performance.

Here’s our tech stack:

  • Mindbody (POS/Scheduling)
  • Ignite Entrepreneurs (CRM)
  • TrueCoach (Training)
  • Monday (Project Management)
  • Slack (Team Communication)
  • Naamly (Client Data & Communication)
  • Jasper & ChatGPT (Marketing/Copy)
  • Canva (Design)

Implement gym management software for membership management, scheduling, billing, and reporting.

Explore digital marketing tools, mobile apps, and wearable technology to connect with members, track progress, and deliver personalized experiences.

10. Risk Management

As the saying goes, "NO RISK, NO REWARD..." but be calculated. We have taken a slow approach to growth to ensure we don’t take swings at bad pitches and lose money. 

That mindset has allowed us to grow consistently over the past twenty years without taking any real steps backward. 

We have seen it WAY TOO MANY TIMES TO COUNT, gym owners who get excited about the potential to scale, only to overextend themselves and get overwhelmed, leading to decline or failure. 

Just this year, a client hired us to help him out of a bad spot. They had expanded too fast and lost a bunch of team members, causing them to close shop and ultimately losing hundreds of thousands of dollars.

DON’T BE THAT GUY! 

Identify and mitigate potential risks associated with expanding to a second location. Assess risks related to financial, operational, legal, and reputational aspects of the business. Develop contingency plans and insurance coverage to safeguard against unforeseen events and ensure business continuity.

All in all, opening a second location is a rewarding opportunity for you to grow your business and reach new markets. I know personally - I LOVE IT and love the chase. 

By carefully considering these 10 Commandments and addressing them proactively, you can increase your chances of success and build a thriving multi-location fitness brand.

With proper planning, execution, and dedication to delivering value to your members, the journey towards expansion will be fulfilling and very profitable.

Stay Strong!

-Coach Joe

Joe Riggio started Varsity House in 2006 from an unused loading dock, driven by a lifelong passion for fitness that began when he was twelve. With a master’s degree in Biology and nearly two decades as an Adjunct Anatomy & Physiology Professor at Montclair State University, Joe's scientific approach has not only propelled Varsity House to a 20,000 sq/ft facility but also helped numerous athletes and local adults enhance their fitness. As a dedicated family man and avid outdoorsman residing in River Vale, New Jersey, Joe is passionate about expanding their brand and assisting other gym owners in achieving business success through innovative training and business strategies. Together, Dan and Joe are steering Varsity House towards a future of expansion, aiming to open ten new semi-private training facilities in the next five years.

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