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A brokerage report describes 35 boutique fitness studio transactions closed since the start of 2023, involving 45 studios and about $23.8 million in transaction value. It says single-location studios with at least $100,000 in normalized earnings typically trade at 2 to 3 times earnings, while larger managed groups may reach 3.5 to 4.5 times. The figures are one firm’s sample, not a complete market dataset.
A brokerage report on 35 boutique fitness transactions closed since the start of 2023 offers a rare look at what smaller studios are selling for: the deals involved 45 franchise and independent studios and about $23.8 million in transaction value. The authors say these transactions point to lower valuations than high-profile platform and private-equity deals, while stressing that the data reflects only their firm’s experience.
The report’s authors say sale price is calculated by multiplying earnings by a negotiated multiple, but the earnings figure itself is often disputed. Buyers and lenders may adjust for owner expenses, above-market compensation, and future rent or payroll costs. The report calls the resulting figure “normalized earnings”: the amount a studio reliably produces after every role, including work currently done by the owner, is paid at market rates.
For single-location studios with at least $100,000 in normalized earnings, the authors report typical multiples of 2 to 3 times earnings, with their median nearer 2 times. Multi-location groups with a management layer and at least $400,000 in earnings are reported at 3.5 to 4.5 times. The authors say they have seen a 5-times multiple in only two of more than 75 transactions across their careers. These ranges cover Pilates, yoga, barre and similar class-based studios; the report cautions that each valuation is specific to the business and buyer.
Most buyers described in the report are individual owner-operators, including former corporate workers and instructors, often using Small Business Administration-backed financing. Multi-unit franchisees, consolidators and private-equity-backed operators are also active, but the authors say buyers seeking scale may assess studios differently. Franchise resales can involve franchisor approval, a right of first refusal, transfer fees and required updates, all of which can affect the transaction.
How Financing Shapes Studio Prices
The report’s central point is that a studio’s asking price does not determine what can close. For many smaller acquisitions, lender underwriting sets a practical ceiling. The authors say SBA 7(a)-financed buyers generally need to contribute 10 percent down, while lenders look for historical cash flow of at least 1.25 times annual loan payments and enough remaining income for the buyer to live on. In their account, this often limits financed deals to roughly 3 to 3.5 times earnings.
When a seller’s price exceeds what a lender will support, the difference may require a seller note, an earnout or a cash buyer. Each option changes the seller’s risk and the timing or certainty of payment. The report also says lenders rely on tax returns and documented historical performance rather than forecasts alone. Owners who have consistently minimized reported taxable income may therefore find that the borrowing capacity supporting a sale is lower than expected.
For studio owners, prospective buyers and franchise operators, the figures offer a practical counterpoint to headlines about large corporate acquisitions. They suggest that clean financial records, replaceable owner duties and credible earnings can matter as much as brand recognition. They do not establish a universal market price: the sample is limited to one firm’s transactions and may not represent all geographies, studio formats or sale outcomes.
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The Difference Between Studio and Platform Deals
The report distinguishes independent or small-chain studios from platform businesses bought by institutional investors. The larger deals often involve brands established across many markets, operating systems that do not depend on a founder, and infrastructure intended to support rapid expansion. The authors argue that headline multiples from those transactions are not a sound direct comparison for an owner-run studio with one to five locations.
Owner involvement is one reason. If a seller teaches classes or manages the location, a buyer must account for the cost of hiring someone to take over those duties. A studio whose earnings depend heavily on the departing owner may have less transferable profit and, in the report’s view, may not command the same multiple as a business with a functioning management layer. Franchise affiliation can add brand recognition, but it also brings approval requirements and transfer costs.
The authors report that their 2025 and 2026 closings took a median of about three months from listing to a signed letter of intent and just over five months from listing to completion. Those are medians from their own deals, not a guaranteed timetable for sellers. The report also discusses a quality-of-earnings review requirement for acquisitions of $3 million or more under rules it says took effect October 1, 2026; that timing and applicability should be checked against current lender and regulatory guidance.
““The math itself is simple: Earnings × Multiple = Sale Price.””
— The report’s authors
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What the Transaction Sample Cannot Show
The figures are one brokerage’s transaction sample, not a census of boutique fitness sales. The report does not provide a full deal-by-deal breakdown, such as location, modality, debt structure, seller proceeds or the share of transactions that failed to close. It also does not establish how the reported multiples vary by region or by studio performance beyond the broad categories described.
The $23.8 million figure is aggregate transaction value across the 35 reported transactions; the report does not specify a uniform definition of transaction value in the supplied material. It is also unclear how closely the reported range applies to studios with earnings below the stated thresholds, businesses in other fitness categories, or transactions involving unusual leases or franchise obligations. The source’s discussion of competitive studio openings and what buyers prioritize is incomplete, so no further conclusion about buyer preferences can be drawn from the material provided.
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What Sellers Should Watch Before Listing
The report recommends that owners prepare for buyer and lender scrutiny well before putting a studio on the market. That includes documenting earnings, separating personal expenses from business costs, accounting for the market-rate cost of the owner’s teaching and management work, and reviewing lease and franchise obligations. A prospective seller can also ask lenders or advisers how historical tax returns and cash flow may affect a buyer’s financing.
For buyers, the next step is to test the seller’s earnings calculation against operating costs and the work required to run the studio after closing. Financing approval, franchisor consent where applicable, and any negotiated seller financing can alter both the timetable and final terms. The report’s timelines suggest that a sale may take several months from listing to completion, but they do not predict the schedule for an individual deal. Further market-wide data would be needed to determine whether these pricing ranges and timelines hold across the sector.
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Key Questions
What are boutique fitness studios reported to sell for?
The report says single-location studios with at least $100,000 in normalized earnings typically sell for 2 to 3 times earnings, with the authors’ median closer to 2 times. Multi-location groups with management and at least $400,000 in earnings are reported at 3.5 to 4.5 times. These are figures from one firm’s sample, not guaranteed valuations.
What does normalized earnings mean in the report?
It means the business’s reliable earnings after adjusting for items such as personal expenses, owner compensation and the cost of replacing work the owner performs. For example, teaching and management duties are costed at market rates so a buyer can assess the studio without assuming the seller will continue working there.
Why can a lender limit a studio’s sale price?
The report says lenders evaluate historical cash flow against debt payments and the buyer’s income needs. If the cash flow cannot support the proposed loan, a financed buyer may be unable to pay the full asking price without another arrangement, such as a seller note, an earnout or additional cash.
How long did the reported sales take?
For the authors’ 2025 and 2026 closings, the median was about three months from listing to a signed letter of intent and a little over five months from listing to closing. These are sample medians, not a timetable that applies to every transaction.
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