Sweat Equity. Jason Kelly

staff and instructors, equipment, and maintenance – are effectively fixed. With those contracts in hand, the gym operator also knows the revenue side, with very little downside risk. Once a contract is signed, the member is obligated to pay the monthly fee, or face a stiff penalty that’s designed to recoup enough of the money owed to make it hurt the member. Plus, that penalty can be easily modeled into the gym’s business plan.