Powerhouse Gym
The total investment to open a Powerhouse Gym franchise ranges from $392,800 to $1.7M.
What is the Powerhouse Gym franchise?
Powerhouse Gym is a globally recognized fitness brand that operates through licensing rather than a traditional franchise system. William and Norman Dabish co founded the company in 1974 after opening a single inner city gym in Highland Park, Michigan, where its original headquarters were also located. Norman K. Dabish died on October 21, 2005, leaving William Dabish as the surviving co founder. The family owned and operated leadership team includes William's four sons, Henry, William, Victor, and Michael, as well as Norman's son, Johnny. Michael Dabish oversees five of the 13 corporately owned clubs and has been a REX Roundtable Member since 2015. After the second gym opened in Farmington Hills in 1984, the company established its licensee model in 1986. It had 18 locations by 1989, including markets such as Boston and Florida, and the Dabish brothers opened 50 corporate owned locations between 1990 and 1993. International expansion began in China in 2004 and Russia in 2008, with those markets together having more than 20 Powerhouse Gym locations. The company began opening larger, full service corporate owned gyms domestically in 2010. Reports cite either 400 licensees in 40 states and operations in 21 countries and 6 continents, or 300 licensees in 39 states and 20 countries. Wikipedia, as of April 2024, listed more than 200 fitness center owners in 39 states across the United States and 15 countries, including Qatar, China, Russia, and Japan. PeerSense analyzes the brand independently rather than as a marketing affiliate.
The global fitness and recreational sports centers industry benefits from consumer interest in health, wellness, preventative care, and broader physical well being. Demand also reflects interest in varied amenities and personalized experiences. Powerhouse Gym serves different segments, ranging from high priced facilities in China and Russia to smaller gyms focused on traditional weights and cardio in Japan. The China and Russia locations target the top 4% demographic and use high end hotel décor. In the United States, the company has responded to demand for larger, full service facilities. Its January 2026 opening at The Mall at Partridge Creek in Clinton Township, Michigan, covers 120,000 square feet and includes a lap pool, dry sauna, women's only space, spa services, a kid's zone, a spin room with nightclub style lighting, yoga, cycling, a turf area, track, massage chairs, a basketball court, personal trainers, and fitness classes. The sector includes many independent gyms alongside large national and international chains. Powerhouse Gym's reported presence in 21 countries and 6 continents, or 20 countries according to other reports, gives it recognition across varied markets. Rising disposable incomes in emerging markets and interest in lifestyle improvement create opportunities for facilities adapted to local cultural and economic conditions.
Powerhouse Gym uses a licensing structure, so typical franchise fees, ongoing royalty rates, and required advertising fund contributions do not apply. The company states that the flat license fee is the licensee's only financial obligation and that there are no royalties or hidden costs. The amount of that fee is not provided. Total initial investment ranges from $392,800 to $1.67 million, depending on facility quality, location, build out or conversion needs, and amenities. A smaller gym with traditional weights and cardio would likely sit toward the lower end, while the 120,000 square foot Clinton Township facility with a lap pool, spa services, and specialized areas would represent the higher end. Powerhouse Gyms International owns the Powerhouse trademark and intellectual property worldwide and remains family owned and operated. Powerhouse does not provide direct financing, but it assists qualified licensees in seeking third party financing through the SBA, equipment manufacturers, or other financial institutions.
Licensee revenue centers on memberships, with additional income from Powerhouse Gym sportswear, personal training, tanning, nutritional supplements, juice bars, daycare, rehabilitation services, nutritional counseling, and massage services. Approximately 90% of staff, including managers and cleaners, returned after the COVID 19 pandemic. Facilities can range from inner city gyms to larger, full service corporate owned clubs. China and Russia use high priced facilities with high end hotel décor, while Japan has smaller gyms with traditional weights and cardio layouts. The Clinton Township facility includes Italian imported Panatta equipment, as well as equipment from Life Fitness, Matrix, Freemotion, Core, and Precor. Powerhouse Gyms International supports licensees with equipment vendor discounts, floor plans, layouts, and décor through its Preferred Vendor Program. The company assists with demographics, blueprints, location layouts, business plan templates, and examples, with architects and interior designers available through its preferred vendor network. It also provides marketing guidance and pre sale support, including the most successful membership pre sale in company history for Clinton Township. Licensees can participate in a professional peer network and receive information through the Powerhouse Business Journal. Each licensee receives an exclusive territory and does not compete with another Powerhouse Gym within the protected market area.
Results depend on operating expenses, facility quality and scope, location, the licensee's effort and business experience, staff effectiveness, marketing conditions, and local competition. Revenue can come from memberships, sportswear, personal training, tanning, nutritional supplements, juice bars, daycare, rehabilitation services, nutritional counseling, and massage services. The company grew from one establishment in 1974 to 18 locations by 1989 and opened 50 corporate owned locations between 1990 and 1993. Expansion in China began in 2004 and Russia in 2008, and those markets now have more than 20 locations together. Larger full service corporate owned gyms have opened domestically since 2010. The 120,000 square foot Clinton Township facility achieved the most successful membership pre sale in company history. Powerhouse's continued family ownership since 1974 includes active involvement from William Dabish, his sons, and Norman's son Johnny.
Powerhouse Gym has expanded over five decades, from one location in 1974 to 18 by 1989 and 50 corporate owned openings between 1990 and 1993. Reports describe 400 licensees in 40 states and operations in 21 countries and 6 continents, 300 licensees in 39 states and 20 countries, or more than 200 fitness center owners in 39 states and 15 countries as of April 2024. The differing counts reflect the company's licensing structure rather than a traditional franchise unit count. International growth began in China in 2004 and Russia in 2008, with more than 20 locations in those markets together. Powerhouse Gym celebrated its 50th anniversary in December 2024. In January 2026, it opened its largest location at The Mall at Partridge Creek in Clinton Township, Macomb County, Michigan. The 120,000 square foot facility occupies a former Carson's department store and includes a lap pool, dry sauna, women's only space, spa services, a kid's zone, a spin room with nightclub style lighting, yoga, cycling, a turf area, track, massage chairs, a basketball court, personal trainers, and fitness classes. Equipment includes Italian imported Panatta products, Life Fitness, Matrix, Freemotion, Core, and Precor gear, along with the country's largest free weight area. Powerhouse Gym planned its first Manhattan fitness center for Summer 2025. The 18,887 square foot Chelsea location would be its second New York City site after Long Island City in Queens, replace a former Planet Fitness, and include state of the art equipment and a smoothie and juice bar. The brand also introduced Powerhouse Magazine in 1992, launched Powerhousegym.com in 1999, and created a clothing line in 1984. The Powerhouse FX training gym, led by University of Tampa researcher Dr. Jacob Wilson, measures athlete and member performance. Larger domestic locations scheduled for the first quarter of 2026 are set to include Detroit Medical Center physical therapy areas and Pure Green juice bars.
The preferred Powerhouse Gym licensee has strong general business experience, management ability, and personal qualifications. Industry knowledge helps, but a record of operating a business is central to the company’s expectations. A licensee in Qatar described spending a week with the Dabish family and regional managers learning sales, personal training, group exercise, and operating practices. That licensee opened two locations, showing that multi unit ownership is possible and encouraged. Powerhouse Gym reports activity in 21 countries and 6 continents or 20 countries, along with 39 states across the United States. Early markets included Boston and Florida, while newer examples include Clinton Township, Macomb County, Michigan, and Chelsea, Manhattan. China and Russia serve the top 4% demographic through high priced facilities with high end hotel décor. Japan uses smaller gyms aimed at serious fitness customers. Powerhouse assists with demographics, blueprints, layouts, business plans, and preferred architects and interior designers. Pre sale support is intended to build membership before opening, although the timeline from signing to the grand opening is not specified. The company provides exclusive territories. Agreement terms, renewal provisions, transfer rules, and resale requirements are not detailed.
Powerhouse Gym offers a licensing model with a flat license fee and no ongoing royalties or advertising fund contributions. The brand has operated since 1974 and reports growth across 21 countries and 6 continents or 20 countries, with formats ranging from high end facilities in China and Russia to traditional fitness gyms in Japan. Recent developments include the 120,000 square foot Clinton Township facility, which achieved the company's most successful membership pre sale, and the planned Manhattan location. Licensee support includes vendor discounts, location and layout assistance, marketing guidance, pre sale help, and exclusive territories. Powerhouse Gym has a Loan Activity Score of 53, rated Moderate. PeerSense provides independent franchise research for buyers evaluating the opportunity, including SBA lending history, Loan Activity Score, location maps with Google ratings, FDD financial data, and side by side comparison tools.
Loan Activity Score
53/100
SBA Default Rate
0.0%
Active Lenders
11
According to its Franchise Disclosure Document or public business records, Powerhouse Gym has 12 locations, all owned by franchisees. Public SBA loan records show 11 lenders made 13 loans to franchisees of Powerhouse Gym. PeerSense calculates Powerhouse Gym's score as 53 out of 100, using public SBA loan performance and recent lending activity.
Franchising since 1974 · 12 locations
$392,800 to $1.7M
12
12 franchised
Proprietary PeerSense metric
ModerateDistinct lenders in public SBA records for Powerhouse Gym
13
Total SBA loans
$866K
Average loan size
Source: public SBA 7(a) and 504 loan records through December 31, 2025
Referral fee at closing
SBA Lending Activity for Powerhouse Gym
Loan Activity Score Breakdown
Growing (10 to 24 loans)
Are lenders increasingly or decreasingly funding this brand? Growing trends score highest.
Blended default rate (recent + all time) compared to NAICS sector peers.
Quality lenders actively backing this brand, with penalty for lender pullback.
FDD availability, Item 19 disclosure, and overall data completeness.
Geographic spread of SBA funded locations across states.
SBA Lending Performance
SBA Default Rate
0.0%
vs 7.9% peer avg
SBA Loans
13
Total Volume
$11.3M
Active Lenders
11
1 selective
States
9
vs. SBA Sector Average
SBA loan default rate vs. all franchises in the same NAICS sector, not limited to direct competitors
Key Highlights
Franchise Financing Resources
Data Insights
Key performance metrics for Powerhouse Gym based on SBA lending data
SBA Default Rate
0.0%
7.9% below peer avg
SBA Loan Volume
13 loans
Across 11 lenders
Lender Diversity
11 lenders
Avg 1.2 loans per lender
Investment Tier
Premium investment
$392,800 to $1,669,400 total
Powerhouse Gym: Deep SBA Data
Brand specific metrics derived directly from SBA 7(a) approval records: peak lending year, leading state, average loan size, and lender concentration. PeerSense computes these per brand so capital advisors and prospective franchisees can benchmark this opportunity against the rest of the franchise universe.
Peak SBA Year
1995
7 approvals. The best year on record for Powerhouse Gym.
Top SBA State
Michigan
16 SBA financed Powerhouse Gym locations, the densest operator footprint.
Average Loan Size
$467K
Median $752K. Use as a sizing anchor when modeling your own Powerhouse Gym unit.
Lender Concentration
38.9%
Moderately Spread
Share of Powerhouse Gym approvals captured by the top 3 SBA lenders.
Powerhouse Gym's SBA lending pipeline peaked in 1995 (7 approvals). The last five fiscal years account for 38% of cumulative volume ($6.9M approved). Operator density is highest in Michigan with 16 SBA financed locations. Average funded ticket sits at $467K, with the median at $752K. Lender mix is moderately spread: the top three SBA lenders account for 38.9% of approvals. Meaningful choice exists, but specific lenders carry the brand.
Payment Estimator
Estimated Monthly Payment
$4,066
Principal & Interest only
Indicative only, as of October 1, 2026. Not a quote, commitment or offer of credit. Final pricing, leverage and terms are determined by the lender at underwriting, after full transaction materials are reviewed. PeerSense sources the file. The lender sets pricing. What these terms mean.
Locations
Powerhouse Gym, unit breakdown
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Reviewed by Edward L. Freeman, Founder and Managing Director, PeerSense
- PeerSense is a capital advisory firm that places commercial financing with direct capital sources; it does not lend, fund, or approve loans, and the capital source sets final terms.
- Edward L. Freeman founded PeerSense in January 2020.
- He is a Registered Franchise Consultant with Business Alliance, Inc., a credential issued in March 2022, and worked as a franchise consultant there from March 2022 to May 2023.
- His recorded experience includes a $22 million SBA construction loan, with about $16 million funded on the deal.
- In the 12 months through September 30, 2026, PeerSense tracked 912 publicly announced financings with a disclosed size of $361.32 billion. PeerSense Capital Data Report · Methodology page
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