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Inside the $600K-a-month gym model

This hybrid system keeps 7 gyms full and insanely profitable.

Hey Gym World,

What do gym members really want? And how could a medical approach to care work inside a gym? In 2015, Jon Cheung asked exactly that. He ran a Reddit AMA and asked fitness enthusiasts what they liked, didn’t like, and wanted from a gym. The answers shaped something unique.

He built Evolve Strength, a one-stop health and wellness hub where trainers, physiotherapists, chiropractors, and other specialists all work under the same roof, allowing members to train, get therapy, and access wellness services without leaving the building.

Plus, the way Jon structured the business creates benefits for everyone:

  • Members get convenient, integrated services

  • Practitioners and personal trainers get clients, autonomy, and minimal overhead

  • Gyms run efficiently while maximizing revenue per square foot

Today, they have 7 locations across Western Canada serving over 15,000 members, with each location capable of generating up to $600K per month. The model has grown into a multi-million dollar franchise, and Jon plans to bring it to the US in the next few years.

We brought him on the pod to hear all about it, and we think gym owners will find plenty of ideas worth stealing. Watch the full story below or read on for the highlights.

How Evolve Works

Evolve gyms range from 11,200 to 38,000 sq ft and combine training with a wide range of health and wellness services. Members can train while accessing:

  • Physiotherapy

  • Chiropractic

  • Massage Therapy (RMT)

  • Acupuncture

  • Osteopathy

  • Nutrition and Dietetics

  • Orthopedic Diagnostics / Sports Medicine

  • Mental Health & Counseling

  • Medical Aesthetics / Injectables

  • Barbering and other wellness services

💬 Jon’s experience as a strength and conditioning coach inspired the concept. He worked alongside healthcare professionals in football, seeing how collaboration helped athletes recover faster and perform better. He wanted to bring that model to everyday gym members.

Here’s how it works. Members purchase an open gym membership. This gives them full access to the training floor and equipment at any location. They can also hire personal trainers or book clinicians directly, depending on their needs.

Personal trainers are independent contractors. Evolve provides them with access to the facility, marketing support, and a steady flow of member leads. Trainers set their own rates, manage their own clients, and benefit from being part of a community of 30–40 trainers per location. The central Evolve brand drives traffic and creates a shared ecosystem that helps trainers grow their businesses while keeping members engaged.

💬 It works like FlexWerk Fitness and The Yard, giving trainers the freedom to grow their business without managing a gym themselves.

Healthcare practitioners rent office space and run their own businesses independently. They keep 100% of what they earn, creating steady rental income for the gym while offering members convenient access to a range of services without leaving the building. This setup is similar to what we saw at Core Collective Brookline.

 💬 Jon calls Evolve a “shopping mall for health and fitness.” Each professional operates independently, but collaboration happens naturally. For example, if a member gets injured during a session, a physio can step in immediately to assess and start treatment.

Every detail of the space is intentional. Jon tracks:

  • How members move through the space

  • Which equipment gets the most use

  • What areas tend to get congested

That data shapes how each gym is laid out. Most Evolve locations have fewer cardio machines, more squat racks, and large turf areas, so personal trainers and members don’t have to wait for equipment.

Even the medical offices are placed strategically. Members walk past them on the way to the changerooms, keeping wellness services visible and integrated into the gym experience. Each office also has a QR code that members can scan to book an appointment.

Non-revenue spaces such as changerooms, showers, and reception are functional and pleasant, and tenants often add amenities like saunas or cold plunges at their own expense.

Why Evolve Is So Profitable

Evolve Strength has been around for 10 years, but the model has proven both efficient and highly profitable. A fully optimized gym can generate $150K–$600K per month or more, depending on size and membership.

💬 FYI: The newest and largest gym currently has 5,000+ members. It can grow to 8,000 or 9,000, and monthly churn is around 4 percent across all locations.

Revenue comes from several sources:

  • Membership dues, ranging from $32.99 to $37.99 CAD bi-weekly ($24–$28 USD)

  • Trainer leases

  • Practitioner office leases

  • Ancillary product sales and services

Expenses are relatively modest since payroll is limited to essential staff such as reception, cleaning, and management (roughly 9–16% of revenue).

Combined with low churn and multiple revenue streams, this structure makes each Evolve location highly profitable, scalable, and an attractive model for franchising.

Is Evolve a Fit for You?

Evolve’s model is in high demand. Practitioner office spaces inside new locations are often fully leased before the gym even opens, creating a ready-made community and revenue stream from day one.

But starting a fitness franchise can be complex, as we covered in this article. Jon makes the process easier by working closely with franchisees and providing guidance on:

  • Structuring leases and securing tenant improvement allowances

  • Navigating financing options

  • Setting up operations and offering ongoing mentorship

💬 Startup costs for Evolve start around $500K and vary depending on whether the location is a new build or an existing big-box space. Most gyms are in buildings with anchor tenants like grocery stores, which gives franchisees strong negotiating leverage and benefits from built-in foot traffic.

Every franchisee so far has been either a member or otherwise connected to Evolve. They don’t need a fitness background, but they do need:

  • Solid business sense

  • Passion for fitness

  • Desire to grow the brand

This structure gives franchisees access to a proven model, an established brand, and built-in demand, making it an attractive opportunity for the right operator.

💬 Just so you know, Evolve is coming to the US in the next 2–3 years. If you’ve ever thought about owning a fitness franchise, this could be the perfect opportunity.

TL;DR

Evolve Strength isn’t just a gym. It’s a hybrid health and wellness hub that brings trainers, medical professionals, and members together under one roof. Members get convenient, integrated services. Trainers and practitioners get autonomy, clients, and minimal overhead. And each gym is designed to maximize revenue while staying efficient.

We covered a lot here, from the layout and revenue streams to franchising and what it takes to run an Evolve location. But there’s so much more in our full conversation with Jon, including behind-the-scenes business insights, lessons learned, and more.

Watch or listen to the full interview on Gym World for all the goodies.

ttyl,

j