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This 7-figure gym has 1,400 members
& the business model that should be on your radar...
John Franklin
November 01, 2024
What’s up Gym World?
I always ask our past guests about gym owners doing big things under the radar, and two-time guest Dane McCarthy immediately named Joey Welling.
Joey’s been in the industry for 20 years and opened Ethos Athletic Club in 2021.
Joey started by mopping gym floors and eventually co-owned Exemplar Fitness—a 6,000 sq ft open-access facility with 715 members. Like KOR4, those numbers are INSANE.
When the lease ended five years ago, he and his partner separated. Joey wanted to build a gym centered on hospitality, so he took the best team members with him to the downtown core of Charleston, SC.
The gym was set to open in October 2020, but COVID delays pushed it back. That extra time let Joey build hype with pre-sales, so by launch day in November 2021, Ethos opened with 650 members—including 275 from Exemplar.
His state-of-the-art facility includes:
A big-box setup with an open training floor
Dedicated spaces for boutique classes like yoga, HIIT, and Pilates
Top-tier coaches and a strong culture
Luxurious amenities throughout
Like LifeTime, Alphaland, Fusion Gyms, and Sapien Center, Ethos embraces the idea of being more than just a place to work out.
These premium gyms are revenue machines. With 1,400 members paying an average of $205 a month, Ethos likely generates over $3M a year.
For comparison, the LifeTime near me charges $330/mo, has 4,000 members, and a waitlist to join.
Take a look: 👇
The space
Ethos offers 21,000 sq ft of beautifully designed indoor and outdoor areas.
When you step inside, you’ll find:
The front desk station
A large co-working area for hanging out
Tres Palmas Açaí café
Joey knew the café owner and approached him to be a tenant at the gym, similar to how Stu Brauer built out space to attract a brewery.
A walk down the hallway leads to the main training floor and luxurious amenities, including:
High-end washrooms and locker rooms
Private rooms for boutique classes
A massage room
Saunas and steam rooms
Cold plunges
The design
When Joey was looking for a space, he initially wanted 10,000 sq ft and actually avoided his current building because:
It was an empty warehouse 4x the size of Exemplar
There was no running water
It had no air conditioning
On the plus side, though, it had:
Cheaper rent than Exemplar
A downtown location
A rapidly growing population nearby
He decided it was worth the risk and spent $1.5M to turn it into his dream gym.
He took a bank loan, sold his house, and got $150K from a silent investor to cover the buildout costs.
Spoiler: It paid off.
Keep in mind: Joey was doing this mid-COVID, so the planned October 2020 opening was delayed over a year due to building and material shortages.
You can tell he focused on every detail. The space has a rustic yet modern, clean, and sleek look and feel, comparable to gyms like Equinox or Innovative Fitness.
This premium branding is consistent across the gym’s social media and website too.
From the looks of it, it’s similar to The Athletic Clubs.
The model
Ethos offers an open gym membership for $175/mo, which includes:
Access to the club and all amenities during operating hours
Personal training (additional fee)
1 free RUSH (45-minute HIIT) class
1 free yoga class
Additional classes at $20 each
Other class options are Axis, Edge, Running Division, Rush 30, Rush 60, Mind-Work, and TDE. According to Joey, around 60% of members use the open gym membership.
Higher-tier memberships include:
Platinum ($225/month): 8 classes/month, $15 for each extra class
VIP ($300/month): Unlimited classes + 2 guest passes per month
All memberships require a 3-month commitment and 30-day cancellation notice. Charleston residents can also try a 7-day VIP paid trial for $50.
And if you’re just visiting, they offer three drop-in options from $35 to $115:
It’s a steal compared to wellness clubs that charge thousands a month.💀
The coaching
Back at Exemplar, Joey prided himself on having amazing trainers and a strong hospitality culture. So, he took the best with him to bring that same energy and vibe to Ethos.
Today, the gym has around 75 staff, including instructors, trainers, hospitality, and leaders.
He prioritizes excellent customer service and a strong culture by:
Encouraging all staff to know every member’s name
Creating a positive experience for members the moment they walk in
Having trainers work the front desk to connect with members on a personal level
Little gestures like remembering names make a big impact and keep members coming back. When Dane visited Ethos, he noticed it right away.
Along with skills, Joey’s non-negotiables for staff are:
Humility
Integrity
Positive energy
Boutique fitness and luxury amenities can elevate the gym experience, but much of it depends on having quality instructors. Great instructors create memorable experiences, and members often follow them if they move. That’s exactly what happened when Joey opened Ethos, and 275 members from Exemplar followed.
It’s also worth noting that having a space and Instagram presence like Ethos gives Joey an edge:
High-quality facilities make it easier to attract top talent
Popular instructors are naturally drawn to the best-looking gyms
Sharing photos of the gym on social boosts its visibility
On the flip side, Joey admits that with so many classes, finding the best instructors for each one is a constant challenge.
The people
Joey doesn’t have an ideal client, but the gym’s socials are filled with young, happy, fit people—so that’s likely who they attract.
It looks like good vibes and good times all around.
Members are constantly tagging and posting about Ethos, too:
Like we’ve seen with other gyms, younger crowds crave a “third place” where they can find both community and connection—and Ethos seems to deliver exactly that.
Key highlights ✨
Ethos Athletic Club opened in 2021 with 650 members on day one. Since then, Joey has created a standout brand that combines big-box vibes with boutique classes and luxury amenities.
Now, just three years later, it’s grown to a 7-figure business with 1,400 members.
It’s doing so well that Joey’s planning to expand with a second location. He’s already bought land to build the next Ethos from the ground up using cash flow from his first gym. 🤯
I think Joey’s model should be on every gym owner’s radar because:
It looks cool and appeals to Gen Z
It offers both large and small group training
It’s premium vibe attracts top coaches
Members get top-tier service and amenities
It makes serious money
And with few others doing this in suburban markets, there’s less competition, so it’ll be easier to stand out.
cheers,
j
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