A signup is not a retained member-month
Trials, signed future contracts, failed charges, freezes and cancellations can inflate a gross enrollment count without producing the earned recurring revenue used by the model.
At the assumed 280 paid active member-months per month and $149.00 realized net yield, this Maryland wage-reference scenario produces $4,075.11 mature monthly EBIT. EBIT break-even is approximately 250.592 paid active member-months per month. Opening funding is $331,931.72 under the stated ramp and reserve assumptions. These calculations use the fully paid roster; price, activity, premises and other commercial inputs remain planning assumptions.
Planning answer updated . Source periods appear below.
Leased boutique group fitness studio with one primary class room, a defined weekly timetable, paid instructors, paid studio coordination and recurring monthly memberships
State benchmarks: May / July 2025 · Page prepared September 13, 2026
The published model assumes 280 paid member-months in a mature month, produces $4,075 monthly EBIT and needs 250.6 paid member-months for EBIT break-even. The assumed volume is 29.4 paid member-months above EBIT break-even. A larger shortfall in paid activity would erase the modeled operating profit. These are scenario outputs to test at a real site or route. Separately, the 2023 Census County Business Patterns counted 704 employer establishments classified as fitness and recreational sports centers in Maryland under NAICS 713940. Of these, 295 (42%) had fewer than five paid employees. That is sector structure, not proof of demand or a staffing recommendation.
| County or equivalent | Establishments |
|---|---|
| Montgomery County | 165 |
| Washington County | 13 |
| Garrett County | 3 |
The county file contains 19 county rows with a positive count for this code. Those rows account for 696 of the 704 statewide establishments; 8 are not individually represented in those county rows. An absent row is not evidence that a county has no businesses.
Across the full 12 months, private-industry employment in this exact QCEW code ranged from 14,373 in February to 19,575 in July, a 36.2% peak-to-trough spread. Compare retained billable members, freezes, attendance by class and paid instructor coverage in both published employment endpoints. The four quarters provide a calendar-year comparison. QCEW sector employment does not measure customers, sales, retention or the staffing need of one proposed business. Exact 2025 files: Q1, Q2, Q3, Q4.
The 2022 Economic Census reported 649 employer establishments and $734,742,000 in annual sector receipts in Maryland. These are historical totals across the classified establishments, not observed retained, billable members and net collected yield, a local sales forecast or one-business target.
NAICS 713940 includes a range of fitness and recreational facilities, not only small class studios. Its establishments are not a count of comparable memberships, classes or available studio units. CBP excludes businesses without paid employees. Source years differ from the current planning scenario; none of these totals replaces its assumed price, order volume, rent, opening budget or other operating costs.
Direct sources: 2023 CBP state file, 2023 CBP county file, 2022 Economic Census industry file, BLS QCEW data files, and CBP coverage and definitions. Federal files retrieved September 18–19, 2026.
The mature reference month has a surplus. 280 assumed paid active member-months per month produce $4,075.11 EBIT and $5,858.45 cash after the modeled maintenance investment. Both include paid work and exclude financing, income taxes and owner distributions. The $331,931.72 opening-funding scenario is separate; a reserve cannot remove an ongoing operating loss.
The May 2025 Maryland Exercise Trainers and Group Fitness Instructors median is $22.80 per hour. Applied to the page’s full paid roster, state occupation benchmarks produce $17,941.15 monthly payroll, $37.39 higher than the same national-wage roster ($17,903.76), including the assumed 18% employer allowance. BLS state May 2025, SOC 39-9031, H_MEDIAN, row 14522. Use this comparison to obtain role-specific hiring terms and employer charges; it does not price rent or demonstrate customer demand.
With the same realized yield, costs and paid roster, 251 full billable member-months in a modeled month produce $56.58 EBIT; 250 leave −$81.99 EBIT. This tests earned full member-months, not leads, trials, signed future contracts or frozen memberships. The separate mature cash-after-maintenance boundary is 238 full billable member-months per month, before financing and income taxes; it does not establish launch payback.
Rounded break-even values elsewhere on this page are estimates. The conditional whole-unit tests here use the full unrounded inputs. EBITDA excludes depreciation and maintenance investment; EBIT includes depreciation; cash after maintenance deducts maintenance investment and is not owner income.
The assumed timetable has 45 classes a week with 16 places each: 3,120 monthly reservation spots on a 52-week annual average. At 8.5 reservations per member-month, 280 billable members need 2,380 spots; the 350-member planning ceiling needs 2,975. Paid instructor coverage is 243.75 hours per month, equivalent to 1.25 hours per scheduled class; operations and member service are paid separately. Check preferred-time access, safe room capacity, setup, reset and substitution. Track billable members by cohort: replace cancellations, freezes and failed collections before counting net growth. The $149 is a realized earned yield; class-pack or drop-in revenue already included in it must not be added again. The post-ramp flat membership line assumes replacement succeeds; it is not evidence of zero churn.
| Change from reference | Monthly EBIT | Held-constant scope |
|---|---|---|
| 20% fewer paid activity units | −$3,684.81 | Assumed activity falls; yield and the paid roster remain unchanged. |
| 25% higher full occupancy cost | $2,200.11 | Complete occupancy changes; refundable opening deposits also change in the full calculator. |
| 10% higher wage rates | $2,281.00 | Every paid role changes together; hours and the employer allowance remain unchanged. |
20% fewer paid activity units gives the lowest EBIT among these three tests: −$3,684.81. These differently sized tests are sensitivities, not a probability range or an exhaustive risk ranking. A result reverses when realized contribution no longer covers the stated paid costs; validate the selling unit and every binding resource before accepting extra volume.
Next validation action: Track retained billable member cohorts, realized yield and class-level access before adopting the steady membership target. The retained Census employer-establishment and BLS employment observations describe sector scope and timing; they do not count members or identify the best catchment. Observed wage and population records keep their source periods; the rent, selling yield, opening allowances, employer load and sales ramp remain disclosed assumptions unless a separately scoped observation says otherwise. Inspect this page’s exact sources and limits · Read the shared business format.
Published research and calculations support business planning and education. They are not personalized financial, investment, tax or legal advice, and they do not guarantee costs, revenue, profit or financing. Estimates depend on the stated format, location, source periods and assumptions. Check the requirements and commitments that apply to your circumstances.
This completed planning profile combines checked state wage and population sources with a transparent financial scenario. Use its opening-cost, operating-cost and revenue figures as planning inputs, then replace location-sensitive assumptions when evaluating a specific address or service area.
| Evidence family | Published basis | What to confirm locally |
|---|---|---|
| Opening costs | Published planning inputs — replace with local quotes | premises scope, fitout, equipment, installation freight tax, deposits, preopening training, opening inventory, contingency |
| Operating costs | Published planning inputs — replace with local quotes | occupancy, utilities, insurance, materials, payment fees, marketing, software administration, maintenance |
| Paid labor and employer costs | State wage benchmark used — confirm employer costs | paid roster, wages, wage floor overtime, employer taxes, benefits leave, workers compensation, owner role |
| Revenue and collections | Published planning inputs — validate price and demand locally | realized price mix, demand volume, capacity, industry cross check, launch ramp, seasonality, collections |
| Permissions and fees | Confirm for the selected address | activity address jurisdiction, initial fees, recurring fees |
National equipment prices can support the plan where configuration, delivery and taxes match the intended purchase. Confirm rent, selling prices, demand and permissions for the actual location instead of applying a generic state adjustment.
The Census estimate for Maryland is 6,265,347 people. It grew by 20,033 between July 2024 and July 2025 (+0.32%). This statewide movement cannot identify a viable retained membership, usable class-access pattern or realized member value.
Using the same paid roster, Maryland occupational wages produce $17,941 of monthly loaded payroll. That is +0.21% relative to the identical roster priced with national occupation medians ($17,904). Only wage benchmarks change in this comparison; it does not measure a state’s overall business attractiveness.
BLS wage source · Census population source · Exact fields and workbook rows

Leased boutique group fitness studio with one primary class room, a defined weekly timetable, paid instructors, paid studio coordination and recurring monthly memberships. A 2,500-square-foot boutique group fitness studio delivering a defined weekly class timetable through paid instructors, studio operations and member-services coverage.
The authored timetable provides 3,120 bookable class spots per month from 45 whole weekly classes and 16 spots per class. At 8.5 reservations per member-month, the arithmetic supports 367 whole member-months before time-slot preference; the shared model uses a lower 350-member ceiling. Both are planning assumptions rather than observed demand or approved occupancy. Peak-time access, safe layout, equipment, instructor coverage, opening and closing work, cleaning, cancellations and the actual member visit pattern can reduce usable capacity.
| Input | Reference assumption |
|---|---|
| paid active member-months per month | 280 |
| Net selling price per paid active member-month | $149.00 |
| Trading days / month | Monthly recurring-account model |
| Variable cost share | 7% |
| Occupancy / month | $7,500 |
| Other fixed costs / month | $6,500 |
| Employer cost allowance | 18% above base wages |
3.0% payment processing and transaction leakage, 1.50% member-use consumables and amenities, 1.0% refunds, credits and chargebacks, 0.75% sales and affiliate incentives, 0.75% variable program-supply replacement; all instructor, operations and member-services compensation remains in payroll. Utilities $2,000.00; Cleaning and laundry $1,500.00; Recurring local marketing $1,250.00; Insurance $750.00; Booking, point of sale, music and software $600.00; Accounting, administration and professional services $400.00. Occupancy is modeled separately at $7,500.00 and maintenance investment at $1,000.00 per month.
| Role / SOC | Paid hours / month | Wage benchmark / hour | P25–P75 / hour | Base wages / month |
|---|---|---|---|---|
| Paid group fitness instructor coverage39-9031 · Exercise Trainers and Group Fitness Instructors · State observation | 243.8 | $22.80 | $17.36–$30.53 | $5,558 |
| Paid studio operations lead39-1022 · First-Line Supervisors of Personal Service Workers · State observation | 173.3 | $24.77 | $21.04–$30.69 | $4,293 |
| Paid member-services coverage43-4051 · Customer Service Representatives · State observation | 260 | $20.59 | $17.51–$24.27 | $5,353 |
Base wages total $15,204 per month. An authored 18% allowance for employer costs adds $2,737, giving $17,941 of loaded payroll. The allowance is a planning shortcut; it is not a state-specific payroll tax calculation or benefits quote for Maryland.
Exercise Trainers and Group Fitness Instructors, First-Line Supervisors of Personal Service Workers and Customer Service Representatives are broad May 2025 occupational wage benchmarks. They do not establish studio-specific hiring quotes, qualifications, lawful scheduling, employer obligations or compensation terms. The model pays all class instruction, operations and member-services hours; it does not use unpaid owner work to create capacity. Every operating role is paid, including management or supervision. If the owner performs a modeled role, their compensation occupies that role once; no additional owner draw is included in operating profit.
The middle 50% wage interval describes the occupation’s observed wage distribution. It is not a confidence interval for this business’s total payroll. Allocate the aggregate hours across an actual roster and check wage rules, overtime, leave and employer obligations for the chosen location.
| Use of funds | Cash paid |
|---|---|
| Design, lease review, permits and professional allowance | $12,000 |
| Tenant improvements, acoustic treatment, HVAC and electrical allowance | $80,000 |
| Resilient flooring, mirrors, storage and signage | $30,000 |
| Functional training equipment package allowance | $45,000 |
| Audio, access control, POS and security setup | $12,000 |
| Furniture, cleaning equipment and opening supplies | $8,000 |
| Insurance deposits and launch marketing | $8,000 |
| Opening contingency | $20,000 |
| Refundable deposit (two months of occupancy) | $15,000 |
| Paid pre-opening training | $2,120 |
| Total payments before opening | $232,120 |
The equipment and premises allowances are the same in all 50 states for this operating format. They are a comparison baseline and must be replaced with local scopes and quotes. Training uses 80 aggregate paid hours at the modeled team’s weighted loaded rate. The refundable deposit is cash tied up, not an operating expense.
The cash schedule tests 60 months, with sales ramping through 40%, 55%, 70%, 82%, 90%, 96%, 100% of the volume assumption. Full payroll and fixed costs begin in month one. The reserve covers the deepest cumulative operating deficit plus the stated buffer. A buffer is retained cash, not spending and not part of project payback twice.
The reference assumes member charges are collected without receivable delay for the month in which access is earned. Prepaid terms, deferred service, failed payments, refunds, credits, freezes, chargebacks and taxes collected for government need their own billing and revenue schedule. Asset purchases are depreciated over 60 months for this scenario. No sale or deposit recovery is assumed at the end.
At the assumed 280 paid active member-months per month, the reference scenario produces $4,075 of mature monthly EBIT, a 9.8% operating margin. Its continuous EBIT threshold is approximately 250.6 paid active member-months per month for EBIT break-even. This result depends on unverified selling price, demand and premises inputs.
| Measure | Monthly amount |
|---|---|
| Revenue | $41,720 |
| Variable operating costs | $2,920 |
| Loaded payroll, including management | $17,941 |
| Occupancy assumption | $7,500 |
| Other fixed operating costs | $6,500 |
| EBITDA | $6,858 |
| Depreciation | $2,783 |
| Operating profit (EBIT) | $4,075 |
| Maintenance capital expenditure | $1,000 |
| Mature project cash flow | $5,858 |
EBIT break-even revenue is $37,338 per month: $34,724 of fixed costs plus depreciation divided by a 93% contribution margin. At $149.00 per paid active member-month, that is approximately 250.6 paid active member-months per month and 71.6% of the stated capacity.
| Measure | Months 1–12 | Mature month |
|---|---|---|
| Revenue | $430,968 | $41,720 |
| Operating profit (EBIT) | -$15,894 | $4,075 |
| Project cash flow | $5,506 | $5,858 |
Project payback occurs in month 51 in this reference schedule. It measures recovery of actual pre-opening payments from cumulative project cash, with no financing or owner distributions. It does not measure cash paid back to an owner.
Trials, signed future contracts, failed charges, freezes and cancellations can inflate a gross enrollment count without producing the earned recurring revenue used by the model.
Full preferred-time classes and empty off-peak classes can produce a reasonable average while retained members cannot book the service they value.
Change the assumptions to see how this format responds. The sections above remain the published reference, so you can compare your scenario with the original. Use the browser-local export buttons below to save only the scenario you are working on.
Reference scenario. JavaScript enables editing and exports.
280 paid active member-months per month × $149.00 = $41,720 revenue. Loaded payroll: $17,941 per month. Break-even uses 71.6% of capacity.
The download preserves the published scenario and its source references.
Describe the exact address, proposed use, room layout, occupancy, activities, equipment, sound, ventilation, restrooms, accessibility, hours, signage, employees, membership terms, cleaning and any child care, food, retail, massage, clinical or personal-training activity. Ask the landlord, insurer and responsible state and local offices which business, land-use, building, fire, accessibility, employer, tax, consumer-contract and activity-specific requirements apply.
| Workstream | Official starting points | What to ask |
|---|---|---|
| Business and activity | Which entity, name or activity registrations apply, and which local or specialist office also has responsibility? | |
| Tax | Which registrations and treatment apply to the actual goods or services, location and staffing arrangements? | |
| Employers | Which employer accounts, reporting steps and labor obligations apply to the planned paid roster? |
Take the activity, address, proposed equipment and staffing plan to the relevant office. Record applicability, supporting documents, fees, dependencies and renewal terms from the actual official response.
Agency routes were listed on the IRS Maryland directory when retrieved September 5, 2026. Links identify starting offices; they do not verify a permit, tax treatment, fee or opening time for this business. Open the full Maryland opening checklist →
Fix the recurring offer and run an authorized presale or controlled opening test. Record paid starts, earned member-months, cohort retention, realized member revenue and usable class access rather than treating leads as members.
Confirm permitted use, occupancy, egress, accessibility, ventilation, temperature, acoustics, floor, mirrors, storage, restrooms, utilities, signage, cleaning and neighbor conditions for the exact class plan before the lease or fit-out payment.
Build whole classes with paid instruction, setup, reset, opening, closing, member service, administration, cleaning and substitution. Fund the ramp and fixed premises costs without assuming every available spot will be reserved.
Permitted use, occupancy, egress, accessibility, ventilation, acoustics, safe exercise zones, equipment, restrooms, cleaning and neighbor conditions must support the actual timetable.
For a selected address or service area, collect an evidence pack covering premises and equipment quotes, paid demand, staffing, collection terms and the responsible authorities. The state wage and population evidence on this page does not supply those location-specific inputs.
State: Maryland, FIPS 24. Cross-industry, ownership 1235. H_MEDIAN supplies an available hourly benchmark; H_PCT25 and H_PCT75 describe the occupational distribution. 39-9031 (Exercise Trainers and Group Fitness Instructors), state workbook row 14522; 39-1022 (First-Line Supervisors of Personal Service Workers), state workbook row 14501; 43-4051 (Customer Service Representatives), state workbook row 14564. Retrieved September 5, 2026.
The national comparison uses the same paid roster and these national H_MEDIAN observations: 39-9031, national workbook row 785; 39-1022, national workbook row 737; 43-4051, national workbook row 872. Any national value substituted for a suppressed state value is identified separately. National observations do not become state observations.
SUMLEV 040; STATE 24; POPESTIMATE2025 and POPESTIMATE2024. July 1 estimates; change and percentage change are calculated within the same vintage. Population is context, not a customer forecast.
OEWS covers employee jobs across industries. It is a statistical benchmark, not a hiring quote or legal wage floor. Employer benefits and overtime premiums are outside the wage measure; tips can be included.
An official route to the state government and major agencies. This directory does not confirm the fees, permits or approval times for a particular address or business.
All selling prices, demand, paid hours, employer allowance, premises, startup allowances, cost shares, ramp and cash buffer are authored planning inputs. No commercial quote or researched state total is implied.
NAICS 713940; 2023; Census employer-establishment statistics. This is industry geography, not local price, demand or an opening quote.
NAICS 713940; 2023; Census employer-establishment statistics. This is industry geography, not local price, demand or an opening quote.
NAICS 713940; 2023; Census employer-establishment statistics. This is industry geography, not local price, demand or an opening quote.
Private ownership; NAICS 713940; 2025 quarters 1–4. Published months describe covered sector employment timing, not customer demand, revenue or one-business staffing.
The stated operating format and paid roster define the scenario. Wage and population observations keep their geography and period. Replace commercial assumptions only with evidence that matches the scope, then reconcile the same inputs across earnings, cash and the delivery schedule.
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