How do I check whether a gym’s locker and towel services cost more than they earn?

Ask the seller to separate these services in the books. Many gyms fold them into general membership, so you may need to rebuild the picture. List the income that is clearly tied to lockers and towels, such as rental fees, deposits and towel charges.

Then list every cost. Laundry, whether in-house or contracted, detergent, water and energy, staff time for stocking and cleaning, replacement towels, lock repairs and shrinkage. Include the staff time and space they take up, not just the cash paid out.

Ask whether members expect the service as part of the price, and what might happen if it were changed or dropped. That is a business question as well as a cost one. Review any supplier contracts for minimums or renewal terms. Your accountant can help test the numbers, using the cash flow and fixed-cost views of the financial statements, and your lawyer can check the agreements. Think too about member goodwill. If the service loses money but keeps people loyal, that is a trade-off you can weigh knowingly; if it simply drains money, you will want a plan to adjust it before the first complaint arrives. Ask whether towel or locker costs rise with attendance or stay flat, because that changes how they behave in a busy period.

Key takeaways

• Rebuild locker and towel income and cost as a separate line.
• Count staff time, replacement and losses, not just supplier bills.
• Read laundry and supplier contracts for minimums and renewals.