The Club Enhancement Fee Lie (and How to Do It Right)

If Your Club “Enhances” Every Month, Prove It

Somewhere along the way, the club enhancement fee became a default line item.

It shows up as:

  • $29 annually

  • $49 once a year

  • $10–$15 billed quarterly

  • Or quietly baked into a monthly EFT

Owners say things like:

  • “Everyone does it.”

  • “It helps with upgrades.”

  • “Members expect it.”

But here’s the uncomfortable truth I see over and over again when talking with independent gym owners, boutique studio operators, gym entrepreneurs, and personal trainers:

Most clubs charge an enhancement fee without actually enhancing anything—at least not in a way members can see, feel, or understand.

And that’s where the problem starts.

What a Club Enhancement Fee Is Supposed to Be

At its best, a club enhancement fee is meant to:

  • Fund visible improvements

  • Support facility upgrades

  • Improve member experience

  • Keep the club modern, safe, and competitive

In theory, it’s a reinvestment mechanism.

In practice, it often turns into:

  • A cash-flow band-aid

  • A poorly explained surcharge

  • A trust erosion tool

The difference isn’t the fee itself.
It’s intent, execution, and communication.

The Core Question Gym Owners Avoid

Before you charge—or continue charging—an enhancement fee, ask yourself this honestly:

Does my club actually enhance something every month?

Not:

  • “Do we pay rent?”

  • “Do we cover payroll?”

  • “Do we pay software fees?”

Members do not define “enhancement” as keeping the lights on.

They define it as:

  • Better equipment

  • Cleaner spaces

  • New amenities

  • Improved programming

  • Technology upgrades

  • Better staff training

  • A noticeably better experience

If nothing has changed in 6–12 months, the fee isn’t an enhancement fee—it’s a hidden dues increase.

How High-Performing Gyms Frame the Enhancement Fee

The best operators don’t hide the fee.

They lead with it.

They say:

  • “This is how we stay current.”

  • “This is how we reinvest in you.”

  • “This is how we avoid letting the club get stale.”

And—this part matters—they show proof.


How to Properly Market a Club Enhancement Fee

1. Make Enhancements Visible (Not Theoretical)

If members can’t see improvements, the fee feels fake.

Smart gyms:

  • Post signage: “Your Enhancement Fee at Work”

  • Send monthly or quarterly updates

  • Call out upgrades in newsletters and social posts

Examples:

  • “3 new pieces of strength equipment added”

  • “Locker room refresh completed”

  • “New recovery tools introduced”

  • “Trainer education certifications funded”

Visibility turns skepticism into buy-in.

2. Tie the Fee to a Philosophy, Not a Transaction

The fee shouldn’t feel like:

“We charge this because we can.”

It should feel like:

“This is how we protect the quality of your experience.”

Position it as:

  • A reinvestment promise

  • A quality control mechanism

  • A future-proofing strategy

When members understand why it exists, resistance drops dramatically.

3. Train Your Sales Team to Explain It Confidently

One of the biggest mistakes I see?

Salespeople who:

  • Apologize for the fee

  • Gloss over it

  • Sound unsure

  • Say “corporate makes us do it” (even in independents!)

If your team isn’t confident, members won’t be either.

A strong explanation sounds like:

“That fee is what allows us to continuously upgrade equipment, reinvest in the facility, and keep your experience improving year after year—without surprise dues hikes.”

Confidence sells clarity.

How to Sell the Enhancement Fee (Without Feeling Sleazy)

Here’s the key:
You don’t sell the fee. You sell the outcome.

People don’t buy:

  • Line items

  • Billing structures

  • Accounting logic

They buy:

  • Cleanliness

  • Modernity

  • Safety

  • Energy

  • Progress

The fee becomes acceptable when it’s attached to something meaningful.

The Biggest Mistakes I See Gym Owners Make

Mistake #1: Charging the Fee Without Enhancing Anything

This is the fastest way to lose trust.

Members may not complain immediately—but resentment builds quietly.

And resentment shows up as:

  • Cancellations

  • Price objections

  • Negative reviews

  • “It’s not worth it anymore” conversations

Mistake #2: Using the Fee to Plug Cash Flow Holes

If the enhancement fee is covering:

  • Rent shortfalls

  • Payroll gaps

  • Past mistakes

You don’t have an enhancement strategy—you have a financial transparency problem.

Members eventually feel it.

Mistake #3: Not Telling the Story

I talk to gym owners all the time who are reinvesting…

But never tell anyone.

No signage.
No emails.
No social posts.
No conversations.

From a member’s perspective:

“Nothing ever changes, but I keep paying extra.”

That’s a communication failure, not a financial one.

Mistake #4: Treating It as a Set-and-Forget Fee

Enhancement fees should evolve.

What mattered in 2022 isn’t what matters now.

If your enhancements don’t align with current member expectations, the fee loses credibility—even if you’re spending the money.

What the Best Operators Do Differently

The gyms that get this right:

  • Budget enhancement funds separately

  • Plan upgrades intentionally

  • Communicate relentlessly

  • Train staff to explain confidently

  • Treat the fee as a promise, not a surcharge

They don’t ask:

“How much can we charge?”

They ask:

“What experience are we committing to deliver?”

Final Reality Check for Gym Owners

Here’s the blunt truth I share in conversations with other gym owners:

If your club hasn’t noticeably improved in the last year, you shouldn’t be charging an enhancement fee—or you need to dramatically change how you use and communicate it.

The fee itself isn’t the enemy.

Silence, misuse, and lack of intent are.

Handled correctly, a club enhancement fee:

  • Strengthens trust

  • Supports reinvestment

  • Reduces future price shock

  • Signals professionalism

Handled poorly, it becomes:

  • A churn accelerant

  • A credibility killer

  • A quiet reputation problem

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Meet Jim Thomas
Jim Thomas is the Founder and President of Fitness Management USA, Inc., a premier management consulting, turnaround, financing, and brokerage firm specializing in the leisure services industry. With over 25 years of hands-on experience owning, operating, and managing fitness facilities of all sizes, Jim is an outsourced CEO, turnaround expert, and author who delivers actionable strategies that drive results. Whether it’s improving gym sales, fostering teamwork, or refining marketing approaches, Jim has the expertise to help your business thrive. Learn more by visiting his website or YouTube channel

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