When the big chain comes to town: what the research says

Every line below is quoted word for word from the linked source. We picked the passages and wrote the headings; the sources did the talking.

How big small business really is

There are 33.2 million small businesses in America, which combined account for 99.9% of all U.S. businesses.

— U.S. Chamber of Commerce, The State of Small Business in America

Small businesses have accounted for 61.1 percent of net new job creation since 1995.

— Small Business & Entrepreneurship Council, SBA Advocacy Report: FAQs About Small Business

The share of economic activities accounted for by the largest companies has increased persistently over the past century by all three measures.

— Chicago Booth Review, Rising Corporate Concentration Continues a 100-Year Trend

When the big box arrives

Within 15 months of a new Walmart store opening, between 4.4 and 14.2 existing retail establishments close, while at most 3.5 new retail establishments open.

— Institute for Local Self-Reliance, Key Studies: Why Independent Matters

The opening of a Walmart on the West Side of Chicago in 2006 led to the closure of about one-quarter of the businesses within a four-mile radius.

— Institute for Local Self-Reliance, Key Studies: Why Independent Matters

Big box retail generates a net annual deficit of $468 per 1,000 square feet.

— Institute for Local Self-Reliance, Big Box Stores Drain City Revenue, Study Finds

A full 90% of survey respondents say that Amazon is having a negative impact on their revenue, and 28% describe this impact as “significant.”

— Institute for Local Self-Reliance, Amazon is Hurting Most Independent Retailers, but They’re Weathering the Storm Better than the Chains, Survey Finds

Consolidation in the gym business

81 million Americans belonged to a gym, studio, or other fitness facilities in 2025, marking an all-time high and a 5.2% increase from 2024.

— Health & Fitness Association, 81 Million Americans Were Members of a Fitness Facility in 2025, New HFA Report Finds

Health club industry reports peg permanent pandemic-related gym closures around 25 percent, or some 10,000 fitness centers, many of them independents.

— Franchise Times, Lenders, Private Equity Lean Further Into Fitness Franchises

In the last 18 months, private equity has deployed more capital into fitness than in the previous five years combined.

— ABC Fitness, You’re Playing Checkers. Private Equity Is Playing Chess. Here’s What’s Actually Happening.

Independent fitness studios are being acquired at record rates, particularly in Pilates, barre, cycling, yoga, functional training, recovery, and wellness services.

— Forth Studio Chicago, How Private Equity Is Impacting Fitness Studios and the Wellness Industry

While bargain gyms and luxury health clubs abound in downtown Boston, gym-goers are finding that the middle tier is thinning out.

— Boston.com (The Boston Globe), ‘I’d rather overpay and be comfortable.’ As mid-budget gyms die out, patrons face tough choices.

What changes after the buyout

As profit targets increase, studios often raise prices, introduce additional fees, or push long-term contracts to meet revenue expectations.

— Forth Studio Chicago, How Private Equity Is Impacting Fitness Studios and the Wellness Industry

When decisions are driven by investors rather than owners embedded in the community, local partnerships, charitable initiatives, and neighborhood culture often take a back seat.

— Forth Studio Chicago, How Private Equity Is Impacting Fitness Studios and the Wellness Industry

Hidden fees and hard-to-cancel contracts

Read the fine print and be aware of any hidden fees that may come with it. While the advertised monthly fee may seem reasonable, gyms often include additional fees for things like initiation, cancellation, and maintenance.

— New York Department of State, Consumer Alert: Division of Consumer Protection Offers Tips to Avoid Costly Mistakes with Gym Memberships

While negative option marketing programs can be convenient for sellers and consumers, the FTC receives thousands of complaints about negative option and recurring subscription practices each year. The number of complaints has been steadily increasing over the past five years and in 2024 the Commission received nearly 70 consumer complaints per day on average, up from 42 per day in 2021.

— Federal Trade Commission, Federal Trade Commission Announces Final “Click-to-Cancel” Rule Making It Easier for Consumers to End Recurring Subscriptions and Memberships

…the FTC continues to demonstrate a willingness to use authority under the FTC Act and ROSCA to pursue actions against companies that it views as not providing simple cancellation methods

— Alston & Bird, FTC Enforcement of Cancellation Practices Continues After Click-to-Cancel Rule Defeated

Where the money goes

52.9 percent of each purchase at local independent businesses is recirculated locally, compared to less than 13.6 percent of purchases at chain stores.

— American Independent Business Alliance, The Local Multiplier Effect: How Independent Locally Owned Businesses Help Your Community Thrive

For every $1,000,000 in sales, independent retail stores generate $450,000 in local economic activity, compared to just $170,000 for chains.

— Institute for Local Self-Reliance, Key Studies: Why Independent Matters

What independent gyms do differently

Independent facilities posted a retention rate of 73.2%, while chains were only at 62.3%.

— ABC Fitness, Gym Member Engagement: How Enterprise Fitness Clubs Retain Members at Scale

The discrepancy reflects an advantage of independent gyms. With a smaller member base, their engagement (and therefore, their retention) is higher than clubs that are part of a chain.

— ABC Fitness, Gym Member Engagement: How Enterprise Fitness Clubs Retain Members at Scale

The community case

Counties with a vibrant small-business sector have lower rates of mortality and a lower prevalence of obesity and diabetes.

— Institute for Local Self-Reliance, Key Studies: Why Independent Matters

Small businesses – unlike chain retail ‘big box’ stores and large manufacturing plants – have a greater investment in the community and thus have more at stake when it comes to the well-being of employees, customers and other local citizens

— Baylor University, U.S. Counties with Thriving Small Businesses Have Healthier Residents, According to Study by Baylor University, LSU Researchers