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Two-Brain Business outlined a salary cap and 90-day test for gym hiring

Two-Brain Business published John Franklin’s gym-hiring guidance on October 28. It proposed setting a staff salary cap after accounting for owner pay, expenses and a profit target, then evaluating the hire’s effect on revenue and profit after 90 days.

Two-Brain Business outlined a salary cap and 90-day test for gym hiring
Image: Two-Brain Business

Two-Brain Business published John Franklin’s guidance on gym hiring on October 28, 2026.1

Franklin said operators should account for fair-market-value owner pay, operating expenses and a profit target before deciding how much they could spend on staff. His example used average revenue from the previous three months and subtracted owner pay, non-staff expenses and a 15% profit target to produce a $5,000 monthly salary cap from $20,000 in revenue.1

He said a gym could temporarily reduce its profit target from 15% to 10% to raise that example’s monthly staff budget from $5,000 to $6,000. Franklin recommended reviewing the hire after 90 days and checking whether revenue had grown enough to restore profit to 15%; if not, he said owners should assess the role’s revenue or how they used the time it freed up. The framework is relevant to gym operators because it ties hiring capacity to owner compensation, expenses, profit goals and a defined performance review.1