Which type of health club requires fitness professionals to generate revenue just like any other club, despite revenue coming from fitness programs and membership costs to cover their operational costs?

• A. Low-cost
• B. Mid-market
• C. Nonprofit
• D. Premium

Answer: (C)

Nonprofit health clubs must generate enough revenue from memberships and fitness programs to cover operating costs, even though any surplus isn’t distributed to owners. The money is reinvested back into the organization to fund the mission—upgrading facilities, expanding services, or offering scholarships—so sustaining revenue is essential for daily operations. The distinction here isn’t about price tiers or target customers; it’s about the organizational structure that requires funds to support the club’s ongoing work rather than distribute profits to owners.