How Much Does It Cost to Open a Lifestyle Club?

This guide is for owners in the US and Canada working out what a lifestyle club costs to open and to run, and what it can earn. No one publishes what lifestyle clubs spend or earn, so it gives the costs you can check against official data and market reports, and shows how to add up your own. It is general information, not financial, tax or legal advice.

What you spend depends most on the model you choose (how to start a lifestyle club). Hosting nights at a hired venue costs little up front. A space of your own means a lease, a build-out to the building and fire codes for a place where people gather, and staff for every night you open.

Start with the model

Nights at a hired venue

You pay per night: the venue hire and its deposit, insurance, security and marketing. The venue's contract sets the deposit, a cancellation schedule and any minimum spend, and venues usually ask for a certificate of insurance. Nothing goes on a lease or a build-out, so it is the cheapest way to find out whether your nights fill.

A space of your own

Costs come in two kinds. One-time costs are paid before you open: the lease deposit, the build-out, permits, furniture and equipment, opening supplies and marketing. Running costs come every month: rent and the building's charges, staff, insurance, utilities, laundry and supplies, software and card fees. You also need money to run the club until it pays its own way (see working capital below).

A home

Hosting at home costs the least, but charging admission can make it a business in the eyes of the city, and some cities have acted against clubs run from houses.

The space

How much space clubs use

Of the 59 North American clubs whose records in the Find Lifestyle Clubs directory give their size, the median is 8,000 square feet, and three in four have between 3,000 and 13,000 (our count of its records, September 2026). Their records describe industrial and flex buildings, strip centers, converted storefronts and, for some, houses or rural properties. The directory describes the usual layout as a social floor at the front with private areas behind.

Among the 472 venues with amenity data, 49% have a dance floor, 35% lockers, 31% showers, 30% private rooms and 25% a hot tub (Find Lifestyle Clubs). Each one adds to the build-out and to running costs.

What rent costs

US industrial space averaged $10.32 per square foot a year in the second quarter of 2026, from $4.30 in Memphis to $27.50 in New York's outer boroughs (Cushman & Wakefield). That is a triple-net rent: the tenant also pays the building's property taxes, insurance and upkeep. Shopping centers averaged $25.65 (Cushman & Wakefield). In Canada, industrial space averaged C$14.82 net plus C$4.94 in operating costs and taxes, C$19.76 in all (Cushman & Wakefield).

For example, 8,000 square feet at $10.32 is $82,560 a year, about $6,900 a month, before taxes, insurance and upkeep. These averages are weighted toward large warehouses, so ask local brokers what units of your size rent for.

What to settle in the lease

• Deposit and guarantee. A security deposit is commonly two months' rent, and the landlord of a new business will likely ask for a personal guarantee (NYC Small Business Services).
• Rent-free months. Landlords often give time without rent while you build; two or three months is common (BDC).
• An allowance for the work. A tenant improvement allowance, usually a sum per square foot, can cover some or all of the build-out. Whatever you attach to the building usually becomes the landlord's (BDC).
• A way out if permits fail. Ask for the right to end the lease if you can't get a permit, license or certificate of occupancy you need, and check what you must remove when you leave: a lease may require you to take out alterations such as showers (NYC Small Business Services).
• Your use, in writing. Settle zoning before you sign (how to start a lifestyle club), and tell the landlord what the space is for. The directory's records include clubs whose landlords raised the rent sharply, declined to renew or sold the building.

The build-out

No one publishes what a club's build-out costs. The building code drives most of it. A room where people gather and drink is usually treated like a nightclub: Group A-2 under the International Building Code, which US states and cities adopt with their own changes, and Group A, Division 2 under Canada's National Building Code, which lists "clubs, nonresidential" and "dance halls" in that group (National Building Code of Canada 2020). Your building official decides how your club is classed.

What the code asks for

These are the model code's rules; your city's edition may differ.

• Occupant load. The code counts 15 square feet per person at tables and chairs and 5 standing, so 1,500 square feet of tables and chairs already counts as 100 people (IBC Table 1004.5).
• Sprinklers. Required where the space (its fire area) is over 5,000 square feet, holds 100 or more people, or is on a floor other than the exit level (IBC 903.2.1.2).
• Fire alarm. A manual fire alarm system from 300 people (IBC 907.2.1).
• Exits. Doors from rooms of 50 or more need panic hardware, and exits need emergency lighting and exit signs (IBC chapter 10).
• Toilets. For each sex, one toilet for every 40 people and one washbasin for every 75, counting half your occupant load as each (IPC Table 403.1).
• Showers and lockers. Neither is required, but where you provide them, at least one shower and 5% of lockers must be accessible (2010 ADA Standards).
• Decor. Curtains and fabric hung on walls must pass a flame test and cover no more than 10% of a wall or ceiling (IFC 807).
• Small spaces. A space for fewer than 50 people is classed as business rather than assembly (IBC 303.1.1), which avoids the assembly rules above. The building official sets the number.

In Canada, the National Building Code requires a fire alarm in a building without sprinklers once more than 300 people can be inside, or more than 150 in a licensed bar.

What it costs

For sprinklers, a 2018 example from the sprinkler industry put an existing 7,500-square-foot nightclub at $6 per square foot, $45,000 in all (National Fire Sprinkler Association), and Maryland estimated retrofits in schools at $7 to $15 per square foot the same year (Maryland Department of Legislative Services). Both are 2018 prices.

For the rest, get quotes from contractors who have built places of assembly in your city, and have an architect check the occupancy with the building department before you sign. Set money aside for overruns: renovations often go over budget and past deadline (BDC).

A former club or venue

A space already built for assembly, such as a former nightclub, event venue or restaurant, can save equipment and building work. It doesn't settle everything:

• A change in the purpose of a building, or in the level of activity, can count as a change of occupancy that needs the building official's approval (International Existing Building Code). In Ontario, a change of use that increases the hazard needs a permit even with no construction (Building Code Act, s. 10).
• Existing venues where 300 or more people drink need sprinklers (IFC 1103.5.1).
• The last tenant's zoning approval may not cover a lifestyle club.

Furniture and equipment

No public source prices a club's fit-out item by item, so plan from quotes: seating, lockers, laundry machines or a laundry service, sound and lighting, cameras and a door system, and any hot tub or pool. In the US, fire protection, alarm and security systems in a commercial building can qualify to be deducted in the year they're installed, under section 179 of the tax code (26 U.S.C. §179); ask your accountant.

Permits, licenses and professional fees

Ask the city which permits and licenses your use needs before you sign a lease. Fees vary widely. Some examples, as of September 2026:

• Forming the company. Registering a business usually costs less than $300 in the US (SBA). An LLC costs $110 to form in Delaware (Delaware), plus $400 a year in tax, and $70 in California, plus $800 a year (California Franchise Tax Board). In Canada, federal incorporation online costs C$200 (Corporations Canada), Ontario's C$300 (Ontario) and British Columbia's C$350 (BC Registries).
• Zoning. A conditional use permit in Los Angeles costs from $16,764 under the city's new zoning code (Los Angeles City Planning). A minor variance in Toronto costs C$6,485.59 (City of Toronto), and a change of use in Calgary C$190, or C$624 where the use is discretionary (City of Calgary).
• Occupancy. Dallas charges $375 for a certificate of occupancy (City of Dallas). New York City requires a place of assembly certificate where 75 or more members of the public gather, and an annual fire department permit (NYC Buildings).
• Building permits are usually priced on the value of the work or the floor area. Toronto charges C$12.45 per square meter for interior alterations (City of Toronto).
• Adult-business licenses. Where a city licenses adult businesses, the license can cost thousands: a first sexually oriented business license in Dallas costs $3,104 (City of Dallas). Whether your club needs one depends on how the city defines the use (how to start a lifestyle club).
• Alcohol. Florida licenses bottle clubs for $500 a year (Fla. Stat. §561.14). In Canada, a private event that charges admission and has alcohol needs a sale permit: C$150 a day in Ontario (AGCO) and C$25 in Alberta (AGLC). A liquor license to sell drinks costs more: in California a new general license is issued by drawing and costs $19,840 (California ABC), and Texas charges $5,300 for a two-year mixed beverage permit (TABC).
• Lawyers. US lawyers billed an average of $341 an hour in 2024 (Attorney at Work). Budget for a lawyer to review the lease, the zoning and your membership terms before you commit.

Insurance

What to carry is in the start guide: general liability, liquor liability where alcohol is present, even at a BYOB club, and cover for assault and abuse claims, which hospitality policies often exclude. Add property cover for your fit-out, and workers' compensation once you employ staff.

No public data prices insurance for lifestyle clubs. In one online broker's figures for bars, published in 2026, the median policy cost $226 a month for general liability, $170 for liquor liability and $124 for workers' compensation (broker data). Official workers' compensation rates vary by state and job: Washington's 2026 rate for clubs is 68 cents per hour worked (Washington L&I). Brokers quoted in the trade press see insurers capping assault and battery cover at $250,000 to $500,000, so check the limits as well as the price (MyNewMarkets).

Running costs

Staff

A night needs someone on the door, security, someone to keep rooms and towels clean and, with music, a DJ. In the US the median hourly pay in May 2025 was $18.28 for security guards, $17.71 for janitors and cleaners, $16.78 for laundry workers, $15.00 for hosts, $16.51 for bartenders (with tips) and $21.61 for DJs (BLS). Security guards' medians ran from $13.85 in West Virginia to $22.83 in Alaska. The figures cover employees; security firms, cleaning services and freelance DJs set their own rates.

On top of wages, US employers pay:

• 7.65% for Social Security and Medicare, and federal unemployment tax of up to $42 per employee a year in most states (IRS);
• state unemployment tax: a new employer pays 3.4% on the first $7,000 of each employee's pay in California (EDD), and 4.1% on the first $17,600 in New York (NY Department of Labor);
• workers' compensation insurance.

In leisure and hospitality these required costs averaged $1.91 an hour on $17.25 of wages in June 2026, about 11% (BLS). Minimum wages set the floor: $7.25 federally, $16.90 in California, $17.13 in Washington and $21.30 in Seattle in 2026, and California, Washington and Nevada don't let tips count toward it (US Department of Labor).

In Canada the national medians are C$21.00 an hour for security guards, C$20.00 for bartenders and C$19.74 for light duty cleaners (Job Bank, 2025 release). Employers add Canada Pension Plan contributions of 5.95%, up to C$4,230.45 per employee in 2026 (CRA), and Employment Insurance premiums at 1.4 times the employee's 1.63% (CRA). Quebec runs its own pension plan. Provincial minimum wages run from C$15.00 in Alberta to C$18.25 in British Columbia.

Utilities

Showers, laundry, hot tubs and air for a crowded dance floor all add to the bills. US commercial electricity averaged 14.53 cents per kWh in July 2026, from 8.22 cents in North Dakota to 30.56 cents in California (EIA).

Supplies, software and card fees

• Per guest: towels and laundry, cleaning, and at a BYOB club the mixers, ice and setups the club provides (Find Lifestyle Clubs).
• Card fees: processors take a share of each sale, and lifestyle clubs usually need a high-risk account (payments for lifestyle clubs).
• Software for memberships, tickets and the door, usually a monthly cost.

Working capital

Count at least a year of monthly expenses when you work out how much money you need; the SBA calls five years ideal, and suggests adding about 10% to your break-even figures for costs you can't predict (SBA). Some businesses take years to turn a profit.

How lifestyle clubs make money

Door fees and tickets

A couple's standard door fee at a US club has a median of $50, and half of clubs charge between $30 and $70; in Canada the median is C$40 (Find Lifestyle Clubs, September 2026). Saturdays usually cost the most. Singles' prices vary from club to club, and in some states the law limits pricing by sex (how to price memberships and door fees).

Memberships

Many clubs also charge a membership. Trial or short-term memberships commonly run $20 to $60, with annual memberships higher (Find Lifestyle Clubs). On 15 clubs' own pages we read in September 2026, 10 sold a paid membership, with annual memberships for a couple from $45 to $420 in the US, and four sold a premium pass covering a year of entry.

Other income

Of the same 15 clubs, five ran hotel takeovers or trips, four rented private rooms or VIP tables, three charged for lockers, three sold food, three sold merchandise and one sold gift cards.

Where guests bring their own drinks

What a BYOB club may charge for depends on the state. Arizona bars drinking at an unlicensed business that charges a membership fee or a cover charge (A.R.S. §4-244.05). California requires a license for a club room where members bring alcohol, and counts a cover charge, mixers and glassware as payment for a place to drink (Bus. & Prof. Code §25604). Texas lets venues without a license charge corkage and sell setups (TABC), and Florida licenses bottle clubs for $500 a year (Fla. Stat. §561.14). Check your state's rules before you set a price list (how to start a lifestyle club).

When you break even

Break-even is your fixed costs divided by what each admission leaves after its own cost (SBA). Memberships pay for the month, and door fees pay for the night.

For example, if your fixed costs, the ones you pay whether or not anyone comes, are $20,000 a month and you open eight nights, each night must cover $2,500. At $50 a couple, with $10 a couple in towels, laundry and mixers, that is 63 couples a night. Every membership sold lowers the number (how to price memberships and door fees).

Are lifestyle clubs profitable?

No one publishes what lifestyle clubs earn or what their owners take home. For new businesses in general, 77.9% of US establishments opened in the year to March 2024 were still open a year later, and 51.4% of those opened in the year to March 2020 were open five years on, a group that lived through the pandemic (BLS). In arts, entertainment and recreation, 57.1% lasted five years. In Canada, 68% of new small employers last five years (ISED).

Where the directory's records of closed clubs give a reason, the building comes up most: a sale, a lost lease or a rent rise. Money, a refused liquor license and a fire ended others (Find Lifestyle Clubs). A long lease with renewal options, a landlord who knows what the space is for, and your own member list, so members can follow you if you move, protect against the most common ending.

Paying for it

Plan to fund the club without a government-backed loan.

• SBA loans. SBA-backed loans exclude "private clubs and businesses which limit the number of memberships for reasons other than capacity", and businesses of a "prurient sexual nature" (13 CFR 120.110). The SBA's rules for lenders add that a business that restricts who can come in, for any reason other than capacity, isn't eligible (SBA). A members-only club restricts who can come in.
• Canada. BDC, the federal development bank, excludes clubs of this kind from its financing, as it does bars and lounges (BDC). The Canada Small Business Financing Program's guidelines list no such exclusion, and the lending bank decides (ISED).
• Banks. Lenders give little value to improvements inside a leased space (BDC), and some online business banks list adult entertainment among the industries they won't serve. Ask before you apply.

Ways to spend less

• Start with nights at hired venues, and lease a space once your list fills a room every week.
• Choose a space that needs little work: it saves time and money (NYC Small Business Services).
• Ask for rent-free months and an improvement allowance.
• Size the space and the guest count with the code's thresholds in mind: 50 people, 100 people, 300 people and 5,000 square feet each bring new requirements.
• Add costly amenities such as a hot tub or pool once the club pays its way.

Running your club on Enclave

On Enclave, Insights splits your revenue between events and memberships, after refunds, and Finance lists every order, payment and payout. Memberships renew on their own, with a reminder email 30 days before each renewal, and tickets can carry a member price and a limit on numbers.

Frequently asked questions

How much does it cost to open a lifestyle club?

It depends most on the model. Hosting at hired venues costs each night's venue hire, deposit, insurance and marketing. A club in its own space adds a lease, a build-out to the building and fire codes for assembly, furniture and equipment, and money for at least a year of running costs. Rent alone for 8,000 square feet of US industrial space averaged about $6,900 a month in 2026, before taxes, insurance and upkeep.

How do lifestyle clubs make money?

Mainly door fees or tickets for each night, and memberships, often with a trial membership for first visits. Some add room rentals, lockers, food, merchandise and hotel takeovers.

Are lifestyle clubs profitable?

No one publishes their profits. About half of new US businesses are still open after five years, and where the directory's records of closed clubs give a reason, it is most often the building.

How much do lifestyle club owners make?

There's no public figure. What an owner takes home is what's left after rent, staff and the other costs in this guide.

Can I get an SBA loan to open a lifestyle club?

Unlikely. SBA-backed loans exclude private clubs that limit membership for reasons other than capacity, and businesses of a "prurient sexual nature". In Canada, BDC excludes clubs of this kind. Plan to fund the club another way.

Can I charge admission if guests bring their own drinks?

It depends on the state. Arizona bars drinking at unlicensed businesses that charge a membership fee or a cover charge, and California requires a license for a club room where members bring alcohol. Texas lets venues without a license charge corkage and sell setups. Ask your state's alcohol regulator before you set a price list.