That’s not true. Each gym is NOT a franchise at all. It’s an affiliate. About half don’t even have the name “crossfit” in them. All you get out of an affiliation, literally, is a chance for your members to compete in the annual Open and other events. That’s literally it. Each gym is independently owned and operated.
There are literally no franchises or “company owned” gyms at all. It’s literally an affiliation to use the name Crossfit and that’s it.
“affiliates pay a fee to use the name CrossFit, but then that’s basically it. Affiliates are also locked in at the fee they paid when they joined the network. CrossFit founder, Greg Glassman said he has some early affiliates who still only pay $500 a year. The current licensing fee sits at $3,000, and Glassman doesn’t plan on raising it anytime soon.
“The Reebok CrossFit Games aren’t a major source of income, even though the event draws 15,000 people through its gates daily. The Games attract sponsorships from fitness companies, but the vast majority of those deals fund the prize money. Last year the Games doled out $2 million in prizes.
https://rallyfitness.com/blogs/news/the-business-of-crossfit-an-update-on-new-market-research-2017
Tax perks are a good reason to incorporate. The company can lease a car, put a magnetic sign on it, and then allow an officer to drive it free for "advertising purposes". The company can purchase "assets", which the owner/officer can use in an unrestricted manner.
Then there is that shield from direct lawsuits.
Nobody should do business without forming a company. That costs about $300 in Georgia. A small price for a lot of protection and clear tax channels.