Key Considerations to Help You Make the Best Business Decision
It is no secret that gyms are in hot demand. This demand has resulted in a rise in the number of fitness franchise owners. Is starting a fitness franchise right for you?
Investing in a gym franchise can provide you with solid financial returns, but you should also be prepared to work hard to make it work. How much do gym franchise owners make? What should you consider before buying a fitness franchise?
What is a gym franchise?
The gym franchise is a business that owns multiple locations of fitness centers. Most often, these centers are called gyms, although some companies also use other names such as fitness centers. This type of business provides an opportunity to invest in a fitness center or gym franchise.
Should you consider investing in a gym franchise?
Fitness franchises in the United States are big business. According to the IBIS World Gym & Fitness Franchises Report, these franchises account for around $4 billion in annual revenues. The potential to make substantial profits is very real.
However, before you jump in with both feet, it is essential that you do your research. Here are the key considerations to make.
Despite the effects of the Covid-19 pandemic, the outlook for the fitness industry is extremely robust. It is benefiting from public health initiatives that highlight the positive aspects of staying fit and healthy, including fighting obesity and diabetes.
Consequently, memberships of fitness clubs and gyms mostly expanded between 2015 and 2019. This trend is likely to return as we move out of the pandemic. It could be an exciting time to invest in a gym or fitness franchise – but you should look for franchises with a long record of success. Longevity and sustainability should be your watchwords.
Do your core values align with the fitness franchise?
As the owner of a fitness franchise, you are also investing in people. A gym is a community where people can come together to achieve their goals and find support in each other. It is important to consider your core values before investing in a fitness franchise. If your values don’t align with the fitness franchise, you may want to think twice before signing up!
Pricing of fitness franchises
The cost of investing in a gym franchise is hard to establish as an average because the range is so wide. Initial franchise fees can be as low as a few thousand dollars. The total investment can be as high as $2 million and more.
The important thing here is to set your budget and search for fitness franchises that fall within this.
Having an initial budget helps you determine whether the cost of your investment justifies the return. You should also contrast different franchises that are available within your budget.
How much support will you need from your franchisor?
The franchisor provides training, marketing, and support to help reinforce what you are already doing. They make themselves available to answer any questions you may have. The franchisor also provides tools that help to manage the business.
However, you should be aware that low entry barriers and monthly fees mean less support.
How much can you make as a fitness franchisee?
With a great business model and good support from a franchisor, you have a terrific opportunity to make substantial profits. For example, Anytime Fitness says that its franchisees have average revenues of around $440,000 and make a profit of around $114,000. Total investment ranges between $58,000 and $521,000.
When considering how much you could make as a fitness business franchisee, you must set realistic expectations.
Learn from others’ experience
You can learn from others’ experiences and avoid potential pitfalls. You just need to ask the right questions and be specific. Such questions might include:
How do you find out what makes your location special?
What are the key details that differentiate it from others?
How much support do you receive?
What are the most demanding aspects of the business?
How much do you make?
Is a fitness franchise the best choice for you?
Fitness franchises provide tremendous opportunities for experienced and newbie entrepreneurs to invest in a profitable business. A sound investment in the sector has the potential to deliver superior profits, and there are gym franchises available to suit most investment budgets.
It is always important to understand what you’re getting into before deciding whether a franchise is right for you or not.
If you’re considering becoming a fitness business franchisee, take our franchise assessment to find out if you have what it takes.