The fitness industry is an excellent opportunity for those looking to invest in a franchise.
Not only does a franchise have a proven success rate, but fitness is booming in today’s economy. More and more people are investing in their physical health, and they’re doing so by going to franchise gyms. This means the door is wide open for business ventures such as starting a franchise gym.
You can start a franchise by first reviewing the details of the franchise business model you most like. You then start the process by studying their Federal Disclosure Document (FDD), which clearly outlines the facts about the franchise, their financial health, total number of locations, franchisee contact information, and more.
There are many benefits and challenges to any business opportunity, but the odds are in your favor when starting a franchise.
The groundwork has already been laid, and you do not have to spend a lot of time building a brand from scratch. While it isn’t a “walk in the park”, you usually will have a blueprint of success to work with.
Understand The Pros and Cons
Before starting a fitness franchise, or any entrepreneurial opportunity, you must always weigh the advantages and disadvantages. Understanding every outcome will better prepare you for the opportunity. Here are a few to consider before taking the leap.
Advantages of Starting a Fitness Franchise
Support and guidance. Since a franchise business is an already established one, you have many people available to give you support NS Guidance. Consult the pros! This support includes training, financial guidance, and branding efforts. This is extremely important, especially if this is your first fitness franchise.
Brand recognition. The brand has been established for you, therefore, business development efforts do not have as many unknowns as they would if you were starting your own independent gym from scratch. With the brand already being established, the franchise will already have a plan to attract a growing customer base. All the promotions and marketing have been done.
More potential profits. With the guidance of seasoned fitness franchisors who have started before you, as well as the marketing and promotional support from the franchise support team, there is more probability of higher sales and possible profits. This makes it much easier to get customers as the franchise already has a formula for success.
Disadvantages of Starting a Fitness Franchise
Lack of freedom. When starting a fitness franchise, there are rules you must follow that belong to the initial franchise. The franchisor will usually have the final say in marketing efforts, business strategy, and branding opportunities. While not being alone in the process is a huge benefit, the lack of total business freedom is a drawback.
Financial investment. When starting a fitness franchise, you’ll have to invest a large amount of money at first. In addition to the initial cost, the ongoing cost for upkeep can also be substantial. However, this could be absorbed by the sales revenue and profits when you have an increase in customers due to brand recognition, effective marketing and a solid financial plan to manage costs.
Do Your Research
With any business opportunity, you must do your research into the industry. This can go hand in hand with understanding the pros and cons of starting a gym franchise. However, the pros and cons pertain to you personally, while your research pertains to the industry and the gym franchise opportunities. Do your research on different gym franchises and see what fits best with your values. There are many fitness franchises to choose from, so the opportunities are nearly endless.
Once you’ve combed through every website, social channel, and the reviews of your top choices, reach out to them! Ask lots of questions and gather information that’s going to make the decision easier for you. Even meet up with a few staff members to better understand the business culture. This will give you insight into whether it’s a franchise you would like to be involved with or not.
Choose a Location
Location is one of the most crucial aspects of starting a fitness franchise. Regardless that the franchise already has an established customer base, being at the right location for your target audience is what’s going to get more people through the door. For a lot of people, it’s important that the gym they are members of is either close to their work or home. Demographic research and real estate options are key to identifying a convenient location for your customers. There may even be location requirements by the franchise that you have to adhere to. Make sure you are keeping up with these. Most quality franchise models will help you with this process.
Documents and Financing
As discussed in the disadvantages of starting a fitness franchise, the initial costs are pretty hefty. Obtaining the right financials are another essential step in the process. Each cost will be different depending on the franchise, as well as the assistance offered by the franchisor. You will also have a variety of business loan options available to you.
Securing the finances is important, but so are the documents and permits needed to make the investment. With any business, you need to obtain certain permits and licenses to be able to have a successful business in that area. For gyms, there are also health and safety permits that are extremely important to obtain.
Hiring the Right People
After you secure the finances, get the proper permits, and find the right location, you’re ready to kick it into high gear. To run a successful gym, you must hire the right team to have your back. To become operational, you need a well-oiled machine and the right people to manage it. The type of training and hiring differs depending on what your gym offers. Do you need yoga instructors? Personal trainers? Operations managers? Make these arrangements early so your gym can thrive on day one.
What You Can Expect When Starting a Fitness Franchise
It takes a lot of hard work, patience, and dedication to start a gym franchise. By having the support and benefits of seasoned professionals in the industry on your side, you will be sure to have a larger success rate than if you were going in alone. Start making connections with people who will support your business choice. Having support and a strong team to rely on will give you a leg up. With the right people, you can grow and expand.
Sources: