Fitness has become the lifestyle of choice for many in recent years.
What was once just a trend, becoming active and healthier in our everyday lives has become a top priority for tens of millions of Americans.
A gym franchise is a type of fitness franchise. The term “gym” has multiple definitions such as a boxing gym or weightlifting gym. A gym franchise is an exercise facility operating under a franchise format, where the brand owner (the franchisor) sells a license to a franchisee in order to operate the gym franchise.
As we make a more conscious effort to incorporate fitness into our routines, there has been an explosion of fitness franchises being developed. While gym franchises are not new, there are many differences in each franchise to consider.
Whether you are an entrepreneur looking to invest in a fitness franchise, or an active fitness guru trying to decide between a franchise or your friendly neighborhood gym, knowing the key attributes of a gym franchise can help you in the decision-making process.
Let’s discuss the basics first.
What is a franchise?
In simple terms, the practice of distributing the brand and its services into multiple outlets is known as franchising. This is typically done when a business wants to increase its market share or have multiple locations.
The original business, also known as the franchisor, will sell its brand and name to the entrepreneur to expand its business into a franchise. This gives the franchisee the right to use the franchisor’s goods and services under a trademark.
You come across franchises every day when passing fast-food restaurants such as McDonald’s, or hotels such as The Hilton. The earliest franchises were established in the 1920s, paving the way for economic growth and expansion. Establishing your business with a franchise gives you access to more resources, and means less effort in promoting your business name.
There are over 700,000 franchises in the United States, ranging from restaurants, hotels, grocery stores, and fitness centers. For this article, we’ll discuss gym franchises, the differences between a fitness franchise and an independently owned gym, and some examples of well-known gym franchises.
What is a gym franchise?
As mentioned previously, a franchise is a business that has an established trademark and franchisor who sells their business model to independent operators.
A gym franchise is the same thing but in the fitness industry. There are many successful gym franchises that you probably are already familiar with. Like most gyms in general, these gym franchises center around similar business models and aim to gain and retain a certain number of member customers every month.
- From an investing standpoint, it’s much easier to invest in a franchise than to build a gym from the ground up.
- As a gym franchise owner, you can benefit from a proven successful business plan, market resources, an established network, and brand recognition.
- From a member standpoint, gym franchises can be viewed as a safe choice, especially if you’ve done your homework. You have an ensured membership fee, guaranteed sanitary equipment, and access to other resources like locker rooms and personal training opportunities.
You know what you’re getting into when choosing a gym franchise.
Independent Gyms vs Franchised Gyms
There are a lot of different benefits to owning a fitness franchise versus owning an independent gym or studio. With the fitness market growing at lightning speed, investing in a gym could prove to be a good opportunity for any entrepreneur.
Independent Gyms: The Pros
Having creative freedom, budget, and unique standards are some of the obvious pros to owning an independent studio. You have total control over the services your gym provides for its members. This also includes what equipment, trainers, branding, and business style you want your gym to have. It can also be cheaper than becoming a part of a franchise, as you won’t have to pay for any initial fees and licensing.
As an independent gym owner, you have the freedom to give your clients a unique experience tailored to your member audience, an experience crafted only by you. This flexibility is appealing to most investors and business owners in general and can be a very successful business opportunity.
Independent Gyms: The Cons
While creative freedom is desirable, lack of resources are not. If you decide to build a gym from the ground up, you are responsible for its funding, marketing, training, and overall business development. As an independent gym owner, you are the only one representing your brand, meaning you will need word-of-mouth campaigns to get started. There’s no shame in a good grassroots organization! However, it can be a little more difficult when first starting.
Gym Franchises: The Pros
The most obvious pro about being a part of a gym franchise is having the resources and marketing to back up your sales force. Having an already established brand means you may have access to advertising funds and promotional opportunities that you normally wouldn’t have.
Gym franchises also have brand recognition on their side, meaning it’s a revolving door of interested potential clients. Franchises have a proven successful business plan to ensure the business is utilizing all its available resources for success. With this business model and brand recognition, potential members expect a certain standard when walking into the door and that standard is usually met.
Gym Franchises: The Cons
When investing in a gym franchise, you have no creative freedom to make the gym unique. The business is under strict guidelines and regulations that you will be expected to follow. These guidelines ensure the gym’s success but leave no room for flexibility. With the initial fees, it may also be more expensive when investing in a franchise.
Examples of Gym Franchises
There are many successful gym franchises that you probably are already familiar with. Since the fitness industry is rapidly growing, there are plenty of different gym franchises available to members and investors alike.
- Orangetheory is a class-based gym franchise known for its cardio and heart rate expertise.
- 9Round is a kickboxing gym that offers kickboxing cardio and personal training classes.
- Crunch Fitness is a gym that offers equipment to those who have their own workout plans and classes for those who simply just want to show up.
These are only a handful of many around you, and each offers a different experience.
What’s Best For You?
Whether you’re an investor or a potential gym member, doing your research on the gym you are interested in is a no-brainer. With the industry growing at such a fast pace, entrepreneurs can take advantage of the gym franchise market while gym members can easily find a gym that best fits their needs.
Sources:
- https://www.investopedia.com/terms/f/franchise.asp
- https://www.newgroundconsulting.com/how-to-evaluate-franchise-opportunities/pros-and-cons-of-owning-a-franchise-gym-vs-an-independent-studio/
- https://fitsmallbusiness.com/best-fitness-gym-franchise
- https://www.perfectgym.com/en/blog/business/gym-and-fitness-franchises