Fitness franchises are some of the most successful business endeavors in the United States. This might be the ideal option if you have a fascination for health and fitness and are eager to piggyback off a franchise brand and experience instead of starting a new company from scratch.
There are many steps that you must take when considering a franchise investment. Here are what we consider the top 5 steps so you can make the best choice for yourself.
1. Choose the right Fitness Franchise
If you are confident that owning a fitness franchise is right for you and have already looked into the benefits and drawbacks, the important decision is selecting the best fitness franchise brand.
You can go with traditional gyms, boutique studios, niche concepts, and more. We are experts in the fitness franchise industry and have started and managed multiple brands and concepts. Our advice is to absolutely go with the one that you believe in. Select a gym that you personally would go to. Erase all preconceived notions that bigger is better. In the case of The Zoo Health club, our franchisees actually prefer the personalized attention they receive and they compete very well with the big box brand names.
2. Evaluate advantages and disadvantages of Fitness Franchise
There are many benefits and drawbacks to franchising, as is the scenario with any startup company. Understand the advantages and disadvantages before you decide that setting up a fitness franchise is the right decision. To get a detailed picture of what this phase would involve, it is also best to consult with former and present fitness franchisees.
Here are some advantages and disadvantages of operating a fitness franchise.
Advantages Of Fitness Franchising
Generally, franchises have higher revenues than non-franchise industries because it is a more proven model. The process of trial and error that a normal business undergoes is not the case.
Some may find that the startup cost when you include the franchise fees is more, however, the unexpected expenses from a startup may outweigh the franchise fees. Investors would tell you that you can probably turn a profit quicker with a franchise.
Franchises usually have an established brand with a reputation. There's already a developed core audience, which makes targeting potential members a lot easier. Also, this generally makes marketing a lot easier.
As mentioned previously, there is less trial and error when you invest in a fitness franchise. You can gain top knowledge from the franchise that walks you through every phase of the way.
Being part of a broader franchise network will offer the owner of a fitness franchise the opportunity to compete against larger fitness franchises due to increased fitness equipment purchasing power, promotional costs, and more.
Disadvantages of Fitness Franchising
The initial investment can be very significant for launching a fitness franchise. You'll have to buy a lot of equipment. This would actually not be a realistic choice if you don't have the capital or are unable to apply for financing. However, some franchises require less overhead than others and have fewer franchise fees. Here at the ZOO HEALTH CLUB, we offer some of the most affordable franchise fees in the industry.
You will also be liable for recurring payments to the franchisor, in addition to the initial franchise fee. This can include fees for licenses, promotional fees, fees for maintenance, and more. When you invest in a franchise, make sure you're informed of all the expenses associated with a specific fitness franchise.
In certain instances, you may want to dissolve the franchise agreement. In these circumstances, dissolution conditions can hold some significant economic costs that are likely to be met by selling or leaving the organization.
3. Design a Strategic Plan
When you know the franchise fitness you're going to open, drafting a strategic plan will be your next step. When entering a franchise, this can seem needless since too much of the business would be stipulated by the franchisor. It's always a good idea, however, to put something together so that you can see certainly how you are going to launch and develop your company.
You want to ensure that your business strategy reaches certain key details, including a market overview of competition in the sector and the need to fill your fitness franchise that is not currently being filled by competing companies. Other details such as projected expenses, how many personnel you plan to employ, what your position in the franchise will be, financial forecasts on how long you plan to turn a profit, and more should also be included.
The positive part regarding opening a franchise fitness business instead of beginning a business from scratch is that you're sure to get some business strategy details straight from the franchiser or franchise agreement.
4. Select the best location
It is important that your gym is readily available and centrally situated. It's safer for most gym-goers to be next to work or home. When it comes to working out, the place that is "convenient" to your target membership is key. It all begins by researching the data available to you.
Another important aspect of the venue choice is whether to use the same building to accommodate the gym or to create something completely new. You may need to contact a contractor to draw on the company's outline and requirements.
Each franchise is different. When considering a fitness franchise, make sure you consider some venue criteria. Any franchisors may have very strict criteria or can select their own venue. Others are going to give you more flexibility.
5. Obtain necessary Permits
As for any company, you would need to acquire proper permits and licenses to function. This can include construction permits if you are remodeling an area, as well as a variety of other approvals until you are prepared to start, such as health & security permits.
In certain situations, you will be required to have permits and licenses in place before you can start receiving supplies and set up a gym. You must get a license to rent, a company license for the property, fire inspectors to come out and perform their inspections, consultants to guarantee that sprinkler systems and plumbing are up to the standards.
There are costs for acquiring construction licenses, and other permits may be required, based on the type of facilities that your gym wants to provide. For example, a food court might require workers to pass a food preparation test unique to that venue.
Opening a fitness franchise is not for the timid or those lacking the upfront money. Even then, if you have the way to venture into business with a brand-name gym, you have the potential to enter a market that hopes to see sustained development over the coming years with the sponsorship and support of a well-established name. The headstart that a franchise provides to entrepreneurs is enormous. It would be up to you to meet the pledge of success.
ARE YOU WONDERING IF OWNING A ZOO HEALTH CLUB FRANCHISE IS RIGHT FOR YOU?
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