Are Fitness Franchises Good Business Opportunities?
“The entrepreneur always searches for change, responds to it, and exploits it as an opportunity.”
- Peter Drucker
Thanks to science and technology the world is changing, nowadays, people are becoming aware of the consequences of not eating healthy, the importance of daily greens, sports and mindfulness. Advertising and marketing are imposing more conscious trends driving people to have a healthier lifestyle.
The growing digital transformation the world is assuming affects all (or almost all) of the businesses at first hand. The following article will be about fitness franchises and why, instead of technology being a challenge is a great opportunity for starting a fitness franchise business.
WHY INVEST IN A FITNESS FRANCHISE BUSINESS?
Before talking about investment, money and ROI, let us first understand the topic. What is fitness? The easiest description is doing physical activities such as football, running, going to the gym, etc. This is a profitable business not only because it is now a trend and has a huge demand that will never end, as there will always be people that will want to take care of themselves; but also because it is able to go hand on hand with many other businesses. Starting a business franchise has the benefit of transversality. The fitness sector points towards mainstreaming reinforcing its presence in other market segments; and in this regard, insurance companies, nutrition clinics and beauty centers (among others) are committed to offer sports and other type of services in their own centers; Leading fitness companies to establish new and strategic alliances, while promoting cross-selling.
BENEFITS OF INVESTING IN A FITNESS FRANCHISE
Buying a fitness franchise means that the franchisee has already an established brand to work with (including the marketing, trainings, business plan, etc..) We could say that it comes with the main things established. Below you will find out why having a fitness franchise business model is a great idea.
In today's world people are becoming more conscious on the importance of being healthier, being what is so called Fit. Some prefer to pay the gym membership and others, attend to a workout class such as zumba, yoga, pilates, etc.. And here is where the franchises give these consumers a kind of security; the ones interested in having consistency and stability in their lives pay a membership fee; Remember the “I paid the gym already, I have to go now” ? And the great thing is that as mentioned above, fit franchises cover a wide range of customers, as it also involves the people searching for specialized classes which attracts customers whom are already aware of your product.
2. UPFRONT INVESTMENT
The amount of money required for a business (either starting from scratch or buying a franchise) depends on many factors, it may go from macroeconomic and gubernamental to the slightest variable cost on the franchise. Now, one of the main advantages of franchising is that they range massively in price, whereas when starting a business from scratch, the owner has to keep the costs low when investing for equipment, rent and hiring. Attention, the statement here is not that buying a franchise is cheap because it is not, it actually comes with many costs such as licensing fee; but it is easier when seeing that the franchisee has all the expenses explained and detailed in the business plan and it also has proof that it works, whereas when starting a business from scratch trial and error is necessary.
Marketing is a very important aspect of setting a business, it doesn't matter if its a franchise or an independent enterprise, it is key for helping with the brand awareness. One of the benefits of a franchisee is the support from the franchisor, it may go from instructing with techniques to doing all the marketing for them. Also, a key of the franchises is that they support each other on the advertising, remember that the franchises have the same essence no matter what part of the world.
4. BRAND RECOGNITION
As mentioned above, one of the key advantages of buying a franchise is starting with a recognizable name. Starting a gym boutique franchise with an stablished name has already an advantage, people already know who you are or have heard about you. Also, establishing a culture inside the business is less complicated because the values needed are parcel of the brand. Whereas starting a brand from scratch, however, can take a long period of time due to the fact that, in the beginning, the focus is getting leads and growing.
5. SUCCES RATES
A franchise is an established business, all franchises work under the same organization; and as mentioned before, they will have previous training, marketing and constant support. What I mean by this its that the franchises are already a proven success, whereas startups and business from scratch comes with higher risks.
So, in conclusion, both options are a great idea, it depends on what the investor is looking for. An independent gym has the chance of bringing the entrepreneur's vision to life, whereas the franchise is a business already settled, you still work for yourself but with established guidelines.
We don't have an analytical advantage, we just look in the right place."
- Seth Klarman
HOW TO START A FITNESS FRANCHISE?
|1. THE PLACE TO BE|
|2. SPECIALIZED TRAINERS|
|3. SOCIAL MEDIA|
Fitness is a profitable business because taking care of our bodies is the new trend. According to European Health & Fitness Market 2019, the sector billed 2.291€ million of euros in 2018 with a growth of 2,5%.
Below you will find 5 tips for starting your Fitness Franchise
1. THE PLACE TO BE
It is important to keep in mind that one of the reason people attend to gyms is that it is not all about burning calories and training, but it is also a way to socialize, to have a nice experience and lifestyle. Think about it, if people only wanted to burn calories they would buy the machinery themselves, or go running, going to the gym is mainly about the "I went to the gym" experience.
2. SPECIALIZED TRAINERS
The worst thing than can happen when going to a gym is attending to a class on which the trainer knows nothing about. It is very important to set some money aside and spend it on hiring really good trainers as well as doing periodical evaluations for your clients to obtain the best results.
3. SOCIAL MEDIA
Using social media helps the entrepreneur to keep in touch with their community, to communicate and know what people think and need. If someone is looking to ameliorate the experience of the gym, social media is key for the success.
Measurement, metrics, development. Thanks to technology we are now able to measure everything, or almost everything. Why is measurement important? If there is no measurement, a business cannot do better. One thing that is really important to know is that numbers are everything. With the data we may see the businesses flaws and create a strategy to make it better. Data gives us control.
The world is surrounded by technology, any business has to keep up with it to continue being part of the market. Invest as much as you can in technology, this way your business will not be left behind and it will have an added value. Believe me , its worth it.
OK so now it is decided, a fit franchise business....step 2...
All the text above was written for the reader to understand and get to know the benefits of a having a fitness franchise. Now, with so many options of gym franchises, which one is the best to invest in? Three popular examples that come to mind are the following: Full Crosfit, Fit Jeff and Anytime Fitness
One of the newest trends in the fit world. The equipment cost is cheaper than a "normal" gym, as the equipment is a bit more basic. It is important to keep in mind that as this is not a gym, it is important to have a very good location.
Technological company, the franchise revolution. Unifying online and offline services of the daily services. Jeff is a super app of services for the customers well being. It covers day to day services all in one place.
One of the biggest franchises in the fitness and gym industry. In 2018, the franchise added close to 430 units, an uptick of 11%.
On the table below you will find some of the multiple benefits.
Estimated Initial Investment:
Estimated Initial Investment:
Estimated Initial Investment:
Equipment, Community, Support
Technology, Processes, Marketing, Support and Profitability
Culture, largest fitness franchise, fast growth
You may also be interested in read: "Franchise Vs. Business owner. Which one is better for me?"
When investing in a franchise, the most important thing to consider is that the entrepreneur is passionate about it. It does not matter if its a gym boutique franchise, a beauty or laundry franchise, or whatever... the most important thing is that the person in charge of it is happy and committed to the business. The fitness sector is one of the most trendy and these days and the advantage it has is that it will not end because everyone is now conscious to take care of their body, the only challenge is to have a franchise that is different from others.
DO YOU HAVE WHAT IT TAKES?