Getting into the fitness industry can be highly profitable as of late. The total revenue for the fitness industry added up to more than $87 billion in 2017. Americans have started using fitness centers and fitness club memberships, and in the last ten years, the number of subscribed gym users has grown by 34%.
While having your own private business can be nice, everyone knows that chains and franchises are becoming more popular in America. This means that with relative ease, you can run a big-name franchise while still owning your own business.
Gyms are a natural fit for franchising, they can be expanded with ease, and the demand for fitness and wellness centers is rising rapidly. While running a gym as a franchise may seem counterintuitive at first, you will quickly realize that the shared goals and resources provided in a franchise agreement can be more appealing than doing it all yourself.
While gross revenue going into your pocket is great, there are a few steps to take before starting your own small business. Before you think about real estate, demographics, or what kind of business loan you need, you should think about opening a franchise instead.
What are the Benefits of Owning a Gym Franchise?
While start-up costs are a hurdle to get over, having a new gym with personal trainers and personal training rooms is profitable. It offers you a level of autonomy as a new business owner.
Along with raising your net worth, having your own gym can be a great investment. After researching and reviewing your options on who to franchise with, owning a gym franchise will always be a valuable asset.
From an entrepreneur to a franchise owner, there is a significant shift in responsibility and autonomy. While you may lose some degree of autonomy over your business, you’ll find that the amenities, shared research, and shared goals that a franchise offers can be a great trade-off. While you won’t be able to make all of the end all be all decisions, you will have a business that is more akin to passive income than actively providing oversight to every aspect of the company.
Franchises offer a level of support to new business owners that cannot compare with traditionally owned private businesses. Being in a franchise agreement means you’re part of a more extensive support network with shared goals and interests. This can be a powerful tool when you need help or network with other business owners to make plans.
Franchises also excel because you have a proven model that can delegate and organize workers their responsibilities in an efficient way. This means you can cut time and costs off training new employees and focus on the big picture ideas that come with being a franchise owner.
Being a franchise owner gives you a lot of leverage to consider expansion, at least a lot faster than a private business owner would. Having access to other franchise opportunities or renegotiating contracts when they expire gives you more leverage to make bigger moves and expand your business easily.
Starting a Gym Franchise
With a one-time franchise fee and an initial investment, you have the option to open up a fitness franchise instead of a fitness business.
While some licensing agreements require royalty fees and or sacrificed autonomy, a fitness franchise can offer you some of the benefits of a small business and with a twist.
A health club or gym business can offer you all of the fitness equipment, staff training and even help you decide how many square feet you need to open up an Orangetheory fitness, for example. These benefits from franchising can help minimize your total investment cost and other franchise opportunities.
After an initial franchise fee, you can open up your own Planet Fitness or Anytime Fitness in no time. After the franchise agreement is negotiated and the franchisee and franchisor agree on the terms of the contract. After you and the franchise owner set up a business model, you can start your own business plan to begin marketing your business.
Grand openings, social media marketing, free cardio or pilates classes are all great options that you, the business owner, have the freedom to offer your customers.
How Much Does it Cost to Start a Gym Franchise?
Creating a gym franchise typically costs around $56,000 to $120,000, but they can run up to a million dollars depending on the franchise. The facilities themselves are rather large investments, but remember, a lot of the investment cost will be covered depending on your franchising agreement. The cost is generally going to revolve around how big you want your new gym to be.
After the initial investment, you have to keep in mind the maintenance and upkeep of the facility along with employee wages and other expenses; however, these expenses will minimize after profits grow greater and a customer base is established.
Is Owning a Gym Franchise Profitable?
Gym owners need to make a profit, or they wouldn’t go into business. After your initial investments and once you’ve balanced your budget, an asset like a gym should produce profits if done right. While it’s true that there can be difficulties in running a gym operation, if you can get through the complexities of building and running a fitness franchise operation, then it will surely be profitable.
While not all places are optimized to have a gym, and not all people are built to run gyms, almost anyone can make a profitable gym franchise.
