So, you’ve decided to invest in a gym franchise. Congratulations! Now you might be wondering, how much should you buy into a gym franchise to earn good profit? Whether you are at the beginning of your research, or ready to talk numbers, there are a few key things to keep in mind to make your business the most profitable as it can be.
From the location you choose to the types of personal training that you offer for clients, there are several things to include in your budget in order to get the best return on your investment. Special Strong has the answers for you.
What Will Set Your Gym Franchise Apart as a Business?
Investing financially is just one piece of the puzzle. To make sure your gym franchise is successful, you must also invest in your customers. What can you offer to them that sets you apart from other gyms and fitness centers? Some of the most common amenities that people expect include:
- Flexible hours: remember that many people like to sweat before work!
- Classes: yoga, Zumba, and pilates – just to name a few.
- Personal trainers: for clients who are better motivated on a one-on-one basis.
- Location: will you choose an area closer to the city or in a quiet neighborhood?
- Environment: guests will only return to places where they feel comfortable.
- Convenience: user-friendly is key.
- Affordability: consider offering seasonal sales or discounted rates. What will your franchise’s customer contracts look like?
- Updated and professional equipment: while the newest treadmills may not be necessary, it is important to provide machines that are in great condition.
- Cleanliness: this one speaks for itself.
When you are looking at the big picture for investing, remember that people have many choices when it comes to their fitness. Expect to provide many, if not all from the above list as a minimum, and keep in mind the other driving factors, like reciprocity agreements – which are especially important for franchises.
Why Gym Goers Need Options to Invest In
Remember that there is no one-size-fits-all workout regimen. Some are more inclined to do cardio, while others love weightlifting. Some people thrive in group environments, and some like to plug into their favorite podcast or playlist to keep them motivated.
When you are accounting for the amenities you will invest in, keep these things in mind. It may be important to include extra sets of headphones or to broadcast cable television on monitors to make sure guests are entertained and comfortable while they work out.
Cater to Your Gym’s Demographic
To really get a sense of how much you need to buy into a gym franchise to earn good profit, it’s important to know and understand the demographic you intend to do business with. They are, after all, the only way you will bring in profit.
If your demographic includes families with children, consider kid-friendly classes or childcare services, such as a kids’ club. Both of these options can provide activities that are both entertaining, as well as educational for children. The concept is guaranteed to appeal to parents, as it gives the entire family something to do together. Bonus: it’s health beneficial!
Driving Your Profit Means Being Inclusive
Another important demographic to think about is clients with special needs. This means making sure your facility is wheelchair accessible, that it is a friendly environment, and that you have personal trainers who are certified to work with people – adults as well as children – who have special needs. You never know who might be trying hard to find a gym that provides this particular care. Why not consider offering it through a program such as Special Strong?
Being inclusive doesn’t mean altering your entire gym facility. Some of the most important pieces of equipment for those with special needs are not large (think sandbells and 12-rung speed agility ladders). The inclusivity definitely provides the ability to cater to an even larger audience, and it gives your business a chance to stand out among other gym franchises you may compete with in the area.
What Else Contributes to Earning a Good Profit for Gym Franchises?
We’ve gone over some key things to keep in mind for your investment in a gym franchise, from location to affordability, to inclusivity. Some other things to consider are how to get your name out there and keep it relevant.
- Startup costs: Nothing worth having comes cheap. The profit you get out of your gym franchise is a reflection of what you invest into it in the beginning and the consistent work you put into it when it is up and running.
- Social media: Many people find their favorite products, services, and memberships through social media. Consider running advertisements for your franchise on platforms such as Instagram and Facebook to appeal to your target audience and drive traffic into your franchise. You can set a custom amount of ad spending here, directly through the platforms.
- Marketing: Remember to market your business where it is appropriate and to whom it is appropriate.
The Numbers for Buying into a Gym Franchise
This all being said, how much you buy into a gym franchise to earn good profit can range anywhere from $30,000 to $300,000, depending on location, size, and amenities. This amount does include the initial franchise fee or the amount you will pay in order to use the company’s name. (Franchise fees, on average, can run from $15,000 to $30,000).
Then you have royalties. Royalties are recurring fees paid to the parent company, which contribute to the use of the brand name, advertising, and any additional support from the parent company. Depending on your franchise, this could be a flat fee or a percentage of your gross revenues, either monthly, weekly or on an annual basis.
The Bottom Line
The bottom line when it comes to earning good profit on your gym franchise is that investing in your clientele makes all the difference. Invest in your customers, and they will invest in you.