Owning a gym franchise is an exciting business, from promoting the health and fitness of your gym members to providing special ways to support the community’s overall well-being. Getting started with, or even doing some restructuring around your gym franchise’s business model to achieve the best possible profit can be difficult. Here’s how much to own a gym franchise for steady profit from the experts at Special Strong.
How to Make a Profit as a Gym Franchise Owner
Making a profit as a gym franchise owner might be your main goal, but to reach it, it’s important to know who is on the other side of it. You guessed it; we are talking about your clientele. It’s one thing to get new clients or visitors in the door – which is great if you do! – but keeping them there as loyal patrons is key.
Memberships can sometimes be tricky to maintain because they either involve contracts, which can scare people, or be on a month-to-month fee basis, which is not always seen as stable. But don’t let that scare you! There is so much that you can offer as a gym franchisee to not only bring in new profit but to keep a steady profit among those who have already committed to your services.
Is franchising a Gym a Good Idea?
There is no fixed salary when it comes to gym ownership. Your earnings will depend on the number of hours you spend in keeping the staffing and your willingness to reinvest in your business to let it grow. When running a profitable gym, the amount of money you make is in your hands.
If you’re making a decent profit, you can pay yourself a decent salary. Your profit depends on the amount of money that exceeds your expenses. The good news is that, in the world of the fitness industry, there are several ways to generate profit:
For starters, you can make new streams of income for your business. Discuss with your franchisor if you can offer new classes or sell related merchandise onsite. Besides that, you can also offer premium membership to your members. While it may take a while before you see the profit, these income streams are worth investing in.
Another way you can increase your revenue is to increase membership revenues. For instance, if your gym membership generates $1000 annually, you need to have 100 members to earn $100,000 at the end of the year. If you can invite another member, that would increase your annual revenues to $152,000. Make it two, and you will have it at $204,000.
You can also increase the membership fee to generate more profit. For instance, raising it to even 5% will let you have an extra $10,400 at the end of the year. However, this method can backfire on your existing members who have to pay more. This is only applicable if you have new classes or programs to offer to justify the price increase.
Some gym franchise owners also find ways to reduce costs and maximize their profit. For instance, if your staffing costs are a whopping $70,000 annually and other necessities amount to $25,000, you will have $109,000 excluding the taxes. After paying for the tax, you’ll only have $63,5000. But if you can find ways to cut your cost up to 50%, you will have a $73,000 salary at the end of the year.
The bottom line is, franchising a gym is a good idea as long as you’re willing to work hard. Putting more hours of work, reducing your costs, and being a passionate business owner will help you to generate a steady profit in the long run.
Do keep in mind that franchising a gym is not your one-way ticket to being luxuriously rich. It can only earn you a decent income while you’re working accordingly. It’s a much better option than sticking to your 9-to-5 job and a good retirement plan as well. Find some time to grow your business, and if you are skilled enough, you will bump into a method that will multiply your income without expanding your existing capital. This will lead you to achieve the dream lifestyle as a gym franchise owner.
Do Gym Franchises Make Money?
There is no average gym owner salary. As we’ve mentioned earlier, it all boils down to how hard you work and how skillful you handle a business.
For a better perspective, let’s take a look at a few real examples. William Albritton has three territories of CrossFit Alexandria in Louisiana, allowing him to earn up to $500,000 per year. This means that each location can generate $166,000 per location.
On the other hand, William Hurst owns Spark CrossFit and invested $100,000 for setting up his gym. In an interview, he revealed that he could earn up to $120,000 per year.
Considering the average income salary of the two gym franchise owners, it is safe to say that gym ownership allows you to earn up to $120,000.
The 2017 IHRSA Profiles of Success reveals that clubs have a median margin of 16.5% while multipurpose clubs have 15.5%, and exclusive fitness clubs have 20%. It cannot be denied that the fitness industry is growing at a fast pace. The industry made 1 billion in 2016, and the majority of it came from fitness memberships.
Gym franchises make billions of money through membership alone. It means that if you can find a way to boost your membership, you’ll be able to generate more than the average income of gym ownership.
Besides that, more and more fitness centers offer different weight-loss products, pre-workout supplements, and other fitness-related consumables to the gym-goers to increase their revenue. As a gym franchise owner, there is a wide range of possibilities for you to increase your revenue aside from membership.
Do not worry because gym ownership allows you to maintain a steady stream of income in the long run. Fitness is not just a passing trend. It is a lifestyle. People are willing to invest their money in their wellness these days. Usually, the peak season of ushering new members is the start of the year. Rest assured that a fitness gym will have a steady flow of income no matter the season.
Another factor that makes a fitness gym a steady source of income is its simple business model. Most fitness gyms are open 24/7, maximizing the amount of income you can earn. Besides that, you only need a two-person staff to keep it running. If you want to offer other classes, you can hire a personal trainer. Nonetheless, running a gym is straightforward and hassle-free. If you can be creative with your marketing, you’ll most likely draw a bunch of new members to your gym. Even if you are a franchisee, be creative. Think outside of the box. There are more than one sources of income in this business than you can imagine.
Running a gym franchise also allows you to benefit from a better work-life balance. If you franchise a gym with competent staff, you’ll have more time to take on vacations and spend time with your family. You can also tap into other business ventures or further improve your existing career.
Lastly, running a fitness gym is about making a difference. If you want to make an impact on your consumers, then this is the right business. Adaptive fitness gyms, to be specific, are rare companies that will make a positive difference in your clients’ lives. If you can make them happier, fitter, and healthier, your job here is done even before the profit.
How to Bring in New Clientele to Increase Profit
Simple but true, when people are shopping around for gym memberships or health clubs, they are drawn to places that they know are going to cater to their personal fitness and health needs. Many people look for things such as:
Contracts are important to have, but it’s unlikely that an overly strict one would be very appealing to potential clients. Be inviting and reasonable, but firm on your policies, and remember that tricks won’t get you far.
Offer several plans to choose from, and you will have many satisfied customers.
Great References and Reviews
Google, Yelp, Facebook, and other online reviews can help you build your reputation in the community.
People thrive well in particular environments, and they’ll usually know immediately if they feel a good vibe. Offer a tour of the facility during the consultation for more guidance in the decision-making process.
No one likes a dirty machine! Gyms are notorious for being full of germs, which makes it that more important to have a clean space at all times.
Quality, User-Friendly Machines
This expectation is very important to meet; a machine that is difficult to use can be quite discouraging and frustrating for anyone. Complicated machines can even cause anxiety that is serious enough to keep people away from the gym.
These make fitness fun – and the scheduling aspect provides accountability for gym-goers to regularly use their membership.
One-on-one motivation is always a great thing to offer.
It’s nice to be exclusive, but it’s convenient to offer the same great benefits of a membership at another franchise location, in addition to yours.
Where to Find New Clientele
It’s important to know where to find potential clients. Running ads on social media is a great way to reach the audience you are looking for. Word of mouth still proves to be a trusted source to bring in new clients as well. While team members can encourage existing gym members to tell their friends and family about their membership perks, great service speaks for itself. (Referral programs never hurt anyone though, right?)
How to Keep Gym Customers Happy
At the end of the day, a happy customer is a loyal customer. This is true for all business models – gym franchises being no exception. But in order to keep your customers happy, it is important to keep your promises to them and make sure you are constantly maintaining their requests as members. The following suggestions might earn you some more points in the steady profit game:
Additional Member Specials
It’s always nice to get rewarded just because. Consider offering members discounts on their monthly payments from time to time. If your location has a cafe, why not offer smoothie specials a few times a week?
A win-win for you and your loyal clients. Offering anything from a free month of membership to discounted classes is all you need to motivate your current clientele to get their friends and family to sign up for memberships of their own. Bring-a-buddy programs are another great thing to consider.
Not all gyms have the exact same amenities. Some even offer massage chairs! If you can keep your gym separate from your competition with special amenities or programs, we definitely recommend doing so.
Which Special Programs Support Steady Profit?
So which programs should you invest in? When you are looking into how much to own within a gym franchise for steady profit, it’s helpful to know which programs benefit members and/or which are the most appealing.
Inclusivity can be a major driving factor, so having specific personal training models, such as the CBSE training model, which is proven to help those with autism, down syndrome, and many other disabilities is something to consider.
Choosing a program like Special Strong, which uses the CBSE training model, can make a difference in the decision making process for new clients, and boosts your reputation among the community in general.
Understand Your Gym-Goers
Investing in your members is the most important thing to grasp when you need to know how much to own in a gym franchise for steady profit. Know what it is that they are looking for – there is so much to consider, from budget-friendly payments to specially trained personal trainers.
Understanding your members’ unique needs will set you aside from the competition, help you maintain a great reputation in the community, and most importantly, keep a steady profit for your gym franchise.