When you ask, “Is franchising a gym a good idea for a profitable business?” you could be asking two different questions: one, “Will franchising a gym become a profitable business” or two, “Is franchising a gym smart if you already have a profitable business?” The answer to both questions is yes — if you play your cards right.
Is a Franchise a Good Investment?
Investing the money you worked hard for months or even years can be intimidating. One wrong move and you could lose all your hard work. Hence, it’s normal, even crucial, to verify if gym franchises are a good investment. Are franchises a good investment? The answer is a resounding yes. Research reveals that franchise businesses have over 90% success rate and can last longer compared to startups.
For it to become a good investment, there are several variables to consider.
Not all franchises are equal. For instance, some franchisors will be there for you every step of the way when it comes to running your business. They will guide you and call on weekly coaching to ensure that everything is right on track. Other franchisors, however, give you limited assistance and let you figure it all out. Since it’s a franchise business, it’s expected that you work under their terms. Some are not so strict with the regulation, allowing you to run the business the way you want to, but others will dictate your every move. Depending on the nature of the business you want to franchise, this may or may not be advantageous to you.
Another factor that contributes to the franchise’s success is the right industry. To determine if this is the right business, you have to belong to the right industry. For instance, plumbing businesses are considered essentials and necessity-driven industries. People will have to invest in these services, whether they like it or not. Not all people know how to fix a pipe nor have the time despite their hectic lifestyle.
The fitness industry, on the other hand, is on fire these past few years. Gym memberships have become a necessity for most Americans. Most want to be fit, not just to be trendy, but also healthy. These are essentials, not luxuries.
The industry that you are planning to invest in must give you a lot of opportunities. Doing your market research can help you determine if the franchise business you’ve been eyeing is worth the investment or not. Furthermore, identifying what industry suits you the best and makes the most sense for you is essential. You cannot move forward to success if you do not like your industry or have taken any interest at all. Hard work can be faked, but passion is something innate. You have to be passionate about fitness, plumbing, marketing, fashion, or any industry you plan to deal with.
To become a solid investment, there must be a lot of booming territories for you to choose from. Does it bring promising results? Are there any economic ebbs that can slow down the business? What are the factors that can help you succeed in running a franchise business?
These factors must be carefully considered, one by one, to help you come up if franchising is a worthy investment. At the end of the day, you are entrusting your money and assets to a brand, so choose wisely. You’ll be working on it for more than five years or so if you want to see success, make sure that it is something you enjoy doing. Otherwise, franchising could become your greatest nightmare.
Are Gym Franchises Profitable?
It cannot be denied that with the onset of technology, getting fit is no longer a trend to many. It is now a lifestyle. A lot of people have realized the importance of daily greens and going to the gym. For the past few years, the fitness industry saw growth as it has never before. That’s what makes gym franchises a profitable venture.
If you buy a gym franchise, you can expect to work with an established brand and grow your business. Take a look at the following factors that makes gym franchises profitable and a worthy investment:
A stable base of consumers
One of the factors that make gym franchises profitable is consumers. People are now willing to invest in their wellness, to become fit and be healthier. Some engage in hardcore workout training, others find joy in Zumba classes, and some are into yoga. These classes and programs are usually found in a fitness center wherever you go. Even tourists on vacation find some time to hit the gym while on the holidays. No matter the season, the bottom line is you can keep your fitness center up and running as there will always be consumers.
Existing brand recognition
If you buy a gym franchise, you can expect a stable cash flow thanks to its existing brand recognition. There’s no need to start from scratch in growing your business. The brand is already successful and recognizable. All you need to do is launch another branch, and you’ll surely have consumers. Getting leads and growing your business is made easier with the guidance of the franchisor. If you are an aspiring entrepreneur with no background in running a business, franchising a gym could be your next best move.
Higher success rates
Do you know that franchise businesses have higher success rates compared to independent businesses? It is a clear indication that gym franchises are indeed profitable. Since it is already an established business that you’re going to manage, you can be successful with little help from your franchisor. The risks of startups and launching your own business are high. If you’re going to invest your hard-earned money, you might as well secure it in a gym franchise. Later on, when you are financially stable, you can have the freedom to start your own business or continue expanding your franchise as it will most likely be a success.
The bottom line is, gym franchises are profitable. Their business models are designed to generate a steady stream of income in the long run. But remember that gym franchises will not make you filthy rich. If the idea of making more than a hundred thousand annually sounds appealing to you, then being a gym franchise owner is a good choice. Expanding and owning more territories can help you achieve the lifestyle of your dreams. But for now, if you are tired of your 9-5 job and see no growth in your career, being a gym franchise owner is the best choice.
Will Franchising a Gym Become a Profitable Business?
If you’re reading this blog in May 2020, then your question has more merit than it would have a few months ago. Even with all the gym shutdowns, however, franchising a gym can still be profitable.
Because so many gyms are going online, you actually have more access to clients, not less, especially if you make your services welcoming to all different types of clientele.
In other words: Yes, franchising a gym can become profitable IF you take the following into consideration when buying into a particular gym.
- Don’t be sneaky: People are smart and they can see through sneaky contracts that are designed to keep them hostage as a customer. Be more lenient than your competitors. Keep your customers with good service, not sneaky tactics.
- Offer multiple payment plans: Some of your customers are going to be able to afford more — and they’ll want more services as a result. You can have tiered pricing to accommodate the customers who just want a standard gym membership and appeal to those who want all the bells and whistles.
- Set flexible hours: If possible, 24-hour gyms are the way to go, but we’d definitely recommend making your business hours start well before the usual workday. Many clients like to workout before work. If you have flexible hours, then more clients are likely to sign up with your gym, making you more profitable.
- Offer fitness classes: Oftentimes, people need an incentive to work out. Fun is a great incentive, and a quick way to make working out fun is to make it a group event, like yoga, Zumba, pilates, or spin.
- Hire on-site personal trainers: While some customers will want group workouts, others will be more motivated under professional supervision. Having on-site personal trainers is a great way to grow profit.
- Choose the right location: Location is important! Even if you have the best rates in town, people probably aren’t going to come to your gym if you’re in the middle of nowhere. Downtown areas are great — but keep in mind that the rent will also be higher. Do your research before choosing a location.
- Cultivate a welcoming environment: If you have a great location and great rates but your environment is lacking, people are going to quit your gym, period. Make your gym environment welcoming by ensuring that your machines work, your staff is friendly, and your instructors are on their A-game.
- Keep it simple, silly: Your customers want to work out, not do hard work. Make attending your gym a simple, user-friendly experience. You can do this by giving customers key fobs, instead of making them sign in at the desk, or by having ample signage around the gym.
- Dangle the carrot: You can draw in new customers by offering seasonal sales or discounted rates. It’ll be less money up front, of course, but if you can offer exceptional service to your customers, then you can incentivize them to stay, even after the promotional period ends.
- Line the shelves: If they really wanted to, people could just work out at home. The main appeal of joining a gym is having access to high-tech, reliable gym equipment. Do your research before buying workout machines, and have a budget for machine maintenance each month. Consider it an investment.
- Get great reviews: Offering great customer service and keeping your equipment up and running is a great way to keep your customers happy. But the thing is: Happy customers aren’t as likely to leave reviews. Find a way to entice customers to boost you online by hosting a raffle.
Is Franchising a Gym Smart If You Already Have a Profitable Business?
Yes, franchising a gym is smart if you already have a profitable business — if your business is in the health and fitness industry. If you have a profitable Etsy shop, it’s not going to really make sense if you franchise a name-brand gym (though anything’s possible, we suppose).
If you’re profitable in any of these professions, then it’s absolutely a smart move to franchise a gym:
- Independent Gym Owner
- Health Coach
- Fitness Influencer
- Gym Brand Ambassador
Driving Your Profit Means Being Inclusive
Another way to increase your profit margin is by making your gym accessible for people with disabilities. Ensure that there are ramps leading to the front door and that there’s an elevator if you have a two-story space. “Accessible” doesn’t just refer to the physical space, although that’s an important part of it. You also need to have a friendly, welcoming environment, and staff members who know how to work with people with a wide range of mobility and cognitive abilities. Why not consider offering that environment by franchising with Special Strong?