10 steps to starting a gym franchise
- 1. Assess your interest Before you begin, make sure you’re getting into this business for the right reasons. ...
- 2. Do your research Once you’re committed to the concept, research your options. ...
- 3. Contact your top choices ...
- 4. Call franchisees ...
- 5. Find a location ...
- 6. Obtain financing ...
- 7. Sign an agreement ...
- 8. Get permits and insurance ...
Full Answer
How much does it cost to open a gym franchise?
The total upfront investment for a gym franchise can fall anywhere between $30,000 and $300,000, including the one-time franchise name fee (ranging from $15,000 to $30,000). Of course, some brands are less expensive than others. Ditto for some locations.
How to open up a gym franchise?
Start a gym by following these 10 steps:
- Plan your Gym
- Form your Gym into a Legal Entity
- Register your Gym for Taxes
- Open a Business Bank Account & Credit Card
- Set up Accounting for your Gym
- Get the Necessary Permits & Licenses for your Gym
- Get Gym Insurance
- Define your Gym Brand
- Create your Gym Website
- Set up your Business Phone System
What makes a successful gym franchise?
Good franchises have systems in place to receive feedback from members as well as do extensive research to help identify opportunities for delighting customers. This is makes a fitness club a true personalized experience.
Is running a gym a profitable business?
To be profitable, a gym model typically revolves around several key revenue streams. The most basic is the gym membership. However, membership dues or fees are typically not enough to make gym owners rich.
How much does it cost to start a gym franchise?
How much does it cost to franchise a gym?
What are the pros and cons of owning a gym?
What is a FDD in franchising?
What should be included in a gym franchise plan?
How many hours does a gym open?
What is the best location for a gym?
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About this website
Is owning a gym franchise profitable?
Yes, fitness franchises offer great profits but not as much as you might think. According to Investopedia, most franchise owners take home around $50,000 per year, but about 7% of franchise owners earn more than $250,000 per year.
How much does it cost to own a gym franchise?
between $30,000 and $300,000The total upfront investment for a gym franchise can fall anywhere between $30,000 and $300,000, including the one-time franchise name fee (ranging from $15,000 to $30,000). Of course, some brands are less expensive than others. Ditto for some locations.
Is it a good investment to open a gym?
In fact, while there is massive potential in owning a fitness business, 8 out of 10 of them will fail in their first year. However, if you manage to clear the first-year hurdles, you will come out the other side a stronger person and better entrepreneur, way more able to handle whatever gym ownership throws at you.
Is opening a small gym profitable?
After a year, a successful gym will generate at least $20,000 per month. According to the AFS 2016 Marketing Best Practices Research Report, a typical small fitness center in the U.S. makes $63 per SqFt., or up to $200,000 to $300,000 per year. Larger gyms can make up to 10 times as much money.
What is the most profitable franchise?
Most Profitable FranchisesDunkin'7-Eleven.Planet Fitness.JAN-PRO.Taco Bell.Orangetheory Fitness.Great Clips.Mac Tools.More items...•
Is owning a Planet Fitness profitable?
Planet Fitness is a profitable business for the franchisor, with retained earnings of $210 million in 2021. Compared to $145 million in 2020, they saw an increase of 44% from 2020 to 2021. This is a good indication of high growth as a company overall.
Do gyms make a lot of money?
Market research across the USA shows that a gym owner of a medium-sized gym could earn around $150,000 per year. The general setup costs for a medium-sized gym is around $100,000. But your profits for the first financial year could be as little as $50,000.
What certifications do you need to open a gym?
Furthermore, a gym or fitness business also requires a Shop & Establishment Licence as well as a Trade Licence in order to commence activities. However, do consider that while the S&E Licence can also be obtained on residential premises, the Trade Licence will only be issued for commercial properties.
How much profit can you make from owning a gym?
So, how much does a gym owner make? According to a report by ZipRecruiter, a Gym Owner in the USA can make anywhere from $17,000 to $187,500 per year depending on the above-mentioned factors. A good average would be $69,794 per year which makes $5,816 per month.
How do cheap gyms make money?
How To Make Money With A Gym. There are three primary ways that gyms make money: from membership fees, from selling classes and personal training packages, and from selling extra goods and services.
How many members does an average gym have?
How many members do most gyms have? The average number of gym members is between 1,000 and 10,000, while boutique gyms (under 4,000 square feet) have 100–500 members. Be that as it may, the gyms usually have 300–500 people on a daily basis due to the facility's capacity.
How do you start a gym from scratch?
Step 1: Get trained and accredited. ... Step 2: Identify your fitness niche. ... Step 3: Find the location. ... Step 4: Figure out what additional staff and equipment you will need. ... Step 5: Get financed. ... Step 6: Market your gym.
How much does it cost to invest in a gym?
It can cost you anywhere from $8,000 for a studio to $50,000 for a large gym with all the equipment you could need. While investing in gym equipment make sure you look out for the best quality equipment so that you do not have to keep maintaining it.
How much does it cost to franchise a Planet Fitness?
Planet Fitness's franchise fee is $10,000 for a 10-year renewable agreement, though the total investment ranges from $700,000 to $3.8 Million. Franchisees must also pay a 5% ongoing royalty fee on all sales to Planet Fitness. To open a gym, a franchisee must have of $3 million with $1,500,000 in liquid assets.
How does gym franchise work?
A franchisor chooses to sell the rights to use their company's name, trademarks and business models to independent operators known as franchisees. Typically, there is a one-off fee to use that company's trademarks and an ongoing percentage of revenue to become a franchisee.
How much does it cost to start a F45?
The cost to start a F45 Franchise will include the following: Total Investment: The total investment necessary to begin operation of a “F45 Franchise” franchise ranges from $227,000 – $312,000. Initial Fees: Initial franchise fee: $50,000.
How Much Does Anytime Fitness Franchise Cost In 2022?
Expect to spend around $4,900 to $5,900 for a standard center and $3,000 to $5,000 for an express unit. Other Opening Costs. The initial investment for an Anytime Fitness franchise also includes the following:
Pros and Cons of Gym Franchise | The Atwood Group
Type “Start your own gym” into Google, and an overwhelming amount of business start-up information and advice pops up. However, you’re likely to see a plethora of franchise opportunities as well. Buying into a fitness club or boutique fitness studio franchise can be seen as ashortcut to getting your fitness facility up and running. But […]
How much does it cost to start a gym franchise?
On the other extreme, startup costs for a Planet Fitness franchise run between $857,080 and $4,234,750.
How to ask a franchisee about their experience?
Ask the business for referrals to franchisees who would be willing to speak with you about their experiences. Ask them about both the good and the bad . What’s the day-to-day experience like? Are the franchisor’s policies fair and the staff responsive? How long did it take to break even? What are some of the biggest challenges?
Is Planet Fitness a franchise?
Planet Fitness is the third-fastest growing franchise in 2018; Orangetheory Fitness, Any time Fitness and Club Pilates are also among the top 50 fastest-growing franchises. Challenges of owning a gym franchise. Gyms are large, complex investments, especially the bigger establishments.
Do gyms need to be rented?
Gyms are large, complex investments, especially the bigger establishments. You’ll need to rent and outfit a large space and obtain a wide array of expensive equipment. Finding and hiring the right trainers can be difficult; you need to ensure they’ll inspire users to want to return again and again.
Do you need to hire staff to open a franchise?
You’ll need to hire all the staffyou need to open your company. Franchisors will give training to the franchisee and at least one other manager who can then train the employees properly in company procedures and policies.
Do gyms work for franchising?
Gyms work well for franchising — they are in demand around the country and expanding aggressively. Learn how to successfully open a gym franchise. Gyms work well for franchising — they are in demand around the country and expanding aggressively. Learn how to successfully open a gym franchise. You are using an outdatedbrowser.
Why is it important to have a fitness franchise?
Understanding this is important because a good fitness franchise is able to retain members for a very long time, if they are able to provide the right type of workout environment, regimen, and stay abreast of what’s hot.
How much overhead does a gym have?
The average monthly overhead of a gym can be significant. This is especially the case where you have over 10,000 square feet, equipment to purchase and maintain, and a knowledgeable staff on hand at all times to help members and make sure the workout environment is as pristine as possible.
What is functional fitness?
Functional fitness training is where you train using multiple muscles to work together doing common movements that you may do as part of an active lifestyle, at work, or in sports. It involves using various muscle groups in conjunction, while putting an emphasis on your core and overall stability.
How much does it cost to start a gym franchise?
The total cost of a gym franchise varies by brand, but you should expect to pay anywhere from $45,000 to $330,000 to get started. Common starting costs include:
What to do before investing in a franchise?
Before you invest in a franchise, do some research on the company. What are the opinions of people in online forums? There’s no point buying into a franchise that has a terrible reputation among consumers and former employees.
What gym equipment does my fitness center need?
As a gym owner, you’ll no doubt be well aware of the equipment needs of your business. The good news is that there are finance options available to help you purchase all the essential items that any successful gym needs, including:
How much does a gym need to be for a security deposit?
Most commercial spaces require a security deposit of three months’ rent.
Is gym a franchise?
Bottom line. Gyms are a booming business across the US and can be a solid franchise option for people looking to get into the industry or expand their current options. The total investment cost vary, but you have a range of loan options available to help you fund your venture.
Is gym membership increasing during recession?
Gyms have seen a steady increase in membership — even during the recession. American’s interest in a healthy lifestyle has only continued to grow, resulting in a search for the place to work out. If you’re interested in starting your own business but aren’t sure how to find financing, a franchise can be a great place to start.
Can a lender extend a gym loan?
A lender wants to know that you’re capable of running a gym before extending a loan. You’ll have to meet a few basic qualifications in order to apply.
How much does it cost to franchise Gold's Gym?
Gold’s Gym also requires that potential franchisees have a minimum of $1 million in net worth and $400,000 in liquid assets.
How much did gym franchises contribute to the fitness industry?
And in 2019, gym franchises specifically contributed $4 billion to the $34 billion gym, health, and fitness industry.
How many locations does Anytime Fitness have?
Since their start in 2002, Anytime Fitness has opened over 4,000 locations on all seven continents. Their popularity mostly comes down to their unique business model: All Anytime Fitness locations are open 24 hours a day, seven days a week, and members can access any of those 4,000+ locations no matter where they are in the world. In addition to standard gym fare, Anytime Fitness locations offer a range of classes and services, like yoga, spin, cardio, Zumba, and personal training. Anytime Fitness also prides themselves on engendering a supportive environment for members and they prioritize employee wellness.
How much does it cost to open a Planet Fitness franchise?
With that in mind, Planet Fitness franchisees will need to pay for that international brand recognition—opening a Planet Fitness franchise may cost over $4 million. Royalty fees are 7% of the total gross monthly and annual membership fees, and advertising fees vary. Initial term lengths last 10 years.
What is the judgment free zone at Planet Fitness?
Planet Fitness trademarked the phrase “judgment free zone,” so that alone should give you a sense of this gym’s major value: inclusivity for all people, regardless of their fitness levels. With that accessible attitude in mind, Planet Fitness tries particularly to target the 80% of the American and Canadian population who don’t have gym memberships.
What is the UFC gym?
Owning a UFC Gym means owning a portion of the fastest growing sport in the world—a truly future-proofed business proposition.
How are royalties calculated for Anytime Fitness?
Royalty fees and advertising fees are generally calculated as a percentage of gross sales in franchise agreements, but Anytime Fitness’ rates are flat from month to month, which makes it easier for you to plan and organize your expenses. They’ll provide you with a personal support team, comprehensive training, and marketing support over the course of your franchise agreement’s six-year term (or 10, if you’re in California).
Who worked at Gold's Gym?
Bodybuilding greats such as Arnold Schwarzenegger, Lou Ferrigno and Franco Columbu worked out at the original Gold’s Gym, which went on to become the most legendary gym in the world. In the fitness industry, the brand enjoys cult status and universal appeal with 96% aided brand awareness.
How many locations does Gold's Gym have?
Over the last 55 years, Gold’s Gym has developed into a global brand with over 600 locations spanning 6 continents. Bodybuilding greats such as Arnold Schwarzenegger, Lou Ferrigno and Franco Columbu worked out at the original Gold’s Gym, which went on to become the most legendary gym in the world.
How much does it cost to start a gym franchise?
Besides the initial fee you'll pay to join the franchise, a gym requires a great deal of equipment, as well as a large commercial space.
How much does it cost to franchise a gym?
The total upfront investment for a gym franchise can fall anywhere between $30,000 and $300,000, including the one-time franchise name fee (ranging from $15,000 to $30,000).
What are the pros and cons of owning a gym?
Pros of owning a gym franchise 1 Brand recognition: Franchises are well-known brands with a history of success. This makes finding members a cinch—there's already a built-in customer base. Plus, the franchisor will likely handle marketing for the entire franchise. 2 Training and ongoing support: If you've never owned a business before, there will be lots of things to learn. With a franchise, you'll have the ongoing support of your franchisor to walk you through every step of the process. 3 Higher profits: Franchises typically see higher profits than non-franchise businesses, as there is a loyal customer base and formula for success. While the initial investment to open a gym franchise can be high, you'll likely turn a profit more quickly.
What is a FDD in franchising?
If you move along in the application process, the franchisor will share their franchise agreement, which includes the franchise disclosure document (FDD). Both you and your business attorney should review this document carefully, as it will lay out exactly what both you and the franchisor are responsible for over the course of your business relationship. If all looks good, you're ready to sign and officially join the franchise family.
What should be included in a gym franchise plan?
There are some key points you want to make sure your business plan hits, including a market analysis of competition in the area and the need that your gym franchise will fill that's currently not being filled by competitors. You should also include other information like expected costs, how many people you expect to hire, what your role in the franchise will be, financial projections about how long until you expect to turn a profit and more.
How many hours does a gym open?
Remember, gyms typically have long hours—some are open 24 hours a day—so they're open when their customers want to work out.
What is the best location for a gym?
An easily accessible and convenient location for your gym is crucial. For most gym-goers, close to home or work is best. As to figuring out what constitutes “convenient” for your target membership, it all starts with studying the data available to you.
