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.
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.
What to consider before buying a franchise?
What to Consider Before Buying a Franchise
- Make Sure Your Family is On Board. Owning a franchise—or a business of any kind—is truly a family affair. ...
- Count Your Cash. ...
- Reach Out to Other Franchisees. ...
- Do Some Soul Searching. ...
- Test the Product. ...
- Understand What You’re Getting Into. ...
- Talk to a Franchise Consultant. ...
- Come Up With an Exit Strategy. ...
- Consult With Franchise Experts. ...
- Do Your Due Diligence. ...
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
How much does it cost to start a gym franchise?
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 much does it cost to franchise a gym?
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 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.
How can I get money to start a gym?
What gym financing options are available?Bank loan. One way to secure funding is by getting a business loan from the bank. ... Personal savings. ... Find a business partner. ... Pitch investors and lenders. ... Invest in a gym franchise. ... Fitness equipment financing. ... Monthly payments. ... Legal fees and insurance.More items...•
Which gym franchise is most profitable?
If you want to research the top fitness franchises, here's who made the Top 10 list in Entrepreneur's Franchise 500 for 2022:Crunch. ... Anytime Fitness. ... Burn Boot Camp. ... Club Pilates. ... The Exercise Coach. ... Pure Barre. ... 30 Minute Hit. Entrepreneur Franchise 500 Rank: 351st ... SPENGA. Entrepreneur Franchise 500 Rank: 380thMore items...•
Is it hard to own a gym?
The fitness industry has become hyper-competitive and becoming a successful gym owner is getting harder and harder. In fact, while there is massive potential in owning a fitness business, 8 out of 10 of them will fail in their first year.
How does Planet Fitness make money at $10 a month?
As franchisor, Planet Fitness primarily generates revenue through membership royalties, fees, and branded equipment sales.
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 does Planet Fitness afford to stay open?
Revenue – The principal source of revenue for a Planet Fitness club is membership fees. Monthly and annual membership fees are usually paid through electronic transfer of funds (EFT).
How much money do gyms make?
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 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.
Can you get a business loan to open a gym?
You can get gym equipment finance with SME Loans. You can apply online. All you need to provide is how much you want to borrow, details about the business, details about yourself and contact information. Once it has been submitted, your application will be assessed.
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 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 an Anytime Fitness owner make?
How much do Anytime Fitness Franchises Make? The average revenue across the 1,103 Anytime Fitness centers that implemented the Training Suite for the year ending December 31, 2021, is below. The average Anytime Fitness reported $384,958 in annual revenue.
How much does it cost to franchise a EOS fitness?
They began offering EOS Worldwide franchises as of February 16, 2021. The total investment necessary to begin operation of an EOS Worldwide franchise is $12,870 to $123.400. This includes the initial franchise fee of $5,000 that must be paid to us or our affiliate(s).
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 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?
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.
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.
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.
Does lending tree include all lenders?
LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
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.
Are fitness franchises profitable?
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.
How do I pick out the right loan?
Not everyone has hundreds of thousands of dollars in liquid assets to sink into a gym franchise. When you’re ready to submit a loan application, consider these important questions.
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 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:
How much does a gym need to be for a security deposit?
Most commercial spaces require a security deposit of three months’ rent.
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.
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.
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.
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.
Why Should You Open a Gym Franchise?
all belong to the health and fitness industry. Gyms have seen a steady increase in membership, American’s interest in a healthy lifestyle has only continued to grow , resulting in the search for the best place to work out.
Why do franchisees not open their own gym?
One of the main reasons a franchisee chooses to join a franchise and not open their own gym is down to the training and support systems that are put in place. They’re not going into a business blind, they have an already established business plan with proven success to work from.
Where is Poste Nove located?
Poste Nove is a pilates studio based in Beirut in Lebanon. The couple took the decision to open its first franchise location, thousands of miles away on the Ivory Coast in Africa. Franchising was never on the cards until one of their clients came knocking and wanted to start her own location on the other side of the world. Daniel and Georgia took the time to make sure the franchisee ticked all their boxes and was ready to go.
Why is research important in franchising?
Research is so valuable in any part of the business, it tells you everything that you need to know. Your research may look at what has and hasn’t worked for other franchises in the past and to learn from their mistakes. You need to understand how franchises work on every level of the business and what your position will be. You may be thinking that your fitness center is already doing very well and you love the location but, franchising offers up the opportunity to further expand and build a loyal brand following.
What are legal costs?
Legal costs – this could include the costs of your franchise attorney, business insurance and legal expenses such as state registration.
What are the traits of a successful franchise?
Successful franchise owners tend to share similar traits that make them perfect for the job. Here are the best traits to look for when choosing potential franchisees: 1 Leadership 2 Strong work ethic 3 Passionate 4 Eagerness to learn 5 Team player 6 Financial awareness
How to expand your business?
If you’re in the processing of expanding your business, you basically have two options. The first being that you could go down the route of a multi-location model. This is where you open two or more locations all under the same management team. The other option is to enter into the world of franchising which allows an external person to use your business model and branding for a fee.
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.
How many Orangetheory studios are there?
Currently, the Orangetheory franchise has over 1,100 studios in 49 U.S. states and 22 countries internationally (they started in 2010, for some context about just how quickly they’re growing). As an Orangetheory franchisee, you’ll be responsible for a monthly royalty fee of 8% of gross sales.
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).
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.
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 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).
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.
