Is owning a gym franchise worth the investment?
Owning a gym franchise is worth the initial investment. Gym franchises currently account for $4B out of the total $34B health club industry in the US. The brand recognition a franchise affords makes it easier to gain customers. If you have an investment budget of over $100,000, you should consider opening a franchise gym.
What are the pros and cons of a franchise fitness center?
Additionally, you may have a franchise fee that covers the franchise owner’s responsibility for advertisements and marketing. The cons of a franchise fitness center are almost the same as any other franchise ownership. With a franchise, you have to work under certain limitations.
What is the largest gym franchise in the world?
Anytime Fitness is the largest gym franchise in the world and currently holds the record for the fastest-growing fitness franchise in existence. It is famous for offering exceptional 24-hour service for clients, and there are currently 4000+ franchises located in every corner of the globe.
What does a fitness studio franchise owner do?
A fitness studio software is essential to manage and operate your gym. The franchise will provide you with the best in class gym management software and have the software set-up to manage and run your gym seamlessly. They will also provide all the administrative hardware (point of sale) and software that you will need to run your gym successfully.
How to increase profit margin in gym?
Do gym franchises have higher success rates than independent businesses?
Will Franchising a Gym Become a Profitable Business?
Are Gym Franchises Profitable?
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.
Is it better to start your own gym or franchise?
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.
How much does it cost to start a gym franchise?
Some high-end gyms like Gold's Gym require an investment of over $1M and a personal net worth of $2-3M before they issue you a license. Starting a gym franchise is for investors with deeper pockets due to the high initial investment. If you have less than $100,000 to invest, it's better to start your own gym.
Do Planet fitness franchises make money?
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.
What does the average gym owner make?
$73,905 a yearHow much does a Gym Owner make in California? As of Sep 24, 2022, the average annual pay for a Gym Owner in California is $73,905 a year. Just in case you need a simple salary calculator, that works out to be approximately $35.53 an hour. This is the equivalent of $1,421/week or $6,158/month.
How can I get money to open 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...•
What is the most profitable fitness franchise?
The Top Gym and Fitness Franchises of 2022Jazzercise. Jazzercise is the kind of fitness franchise that has been around long enough that you might think it must be woefully out of date, but you'd be wrong. ... Anytime Fitness. ... Planet Fitness. ... F45 Training. ... Orangetheory Fitness. ... Snap Fitness. ... 9Round. ... Club Pilates.More 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 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.
Is owning an Anytime Fitness profitable?
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 can you make owning an Anytime Fitness?
The average Anytime Fitness location brings in about $441,116 in revenue per year, but a franchise owner can expect to make about $114,000 in profit after expenses. Anytime Fitness is the world's fastest-growing fitness club, according to the International Health, Racquet and Sportsclub Association.
How much does it cost to build a Planet Fitness?
Planet Fitness Franchise Costs & FeesName of FeeLowHighInitial Franchise Fee$20,000$20,000Site Selection Costs$1,000$10,000Construction Development Plan Review Fee$0$4,000Leasehold Improvements$1,250,000$2,163,00013 more rows
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 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.
Are Anytime Fitness franchises profitable?
The average Anytime Fitness location brings in about $441,116 in revenue per year, but a franchise owner can expect to make about $114,000 in profit after expenses.
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.
What is franchising a gym?
Gym franchisors give you their business blueprints and show you how to build a fitness business from scratch. They’ll actively help you during the initial stages. This assistance is to help you develop a gym that meets their standards and to decrease your risk of failure.
What happens when you join a gym franchise?
When you join a franchise, you automatically become part of a more extensive network. Many franchises have hundreds of gyms throughout the country. The gym chain can put you in touch with other franchises in your state, which can give you insight into the local market and how to thrive there.
What is the most reputable gym brand?
Brands such as “Gold’s Gym” and “Planet Fitness” have a strong brand following, and these brands are the most reputable gym brands in the world. Fitness enthusiasts are actively looking for the branches of brand gyms in their city.
How much does a gym franchise make?
Conversely, a gym franchise might only make $100K a year if it’s a small gym in a small town.
How much royalty does a gym franchise have?
This cut is usually a fixed or a progressive fee on the gross profits, depending on the franchise. Most franchises have 5-10% royalty cuts, but some can be lower, and some are higher. If the franchise company uses a progressive scale, you’ll have to pay more as your gym gets successful.
What is a fitness studio?
A fitness studio software is essential to manage and operate your gym. The franchise will provide you with the best in class gym management software and have the software set-up to manage and run your gym seamlessly.
How to get a gym license?
You’ll have to hire a lawyer to help you deal with the city administration and gain permits for the gym. The licenses issue at the local level and the mayor’s office can help you get a license for your gym as a commercial entity.
Why is it important to open a gym franchise?
Franchises allow for growth under an already established brand name making it easier to see profits in shorter amount of time. According to some franchise operation agreements, it is also good for the franchisor as the franchisor doesn’t have to put in its own resources in hiring staff, buying property, and running operation in another branch while simultaneously working hard on its independent brand name noticed.
What is a franchise fitness center?
Hence, under Federal Law, a franchise fitness center is basically a business situation or arrangement through which an individual is allowed to operate a fitness center under the brand name of some other company. The individual planning to start a division, the prospective franchisee, buys the franchise from a company, the franchisor.
What are the elements of a franchise?
The three elements are the following: 1) Franchisee has the right to use the franchisor’s trademark; 2) The franchisor has significant control or assistance with ...
What are the con's of franchising?
Another con is that you will not have control over the brand name. It is always good to be associated with established brand, but you run the risk of tying your fortunes with that of the franchisors. As such, any publicity blunder performed by the franchisor, or other uncontrolled franchisees, could hurt your business. The marketing and publicity of your business is closely tied with that of the franchisor and so is your profit or loss according to the overall business performance of the fitness brand.
Who sets up a gym for you?
In most cases, the franchisor will choose the location, provide equipment and set up the gym for you. Additionally, you will already have a likely membership base as some of your future customers will choose a gym solely on the basis of its brand name.
Is it good to run a gym under an established company?
The main benefit of running a gym under an established company is the association which you get with an established and reputed company. As stated above, you will likely receive business plans, procedures, policies, and rules ready made from the franchisor. Therefore, a large part of your installation and initial setup work is already done for you when opting for a franchise fitness center.
Is franchising a franchise reliable?
The same is true within the franchise community. There are some franchisors that are not very reliable and are difficult to connect with once your place has been established. Additionally, you will have to pay a certain percentage of the income to the franchisor irrespective of the gym’s profit or loss scenario.
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 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 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).
Why do franchisees offer training?
Franchisors offer support and training for their franchisees, which helps you to learn all about the business and how their company business model works. This can save a lot of time because the company will be able to share their tips, tricks, and secrets about how to run a successful business.
Why is it important to operate under a franchise?
And finally, another advantage is that operating under a franchise might make it easier for you to secure the finances you need. Whether you’re starting your own business or considering starting a franchise, you’ll need finance to invest in the business.
What is franchising in business?
Franchising is an arrangement where the franchisor grants the franchisee the right to operate under its trademark and/or tradename. The franchiser also allows the franchisee to use the business systems and processes, produce and market a good or service. For example, the popular fast-food chain restaurant McDonald’s is a franchise business.
What can a franchisor do for you?
The franchisor you work with might also be able to help give you resources and information on how best to market your business. Some franchises offer franchise marketing plans, which provide detailed information about market analysis, strategy, and budget.
How long does it take to build a brand?
Building up a brand and ensuring customer loyalty can take years , however, if you use a franchisor who is already well-known and respected, then your business is more likely to succeed.
Why do people like to start their own business?
A lot of people like to start their own business and be their own boss because they can make their own rules. However, one big disadvantage of a franchise is that you need to follow the rules, regulations, and the system which is already in place.
What are the advantages of franchise?
One obvious advantage of a franchise is that you don’t have to start from scratch. When you set up your own business and have to do market research, develop business plans, and test your product/services. Whereas a franchise already has a system that has been tried and tested.
How to increase profit margin in gym?
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?
Do gym franchises have higher success rates than independent businesses?
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.
Will Franchising a Gym Become a Profitable Business?
Even with all the gym shutdowns, however, franchising a gym can still be profitable.
Are Gym Franchises Profitable?
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.
