The fitness industry is booming, thanks in part to the impressive variety of exercises and workout experiences available to consumers, and to the prevalence of fitness tracking tools that help users keep up-to-date on their progression towards optimal fitness. With so much happening in this industry, it’s understandable that budding entrepreneurs might consider investing in a fitness brand.
One way of investing in a fitness brand is by buying a gym franchise, thereby positioning oneself as a business leader and becoming a representative of an established enterprise. There are, however, numerous aspects of this endeavour that you must consider before you embark on it. Multinational fitness brand F45 Training has collaborated here to tell you what to think about before buying a gym franchise.
Costs
Fortunately, buying a franchise is not as costly or precarious as starting up your own business. The necessary infrastructure and equipment is already in place, and you’ll already have a substantial customer base. That being said, taking ownership of a franchise will involve quite a bit of expenditure on your part.
First there is the upfront fee, which essentially gives you the key to the franchise and officially makes you part of the enterprise. This fee is usually a hefty one, and paying it might require you to take out a loan. After assuming ownership of your franchise, there are other fees to consider, such as royalty fees, which you pay to your franchisor on a monthly basis in order to maintain your ownership.
The business model
You might see owning a gym franchise as a means of taking control and exercising your own influence over how that franchise is run, whereas the truth is that your franchise, along with all the gym franchises owned by the brand, is run according to a set business model. This business model dictates how every aspect of your franchise will operate, from services rendered to administrative processes. The reason business models are so important is that they ensure each and every franchise lives up to the brand’s image and the customer’s expectations. If one particular franchise doesn’t live up to those expectations, then the brand might be seen as unreliable.
In fact, a solid business model is often the reason why franchise operations are so successful. If a brand has expanded and now comprises a substantial number of franchises, then clearly the business model is concise enough to be replicated in different locations and is easy enough to teach to new franchisees and franchise employees.
Research
If you’ve got your eye on a specific franchise operation, then do your research before making any steps towards purchasing. There are numerous means of gathering information on your chosen brand. Your first step should be to talk to some of the brand’s current franchisees. Find out about their experiences working for the brand and for the franchisor. You might be able to gauge whether or not it’s the right fit for you. You could even go a step further and job-shadow a franchisee in order to gain a better idea of what the job entails.
You can also learn a lot about a franchise by having a look at the Franchise Disclosure Document (FDD). Writing for Forbes, Chris Myers notes that “every franchisor [must] develop a Franchise Disclosure Document…and provide it to every potential franchise buyer,” and that “the FDD exists for two reasons: to protect you as a candidate and to protect the franchisor against allegations of misleading claims.” The FDD will tell you, among other things, about the history of the franchisor, the economic performance of the franchise operation, and the nature of your role as franchisee, ie. what’s expected of you. It can also detail the kind of support you’d get as a franchise owner.
Taking ownership of a gym franchise is a brave step into the business world, but it mustn’t be taken with too much haste. First make sure your financial situation is stable enough, consider the fact that you’ll be acclimatised to a specific business model, and do as much research as you possibly can. When you feel that you’re ready to become a franchise owner, take the leap.