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Millennial Support Group

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Miles Kelly
Miles Kelly

How To Buy A Gym Franchise [PORTABLE]


So, owning a gym franchise: Is it worth the cost? 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.




how to buy a gym franchise


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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.


Many franchises require you to consult them about the gym location that requires approval. This process ensures their gym is placed in the best possible location to guarantee profits and represent the brand.


Most franchise gyms ship their employees to the training facilities where they receive training on-site. The parent company can train dozens of employees simultaneously. This training prepares them to represent the brand and make them more efficient workers.


A certain percentage of the revenue your gym produces goes directly to the franchisor. If you thought you only had to purchase a license and you are mistaken. The franchise company is entitled to at least 5-10% of your monthly gross revenue. Some even take as much as 20%.


The long-term consequences of dealing with a parent company can have adverse effects on your fitness business. In the food industry, the disagreement between Subway franchisees and the parent company is a good example.


For small gyms, if you were to be conservative, you could get away with as little as a $50,000 total investment. This limited investment is possible by purchasing a cheaper $10,000 license fee franchise and spending less on the equipment.


The franchisor will take a percentage cut directly from your gross profit. 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.


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.


Anytime Fitness has won awards for franchisee satisfaction, and they provide top-notch service & training for each one of their franchises. Their franchises are equipped with advanced security systems to offer service 24/7/365 without closure.


The franchise charges franchisees a royalty fee between $450-550 a month, depending on the size of the gym. They have a relatively low minimum investment threshold of $107K, but investors are encouraged to invest more.


It is currently one of the fastest-growing health fitness franchises, operating over 2500 franchise units throughout the world. It started in the US and has expanded to Canada, Australia, Europe, and India.


9Round is one of the newest and fastest-growing fitness franchises in the United States. These gyms completely dominate the boxing and kickboxing fitness industry by offering premier gyms for these sports.


The franchise dominates the home training business, and since it began franchising in 2013, it has expanded to over 200 units in the United States. GYMGUYZ has the lowest minimum investment requirement at only $56K, making it viable for investors who want to spend the least at the beginning. GYMGUYZ has a fixed royalty fee of 6% of the monthly gross profits.


Workout Anytime 24/7 is excellent for investor returns because it only has a flat $500/month royalty fee irrespective of gross profits. The franchise does require a substantial investment of at least $555K, and it currently has over 150 franchises in operation.


CycleBar brings freshness to the fitness studio industry with a focus on spin (cycling) training. With a growing demand for cardio and cycling studios, CycleBar started offering its franchises in 2015 and since then have exploded with over 150 locations throughout the United States.


The franchise company might be involved with past lawsuits, and you should research that. You should also research if the company has filed for bankruptcy, which is not uncommon with smaller franchise chains.


A: Certain franchises will help you get funding. For example, if you have $100,000 to invest, they might help you get a bank loan for $300,000 to meet their minimum investment requirements. Always consult with the franchise company before getting discouraged.


A: Most gym franchises hire at least 1-2 full-time employees at the start. The average gym franchise starts with three employees. However, some hire as many as 12. Each employee will have to receive job training by the franchise company.


Opening a gym franchise instead of starting your own fitness brand makes the process of starting a gym much easier. However, the upfront costs can be significantly higher than going it on your own, and the monthly royalties you need to pay to the franchiser can take a decent chunk out of your profits.


Looking into gym franchises can be a costly, but wealth-generating endeavor. The return on your investment in a gym franchise is well worth the costs of starting the business if you do it correctly and wisely. In 2018, the fitness club industry was valued at almost $32 billion. Last year, the industry value went up by two billion. This means money is there to be made and lives to be changed for the better. The fitness industry may have taken a large hit this year because of COVID, but that means that there will be much more opportunity within the next couple of years to actually buy into fitness franchises.


With many gyms, unfortunately, needing to close, the market for opening gyms will be booming in the following years. Most gym franchises that are taking major hits right now will have to radically reduce the buy-in cost. Of course, all restrictions and lockdowns need lifting before we can even begin to think about taking action. Here is what to expect looking into gym franchises and how to find the right franchise for you and your budget. We will also go into detail about what background knowledge you need to brush up on before running a full-blown fitness business as a gym franchisee.


Having a savings account to draw from to start your fitness franchise is the most secure option. Franchisees often run into many problems in the construction and formation of their business. This means that the budget will have to accommodate for the hiccups. It is much easier to pay out of pocket for those hiccups than having to pay for those hiccups and the overall interest on the loan itself. Everybody knows that money adds up quickly!


It is also extremely beneficial to seek out professional help with accounting and money management. Approaching an accountant to make sure that you are financially prepared to take on a franchise can save you a lot of remorse and stress.


This also goes for the legal hoops you need to jump through to become a franchisee. Consult an attorney at every step of the process. You want to make sure you will not set yourself up for legal troubles down the road. It is also wise to consult an attorney to make sure that the franchisor is not trying to set you up for any unreasonable legal bindings. Without a doubt, they had their own attorneys formulate confusing contracts muddled with legal jargon that might not make any sense to the average person.


Franchise owners make around $50,000 on the lower end of the average while others can make up to around $100,000. However, take into account the startup costs and the amount of time it takes to begin generating revenue. Plan for your gym franchise to not comfortably sustain you in the first year or so.


You also need to consider the demand for fitness clubs in your area. Building in an area with very few fitness clubs can put you in a better position to get a bunch of new members and fast. The area you choose to build your gym franchise in will also be important to rental costs if you are not the owner of the property.


Right now, people who opened their franchise before the pandemic experience issues like construction being placed on hold. Also, not enough people can attend gyms at the moment to actually see an immediate return on the huge investment. The pandemic is a prime example of hiccups in plans that are completely out of the control of the franchisee. Therefore, save your money now!


However, most of the time, people do not want to go to the gym out of fear of being judged. Therefore, it is essential to cultivate an openness to your gym culture. Do your research on the fitness style that stands out to you and the customers that you want to attract. Doing research will help you get started quickly and help your franchise run smoothly in the long run.


Also, figure out what the general population of people is like in your area. Can they afford gym memberships? Are they too old to consider going to the gym? Is your area family-oriented? Can you form a childcare program? How would the residents of your community react to the opening of your gym? Are gym franchises very popular in your area to begin with?


This gym franchise focuses on mixing the elements of yoga, pilates, cardio, strength, hip hop, and kickboxing. The majority of the gym-goers are female and have an average of 7 years of membership among their customers. This is a dream for gym franchisees as customer retention and loyalty is absolute gold.


This fitness franchise has perks like running 24 hours. This gym is available in many different countries around the world. Therefore the membership for the gym-goer is very valuable. This level of value is backed by a well-known brand and good marketing. You would not have to worry about attracting customers as the brand name does that for you. 041b061a72


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