Opening a franchise can be a lower-risk way to start a small business, but it’s not for everyone. In the end, a franchise can prove to be more expensive in the short and long-term. We briefly touched on this in the last section, but franchising costs a lot of money upfront and through the life of the franchise. If you have an investment budget of over $100,000, you should consider opening a franchise gym. by Safon Floyd April 11, 2016 March 15, 2019 1145. Learn… Entrepreneurs and startup business owners devote a lot of time towards development, research, testing, and design. Start A Fitness Franchise – Pros And Cons Owning A Gym Franchise. The costs and competition that come with opening a gym are two of the biggest drawbacks. Cons of Franchise Businesses. A franchise allows you to go into business for yourself but not by yourself, and there are risks and rewards inherent in it as with any business model. Feel free to reach out to us (john@atwoodconsultinggroup.com) and our team of fitness industry expert consultants can help guide you through the decision and help you get up and running whether you decide to do a fitness franchise or build your own gym brand from scratch. Pros & Cons of Owning a Franchise Fitness Center. Weighing the Advantages and Disadvantages of Owning a Fitness Franchise, https://www.healthclubconsultants.com/wp-content/uploads/2017/08/logo2.png, Copyright © 2020 | The Atwood Group. The key is to look at the potential advantages and disadvantages of opening a franchise and make sure it is the right business decision for you. With a franchise business, however, you have to check in and make sure these kinds of decisions are aligned with your franchising agreement. If you’re considering buying a franchise but aren’t sure whether it’s right for you, look at the upsides and downsides to franchise ownership before you invest your hard earned money. The best franchises offer marketing support, advice, training, and a business blueprint so you can hit the ground running. The brand recognition a franchise affords makes it easier to gain customers. Pros and Cons of Owning a Franchise. Second, you are not going to be the lowest price. 28 Friday Jun 2019. the advantages of owning a fitness franchise. First, there is very little in terms of a differentiation between you and your competitors. Choosing Gym Franchise . Pros of Buying a Franchise . There are ongoing fees associated with owning a franchise that you would not have to pay if opening a truly independent club or studio. An offer may only be made by a Franchise Disclosure Document which can be obtained from Delta Life Fitness. Being part of a wider franchise network can give a health club owner the ability to compete against bigger gym chains due to increased buying power for fitness equipment, advertising expenses, and more. An independent studio gives you a chance to bring your vision to life and allows you to control every aspect of the business. Customers gravitate to big brand names. While no business, franchise or not, is 100% guaranteed, franchise businesses have higher rates of success than individually owned, independent endeavors. Securing funding for a health club franchise may be easier than starting from scratch as lenders can base decisions with the franchisor’s success included in the mix. To learn more about ownership and how a fitness franchise might benefit you, The best and worst parts of owning a gym -, A business with potential: The benefits of owning and operating a gym -, Pros and cons of starting a retail business -, The 6 best franchise opportunities in the fitness industry, Interview with new studio owner Kellyan Hull | Katy, TX. Since any negative press or results on your part could reflect poorly on the overall business, franchisers want to make sure you will succeed. There are ongoing fees associated with owning a franchise that you would not have to pay if opening a truly independent club or studio. Lack of independence: When you join a franchise, you may own your location, but you are ultimately an employee of sorts of the franchisor. All rights reserved |, 5 Ways to Market for the New Year [plus a bonus], Making Your Gym or Studio Greener Can Boost Your Business, Health Club Operational Planning & Support, Buying or Selling a Health Club or Athletic Club, Create Change and Organizational Transformation, Skype roundtables for startups and management, Using Facebook Retargeting Ads to Grow Your Gym Membership, Using a Sales Funnel to Boost Your Membership Conversions. The Pros Of Buying A Franchise You may already have a franchise in mind—a certain type of business that is lacking in your neighborhood, or a company that … Are you considering a franchise as your next business venture? It can be done fairly inexpensively, or you can go crazy with it and spent a ton. Networking. Gym franchises currently account for $4B out of the total $34B health club industry in the US. But before you start dreaming about shorter work days and running dates, you need to consider all that business ownership entails. It Is Not Air-Conditioned. In addition to having the franchisor to rely on, buying a franchise also gives you access to an entire pool of other franchisees just like you. Fit Body Boot Camp Will Be The Top Franchise 2020. asked Jun 3, 2019 by aaliyahkennedy413 (1,020 points) fastest growing fitness franchise; best fitness franchise to buy; pros and cons of owning a fitness franchise; low cost fitness franchise ; 0 votes. At Delta Life, we recognize life outside of work is important; that’s why we have made it as easy as possible for you to get your gym started. Although some UFC gym members decide to join since they need a lot healthier lifestyle, practicing MMA seriously takes a fairly large commitment which may be tricky to fit in our … At the end of the franchise term, the franchisor could decide not to renew the franchise further, leaving the owner stuck trying to build a new fitness brand and all the costs that go along with that. Here is why I believe you should sign up for a Planet Fitness gym membership: 1. Franchising Pros Franchising Cons; Franchises have the support of big corporations with a business model that has already been proven effective: Predetermined branding limits creative opportunities to alter or make additions to the franchise: Franchise business loans are easier to get than loans to start an independent business 0 answers. PROS More Time. The pros and cons of owning a franchise are worth considering if you’re looking to create a new business opportunity, so here are some of the key points worth evaluating. By becoming a gym or studio franchise owner, the franchisee owns and runs their business but have the advantage of support from the franchisor and the existing franchise network. Now you are considering a big decision: Should I start my own gym or buy into a franchise? This can add expenses to the business that you will need to budget for and you’ll need to make sure you are getting your ROI from the franchisor. Since we’ve put in the hours and have done this work for you, all that is left is execution: Put the pieces together and get your business into top form. You need to pay for insurance every month, and you can also expect a high power bill for heating or cooling … Let’s take a look at the some of the pros and cons of owning your own gym franchise. While the initial investment to open a gym franchise can be high, you’ll likely turn a profit more quickly. However, there are some drawbacks that you should be aware of before you finally decide to open a gym franchise, like the fact that you may work long hours and … Here are some of the pros and cons of franchise ownership to keep in mind. To start with, you have got to pinpoint which type of gym you’re. Initial Payout (Franchise Fee and Start-up Costs). There can be a range of things from geographical restrictions, what or how service is delivered, group fitness class offerings, pricing, and so on. They have the final say when it comes to business strategy, marketing, location, decor, etc. Pros and Cons of Owning a Franchise. With credible brand strength comes an established follower base. Here are five cons of owning a garage gym: 1. The Pros and Cons of Owning A Retail Franchise Initial Investment – Getting set up at home costs some money up front. A franchise can help provide these benefits. By linking yourself with an existing fitness community, you will receive receive encouragement from the Delta Life team. If the franchisee’s circumstances change, selling or leaving the business is likely to be met with termination clauses that can carry some hefty financial costs. Tags. But for anyone considering launching their own fitness facility, there are advantages and disadvantages of going the gym franchise route, so it takes some due diligence to make sure that franchising is right for you and your long-term fitness business goals. Find out more about the pros and cons of franchising below. Owning a gym is a tough business. As a result, a franchise can save business owners time and money in building a brand and a reputation allowing them to run their day-to-day business. Back to DeltaLifeFitness.comLocationsFranchise FAQPrivacy Policy, The pros and cons of owning a fitness franchise, While no business, franchise or not, is 100% guaranteed, franchise businesses have. The best franchises offer marketing support, advice, training, and a business blueprint so you can hit the ground running. Franchises are business models designed with both parties in mind. Other poorly performing franchisees anywhere in the world may have impact on the franchisee’s own success as news travels fast in the internet age. What Are the Pros of Owning a Franchise? In fact, the best fitness franchises lay groundwork in terms of equipment and vendors so you and your management team can focus on finishing touches and annual revenue. With any reliable fitness brand, clients want promises: The best offerings, quality training, and affordable membership fees. The franchise agreement – which is legally binding — will restrict the way that the franchisee can run and develop the health club. Startup costs. on-call support and customized workouts you can share with your members, you will gain exposure to a larger network of business owners --- an ideal resource for entrepreneurial tips and advice. It may also be helpful to speak to current gym owners to ask about their experiences and what recommendations they have for you. Accordingly, franchise agreements mirror this. This can add expenses to the business that you will need to budget for and you’ll need to make sure you are getting your ROI from the franchisor. It is imperative that prospective fitness club and studio entrepreneurs weigh the advantages and disadvantages of entering into a franchise agreement so they are best set up not only for success as a gym or studio owner but happiness as a business person. 0 (Image: iStock by Getty Images) When looking for … Keeping a garage gym cool is pretty difficult and if it’s a hot day outside, training is a battle against the heat as well as the bar. Furthermore, almost any differentiation would be tough to defend since it is a service industry. For all of these reasons, starting a franchise of an established brand often has less risk than starting a business from nothing. Here is a short list of pros and cons to help you decide whether a Planet Fitness gym membership is a good choice or not. Let’s get started! Owning a garage gym is not for everyone. Type “Start your own gym” into Google, and an overwhelming amount of business start-up information and advice pops up. First up on our list today is obviously the time you save training at home! Different states have different legal definitions of what a franchise is. There are likely to be a restraint of trade conditions on the sale of the business or termination of the franchise agreement. schedule time to speak with one of our representatives. Cons of Owning a Gym Franchise. The Costs that Go into Franchising. own gym franchise; pros and cons of owning a fitness franchise; 0 votes. With … Advantages Of A Planet Fitness Gym Membership. If you’re thinking about buying into a fitness franchise, you probably have some interest in health and sport. All of that work coming up with a business plan and successful advertising campaigns and management protocols is already done for you. With a franchise, there is bound to be a level of pre-established brand awareness surrounding your business. The most important advantage of Snap Fitness and their 24-hour exercise theory is they charge a number of the lowest franchise fees around. If you’re motivation in opening a gym or studio is to do it your way, you may not be thrilled with the constant monitoring and guidance that typically comes along with a franchise. The collective buying power of a franchise group allows for lower costs in purchasing inventory and equipment. Gyms require quite a bit of capital to launch, as you need to rent or buy a large enough space and then purchase enough high-quality equipment to keep your clients satisfied. The physical exercise trackers are in excellent need. Others ask for percentages of monthly profits. In the end, a franchise can prove to be more expensive in the short and long-term. It’s not easy being a business owner, and that includes being a franchise owner. In addition to. Affordability. It really doesn’t matter though, as it’s some of the best money you’ll ever spend assuming you intend to live a healthy, active lifestyle for more than a few months after New Years Day each year. Thus, this control diminishes your own business creativity. These cons and more are all things you will need to consider if you are looking into owning a franchise. The trade-off is that while you own the success, you must own the failures too. Start A Fitness Franchise – Pros And Cons Owning A Gym Franchise. When starting a business, should you consider franchising? For a quick comparison of some different fitness franchises, download this comparison chart by clicking on the button below. The Benefits of a Gym Franchise . Starting your own business in the wellness industry has major appeal --- and for good reason: Freedom, lifestyle choices, financial opportunity, a health-minded profession, and energetic colleagues. To learn more about ownership and how a fitness franchise might benefit you, schedule time to speak with one of our representatives. Rather than spending countless marketing dollars trying to convince everyone that you know what you're doing, you can draw on the strength of … The processes, procedures, market testing, and other operational standards should have already been done by the franchisor, taking some of the guesswork out of opening and running a health club. However, you’re likely to see a plethora of franchise opportunities as well. Starting a gym or fitness franchise can be advantageous to both the small business owner and consumers because the fitness industry is growing and fitness franchises can be affordable. From salons and spas to fast food and cleaning services --- franchises are everywhere. Certain franchises require hefty up-front costs. For this reason, there is often a divided opinion on this gym. Posted by International Workshop For Knowledge in Best Franchises, Franchise Opportunities ≈ Leave a comment. This all adds up to the rate of business failure being lower with franchises than independent startups. When it comes to deciding on the type of franchise business you want to own, there are several factors to consider. Buying into a franchise offers more security and support on top of the recognized brand name. Joining an established fitness brand can help with customer confidence at the outset because even if the franchise isn’t in your area currently, there will be name recognition, and if not, a quick search can show the prospective member the brand’s track record. When compared to starting a business from the ground up, all of this may seem like a significant investment, but you have to remember: All of the start-up work has been done for you. When you open a franchise, you don't have to start from scratch. As a franchisee, you will need to follow the particular direction and guidance of your umbrella company. Rafael Parks Uncategorized June 28, 2019 4 Minutes. Hop in to know more! (24 fitness and LA fitness generally run less than 20 dollars per month). hbspt.cta._relativeUrls=true;hbspt.cta.load(3485114, '9ba791ee-6b80-43fb-a810-4b06f172b0c8', {}); This advertisement does not constitute an offer to sell a franchise. If so, you may find yourself wondering about the pros and cons of being a franchisee. For those without much business or sales experience, a franchise could be the perfect answer. Buying into a fitness club or boutique fitness studio franchise can be seen as ashortcut to getting your fitness facility up and running. When deciding on places to go, people often choose the brands they’ve heard of before. Brand recognition is a major benefit of owning a franchise. 1 answer. The fitness company’s brand reputation is dependent on the performance of the whole franchise network. As a gym franchise owner, you will be able to tap into a network of other franchisees that either have or are going through many of the same challenges and opportunities as you and can lend plenty of free advice. Owning a gym franchise is worth the initial investment. One of the most enticing features of … A franchise is a legal agreement between you, the franchisee, and the owner of a particular brand or registered trademark. The Pros and Cons of Owning a Franchise. As a gym franchisee, you can benefit from marketing initiatives and business development strategies put in place by the franchisor that will support your launch and ongoing membership recruiting efforts. Consider how you are going to differentiate your gym from other in your region. Video Topic: Should You buy a Franchise?? If you owned your own gym, you could easily add services and products without having to consult another entity. The franchisor gives you a specific product to implement and sell. Garage Gym Drawbacks. Franchising Cons. However, under Federal Law, three elements must be present in order for a franchise to be recognized. Maybe you have experiences that could set you down the path of becoming a personal trainer or coach (or maybe you already are). If you’re looking to create a truly unique gym experience, a franchise … In fact, the best fitness franchises lay groundwork in terms of equipment and vendors so you a… As with owning any business that you own, you are in control of your destiny. Before buying a franchise, it’s a good idea to outline the pros and cons to help you make an informed decision. Pros of Investing in a Franchise. In this article, we’ll discuss the little gym franchise opportunity and how it can help us. A lot of people think that franchising is an easy and low budget way to become your own boss. You’ll have all that you need to build a thriving fitness community. than individually owned, independent endeavors. For a fee, you essentially get a “business in a box” and can direct all of your focus and energy on profit-earning. The Benefits of a Gym Franchise. A superb gym ought to have high premium quality equipment based on the kind of gym you need to open. The cons of a franchise fitness center are almost the same as any other franchise ownership. Instant Brand-Name Recognition. For one thing, franchisees have to abide by company rules and the terms of their licensing agreements, so if you love to be independent, opening a franchise might not be your best bet. Should I Buy a Franchise? Another fiscal choice is to start a gym franchise. Having a brand name backing you allows you to benefit from the collective buying power of the franchise when it comes to purchasing inventory and equipment. In general, The Little Gym … Owning a franchise comes with certain benefits that stand-alone entrepreneurs don’t have. Drawbacks of Owning a Gym. Pros & Cons of Starting a Gym Franchise. This is a common concern for first-time franchisees looking to figure out whether or not the franchise model will support their goals. On July 8, 2020, DreamBuilder welcomed T-birds Christian Aguirre and Luis Vidal, owner, and partner of the CaliBurger franchise in Mexico and South America. The business location, how many people you’ll employ, and more. Reduced Risk. Start-up fees can seem particularly high when making the decision to open up your own gym. With a franchise, you have to work under certain limitations. So with that, I’m going to go over some of the pros and cons of owning a home gym and why making the investment is going to be such a great idea. @uhurunetwork.com . Franchisors are generally very strict about showcasing their won products and services and you will have to follow their set of guidelines when operating your chain center. The primary benefit that franchise owners receive is a standardized product that they can present to their local community. Owning a franchise comes with certain benefits that stand-alone entrepreneurs don’t have. Compare royalties and licensing fees of different franchises to see which one works best for you and your budget. That brand you must build as an independent owner comes pre-made when you invest in a franchise. Let’s take a look at the some of the pros and cons of owning your own gym franchise. The franchisee would be at risk if the gym franchisor were to go out of business or face a public relations emergency. Another downside of a franchise includes the high cost that you have to pay to the franchiser to use the brand name. best franchise, best franchise to buy, Franchise Opportunities, franchise reviews, Rafael Parks. According to a recent report* from Franchise Direct, the retail franchise sector brings in nearly $70 billion dollars per year, while directly employing over 815, 000 people. As you can see, both options have their fair share of pros and cons. 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Is an easy and low budget way to become your own gym franchise by Safon Floyd 11! Here are five cons of being a franchisee should I buy a affords! Security and support on top of the whole franchise network let ’ brand. And an overwhelming amount of business failure being lower with franchises than independent..