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A Comprehensive Guide To Starting A Fitness Franchise

Customer Success Team
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Fitness, a healthy lifestyle, and a nice figure are all becoming increasingly popular across the world. There are over 1800 fitness gym franchises to invest in in the United States. Fitness Industry is brimming with many lucrative investment opportunities and according to IBISWorld, the fitness franchise sector would increase at a rate of 1.5% by 2022. This trend presents good chances for entrepreneurs that are either running or considering starting an established fitness franchise.

Our Top 7 gym franchises list includes all the renowned gym fitness franchises to invest in. These fitness companies have a wide range of concepts, ranging from an inspiring location for women to exercise while also nurturing their mental and emotional wellness to home personal training. Find the best fitness franchise for you on the list of largest gym franchises in the US.

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Top 7 Gym Franchises to Invest In in 2022

A franchise fee is a fee that the potential franchisee owes to the franchisor in exchange for the right to utilize their franchise brand and system. The franchise fee is usually a one-time payment made at the start of the agreement however, there are ongoing franchise costs.
The initial investment, on the other hand, is wider than the franchise fee and provides a more thorough picture of the total investment that a potential franchisee will need to make to set up the franchise.

01. Planet Fitness

Initial Investment: $107,524 to $722,796

Initial Franchise fee: $21,000 to $42,500

Planet Fitness has over 1,800 facilities in the United States, as well as Canada, Latin America, and Australia. Their gyms have a total membership of over 14 million people globally. With that in mind, Planet Fitness franchisees will have to pay for that global brand recognition—a Planet Fitness franchise cost may be more than $4 million for launching. Advertising rates vary, but royalties are 7% of total gross monthly and yearly membership fees. The initial terms are for ten years. The brand name is huge, thus Planet Fitness franchising requires a large amount of cash flow in your business. Planet Fitness is positioned at 8th place in Entrepreneur's Top 500 Franchise 2021 list.

02. 30 Minute Hit

Initial Investment: $100,550 - $165,500

Initial Franchise Fee: $40,000

30 Minute Hit, a boutique workout studio founded in Vancouver in 2004, offers a fun, fast-paced, and accessible boxing and kickboxing circuit for women. 30 Minute Hit now boasts over 60 franchises in Canada, the United States, Ireland, and Saudi Arabia. It provides a secure and comfortable setting for women to attain new standards of physical and mental strength. 30 Minute Hit's convenience is another noteworthy feature, in addition to its rigorous women-only policy. If you are a woman entrepreneur looking to get into the fitness business, specializing in women's fitness, then 30 Minute HIT franchise might be the best gym franchise to own. Its small space requirement is an added advantage.

03. Orangetheory Fitness

Initial Investment: $563,529 to $999,121

Initial Franchise fee: $54,950 to $59,950

Orangetheory started in 2010 claims to be one of the world's fastest-growing gym franchises, ranking 60th on Inc. Magazine's list of the world's fastest-growing private companies. The Orangetheory brand currently has over 1,100 studios in 49 states throughout the United States and 22 countries around the world. A monthly royalty charge of 8% of total sales will be your responsibility as an Orangetheory franchisee. Orangetheory franchise cost includes contributions to the brand fund (also known as advertising fees) which are currently set at 2% of monthly gross sales, although they may be increased to 3% in the future. The first franchise agreement is for a period of ten years.

04. Crunch Fitness

Initial Investment: $304,500 to $2.1 million

Initial Franchise fee: $25,000

Crunch isn't as well-known as Planet Fitness but they presently have 300+ franchise locations in 29 states and five countries—but they're rapidly expanding, with goals to create an additional 1,000+ studios. Plus, because there are fewer franchisees, the parent company can provide more individualized assistance to each one. Franchisees must have a net worth of at least $1 million and liquid assets ranging from $300,000 to $400,000 in order to launch a Crunch Fitness franchise. Crunch Franchise cost is on the lower end of the spectrum: royalties are 5% of monthly gross sales, and advertising costs are 2%.  It is placed 52nd in the Entrepreneur's Top 500 Franchise 2021 list.

05. Anytime Fitness

Initial Investment: $107,524 to $722,796

Initial Franchise fee: $21,000 to $42,500

Anytime Fitness has established nearly 4,000 gym franchises on all seven continents since its inception in 2002. Anytime Fitness' popularity is driven largely by its unusual business model: all of its facilities are open 24 hours a day, seven days a week, and members may use any of the 4,000+ locations regardless of where they are in the world.

In most franchise agreements, royalties and advertising costs are based on a percentage of gross sales, while Anytime Fitness' franchise cost/ prices are fixed from month to month, making it easier to manage and handle your spending. Over the life of your six-year Anytime Fitness franchise agreement (or ten if you're in California), they'll offer you personal support staff, intensive training, and marketing help. It is ranked 30th in the Entrepreneur's Top 500 Franchise 2021 list.

06. Gold's Gym

Initial investment: $2.2 million to $5 million

Initial franchise fee: $32,000 to $40,000

Gold's Gym has become legendary in both the fitness business and american culture as a result of its celebrity members like Arnold Schwarzenegger and their standing as "the mecca of bodybuilding." Since its inception in 1965, the Los Angeles-based gym has established over 700 locations in 29 states and 29 countries, with a global membership of over 3 million members.

The Gold's Gym franchise currently has a global scope. However, with an estimated initial investment of almost $5 million, this world-famous franchise is the most costly on our list. Potential franchisees must also have a net worth of $1 million and $400,000 in liquid assets, according to Gold's Gym policy.

07. Jazzercise Inc.

Initial Investment: $100,000 to $2 million

Initial Franchise fee: $30,000 to $50,000

Jazzercise Inc has over 8,900 franchisees around the country, thanks to its near-legendary standing in the fitness field and its dedicated clients. Jazzercise is one of the greatest low-cost gym franchises you'll find, especially in the health and fitness business. It is the cheapest gym franchise with an extraordinarily less initial franchise fee and upfront investment. Franchisees are, however, liable for extra fees, such as a monthly continuing franchise fee (CFF) of either 20% of total income or $250 per month.

How much does it cost to set up a fitness franchise?

There are various kinds of costs involved when you set up a business. Certain extra expenditures have to be borne by you if you are contemplating investing in a franchise business. Don't skip this section as this is where the real money talk will happen. Let's dive straight in;

  • Royalty fees

You'll have to pay royalty fees to utilize your franchise name lawfully on goods, services, marketing, business cards, and other items. That can result in the outgoing of thousands of dollars every month. There are two kinds of royalty fees, sometimes it may be fixed, sometimes it may be tiered. Fixed royalty includes a fixed amount that has to be paid to the franchisor whereas tiered royalty is the variable royalty that changes with the revenue of the franchise.

  • Advertising and Marketing

Any costs for local advertising of your gym franchise will be paid out of your own pocket. Direct mail advertising, social media marketing, industrial community membership, local event sponsorship, and other ways to market are some expenses included in the advertising and marketing sector.

Although the marketing blueprint is provided by the franchisor itself, the cost of executing those strategies and ideas lies on your head. You must execute the strategies through the most efficient approach which saves time, effort and resources.

  • Up-do-date fitness instructors

Hiring the right staff especially, the right trainers may be difficult since people react to a variety of motivational techniques. A training program that is beneficial to one individual may not be beneficial to another, thus several considerations should be considered. For example, the workout setting designed for persons with special needs differs from standard gym sets.

This personal training, staff training, and other types of training costs add up to the expenditure side of your business. For all of its franchisees, some gyms offer special training courses or certifications that must be completed. This extra cost of training has to be borne by the franchise owner only. Further, uniforms are another added expense in terms of your staff.  While offering check-ins, training sessions, and other services, you and your staff will need to showcase your brand through uniforms.

  • Other business costs

Other general business costs include rent, insurance and other measures including cleanliness measures.  Return on investment is heavily influenced by location. Rent may add up quickly, so be sure you're getting the footfall you need to keep your payments current. Insurance premiums to safeguard your property and your employees against liability can be another significant expenditure, but they are quite important.

Cleanliness measures have now become synonymous with safety and touched new highs due to the ongoing pandemic along with its costs.  Day-to-day stuff like locker room upkeep, cleaning supplies & equipment, hand sanitizer, and so on, as well as more in-depth cleaning and sanitizing, are all examples of these cleanliness measures

  • Site Inspection Cost

Some popular and well know fitness brands require multiple site inspections of your franchise's potential locations. This is an expense that has to be paid out of the pocket of the franchise owner when they go out on a hunt for proposed new locations for their fitness studio.

Why running a fitness franchise is profitable?

Running a fitness franchise is one of the lucrative business opportunities. Let's determine the factors that make the fitness franchise a great investment alternative;

01. Brand recognition

The parent company's name, trademarked taglines, and brand-related templates are all fully licensed to franchise gyms. As a result, you don't have to start from the beginning as a no-name gym.

Fitness enthusiasts are usually on the lookout for their city's branded & popular gyms. As a result, if you choose a gym franchise, you can expect to have previously established brand awareness when you launch. You could bounce from day one instead of spending decades creating your fitness brand.

You may make use of current gym memberships and benefit from the reputation of your gym franchise's name. This is the core benefit of franchising a fitness studio or a gym. You get an established brand name to kickstart your gym's journey from the milestones of the parent gym.

02. Low-Cost equipment

We are all aware that gym equipment is quite expensive. It's also tough to locate a credible provider that can consistently deliver high-quality equipment along with value for money.

Large fitness gym franchises provide you access to suppliers that can provide your franchise's gym equipment at a concessional price. Gold's Gym, for example, has access to top suppliers who may lower the costs of its franchisees'  equipment. This cost-cutting is another benefit of investing in a fitness franchise.

03. Your studio gets a head start

It's not simple to build a business, especially at the beginning. While you may have a strong and viable gym plan, there are still a lot of things to learn which cover technical aspects such as obtaining permissions, adhering to policies, development, funding, and training, among other things. And here is where franchising's convenience comes into play. Franchisees share their marketing strategies with you in order to show you how to start a fitness business from the ground up. In the beginning, they'll be your most ardent supporters. This guidance will assist you in creating a gym that fits your needs and reduces the chances of failure.

The franchise company makes sure that your gym is in the best possible location to generate sales and promote the brand. They will also help with the gym permit/inspection procedure, ensuring that the gym complies with all safety standards and criteria.

04. Helps in Networking

When you join a franchise, you become part of a larger network. Most gym businesses have hundreds of locations across the world. You'll be introduced to other franchisees in your area who can provide you with an insight into the business market and how to thrive at your location.

Joining a franchise gives you access to a network of people who can advise you on what works and what doesn't. You should talk about the hundreds of other franchise owners who have had success with their business and try to replicate what they achieved. This significantly reduces the franchise's chance of failure. Furthermore, they could save you time, work, and resources by preventing you from introducing products & services that have little market potential.

05. Pre-formulated business models

Popular fitness gym franchises are known for providing the most efficient & pre-formulated business models that you know would work as they are tried and tested by the parent gym. The parent gym has already figured out the most successful ways of running a gym, thus there could be no one better to provide your franchise with efficient business models.

With these business models, you'll gain access to strategic plans, procedures, employee training, corporate practices, and other intellectual property that they've braced over time. Because they share their business skills with you, this strategy eliminates a lot of hard work under normal circumstances.

As a result, you'll have more time to operate the company directly and put your effort into other areas of the gym. You will definitely benefit from an efficient and established business strategy both professionally and personally.

06. Better job training and management tools

When you own a franchise, every member of your team has access to free gym training opportunities. Despite that, you must recruit qualified personal trainers only. The franchise owner must also train them to work for the gym's brand as you have the responsibility of matching the training methods of the parent brand.

Some franchise gyms also send their employees to on-site training. Hundreds of people from different fitness gym franchises are taught at the same time by the parent organization. This prepares employees for the brand and increases productivity. It helps in getting your employees ready for the performance level that is expected from them.

Along with better on-the-job training, running a gym requires modern management tools including software and other administrative tools. Nowadays, running a gym requires modern gym management software and most of the time your franchise would come with the package deal of these essential tools for seamless management. Now, all you have to do is make the best use of the advanced and high-tech tools to generate more revenue for your franchise in the long run.

Here's how you can start a fitness franchise in 5 steps

It is essential to consider certain things before you go out on a hunt for a fitness franchise which are;

  1. Firstly, do the money talk that is count business costs carefully. Then, evaluate your personal finances in detail. If they are not sufficient, explore other finance options.
  2. The next step is to choose the franchise, where you must examine the cash requirements and profit earning potential of your chosen brand.
  3. Now, set your franchise up in a suitable location. Carry out thorough research of the place like studying the competitors and the target audience before fixating on the location of your gym franchise.
  4. Marketing is an important element of your business that makes it stand out.  So, don't forget to learn the online and offline marketing basics.
  5. Lastly, don't rush things and expect delays as setting up a business take time and it doesn't happen in a click. After all, we all know that Rome wasn't built in a day.

Want to make the best-use of the most hi-tech fitness business software? Book a demo with us to know how easy it it to switch.

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