Gym and fitness companies make up a large portion of the country’s franchise businesses. It’s a fascinating field to be involved in that can make your big gym dreams come true. The fitness industry rakes in millions every year, and becoming a part of it is something many entrepreneurs aspire to. But how do you go about opening your own gym franchise?
Perhaps you want to grow your small business or even start your own business by transitioning to a franchise owner, a career change at 35 perhaps? You’ll need a lot of thinking and planning as well as ambition. How you go about developing your franchise businesses is essential, which is why we’ve put together some of the crucial steps you need to include on your journey.
8 steps to opening your gym franchise
Gym and fitness franchises have been booming for years, making it an attractive industry to entrepreneurs who want to join in on the profits. Opening a gym franchise can be a great investment for someone who has always dreamed of starting their own business or wants to grow their existing small business. However, it takes a lot of planning, researching, and effort to get a gym franchise up and running.
1. Decide if you’re ready to open a franchise
If you're considering turning your successful studio or gym into a franchise, there are several important factors to consider before making such a significant decision. While franchising can be an excellent way to expand your business and increase your profits, it also requires careful planning and preparation to ensure that you're ready to take on the additional responsibilities and challenges that come with running a franchise.
The first step in determining whether or not you're ready to open a franchise is to take a close look at the current state of your business. Are you experiencing steady growth and a loyal customer base? Are your financials strong, and do you have the resources to invest in expansion? If the answer to these questions is yes, then you may be in a good position to move forward with franchising.
However, simply having a successful business is not enough to make a successful franchise. You'll need to carefully analyse every aspect of your company to determine what makes it successful, and develop a replicable business model that others can follow. This includes everything from your marketing and branding strategy to your operations and customer service processes.
In order to create a successful franchise model, you'll need to document every aspect of your business and create a detailed operations manual that clearly outlines your processes and procedures. It's also helpful to identify your business vulnerabilities so you can address them. This will not only ensure that your franchisees can replicate your success, but also help you maintain consistency across multiple locations and safeguard your brand reputation.
It's important to remember that when you open a franchise, you're not just selling a product or service - you're also selling a business model and a brand. This means that you'll need to be prepared to provide ongoing training and support to your franchisees, and work closely with them to ensure their success. In addition, you'll need to be willing to give up some degree of control over your brand and operations, and be prepared to work collaboratively with your franchisees to achieve common goals.
2. Do lots of research
Research is a crucial step in any business venture, and opening a gym franchise is no exception. By conducting thorough research, you can gain a deep understanding of the gym franchise industry and identify the best practices to follow. Here are some ways you can conduct research for your gym franchise:
Analyse past gym franchise successes and failures
Analysing the success and failure stories of other gym franchises can provide valuable insights into the industry. You can learn from their strategies, techniques, and mistakes, which can help you develop a more successful business model.
Explore franchise concepts
There are various types of gym franchises, and each has a unique concept. By exploring the different franchise concepts, you can identify which one will work best for you. For example, the semi-absentee franchise concept allows franchisees to run the business while maintaining a full-time job.
Study your competition
Studying your competition can provide valuable information on their business model, marketing strategies, and services offered. Analysing their strengths and weaknesses can help you create a competitive advantage and set yourself apart from the rest.
When conducting research, it's essential to decide on some key aspects of your gym franchise, such as your business model, legal requirements, equipment and technology, and branding and marketing strategies. Here are some tips to consider when deciding on these aspects:
- Choose the right business model: When choosing a business model for your gym franchise, consider your target audience, budget, and services and amenities you want to offer. Understanding your target market will help you identify the best business model that will attract and retain customers.
- Understand legal requirements: Compliance with your local laws is critical to opening a gym franchise. Ensure you consult with a business lawyer to draft a franchise agreement that will protect your interests and intellectual property.
- Invest in the right equipment and technology: Investing in the right equipment and technology is crucial for your gym franchise's success. Ensure you provide your franchisees with the best equipment and choose the right software and management tools to manage your franchise's financial, marketing, and member data. It might make better sense to look into hiring equipment for your business as this can come with a maintenance package and regular upgrades, being more cost-effective in the longrun.
- Build a strong brand and marketing strategy: A strong brand and marketing strategy can attract franchisees and create brand loyalty. Consider partnering with local influencers and fitness enthusiasts to create buzz around your gym franchise, and invest in marketing channels that resonate with your target audience.
This is a vital part of any company, no matter the business field. It tells you everything you need to understand. You can look at what has and hasn’t worked for gym franchises in the past so that you can use the same techniques. Study the competition to mirror their methods and go above and beyond what they’re doing. You need to know the ins and outs of running a franchise and what your position within it all will be. You'll want to create a business plan covering all aspects of the franchise business and what it will include, how it will be marketed, how it will grow, and so on.
3. Scout the perfect location
We’ve all heard the saying ‘location, location, location,’ and there’s a reason behind it. Where you set your business up can be a deal maker or breaker. The same goes for fitness and health franchises. It doesn’t matter how many gyms you open; you always need them to be in an optimum position. Your reputation is on the line, and you’ll find that a lot of gym-goers are more likely to go to an establishment that’s close to their office or home because it’s convenient for them.
Scouting the perfect location for your gym franchise is a critical decision that requires careful consideration. Here are some tips to help you find the right spot:
Know your target audience
Before you start your search, make sure you have a clear understanding of your target audience. Identify their age range, income level, lifestyle, and fitness goals. This information will help you determine the best location for your gym franchise.
Research the local market
Look at the competition in the area and identify any gaps in the market. If there are no gyms or fitness studios in the vicinity, it may be an opportunity for you to establish your brand. Conversely, if there are already several established gyms, you may want to look for a different location with less competition.
Look for a visible and accessible location
Your gym franchise should be in a high-traffic area that is easily accessible to your target audience. Look for a location that is visible from the road and has ample parking. If it's easy to find and get to, people are more likely to visit.
Consider the demographics of the area
Take a look at the demographics of the surrounding area. Are there enough potential customers in the area to sustain your gym franchise? Is the area growing or shrinking? These are all important factors to consider when selecting a location.
Check the zoning laws
Before you sign a lease or purchase a property, check the zoning laws in the area to make sure that you are permitted to operate a gym franchise. Some areas have restrictions on commercial businesses or may have specific regulations for gyms.
Evaluate the space
Once you have identified a potential location, evaluate the space to ensure it meets your needs. Consider factors such as square footage, layout, ceiling height, ventilation, and lighting. Make sure the space is suitable for the types of equipment and activities you plan to offer. Think about your business security and how you will protect the building and it's contents.
In summary, selecting the right location for your gym franchise is crucial for its success. By doing your research and evaluating your options, you can ensure that your gym franchise is in a prime position to attract and retain customers.
4. Count your pennies
When turning your gym into a franchise, securing enough funding for your business is a critical step in the process. You need to have a clear understanding of the costs involved in starting and running a franchise to ensure that you have enough money to cover all the expenses. Here are some expenses you need to consider when drafting your franchise plan:
- Legal fees: One of the essential costs you'll encounter when turning your gym into a franchise is legal fees. This includes fees for registering your business, obtaining permits and licenses, and drafting legal documents such as franchise agreements. Hiring a lawyer who specialises in franchising can help ensure that all the legal requirements are met and that you have a solid foundation for your business.
- Planning costs: Another crucial expense you need to consider is planning costs. These include market research, site selection, design, and construction costs for the new gym locations. You'll also need to spend money on developing training programs, creating a manual for your franchisees, and setting up a support system for your franchise network.
- Marketing expenses: A robust marketing strategy is essential for the success of your gym franchise. You'll need to invest in advertising, promotional materials, and public relations to build brand awareness and attract new franchisees. Additionally, you'll need to develop marketing plans and strategies for each location, such as a corporate launch event, to drive memberships and increase revenue.
- Quality control expenses: Maintaining consistent quality across all your gym locations is crucial to ensure the success of your franchise. You'll need to allocate funds for ongoing training and support to ensure that your franchisees deliver the same quality service and experience across all locations. You'll also need to invest in quality control systems and processes to monitor and improve your gym's performance continuously.
While starting a gym franchise can be a lucrative venture, it is not without costs. You need to have a well-thought-out budget and secure enough funding to cover all the expenses involved in starting and running a franchise.
5. Pick the right franchisee
Once your franchise becomes well-known, you’re likely to get many applicants wanting to use your gym’s name. You’ll have to decipher whether a potential franchisee is just looking to make money fast or if they have your company’s best interests at heart and plan on contributing to its success. Choosing the right franchisee is essential to the success of your gym franchise. It's crucial to look beyond the financial capability of the potential franchisee and determine if they share your values and vision for the brand. Here are some tips to help you select the right franchisee:
- Assess their leadership skills: A great franchisee should be an excellent leader who can motivate and manage staff, provide support and guidance, and inspire them to achieve their best.
- Evaluate their work ethic: A franchisee should have a strong work ethic and be willing to put in the time and effort required to make the business successful.
- Look for passion: A franchisee who is passionate about fitness and health is more likely to invest their time and resources into making your gym franchise successful.
- Eagerness to learn: A franchisee should be open to learning and be willing to follow the franchise system, protocols and procedures.
- Team player: The franchisee should be a team player, able to collaborate with other franchisees and corporate staff, to achieve success.
- Financial understanding: A franchisee should have a good understanding of financial management, including basic accounting and financial statements. It's not just paying business electricity bills and the like, but ensuring the business can turn a reasonable profit, staff are paid on time and bookkeeping and taxes are kept on top of.
Drafting legal contracts is a crucial step when it comes to franchising. You'll need to work with a franchise specialist lawyer to develop a legally-binding franchise agreement. These legal documents should outline the terms of the franchise relationship, including royalties, marketing contributions, training and support, territorial rights, and other essential details.
Once you've chosen the right franchisee and completed the legal work, you can begin working together to find the right location for the new gym franchise. You'll need to identify suitable properties, evaluate their potential, and develop a plan for the space, including equipment and layout. Finally, you'll help the franchisee set up their supply chain to ensure consistency with your existing brand.
6. Train franchisees
To ensure the success of your franchise, it's important to provide comprehensive training to your franchisees. This is one of the key benefits that franchisees seek when they decide to join a franchise rather than starting their own business from scratch. They want to be their own boss, but have some help and guidance along the way. By offering training and support, you can help franchisees to get up and running more quickly and ensure that they are equipped with the skills and knowledge they need to operate their gym successfully.
The training that you provide should cover a range of topics, including but not limited to:
- Operations: This includes training on the day-to-day operations of the gym, such as how to open and close, how to manage staff, and how to handle customer service issues.
- Sales and marketing: Franchisees will need to know how to sell memberships and market their gym effectively. You should provide training on how to use marketing channels such as social media, email marketing, and paid advertising to reach potential customers. Why will people choose to pay and go to the gym instead of working out at home? What is your unique selling point?
- Fitness instruction: If you offer classes at your gym, it's important to provide training to your franchisees on the specific methods and techniques that are used. This will ensure that all instructors are on the same page and that the classes offered are consistent across all franchise locations.
- Quality control: It's essential to maintain consistent quality across all franchise locations. To ensure this, you should provide training on your brand standards and guidelines, and how to maintain quality control at each location.
By providing thorough training and support to your franchisees, you can ensure that they are equipped with the skills and knowledge they need to operate their gym successfully. This can be in-person, via video calls, webinars, or corporate videos that can be sent to all franchisees. This, in turn, will help to ensure the success of your franchise as a whole.
7. Spread the word
Once you have set up your franchise business model, the next step is to spread the word about it. It is essential to promote your business and attract potential franchisees to ensure its growth and success.
One effective way to promote your franchise is through your website. Ensure that the information about your franchise is clear and accessible on your website, so that interested prospects can easily apply to become a part of your business.
You'll want to make the most of the internet to market your gym franchise. In addition to promoting your franchise on your website, investing in marketing is crucial to raising awareness about your business and attracting new talent. Consider using various marketing strategies, such as social media advertising, email marketing, and attending industry events to reach out to potential franchisees and create a buzz about your business.
By effectively promoting your franchise, you can attract the right people to join your business, expand your reach, and achieve long-term success.
8. Growing your franchise
After successfully setting up a few franchises, it's time to think about expanding your business further. However, it's important to ensure that your franchisees are on the same page and working towards the same goals. Establish clear objectives that you want to achieve and identify locations where you would like to open new franchises. Make efforts to find suitable franchisees who share your values and goals and are willing to contribute to the growth of the business.
Final word on opening your own gym franchise
Opening a gym or fitness franchise has the potential to be a great success and turn into one of the top franchises if you follow the right steps and make informed decisions. It is important to be diligent in selecting potential franchisees and working with a lawyer to draft legal agreements. Once you have found the right franchisee, work together to identify and secure the ideal property, design and plan the space, and establish relationships with suppliers. With the right approach, you could be on your way to becoming a leading name in the fitness industry.