If you want to stay healthy and live a long happy life, you will need to eat the right foods and lead a healthy lifestyle. You will also have to go to the gym or fitness center several times in a week to stay trim and tone those muscles. But have you ever considered opening a fitness center yourself? In fact, looking at the enormous awareness these days about wellness among the masses, a fitness business seem to be a lucrative one. And if you want to start a fitness business, you don’t have to do everything from the scratch. There’s always an option of becoming a part of a fitness franchise, which has a proven business model. Plus, the brand name also has traction, so you don’t have to build the brand yourself.
But will your fitness franchise be profitable? After all, working out to stay healthy is one thing, and running a business is another. What are its pros and cons? Let’s find out.
Pros of Running a Fitness Franchisee
The main advantage of running a franchisee business in the fitness niche is the association you get with a reputed company. Never underestimate this, because it’s a huge plus. You will receive all kinds of helps, including business plans, policies, procedures, technical knowhow, marketing support, and even support for hiring the right people. The brand owner or manager can help you procure equipment and get discounts. All details are handed over to you. Most of the initial set up work and brand building is almost done for you. It’s almost like plug-and-play.
What benefits do you get when you start fitness franchise?
- You will just have to select the location, and you are ready to get started. The franchisor can also help you select the right location.
- Often, the brand will advertise itself, and inform the audience about your location. This saves you a lot of money, as advertising is usually costly.
- Plus, the franchisor may also hand you a ready database of people in your locality who can be your customers, with their contact information
- The franchisor will also likely give you tutorials or manuals of running the fitness business, and give you support on improving the health of your customers. For instance, you may receive inputs from dieticians, bodybuilders, and other active gymmers.
Cons of Running a Fitness Franchisee
There are some disadvantages of owning a fitness franchisee too. For instance, when you are a part of a franchisee network, there will always be things you can and cannot do. In other words, there will be certain limitations. There will be guidelines you must follow when running the fitness franchisee with their brand name.
What are the limitations when you start fitness franchise?
- There will be strict pricing norms for all the franchisee owners, which mean that you cannot price according to your wishes. You cannot offer a discount if your neighborhood is price sensitive, or up the price if it is located in an up-market locality.
- Plus, there is always going to be a fee or portion of the profits that you must pay to the franchisor for using the brand name. It is usually a percentage of the revenues you are making, and sometimes, there is a minimum guarantee amount that you have to pay, regardless of whether you are making a profit or not. Over years, this can be a huge amount of money, which you could have used for your marketing.
- There is one more disadvantage. In the franchisee model, you have no control over what happens to the brand name. So if the franchisor loses goodwill, you lose too. It’s even possible that the franchisor is losing money, and may eventually go out of business, though your own unit is making profits. Of course, you won’t be able to use the fitness franchisee brand name anymore if the franchisor goes out of business.
So you see, there are both positives and negatives in the fitness franchisee model. Franchising has exploded in recent years in every sector, including the fitness industry as well. There is a lot of potential, but you have to decide wisely.