Alloy Founder and CEO, Rick Mayo, discusses the growth opportunities and trends for the fitness franchise industry.
The last few years have been wild ones for the fitness franchise industry. Nonetheless, the industry has adapted and come out even stronger and more agile than ever. With that in mind, we’re looking toward 2022, and predicting a few of the most compelling trends that will impact the industry in the coming year.
In this blog and podcast, we’ll discuss several of the top trends that will impact the fitness franchise industry in 2022, and how each of them will impact franchisees that choose to take the leap in the coming year.
- 2021 recap (01:16)
- Alloy franchise locations coming up (03:09)
- Why personalized services are the way to go in 2022 (03:51)
- The great resignation and how it relates to fitness (09:47)
- Why you need to bet on yourself (12:14)
- High-quality customer fitness experience (14:48)
- Viewing the gym as a hub of fitness (16:52)
- Looking at the right concept of fitness (22:25)
Key Fitness Franchise Trends for 2022
We expect to see the following fitness franchise trends in 2022 and beyond:
1. Fitness Entrepreneurship Is Rewarding
Self-employment has been a growing trend in recent years, and it shows no sign of slowing down in 2022. https://www.freshbooks.com/press/data-research/usemploymentreport
After COVID, the Great Resignation Trend has become the new norm. In a world where traditional forms of employment are quickly falling out of vogue, workers who want work/life balance, ownership, and unlimited income potential. Fitness entrepreneurship stands out as a path to meaningful work that franchise owners can truly be proud of helping clients to live healthier lives.
2. Big Opportunities Ahead Post-COVID
The COVID-19 pandemic created a period of uncertainty for fitness franchises. In the early days of the virus, gyms and studios everywhere scrambled to pivot. As in-person classes were canceled, studios quickly put together online and virtual offerings, and took their personal training programs digital.
While people are coming back to in-person classes now, COVID infused a certain agility into the industry, which will continue to present massive opportunities in the years ahead.
For many Americans, the days spent in quarantine and lockdown at the height of the pandemic reinforced the importance of nutrition, fitness, and overall health. Now that the pandemic is slowly edging off, people are looking for ways to maintain those commitments and continue to stay as healthy as possible.
In this climate, fitness facilities that offer small group classes, personal training, nutritional guidance, and hybrid learning are sure to stay busy and vibrant. Additionally, the rebound in the economy means that investors will be able to find funding easily.
3. Strong Market Growth for The Right Fitness Concepts
According to the World Economic Outlook Report in October, 2021, the global economy is projected to grow 4.9 percent in 2022. In this fertile environment, the right concepts have the potential to enjoy strong market growth.
Fitness franchises are an excellent example. By adapting to consumer health trends and capitalizing on the wave of health- and fitness-focus in the US right now, fitness brands stand to thrive in the post-COVID world.
Keep in mind, though, that not all fitness brands are created equal. In today’s climate, focused fitness brands will have an edge. People aren’t looking for brands that offer a one-size-fits-all approach. Instead, they’re craving differentiation and customization that will cater to their needs, and a culture that helps them stay accountable.
For this reason, focused fitness brands like Alloy, which caters to the “Active Aging” population, have a real edge. People want to find their niche in fitness and stick with it. By providing this type of focused training and guidance, fitness franchises stand to improve loyalty and quality, and make their training methods scalable and easy to deploy across locations.
4. Boutique Fitness Studios Concepts Show Steady Growth
After COVID, safety and health concerns grew with “Big Box” health clubs. Large clubs and gyms also do not offer personalization. Compared to traditional fitness clubs, the boutique studio experience is much more intimate. They aren’t just selling access to their facility or equipment, but a more personal fitness experience while training in a small group setting.
In addition, the pandemic accelerated digital and online fitness options. Alloy already had a digital fitness component before the crisis and is one of the many reasons for their success and continued growth now.
The fastest-growing segment in the fitness industry is the online/digital fitness industry. Revenue generated around delivering live-streamed, on-demand, and pre-recorded fitness content is expected to grow 33.1% each year, for a total growth of 640.1% from 2021 to 2028.
Meanwhile, the segment expecting the second-highest overall growth over the 7 year period is boutique fitness, expecting to grow 450% from 2021 to 2028.
Fitness franchises, like the Alloy Personal Training brand, are poised to provide the best of all growth opportunities.
5. Live and Digital Hybrid Concepts Are Here To Stay
During the pandemic, people got used to working out alone. And while there will never be a complete replacement for in-person classes, it’s clear that hybrid classes will remain part of the fitness world for the foreseeable future.
In addition to allowing people to stay home when they felt most comfortable doing so, online and on-demand content extended a certain level of convenience to customers. Members who can’t make an in-person class, for example, will still have the option to complete the class at a time that works for them and their schedules.
This is a massive perk of paying for a fitness membership. In addition to allowing you to expand your offerings and cater more precisely to clients, it also stands to increase customer loyalty and grow your membership base.
6. Unit Economics Will Set Concepts Apart
To thrive in 2022 and beyond, you’ll need the right business formula for success. Just because the industry and the economy are primed for thriving fitness franchises does NOT mean that just anything will do. Instead, you’ve got to employ a proven business formula that’s dynamic enough to adapt to this fast-paced and increasingly agile climate.
Unit economics refers to a company’s revenues and costs related to an individual unit of production. A unit is simply one separate, quantifiable element that the company can create and sell and that adds value to both customers and the business.
The easiest way to calculate the unit economics for your company is to find the revenue per customer and divide it by the costs associated with that customer. Franchise business models are attractive to investors when the unit economics of individual locations generate favorable cash-on-cash returns.
2022 Presents Massive Opportunities for Fitness Franchises Like Alloy
2022 is shaping up to be a good year for fitness franchises. Between the economic climate that is setting the foundation for strong growth trends and the increased consumer demand for small group training and boutique fitness studios offering targeted training and focused programs, there is a lot for franchisees to look forward to in the coming year.
By combining personal service, innovative technology, and over thirty years of experience presenting a successful franchise formula, we drive outstanding results for both fitness franchise owners and our clients. Even now, our revenue per member and retention rates are some of the highest in the industry.
We’ve been leading the fitness franchise industry since 1992, when we created our first training programs. Over the years, we’ve adapted our small group personal training model to support franchising and to leverage programs across the globe. Based on our principles, we’ve stayed true to our values and that’s what’s allowed us to become the highly effective personal training program we are today.
Today, we deliver highly effective small group personal training programs to members and communities throughout the world via our exclusive Alloy Personal Training fitness franchise model. Our model excels thanks to our proven business formulas: optimal coach-to-client ratios, customized workout plans, effective fitness assessment tracking tools, digital fitness programs, and flexible membership options, to name a few. If you want your fitness franchise to succeed in the coming years, you’ll have to implement a similar set of values.
If you’re considering starting your own fitness franchise, we’d love to talk with you about the Alloy opportunity. Visit our website to learn more today or contact our team to request your free informational packet now.
Article and Podcast with: Rick Mayo and Matt Helland
Learn more with these articles:
- Why 2022 Is The Right Time To Invest in a Fitness Franchise
- 5 Reasons to Invest in a Fitness Franchise Now
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