If you love working out and are looking for a profitable business idea that utilizes your passion, opening a fitness business may seem like an excellent idea. What’s the real scoop? Is owning a fitness franchise profitable? Here is what you need to ensure a profitable fitness franchise business.
Why It Is A Good Idea to Invest in a Franchise?
Viewed from the outside, franchises look like a nice way to open a business without truly going out on your own. Because franchises offer marketing assistance, business development plans, facility designs and layouts, and support systems, they’re a less intimidating way for new business owners to launch an business.
It’s important to remember, though, that all franchises involve start-up costs. So is it a good idea to invest? The answer is a loud and unequivocal “yes.”
According to research conducted in 2019, the success rate for franchises over two years is a massive 8% higher than the success rate of independent businesses. Meanwhile, 5.3% of small businesses are franchises, and 9.6% of large employers are franchises. Finally, franchises account for about 3% of our country’s national GDP.
As you can see, investing in a franchise is a profitable way to open a business, and can grow into much more than an independent single location. Also check out Alloy’s 5 Things to Consider When Buying a Fitness Franchise.
5 Tips to Ensure a Profitable Fitness Franchise Opportunity
Investing in a franchise can certainly be a smart business decision. If you want to ensure a successful franchise business, however, we recommend following these five tips:
1. Choose a Supportive Franchise Team
Franchises can be a smart investment, but they’re not all created equal. While some franchise operations offer end-to-end support, others just sell you a system and turn you loose.
If you want a successful franchise business, it’s essential to choose the former.
When you invest in a supportive franchise business, you get a team that’s there for you every step of the way – from the first day you open your business to the day you hire your hundredth employee or hit another large business milestone.
2. Check the terms of the contract
While all franchises come with terms (you’re stepping into an established business model, after all), it’s smart to read the fine print before you commit.
Some franchises, like the Alloy Personal Training Franchise, allow you to create a business that’s truly yours, while also remaining in regulatory compliance. On the other hand, other franchises control your every move as a business owner, dictating who, how, and when you can hire, and what services you can offer.
To get the maximum ROI for your money, be sure to invest in a business that will allow you some creative freedom. In addition to being a smarter financial choice, this also helps ensure you actually enjoy the business you wind up running.
3. Pick the Right Industry
Today, there are franchise opportunities in virtually every industry. In 2019 alone, there were 773,603 franchise locations in the U.S., and those locations run the gamut: from restaurants and gasoline stations to real estate agents and fitness centers.
If you want your franchise to be profitable, it’s essential to pick the right industry. Some people choose to invest in what they see as “fail-safe” franchise options, like plumbing or home service businesses. These “essential” companies will always have customers, simply since people always need those services.
A smarter idea, however, is to invest in a franchise opportunity in an industry that shows strong signs of upward mobility. Take the fitness industry, for example. Recently, the IHRSA Global Report found that global fitness industry revenue topped $94 billion in 2019. What’s more, health clubs are projected to reach 230 million members by 2030.
As people become more focused on fitness and living healthy lifestyles, gyms and boutique fitness locations will continue to thrive. This means that, if you’re considering investing in a franchise, right now is an excellent time to opt for something in the fitness industry.
4. Understand the Future Franchise Industry Outlook
Just like the industry you invest in must be upwardly-mobile, it must offer you enough opportunities to make it worthwhile.
The actionable point here is to do your market research. Even brief research will help you understand if the particular business you’re considering is worth the investment for you, personally. After all, you can’t run a successful franchise business if you don’t like the industry you’re operating in, or if the industry as a whole isn’t going anywhere.
Questions to Ask Yourself as you do Your Research
- Are there many territories to choose from?
- Is there a network of other franchise owners you can tap into for support and guidance?
- Are there market trends that could slow the business down in the future?
- Does the franchise model offer promising results?
- Does the company offer existing brand recognition?
5. Understand the Existing Customers Base
Finally, it’s important to take a look at the existing customer base of your ideal franchise. One of the main factors that make a franchise popular is that the company behind it already has a stable base of customers.
When you invest in a franchise like Alloy, this is a given. People recognize the Alloy brand and understand that they can expect a reliable experience whenever they visit an Alloy branch, no matter where it’s located.
Run a Profitable Franchise With Alloy
Investing in a franchise is a big step, and it’s normal to want a profitable franchise from day one. Fortunately, that’s well within your wheelhouse, especially when you do your due diligence to make sure the franchise you choose is in the right industry, backed by the right brand, and represents the right opportunity for you. Learn about Making Money In The Fitness Franchise Business.
Article by Rick Mayo