The fitness industry is a rapidly growing and evolving industry. With that comes a highly competitive yet lucrative and rewarding market. The client market for fitness and personal training is growing. With greater awareness about the long term benefits of physical fitness, more people are becoming clients to fitness businesses, which is driving growth in fitness franchises. Physical fitness is becoming less of a hobby and more of a necessary investment for people.
According to a recent report by IBISWorld, gym and fitness franchise revenue grew at 4.9 percent annually over the last five years to an estimated $2.9 billion for 9,427 total businesses. Leading into 2020, revenue is projected to rise even faster at an annualized rate of 5.4 percent, to $3.7 billion. As the number of gym-goers rise, the demand for club memberships, personalized classes, and health and fitness monitoring services will increase. This is a great opportunity for entrepreneurs seeking to invest in an opportunity to help others while making a solid profit.
Factors That Are Affecting The Growth Of The Fitness Industry
- The cost of health insurance
It is no secret that health insurance costs are rising. That being said a healthier person cost much less to insure. Insurance companies have caught on to the idea that if they can help incentivize a healthier lifestyle, they can lower costs for themselves. To the consumer’s benefit, many companies now offer partial or even full coverage for gym memberships, discounts on wearables, and fitness classes.
- Demand for healthier food options
Consumers are asking for more transparency from the food and beverage industry. The health and fitness industry is driving this change as we have seen a trend of more simple and easy to read labels. A growing number of products offering organic “better for you” versions. Consumers are educating themselves about the benefits of healthier choices. A number of brands are revamping their established products that exclude sugars and other additives to keep up with demand. When a consumer invests time, research and planning into their nutrition, naturally they reflect on other ways to better their overall health and physical fitness.
We are in a time where tech companies are able to offer biometric health and fitness statistics at the fingertips of millions of people around the world. This technology is raising awareness to the consumer with every step that is being taken (literally). Companies like, Apple, Garmin, and Fitbit are able to help consumers track their heart rate, steps, workouts, and calories burned. Consumers are learning more about their bodies and what it takes to help it function at its best. Fitness goals have evolved from a monthly priority to a daily one. We have gone from “I want to lose 5lb this month” to “I want to reach six thousand steps and burn 500 calories in today’s workout”.
- Small group training
According to the 2017 IHRSA Health Club Consumer Report, “over the past decade, personal training and, more recently, small group training have evolved into the primary sources of non-dues revenue for many health clubs.” Fitness-only clubs earned an average of 8.7% of total revenue from small group training and the numbers for participation are increasing. IHRSA’s Profiles of Success reports that 18 million health club consumers signed up for small group training in 2016, accounting for 26.6% of the total consumer base.
The reason small group training is so popular with club members is that it’s a social atmosphere, high energy, and, when done correctly, works great for helping them achieve their fitness goals. Clubs are learning that they not only improve their bottom line by utilizing small group training, but they also provide a valuable and enriching experience for their club members.
- Budget-friendly gyms
The “high-value, low-price” (HVLP) health club market has made a major impact on the fitness industry. HVLP gyms are drawing in members due to low-cost memberships, which generally range from $10 – $20 per month. These health clubs memberships are a low cost considering what you get for your money when it comes to equipment, classes, and amenities. Most HVLP health clubs usually offer a large club with a variety of equipment and some extra amenities such as tanning, hydro massage loungers, dry saunas, classes along with other benefits. Given the amount of value that is being offered to the consumer, HVLP clubs are increasingly becoming the dominant competitors in the health club industry yet they like offering the personal attention and support that concepts like Alloy Personal Training offers.
Boutique studios, not quite as impactful but still a popular driver, have also been growing quickly all over the country. Boutique studios are generally small and specialized. Spinning, high-intensity interval training classes, circuit training, barre, Pilates, there is a boutique studio to fit just about any need or interest. Most of these studious are on the higher end regarding price, ranging from monthly costs of $150 – $200 and or $20 – $50 a class. The top-selling point for this type of gym is the location. Focusing on a specialty allows for the size of the gym to meet the need without having to fit into a huge piece of real estate.
The Fitness Industry Was Made For Franchises
How is the fitness industry so appropriate for franchising? There are many factors including its scalability.
According to the IHRSA (International Health, Racquet & Sportsclub Association), the $30 billion health and fitness industry in the U.S. has been growing by at least 3 – 4% annually for the last ten years and shows no signs of slowing down anytime soon. Health and fitness have become a bigger priority for us as a society. People are more inclined to invest in their overall health and wellbeing. This goes to say that people will pay money to whatever means can help them achieve their health and fitness goals.
Ideally, every person in need of meeting a fitness or health-related goal would hire a professional personal trainer. As a means of guidance with knowledge and accountability which would include a successful workout and nutrition plan. However, not everyone can afford the luxury of having their very own personal trainer. The solution to this dilemma is a fitness franchise.
Fitness franchises and personal training classes are the best way for the industry to support the trainers we have and allow them to scale up to meet the market’s demand. With a truly powerful business model like what we have at Alloy Personal Training, we are still able to meet the needs of the individual while in a smaller group setting.
In addition, with an ever-growing client base, a personal training franchise can offer prices much more affordable to the consumer than one-on-one training and still make a great profit margin.
Reasonable Startup Fees
Franchise fees are an essential piece of the planning when starting out, this ties into another important challenge for franchising fees: royalties. Alloy Personal Training works to keep both our startup fees and royalties reasonable so that our owners will have the incentive to always keep growing their business. The more clients they bring in, the more people they help, the better the reputation for our brand and more profit for the franchisee.
We Have Been Doing This A Long Time.
Alloy’s fitness program was created in 1992 around a very simple concept: people who get personalized coaching get better results. Today, Alloy programs are among the most effective programs in the world for helping people, especially those over 50, who want to look and feel their absolute best. Teamed with exercise physiologists with University-degrees, an onsite Doctor of Physical Therapy, a registered dietician and other advisory board behavioral specialists, and with ample experience bringing fitness education and training systems to markets around the world, and with speaking engagements at countless industry events, we have created a program where cutting- edge science meets real, in-the-trenches experience. Therein lies the Alloy magic formula for world-class fitness programming.
Over the years, our programs have been powering a variety of gym locations and fitness systems, providing Alloy training and tools to clubs across the globe. Our best practices are refined. Our systems are time-tested. Our commitment is unmitigated.
The next step is to bring our experience to those who want to strengthen their own futures by harnessing the power of Alloy within the four walls of exclusively branded, franchised locations. Are you ready to power up your community as a part of the Alloy system? Learn more about how you can take advantage of an established brand, in a booming industry, and build a fitness business you’ll be proud to be a part of.
We Are In The “People” Business.
Alloy welcomes people no matter where they are in their fitness journey – whether they haven’t been off their couch in a year or they’re training for their third marathon. For decades we have been helping people understand what they are capable of. We strive to be different from the typical, hard-core gyms that target younger, super-fit clientele by acknowledging an often left-behind sector of fitness enthusiasts. More than ever, aging adults are more active and practice healthier lifestyles. You can lead them along in their fitness journey, while you capitalize on this growing market niche.
The Alloy Approach.
Yours to leverage in your own Alloy Personal Training location.
• Superior personal training system, with most sessions at a coach to client ratio of 1:6 or less.
• A concept known for getting optimal results in the least amount of time, for people of all ages, ability level or injury history – but especially focused on the “Active Living” market.
• Customized workout plans that change with each client visit to provide maximum variety; no workout is ever repeated twice.
• Tracking tools to monitor each client’s workout frequency and intensity so they can track progress towards established goals.
• Accountability appointments, included with membership, provide additional motivation and guidance.
Our Process To Growing The Alloy Franchise Business
Team Alloy has been running a successful Personal Training Business since 1992. Over the years we have learned what works and what doesn’t work. We have had the opportunity to establish successful personal training solutions, systems, and platforms that have been used to serve millions of members in thousands of fitness facilities in the past decade. Our goal as a brand and a company was to become specialists at what we do, and that’s exactly what we did.
We have brought in new clients into our business by first establishing Alloy Personal Training as a trusted fitness authority by building a deeper relationship with our community through content-rich blogs, social media engagement, and email newsletters, all of which have real, glowing testimonials included in them. We then send prospects valuable offers for special trial runs of our Personal Training classes. Lastly, our franchisees personalize a long term training plan, deliver amazing weight loss and strength results, ultimately resulting in a more fully lived life for all of our clients. Which in turn, naturally generates new referrals and testimonials, and the cycle repeats.
The process is different for bringing in new franchise owners but operates on the same principle. We have several different marketing funnels that target potential franchisees through social channels and show them the value our brand and business model offers the end-user and benefits of the franchise owner. We include powerful testimonials from our current owners who are making a great living and helping thousands of people. Typically we will then direct them to an Expression of Interest form that is sent to our Franchise Development Team, who has a process established to qualify them and ensure that they are a good fit for the brand.
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Alloy’s fitness program was created in 1992 around a very simple concept: people who get personalized coaching get better results. Today, Alloy programs are among the most effective programs in the world for helping people, especially those over 50, who want to look and feel their absolute best. Teamed with University-degreed exercise physiologists, an onsite Doctor of Physical Therapy, a registered dietician and other advisory board behavioral specialists, and with ample experience bringing fitness education and training systems to markets around the world, and with speaking engagements at countless industry events, we have created a program where cutting-edge science meets real, in-the-trenches experience. Therein lies the Alloy magic formula for world-class fitness programming. Alloy Personal Training has evolved its programming into a premier personal training franchise solution that provides gym owners and their members with real results.