The “why’s” and “how’s” of converting your existing fitness facility to an Alloy Franchise location. Does it make sense to convert your existing facility into an alloy franchise? Since we announced the new low cost Alloy Personal Training Franchise model, we have had multiple inquiries from fitness facility owners on whether they can rebrand and convert their existing facilities to an Alloy Franchise. The new model is a smaller fitness franchise model with a lower investment to complement the standard franchise business model. This is the perfect model for fitness professionals to own their own business with a lower investment.
Rick and Matt review the reasons on why convert an existing fitness facility to an Alloy Franchise, and the criteria to determine if your business is a good fit with the Alloy Franchise brand. Last, they will share how to convert to an Alloy Personal Training model.
Why Convert an Existing Fitness Facility to Alloy
- The Alloy Franchise Partnership Relationship – Among the many whys of converting to an Alloy Franchise is that it’s lonely as an entrepreneur. Having a franchise behind you for support, education, and advice can make all the difference. Alloy Franchising is a true partnership that shares in the franchisee’s growth because Alloy only makes money if the If the franchisee is making money. Alloy provides the services to help their franchisee win and be success quickly. Other franchise models that require a flat fee aren’t true partnerships, as the franchisor still receives their flat fee even if the franchisee isn’t making money.
- The Scalability Factor – Another important why is the scalability factor. You are more likely to grow faster and scale to multiple locations with an Alloy Franchise than when you are on your own. With the Alloy opportunity, it’s easy to start-up, achieve growth, and scale to three to five locations. Because the Alloy model is simple and scalable, it’s easier to build a better future quickly and open opportunities to sell a multiple location fitness business for a much higher multiple of EBITDA, than a single Mom and Pop operation.
How to Convert Your Fitness Facility to Alloy
- Examine the criteria to determine if Alloy and the potential franchisee would be a good partnership.
- Evaluate the current or potential Real Estate Location for an Alloy Franchise
- Location Analysis and Site Selection
- Customer Demographics
- Location Cost to Build Out a New Location or Retrofit an Existing Location
So for an existing fitness facility who already has an existing membership base, let’s assume you financially qualify and you have a good client base. Converting your existing facility to an Alloy Franchise facility would make the transition probably more efficient and provide more profit than you currently make now. Then you can take it to the next level with the Alloy business advice and coaching, you might then want to step out of the day-to-day business and allow you to open other locations, Duplicating the same Alloy process and criteria allows you to easily grow locations. Gaining financing can be easier when you have a successful business base. For example, getting a Small Business Association(SBA) loan could be easier as we are already a SBA approved franchise. So it’s going to make it easier for you to get a loan to build an Alloy Franchise than it is to get a loan to build a single location, independent gym as an example.
Tune in to this exciting episode to learn more about why converting an existing fitness facility to an Alloy franchise makes sense and how to go about it!
- Does it make sense to rebrand an existing fitness facility to an alloy franchise (01:02)
- Why a franchise is a partnership that helps us grow quicker (02:24)
- How scaling and selling a business is much simpler with a franchise (04:49)
- Your chances of success are fivefold higher with a franchise than on your own (10:02)
- How to qualify financially for an Alloy franchise (12:37)
- Our systematic criteria for selecting an Alloy location (14:07)
- Retooling an existing facility to fit the alloy brand specs and design (19:24)
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