Ever wonder why the big fitness franchise is always so busy and the stand-alone operations seem to lack the same volume of members? Here are 9 reasons that 9 out of ten clients would rather go to a fitness franchise than a no name fitness center.

1. Consistency

A branded franchise is going to be able to provide a client with a level of consistency that no independent center is going to be able to provide. Most people when joining a fitness center want some level of predictability. Before they even open the door they want to know what to expect. This is a popular reason that most people choose a fitness franchise over a no name fitness center.

2. Trust

People begin to trust certain environments and they develop a level of trust through brand recognition. Having a name that people across a region or country have heard of is an important element in building trust with clients. People simply trust a franchised operation more than they trust a no name operation. There is a sense of accountability in a recognized name.

3. Popularity

The popularity within the community is often a reason that people choose a fitness franchise. Many people choose a fitness facility based on the recommendation of their friends, family and coworkers. Since franchises tend to have more than one location, they are recommended more often. Franchises are recognized more often because of the large amounts of territory that they control. This makes them immensely popular and is a primary reason they are chosen over the no name facility.

Continue Reading Why 9 out of ten clients would rather go to a fitness franchise than to a no name fitness center

You have decided that a fitness franchise opportunity is the franchise opportunity for you. The fitness industry is a growing industry and you would like to become a part of it. The problem is that now you can’t decide which franchise would best fit your goals and needs. Here are a few things that should be considered when choosing if a fitness franchise is the best opportunity for you.

• What type of fitness establishment do you want to own

If you picture yourself running boot camp style classes then there is a franchise opportunity for you. If you want a large amount of equipment with small staffing requirements then there is a fitness franchise out there that will meet your expectations. One of the best ways to determine what type of establishment you want to open is to sit and write a business plan. Matching a business plan against a franchise disclosure document will be a good way to make sure that the partnership will be beneficial to both parties.

• How involved do you want to be with your franchise

This element is directly related to the type of franchise that you want to open. The level of involvement that you choose for yourself is going to determine what type of establishment you open as well as how you hire employees. If you absolutely hate book keeping then ensuring that the franchisor has book keeping elements involved with their systems may be a good step. Or you may have to hire an accountant. Figuring out your role will enable you to adjust your plan to meet your goals.

• What amount of money do you want to invest initially

The initial investment may determine who you franchise with. Typically a large family oriented gym is going to have more amenities and more equipment. This means that the construction costs and fees for equipment are going to be much higher than if you were to open a franchise based around exercise classes which typically only use a limited range of equipment. Determining how much you want to spend to get the doors open will help you in choosing a fitness franchise opportunity.

Continue Reading What’s the best fitness franchise opportunity for you?

It can be hard to know exactly what to look for when choosing a bootcamp franchise. There are so many elements to a franchise that it can be easy to overlook important points and over analyze the points that may not be as important. The following 8 areas should be examined by anyone considering franchising a boot camp.

• Franchise fee

Look at the franchise fee. The franchise fee is the fee that the franchise charges each month for you being able to use their name and their business resources. There are typically two structures used when charging a franchise fee: fixed rate and percent of sales. Each structure has its own unique challenges. When dealing with a fixed rate franchise fee, the fee does not change. This means that in months where sales are lagging or membership is down the fee may become a burden. The problem with a percentage of sales structure is that it is like being taxed for being more profitable. Deciding which structure is important to you and how much you are willing to pay is an essential step in deciding that you want to franchise.

• Marketing support

Every franchise is going to have some type of marketing support. Choosing the right bootcamp franchise may hinge on the exact nature of the marketing support that they provide as well as the pay structure of that support. There are usually three price plans for marketing support with franchises. Pay-per-click is a lead generation tool in which you pay the franchise per click in a lead generation type of scenario. Some franchises choose to charge a percentage of sales for the marketing budget. This can be both good and bad depending on how those marketing tools are used. Finally the most flexible are marketing payments that allow the business owner to determine their monthly marketing budget and then they design the marketing around that budget.

Beyond paying for marketing a good bootcamp franchise should do some basic marketing things for you. Market research, search engine optimization, landing page construction and social marketing integration are all services that are provided by good franchises. If a franchise does not provide some of these basic marketing materials then it may be best to consider another option.

• Operations support

Does the franchise provide daily operations support? Do they provide you with policies and procedures and operations training? If the answer is yes then the bootcamp franchise that you are considering is probably a good one. If the answer is no then you should continue to look for a franchise that provides these basic support elements.

Continue Reading What to look for before signing up with a bootcamp franchise

Starting a personal training franchise can be an overwhelming task. It is important when looking at the franchise opportunities for personal training that you look at key elements. The key elements of the franchise should determine if the format fits what you want. If you have already established a business plan, outlining what you want from your personal training business, then comparing it to the franchise statement may be the easiest way to tell if the franchise fits your goals.

There are 5 key components that should be examined when determining if a personal training franchise fits with your goals: Format, investment cost, preopening support, marketing support and equipment support are all very important aspects of franchising. Let’s take a closer look at why each element is so important when opening a franchise.

Format

The format of the personal training franchise is an essential element to examine when starting a personal training franchise. If the format of the franchise includes you visiting client’s homes and you are not comfortable training inside a client’s home then it is a format that you should not consider. If the franchise format calls for you to carry equipment around in your business vehicle to different locations and this is not something that you can picture yourself doing, then it is not a franchise that you should open.

If all you want to do with your franchise is host classes then you should make sure that your franchise has that opportunity available for you. If the personal training franchise does not contain group elements then it would be a franchise that wouldn’t make you very happy in daily operations. The different elements of format must coincide with the vision that you have for your personal training franchise.

Continue Reading What to look for and how to select the right personal training franchise for you.

When looking for a personal training franchise opportunity there are important questions to ask that will ensure you have selected the right franchise. Before you begin your search you should have a business plan that shapes your vision of the personal training business that you want to own. When you have done this sitting and comparing the franchise statement to your business plan will be a great way to know whether or not the personal training franchise is right for you.

Does the business concept match?

If you have written your business plan then you have a solid idea of the business concept that you will craft. The question is whether or not the business concept of your business plan and the concept that the franchise has crafted match. This is probably one of the more important questions to ask yourself for a two reasons.

1. Happiness

If you have envisioned a business in which you host fitness classes and the business concept of the personal training franchise opportunity is one in which you train individuals then you will not be happy. If you want to train individuals and the franchise is for boot camp style classes you probably won’t be happy.

1. Flexibility

This concept will not be flexible. When you purchase a franchise you are buying the business model. You cannot change the model at will because of franchising contracts. If your vision is vastly different then the franchise statement then you should find one that better fits your goals.

What are the financial features?

You need to know the financial features of the personal training franchise. If you are unaware of the sales, profit, cash flows and return on investment then it is likely that there are gaps in the research you have done or in the information that the franchise has provided. If numbers provided by the franchisor are vastly different from your business plan you may need to find a way to reconcile these differences.

What is the current business position?

It is important to know and understand the current position of the franchise. If the franchise name is considering bankruptcy then you should avoid this franchise. Likewise if they have a negative reputation with either their franchisees or if customers consistently provide negative feedback about the personal training provided by the franchise then it is probably not a good franchise.  Customer service and financial security are just two important elements of the business position that you need to know prior to franchising.

What are the major achievements of the franchise?

Achievements of a personal training franchise opportunity are an important component to determining whether or not you should consider aligning yourself with that franchise. If a fitness franchise is listed in Forbes as one of the fastest growing franchises in America then it is probably something worth investing in.

In the same token, looking for achievements is not the only thing that you should look for. If the franchise has had negative achievements then it is something that you need to know. If they were listed in Shape as the worst personal training franchise then you probably won’t want to partner with that franchise.

What is the competition like your area?

If you are considering a boot camp style personal training franchise then it is important to know what the competition is like in your area. If there are only 1 or 2 competitors in your area then it is likely that you will have a good source of revenue. This principle works the opposite way as well. If there is an overabundance of competitors in your area then it may be good to look at another personal training franchise opportunity.

Is there room for growth?

Determining whether or not the personal training franchise opportunity has room for growth is imperative. Being in a position that has a growth cap is not wise. If there is room for expansion and growth then there is the potential to keep a thriving business booming. You do not want a personal training franchise to hinder your ability to grow as a business person and personal trainer.

What is the return on investment?

Any franchise should have an estimated return on investment. The return on investment is how quickly you begin to make money after your initial investment is paid back. Because ROI formulas differ depending on the situation it is wise to investigate how it is calculated. Asking the franchise how they determine the ROI can be a great way to determine if it is a good calculation. If there is no projected return on investment or it is very low this could be an indicator of a shaky business model.

What are the franchise costs?

Determining the franchising fees is important when considering a personal training franchise opportunity. If the franchising fee is high, like 50% of sales then it is a franchise you probably do not want to invest in. Franchising fees that are set up on a fixed rate tend to favor the franchisee rather than the franchisor. Considering a franchise with a fixed rate fee or a low percentage of sales is best. These two types of franchise fees will keep the most amount of your money in your pocket.

How much flexibility do I have?

Asking how much flexibility you are given as a business owner is important in determining whether or not you want to partner with a franchise. The amount of flexibility needed for the arrangement to be good for both parties will depend on your personal preference. If you want some creative control in the processes and training regimen when that is something you should make sure is in the franchising agreement. If you want every step to be handled for you then it is important that you sign with a franchisor that will take care of processes and training curricula for you. The important element here is picking the option that works best for you.

When considering a fitness franchise, gym franchises may seem like a great opportunity. The problem with most gym franchise models is that they are VERY expensive to start. Most gym franchises cost $70,000-$2,000,000. There are a lot of costs that aren’t taken into consideration when signing with a gym franchise as well.  Here are just a few examples of how big gym franchisors find ways to make the initial investment costs soar.

Exact floor plan design

The thing that big franchised gym members expect is similar floor plans in each location. Since their customers expect predictable floor plans big franchisors mandate specific construction models for each location. These models include everything from the color of paint to the number of lockers in the room. If you think that one Smith Machine is enough and the floor plan calls for 3 then your obligated by contract to purchase three.

While this type of road-mapping may be useful for those who do not want to design the layout of their gym it may also be more expensive. The specifications about brands and models of equipment means that your equipment costs are as likely to rise as the cost to construct the space is. This factor is one of the reasons that it can cost so much to open a brand named franchised like Gold’s Gym which averages a $1-$3 million investment per site.

Security systems

For the automated gyms that are open 24 hours with or without an employee on site the security systems can be quite costly. Each member is required to have a special access card which unlocks the doors. The doors must have the special magnetic locking that connects to the computerized card reader. Along with access control costs there are also the costs to have security cameras viewing all areas of the site. No employee is usually present during the late hours of these gyms and security costs can become extremely high.

Franchisor Charges

Everyone knows about licensing fees and royalty fees that gym franchises charge. Most people don’t know that the fees that gyms charge are flexible rates. This means that the more successful the gym becomes the more money that the franchisor makes.  If a franchisor is taking 8 percent of sales for each month a gym with 500 members at $40 a member is going to be paying $1600 in royalties each month. A gym with 700 members at the same rate is going to be paying $2240. So the more successful gym is being punished for doing well.

In the same token many big gym franchises charge a percentage of sales as their way to handle marketing. The more successful you are the higher your marketing costs are going to be. If a business owner wants to increase the marketing during a down time it may be difficult to reconcile with the gym franchisor.

On site visit or training

One of the costs associated with opening a franchise that no one tells anyone about is the cost of travel and expenses associated with it when visiting the franchisors location. There are a few different times that you will be expected to visit. The first is before you even decide to sign the franchise agreement. This is for a walk through type orientation to get you acquainted with more of the details about the gym franchise operations. This visit is HIGHLY recommended even though it is an out of pocket expense.

The next expenses are for any training that you have to do. Most big gym franchises offer training through some type of school type environment. This training will require travel to and from the location. Lodging and other associated expenses will be the responsibility of the franchisee. Skipping this training is not allowed and so the expense is something that must be calculated into the costs.

Required credit score and liquid capital

Most of the big gym franchises are going to require a certain amount of liquid capital along with a credit score that meets a minimum requirement. This is because after the initial cash investment there will still be loans that are used to purchase equipment and fund construction. Understanding that after the franchise fee and the initial cash investment there is still more money required is important before partnering with any big gym franchise.

Alternative fitness franchises

In today’s fitness industry there are more options available for franchisees than the standard big gym franchises. Some of these models require very little equipment and construction and the costs are dwarfed by the costs of the big gyms.

Fit Body Boot Camp is the perfect example of a fitness franchise that does not cost nearly what the big gym franchises cost. This is because the boot camp format does not require the gym franchisee to purchase an entire lay out of expensive gym equipment (some of which may never get used). The equipment fees alone make a huge difference in the costs of starting a FBBC franchise compared to another type of gym franchise.

The royalty fee that Fit Body Boot Camp charges is a fixed rate. This means that as the Fit Body Boot Camp location becomes more popular the franchisee does not get taxed for being successful. If you make more money you keep it. This type of royalty fee collection demonstrates a franchisor that has the franchisees best interest in mind.

The last reason that Fit Body Boot Camp stands out against other gym franchises is because of the way they charge for marketing content. Fit Body Boot Camp has enabled franchisees to pay only for the leads that are actually generated by the main website and through the social media marketing outlets. This means that money isn’t being wasted from your budget to pay for leads that are generated for other locations. A fair and thorough online marketing program is one other reason that FBBC is a cheaper and better alternative to expensive gym franchises.

When deciding to open a fitness bootcamp franchise it is important to ask what makes a fitness bootcamp an attractive business opportunity. There are a few general reasons that a fitness bootcamp would be a preferable opportunity compared to another industry like a restaurant. Then there are some things to look that make a specific fitness bootcamp a better choice above another fitness bootcamp franchises.

First the general reasons that you would choose a fitness bootcamp to franchise rather than another industry.

• Popularity of fitness industry

The fitness industry is gaining in popularity as more health professionals advocate a sensible diet and exercise program as the key to longevity.

• Rate of growth for fitness industry

Averaging growth of 20% 2005-2010, the fitness club and bootcamp industry are continuing to grow.  The rate of growth indicates a need for a variety of services within the industry. The expansion of the fitness industry shows no signs of slowing, over the past 20 years the fitness industry has continued to grow.

Continue Reading What makes an attractive fitness bootcamp franchise for a business opportunity seeker?