For many potential franchisees, their first step is to get stuck into some online research. Gym franchising is traditionally a leap into the unknown and it gives them the chance to find out more about the industry and the options available to them.
While our team hear some great questions on a daily basis, we wanted to find out what the top questions that potential owners are asking online. Along with some of our own insights, I’ve answered the top five.
How much does a gym franchise cost?
This is an understandable first question as any potential investor wants to know if it’s affordable for them. The honest answer is that there’s no one-size-fits-all answer and it can vary on several factors; predominantly the franchise’s model, property size, location and the equipment selection you choose.
Gym franchising is traditionally at the higher end of initial investment levels in the industry but it’s important to consider that many franchisors hold great relationships with banks and lenders to make the investment more accessible.
A typical gym franchise investment includes:
- Franchise fee: The initial license to trade and use the brand, systems, and support
- Build-out and fit-out: Constructing your gym and transforming an empty space into a state-of-the-art facility
- Equipment and technology: Some of the key components to making your gym a success
- Pre-opening marketing: Creating excitement before your doors open.
- Working capital: Funds to sustain operations during your growth phase.
When will I break even or start making a profit?
When it comes to your liquid capital investment (ranging from £200,000 – £250,000 for our model), this is typically recouped within 18 months. This is a popular time for franchisees to look to open another location, reflected by the fact that 60% of our network currently operate multiple locations. A full return on investment can then be anywhere between 36 and 48 months.
Timescales can of course vary depending on the number of members you have. Our new gyms in the past 12 months have opened with an average of 44% more members than those in the same period prior, getting franchisees immediately off to a flying start.
Fitness is a recurring-revenue business and once your membership base grows, margins improve quickly. Many owners now reach operational breakeven within weeks of opening their doors.
What support, training, and systems will the franchisor provide?
The support you’ll receive as a franchisee in the fitness industry is significant. Most investors will have little or no industry experience so it’s important they have support at every stage of the process.
Our support covers it all; from initial business planning, lender introductions, property sourcing, marketing and ongoing operational support. You’ll have all the systems you need to succeed including a member management system and dedicated member app.
Franchising is about partnership. When you join a network like Snap Fitness, you’re not on your own – you’re backed by decades of experience and a global community.
How do I choose the right gym franchise brand?
There’s no shortage of fitness franchises in today’s market. Some focus on specific workout disciplines, others on mass consumer appeal. These also come with a range of different investment levels.
At the end of the day, it’s about finding a brand that’s the right fit for you and aligns with your values, available resources, and your market.
We encourage potential franchisees to research the market as much as possible and speak to a range of businesses to see what’s right for you. When evaluating a franchise, look beyond the logo and ask some key questions:
- What is the brand’s purpose?
- How strong is its community and member retention?
- What’s their success rate? Have they had any closures in the past three years?
- How does the franchisor measure success — by growth, impact, or both?
What due diligence should I do before buying or signing?
The best franchise relationships start with transparency. Before signing, do your homework and don’t rush into it.
Here’s what I recommend:
- Talk to the brand’s current franchisees. Learn about their day-to-day operations, challenges, and wins.
- Understand the financial commitment. Work with the franchisor to see all the costs involvedand their projections for your return on investment
- Think about your territory. Do some research in the area you’re considering launching; as well as checking that territory is available, review key population demographics and competition with the franchisor
A strong franchisor will encourage you to take these steps. We certainly do – because an informed, confident franchisee is set up for long-term success.
