There’s never been a better time to get into the fitness world. It’s a $7 billion industry that’s only continuing to grow, even adapting to the COVID-19 pandemic. As consumer interest pivoted towards a more holistic view of health, the fitness industry pivoted as well—offering group classes, community building, and gym spaces that target specific audiences.
With this change, owning a successful gym doesn’t have to be a large-scale operation anymore. Health and fitness franchises are seeing success with various niche audiences, and many of the gym franchises for sale focus on specific activities. Boutique fitness franchises like StarCycle and 9Round™ are showcasing the benefits of narrowing your focus—and so are small, independent gyms. But with franchises and one-off gyms becoming successful, which is the better investment? Should you franchise a gym, or start one for yourself?
If you’re trying to decide between these two, there are a few key differences you should consider. Read on to find out more.
What Are Gym Franchises?
Gym franchises are companies that franchise their gyms out to other business owners. “Franchising” means that the company’s owner (or franchisor) sells you (the franchisee) rights to use the company brand, business model, and trademarked offerings at a designated gym. You then pay a regular franchise fee to the franchisor and split the profits according to the franchise agreement you sign before starting.
Franchising is a good business idea if you’re someone who has the drive to succeed, but not the time or capital to start a new business. As a franchise gym owner, you’re inheriting a predetermined formula for business success—all you have to do is execute it! Some things you might get from a franchisor include:
- A proven business plan
- Marketing materials and strategies
- Ongoing support from your franchisor
- Training on how to run the business
Are Gyms a Good Franchise?
Yes—and for multiple reasons! In short, gyms as a franchise offer a lot of variability in terms of the kind of gym you can invest in. The fitness industry is no longer just weight rooms and cardio floors, but kickboxing studios, yoga studios, and even trampoline parks. And with so many options, you can pick a gym franchise that matches how much money you want to invest, what fitness products you’re interested in, and what sorts of clientele you want to serve.
Gym Franchise vs Independent Gym: What’s the Difference?
Here are a few things to note about operating a franchise location versus starting a new gym company:
- Ownership
- Independent: You own the entire gym company.
- Franchise: You own the individual gym, but the franchisor owns the brand and offerings.
- Profits
- Independent: All profits and losses are incurred by you, and you alone.
- Franchise: Profits are split between you and the franchisor.
- Risk
- Independent: All of the business risk is on you.
- Franchise: Some risk is on you, but the company retains risk too—namely, in brand equity.
- Operations
- Independent: You are solely responsible for setting and executing operations.
- Franchise: You get a preset business model to follow, detailed in the franchise agreement.
What are the Benefits of Franchising a Gym?
Overall, franchising a gym provides a much easier, stable entry into the fitness industry. Starting your own business can be incredibly challenging, even if you have a great idea. Rather than taking the risk of starting something that may not end up working for a number of reasons, franchising lets you work with an established brand, business model, and strategy for success.
Is It Worth It to Franchise a Gym—or Should I Start My Own?
Ultimately, the pros and cons of franchising a gym versus starting your own gym come down to two words: “flexibility” and “execution.”
If you are considering becoming the sole owner, you have far more flexibility in how you want to run your business and what you choose to do. However, you also have far less support and backing during the execution of the business, and ultimately have less help in your path to success. This means a lot more risk on your part—particularly if you are new to the industry.
Similarly, these two concepts reflect the pros and cons of franchising. While franchisees do have to follow a particular business strategy with less flexibility, they can focus more on the execution of the business. Franchise owners get to focus on their skills and acumen as a businessperson: someone who can bring a business idea to fruition. Additionally, franchisees have the benefit of working with an owner that is invested in their success and knows from experience what makes the business work.
It’s one thing to have great ideas for a business; it’s another entirely to make that idea work. Franchisees get to focus on that second, arguably more important part of business ownership. They inherit a proven, tried-and-true business model, complete with the steps needed to make it happen.
How Much Does It Cost To Open a Gym Franchise?
The startup cost for a gym franchise varies widely depending on the specific kind of gym franchise you’re interested in, but the available fitness franchises range anywhere from $50K to well over $500K. Having so many options is why it’s important to use a directory like Franchise Opportunities, where you can browse by not only cost, but also location and even specific industry. We make it easy to find the best gym franchise for you—in the location you want and with a cost that suits your budget.
Visit our website and get started on your search today!