Putting up a gym and fitness club seems to be one of the most lucrative businesses to venture into nowadays. For various reasons, some entrepreneurs find franchising more preferable.
In any case, there is one central aspect that might influence your decision to franchise a gym business: financing.
Some would agree that it’s more beneficial to get a franchise than build a system from scratch. The main concern is, how much do you need to invest in a gym franchise business?
The Costs of Fitness Franchising
Here is a list of cost factors involved in franchising a gym business:
The franchise fee can either be a one-time or monthly payment system, depending on the franchiser’s terms and policies.
The one-time payment ranges between $20,000 and $70,000.
Standard monthly fees usually entail an agreed percentage of your monthly revenue, which should be officially stipulated on your franchise contract.
Franchisers will determine an ideal location for your gym and fitness club franchise. However, you will personally handle security deposits or payments on renting or purchasing a gym facility.
Property rates differ in every area, and you also have to account for the size of the building. You’ll have to align your budget by coordinating with a property broker in your location.
Franchisees are often required to meet a certain amount of liquid assets, ranging between $300,000 and $2 million.
Contracts and Other Legal Documents
Franchisers provide the legal contract that binds your partnership. They will also require legal documentation on business permits, licenses, and insurance. As the franchisee, you’ll have to cover for the legal documentation costs.
Franchisers often provide a trusted supplier where you can purchase the gym equipment from. They usually aim to have a uniform quality on gym facilities, including tools and gears.
Before you order all the equipment, you need to measure your training area first. There should be enough space conducive for different kinds of workouts.
For example, a 2,000 sq ft facility would require a set of equipment, which might cost around $15,000 to $25,000.
Your working capital involves the operations and management costs that will keep the whole business running. Franchisers will direct you to focus on gathering more customers and drive sales, which means you need to ensure that your services are at an optimum level.
Some common factors include workforce resources, investing in advertising campaigns, and improving member-related transactions.
Gym owners leverage the versatile features of health and fitness management software for a streamlined process in managing gym members.
Check out Jonas Fitness’ business management solutions for gym and fitness club owners.
Final Thoughts: Is It Profitable To Franchise A Gym Business?
Now that you have an idea as to how much it costs to franchise a gym business, a more crucial question arises.
Is a gym franchise profitable?
If franchising weren’t beneficial for business owners, large companies wouldn’t invest in this. The most valuable action would be to conduct full market research on the franchise company you’re looking to partner with. Then, you can plan the best course to take for your next business venture.