With 2019 fast approaching, now is the time for New Year’s resolutions. Losing weight or getting in shape is a popular one with 45% of resolutions having something to do with people getting in the gym more.
Because of this, you may be looking at gym franchises that you could open in your hometown. You need to do your research and prep work to make sure that your franchise will be a successful one.
Follow these nine tips to make your gym franchise a success.
1. Proven Business Model
Many business owners decide that they want to grow their business model into multiple locations by either selling franchises or building chain locations. You want to invest in a gym franchise that has a proven business model.
Because of this, you may want to avoid a new on the scene trendy gym model. You can view this post to learn more about the decision business owners make when deciding to whether to franchise their business.
A strong business model is only half the equation though. The other part is the franchise’s earning power.
Ask to look at earning statements. You need to see at least a 15% return on your investment.
2. Strong Support System
A gym franchise is much more likely to succeed when the corporate office is supportive. You will have plenty of questions along the way. Getting those questions answered right away will keep your franchise running smoothly.
Ask what the procedures are for the running of the business. Do you or corporate handle marketing? What about hiring and recruiting?
It may be helpful to have corporate’s resources when it comes to marketing. But when it comes to hiring, you want control.
3. Long-Term Investment
No one wants to think about what could happen when things go wrong. However, this is important as life is not perfect. Eventually, you will have a conflict with your franchisor.
The last thing you want is for a single conflict to sour an entire relationship. So talk with other franchisees. See what their experience has been.
This will give you a good idea what the franchisor is like in a long-term business relationship.
4. Saturation of the Market
There are two parts to this tip. The first, make sure that the franchise you are choosing to invest in isn’t overly saturated in the market.
Ask corporate to provide you with market research of the area. They should be able to tell you the population demographics to prove that the area can support another franchise location.
The second part of this is to do research on the competition. How many gyms are in the area total? Are there any gyms that have the same concept as the gym franchise you intend to open?
Competition isn’t an immediate bar to the opening in a certain location. In fact, it may be a positive thing. However, oversaturation of the gym franchise may be a sign that you shouldn’t invest.
5. Knowledgeable Team
Those gyms that are successful have a team of people that are knowledgeable and passionate about fitness. This positive attitude creates a welcoming environment for your customers.
Successful gyms make people want to come back. You can do this by having a staff that is able to educate people on the equipment and healthy practices for getting in shape.
6. Quality Equipment
If your gym equipment is constantly broken, people will stop coming. Most gym franchises will take care of deciding what gym equipment you will use.
Because of this, you’ll want to make sure that the franchise you choose uses quality equipment. You also want to ask about the procedure for getting the equipment fixed. It is important to get equipment fixed right away when it does break.
7. Financial Stability
Opening a gym requires a large financial investment up front. You will need to pay the franchise fees, get a building, and the equipment.
Then you’ll need a financial cushion to support the business while you build your member base. You also need to ask what the royalty fee schedule is.
Some franchises charge a flat rate, while others will charge a percent of your gross revenue. This will cut into your ability to obtain a positive net income quickly.
8. Prepare for the Seasonal Traffic
Plan for a fluctuation in your gym membership and traffic. There is always an increase at the beginning of each new year. This is in thanks to that ever popular “get in shape” New Year’s resolution.
By March you will notice that influx of traffic wane. But then as summer hits, you will see a new wave of gym goers. This is especially true in warmer states like Florida where going to the beach is popular.
9. The Customer Is Key
Don’t get tied up answering to the corporate office. Remember that you are in business to serve your customers, the gym goers.
Strive to make every member feel welcome. Provide a positive customer service experience.
You will find that by making your gym members happy, your overall membership will start to noticeably grow. When people are happy with your service, they will tell their friends. Your growth will be by word of mouth.
Make Yours One of the Successful Gym Franchises
You may be tempted to open up a gym franchise as you look around see so many people choosing “lose weight” as their New Year’s resolution. But not all gym franchises are created equal.
Don’t make the mistake of thinking that you will be automatically successful because you went with a successful franchise. You need to consider these nine tips to help ensure that your franchise is a successful one.
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