Gym franchises are experiencing massive growth in the United States, mainly because attitudes towards healthier lifestyles are changing. Increasing numbers of Americans are becoming health-conscious and fitness-oriented - partly due to the pandemic and the sudden focus on staying healthy to boost the immune system.
Gym businesses, therefore, are quickly expanding as they develop their customer bases, relying heavily on the franchise model to help accelerate growth.
The global health club industry is worth $81.2 billion each year, with an estimated 187,000 health and fitness clubs worldwide, accommodating over 151 million members.
Of course, the COVID-19 pandemic has hit the gym industry hard. However, millions of Americans have developed newfound energy and respect for their bodies by keeping fit through lockdown. And, as restrictions ease, people are keen to get back into the gym.
So, the time has never been better for gym franchises to benefit from this refreshed love of exercise.
Technology has been a significant player in helping gym franchises keep their operating costs low, allowing for a range of cost-cutting measures such as online booking for classes, automated lobbies, and online classes. This enables gym franchises to run with minimal employees while operating an exclusively digital payment system that allows for computerized bookkeeping and administration.
Fully automated gym franchises provide greater convenience for customers, offering more flexible or even 24-hour gym facilities.
The time has never been better to invest in a gym franchise. If your passion is for helping others meet their fitness and wellbeing goals, then a gym franchise could be your golden ticket.
Franchising
Franchising provides the unique scope to benefit from the established reputation and instantly recognizable branding of a successful company. Customers want value for money, flexibility, and expert guidance, so gym franchising is the perfect way to benefit from scale and offer affordable services for your local demographic.
One of the particular benefits of investing in a gym franchise is the expert training you receive from your parent company. This offers the opportunity to develop your skills to provide excellent, exclusive services that set you apart from independent businesses that lack the scale of franchise organizations.
When you invest in your gym franchise, you inherit the branding of an immediately recognizable brand, delivering instant visibility for your future customers - they already know and trust the parent company.
You can never overestimate the power of the logo: customers know that they'll be able to depend on the quality of premises, equipment, and service just from seeing your branding from the street.
The majority of gym franchise opportunities come with packages of business- and HR support from the parent company. This helps reassure you that your new business can run in compliance with complicated industry-, employment, and tax regulations.
Your parent company offers access to established supply chains, helping you benefit from optimal value for money to help maximize your profits and your products' quality.
Facts About Gym Franchises
According to IBISWorld, the gym and fitness industry is concentrated mainly in the following four regions, accounting for over 72% of the total active establishments within the United States:
- Southeast - 23.1% of total industry establishments
- Mid-Atlantic - 18.2% of total industry establishments
- West - 16.8% of total industry establishments
- Great Lakes - 13.8% of total industry establishments
Highly populated regions typically have a higher concentration of gym franchises, of course - more people, more customers.
Gyms located closer to workspaces and residential areas will always generate a more extensive membership base due to customers' desire to stay close to work or home for their exercise.
The following states have exceptionally high concentrations of gym and fitness franchises, according to IBISWorld:
- California - 11.6% of total industry establishments
- New York - 7.2% of total industry establishments
- Texas - 6.8% of total industry establishments
- Florida - 6% of total industry establishments
Franchising Vs. Independent
Banks and independent moneylenders tend to favor the franchise model. Lending decisions are made on a wide range of metrics. So, when it comes to franchise businesses, many of the attributes of the parent company help draw positive conclusions for franchisees seeking startup finances.
Franchise businesses are built on established and proven market characteristics, such as market viability, sustainability, and growth. When calculating risk on a potential return of investment, franchise businesses have a proven track record of profit and remittance, making future franchises a lower financial risk for lenders.
Franchise companies are built on strong financial models: the parent company has experience of the marketplace and can help franchisees overcome and avoid the inevitable pitfalls of running a business. Franchise businesses often demonstrate greater resilience when faced with global financial difficulties.
Independent companies tend to enter the market without the learned expertise and support of an established partner. This means that they tend to fall into the traps and pitfalls that franchises often avoid, making them a higher financial risk for moneylenders. Additionally, an independent company has no prior evidence of profit and growth - a fact that generally means that independent companies face higher interest rates on startup loans to negate the additional risk.
On the other hand, franchises tend to experience productive business launches due to their instant curb appeal and the willing customer base who recognize and already love the brand.
At least the first three years for any independent company are loaded with financial peril that threatens their ongoing existence. It generally takes around two-to-three years for an independent company to recoup its initial financial investment.
But when business is slow (as it's prone to be at first for independent companies without a prior reputation), it can be challenging to sustain the company. For this reason, around half of all independent companies go bankrupt within their first three years.
However, franchise businesses hit the ground running, and many franchises turn their profits around within the first year of operation.
Gym Franchises
Explore our excellent selection of healthy gym franchises today!
You can also check out many more exciting Fitness Franchises here on Franchise Direct.