Pumping Up Pocketbooks

Pumping up pocketbooks:

Fitness Franchising

by Lisa Welko, Certified Franchise Executive

“Going to the gym is great for your body, but it’s also great for your mind,” said golfing superstar Rory McIlroy. And judging from a robust fitness market in the U.S., Americans are learning firsthand just what Mcllroy meant.

The United States fitness market currently brings in about $31 billion annually—and, according to market research firm IBISWorld, one in 10 of those dollars comes through a franchise. IBISWorld predicts the fitness market will grow by 1.6 percent to $4 billion between now and 2023—and franchise growth is out-pacing the industry overall. In fact, IBISWorld predicts that franchise brands will grow about twice that fast, as they become stronger and entrepreneurs look for more turnkey opportunities. Looking for an investment? A fitness franchise might be just what you need to pump up your bank account.

WHY THE GROWTH SPURT?

Obesity is the leading health epidemic in the United States, and exercise is a good start in fighting it.

Thus, America needs more gyms, fitness clubs, personal trainers, and nutrition coaches to help people stay in shape and lead healthier lifestyles.

Over the past five years, gym and fitness franchises have benefited from many public health initiatives. Exercise is key to fighting not only obesity, but also diabetes, heart disease, and other health issues. The easier we make it for people to do, the more they do it.

These days, fitness franchises are as varied as the people who use their services. Some have instructor-led classes that can include treadmills, rowing machines, and free weights. Others offer boot camps, climbing and yoga facilities, cycling studios, kick boxing, dancing, or ballet barre workouts. There are even virtual on-line classes. Of course you can also find standard gym environments, which include exercise equipment and weights so you can work out on your own. Whether they’re specialized gyms or one-size-fits-all facilities, they’re all making health and fitness a priority.

Even new moms without childcare can have a fitness outlet. Mom-focused fitness franchises allow you to workout with your baby. For kids, it’s important to make exercise a part of life early on. Many franchises target children with customized multi-sports programs, or specialized workouts like ninja fitness programs.

BENEFITS OF OWNERSHIP

Why are fitness franchises making such gigantic strides? First, they are businesses that make a real difference in people’s lives. Fitness franchises make people physically healthier, reduce stress, and help build self-esteem.

Secondly, the majority of fitness franchises are turnkey operations that provide owners with the blueprint for success. Owners get help with financing, location selection, equipment leasing, and marketing. When the business opens its doors, everything is ready to go.

Next, fitness franchises provide many revenue streams. In fact, according to The Global Community of Health and Fitness Professionals (IHRSA), ancillary revenue accounts for a quarter of a club’s total revenue. These services, which are not included in a club membership dues, include things like personal-training, special group classes, apparel, and amenities like day care, tanning, and saunas.

Finally, the fitness health club industry is not as demanding as other traditional franchises. Owners hire a dedicated staff to ensure the business runs smoothly, and revenue is generated through automatic payments. With a little guidance, your business should run itself.

Listen to Lisa: Stand Out

With 11 years of fitness industry experience, I have a soft spot for fitness franchising. Judging by the popularity in this franchise category, it’s becoming a top choice for many entrepreneurs. Here’s how to stand out from the crowd.

Utilize PODS AND POPS: Points of difference (PODS) are the things that separate you from others. Find your own unique hook—an introductory membership, a special class, a nutrition program— that brings people to your establishment. Points of parity (POPS) are the things that make you equal to your competitors, such as refund policies and convenient hours. Make sure you’re keeping up, so your business stays competitive in your market.

Run it like a business: Passion for fitness is important, but a business needs to be run like a business. If it’s a hobby, keep it your hobby.

Get professional financial advice: Financing can actually be broken up a bit when you’re looking at a fitness franchise, since equipment can be leased, instead of purchased. That keeps initial out-of-pocket costs lower. When working in this category, you should definitely work with a professional who specializes in funding franchises.

Lisa Welko helps aspiring business owners determine which specific franchise opportunities align with their strengths, goals, and values. For more information, visit www.integrityfranchisegroup.com