Article updated November 2024.
Ok, you are looking to buy a fitness franchise and you are trying to work out what Fitness Franchise is right for you. Check out these 10 tips on what to look for in a suitable Franchise System.
Fitness Franchise Shopping List: What to look for
There are a hundred and one different fitness franchises out there to choose from – it can be a bit like choosing a breakfast cereal. These ten tips are a great way to get started with your research and create a shortlist of the franchises that are going to be the best fit for your entrepreneurial journey.
1. How much support will the franchise model provide?
What are the franchise model’s support systems? Are they structured versus ad hoc? Are other franchisees happy with the business support? Structured support from a franchisor is key as quality support systems need to stand up as the brand grows.
Does the franchise have modern, progressive, easy to use systems? Proven systems are critical for your success, else you would do it yourself and create them. Systems should be always updated, reviewed and progressed from Head Office.
2. What do other franchisees have to say?
You need to speak to multiple franchisees to get a thorough understanding on the franchisee satisfaction levels. Good, bad or ugly, speaking to at least three franchisees who have varied levels of performance will give you the education required.
3. What sort of track record does the franchise have?
Has the franchise system been a success? How long has the brand been in the industry for? What is their reputation like in the industry? Dig deep and find out if they have proof of concept. If they do, you can replicate it and are more likely to end up with a successful business.
4. Is the brand aligned with your own values?
This is critical. You must have aligned values, goals and beliefs with the franchise system. If you love training at a ladies only gym, look for a ladies only franchise. If you love high intensity group circuits, look for similar franchises. You get the idea! If you don’t love training and fitness and are purely jumping into franchising as an investment opportunity, think about the person you want managing the business and what their values are or look for another industry that you do love.
5. Research the franchisor, the founder and the executive team.
What is he/she like? Can you see yourself investing into him/her? As funny as it sounds, the franchisor more than likely has similar personal values to the business values. If you don’t feel comfortable with the franchisor, then you may not be comfortable with the brand.
6. Find out what marketing support will be included.
What marketing support do you get? Are you comfortable they will teach you to be strong in marketing? Can you find out what the marketing support will actually consist of? At the end of the day, getting members through the door is going to be key to the success of your business.
7. What's the culture like in the brand, both within the business and in membership?
Can you learn about the culture from staff, franchisees, members and the leadership of the organisation? Although hard to measure, it is important to gather a feeling about the culture within the group as you will be living in it. Is there a clear demographic that this brand attracts and is that a group of people you’re going to enjoy being around over the long term?
8. How does Head Office communicate with franchisees?
Along with support from Head Office, you’ll want to be kept in the loop with news and opportunities withing the brand. Is there a platform for franchisees to easily communicate with one another and share their wins or learnings? Find out how responsive Head Office are at returning phone calls or emails – being given the run around to speak to the right person or waiting days for a response might be a red flag.
9. What sort of financial investment will be required and what sort of ROI?
What does it cost to start the business, run the business and what can you expect to profit from the business? Franchisors can find it hard to disclose projections for legal reasons, however you can work out the maths yourself by understanding the cost to run the business, how many members you need at what price and do your own budgeting.
Don’t be afraid to ask these questions because it’s crucial that you know what sort of capital will be required and how much you’ll be able to pay yourself before seeing a real profit.
10. Are there specific territories or locations available?
Just because there isn’t a certain brand in your local area, doesn’t mean it’s the right place to open one. Most franchisors will have done extensive research to determine the best locations to open up a new business. Does the physical location suit you and your family if you need to uproot and move?
This list is just the beginning of your franchising journey. Don’t rush it – whatever business you decide to invest in is a major life decision, so it’s important to take your time and get it right.
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