Factors to Consider before Setting up a Fitness Franchise

Obesity is growing at an alarming rate in the US. It is because of sedentary lifestyles and unhealthy eating habits. However, a certain section of the youth is becoming increasingly conscious about achieving a perfect body. These situations give you several reasons to start your own fitness venture. The fitness industry is a lucrative market opportunity especially for the small business owners and entrepreneurs.

There are several factors to fuel the success of starting a fitness studio. However, if you want to serve this growing market, it is profitable to opt for a fitness franchise to curtail the risks involved in generating good revenue from the business. The biggest advantages of running a gym under a renowned and established company is the association you earn from their brand. You can implement the ready made business plan and procedures made by the franchiser. Therefore, the installation and initial setup of your work is already done.

In most cases, the franchiser decides the location, provides the gym equipment and sets up the entire gym for you. In addition, you can get a membership base created by the franchiser, as some of your future customers will automatically choose your gym solely because of the brand name.  Moreover, the franchiser will be responsible for different tutorials and manuals for the gym. As most of the materials are ready, you simply have to supply it to the staff.

However, there are some added responsibilities for you as an individual partner of the fitness business. You need to consider these factors while setting up a fitness gym franchise.

Decide a target market

Your market research will help you to determine your target market. If you decide to target a broad audience, offer them disciplines from cardiac workouts, weight training or group classes. Your target can also be focused on a particular niche such as women-only-gym or Pilates facility. Now in order to capitalize on the potential market, get an insight into what the competitors are doing and take your time to analyze the local demographics.

Location

Location is an important consideration when you plan to open a gym. Location, especially in a business district, shopping center or small town or city that does not have a fitness center is ideal to drive the interests of local people near your gym. However, plenty of parking for the member’s convenience is an important aspect to consider. Try to use your brand name correctly if you are a well-known fitness instructor. However, make sure that before you choose a business location you are aware of the details of the commercial leases including how to negotiate the best deal for your business.

Business plan

Once you finish with your business plan, draft a plan about the management, operations and the marketing strategies. Formulating a business plan will not only set your business on the right path but also helps you to stand in a better light while you start up financing. Remember to include the break-even analysis and cash flow statement in the business plan.

Financial planning

You derisk the business by sharing it with other partners; you can take a government-backed loan or business loan from banks. The small business administration provides a guaranty to banks and lenders to small business rather than lending the money directly. However, do not forget to have a risk management plan to support your business plan. Moreover, acquiring business insurance to protect the business against workplace accident should be looked into before you open your doors for the venture.

Fitness equipment

Getting the right fitness equipment is an evolving technology and at times can be expensive. But, how do you balance expenses with the latest equipment for your gym members? It depends on your current and future budget. However, to get the right gym equipment, you should compare prices to get the best deals on equipment. In order to save on your maintenance cost, do not invest on substandard equipment.

Although the franchiser is there to help, you need an excellent business strategy to ensure that your gym has a competitive edge over the others.