Let’s take a look at what many consider to be some of the restrictions of investing in a franchise fitness business. You have no autonomy. Your business is not John Smith’s Awesome House of Abs. You are owner of Big Brand Fitness in My Town. If you have a specific idea of how you want your programs to run or want to label your own new way of training with your name on it, then buying a franchise may not be the right path for you. When you buy a franchise, you often need to have a good chunk of money upfront. You need to play by their rules which you must agree to when you sign your agreement. You will also likely be required to follow their structure. In some cases, the franchise must also approve the location you pick for the facility. You will be paying a royalty fee each month. This structure is different for each franchise so it is a good idea to look at the franchise documents for a few companies for comparison. You want to be sure that you are comparing apples to apples; for example, you should not compare a gender-specific fitness facility to a hard-core powerhouse gym as it would not be an equal comparison. There is a term for the franchise agreement. Are you willing to make a 5-year or 10-year commitment? If you have a specific location you are interested in and cannot get a 10-year lease, you may not want to buy a franchise that signs you to a 10-year term. In that case, you may consider a different franchise. There are usually minimum requirements for equipment you must purchase before you open which add to your start-up costs. In some cases you must purchase equipment through the franchise. Even if you might be able to buy the equipment cheaper somewhere else, many require that you spend upfront for that franchise’s choice of supplier.
Buying a franchise is a big decision and there is a large monetary and long-term investment to consider. Talk to your accountant, business adviser, lawyer and trusted family members. It is critical that you also take time to do extensive research before finalizing any decisions and be fully committed to your venture as a franchisee. Resources for fitness franchise information and comparison: www.fitnessfranchiseinfo.com/ www.entrepreneur.com/franchises/categories/persfit.html
YOUR RESOURCE SPOTLIGHT Find the tools you need to start or build your business. Check out page 27 for our Franchise & Group Training Resource Spotlight.
Daniella Cippitelli Abruzzo is President/Co-Owner of FC Online Marketing Inc., iLoveKickboxing.com and 27th Street Kickboxing Inc. For more information on iLoveKickboxing.com and future franchise opportunities send inquiries to info@ILKBLLC.com.
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