With the new year just kicking off, a number of people will be thinking about what lies ahead for them in the next 365 days. Career related resolutions will be made, goals realigned, and possibilities imagined. If your goal for the new year is to move up the career ladder and go from employee to employer, buying a franchise may just be for you. According to Statista, there were 745,290 franchise establishments in the United States as of 2017. It’s a popular model that’s clearly working for Americans.
As thousands of people will be resolving to head to the gym in the new year for a healthier lifestyle, the fitness industry might be a good one to consider. Luckily with a gym franchise, you’re accessing an opportunity where a lot of the prep work such as purchasing a space, equipment and decor has been simplified for you. But, before you sign on the dotted line, there are a few basics to become acquainted with.
Read the fine print
If you’re planning on buying a fitness studio, you will be given a Federal Disclosure Document (FDD) that outlines everything you need to know about the business. It’s important for you to go through this document with your attorney, to ensure that you’re feeling confidence about all the legal terms. From the company’s financial history, previous company name changes and legal obligations to any costs or fees associated with buying into it, you’ll find it all in the FDD.
Consider the costs
There are a number of associated costs involved in buying a franchise outlet, so it is worth finding out what exactly you would need to invest. A number of questions should be asked when at this stage of your research:
- Do I need to buy a building or space within a building, or will it be provided with rental costs involved?
- Do I need to purchase equipment or is it already in place?
- Do I need to have signage created?
- What are the advertising fees involved?
- Is there capital available to get the franchise up and running until it returns a profit, or am I expected to bring this upfront capital in?
- What sort of support network does the franchise supply to help me get started?
Aside from getting the franchise up and running, it is also important to consider what fees the franchisor expects of you as the franchisee. For example, a franchisor can require an upfront fee for taking on the franchise, attending their training program and learning the business model. All of these costs must be considered when assessing whether or not you can afford to buy a franchise.
Hands on experience
With any franchise, but a gym in particular, it’s important to immerse oneself in the industry to understand its processes. From the sign up process, memberships, and equipment available, to operating systems, management style and facilities, by observing and learning how these are done, you will be better prepared to make a success of the franchise. The process of immersing yourself in the business will not only help you to understand its processes, but also the people who you are in charge of.
Owning a franchise comes with numerous perks; you’ll be joining a company that already has an established name, success record and considerable buying power when in the market for new equipment or marketing, for example. While this is an exciting opportunity as you look ahead to what 2019 may hold for you, considering the basics above is a part of the essential due diligence which leads to success.
Considering buying an F45 franchise? Our sales and support team will walk you through the simple application process. From the initial phone interview, through to site visits, the review, formal approval, and concluding with the induction program. Potential buyers are guided through the process with due diligence and consideration to ensure it is the right fit for both parties, and to give you every chance at owning your own successful business.