OPENING A FITNESS FRANCHISE : A GOOD INVESTMENT OPPORTUNITY
Most investors want to invest in a way that will generate high returns with little or no risk. With the pandemic around us, investing in fitness could be an ideal choice.
Fitness is one of the fastest growing industries as people of all ages have become aware of the importance of staying healthy, fit and safe. Investing in a fitness franchise, for example, could be an ideal opportunity to generate good returns as demand soars over time. The risks are low and the returns are high. Not only are you generating a good income, but you are contributing to the greater good.
Ease of marketing and branding
There are many advantages to the fitness franchise model. The franchise owner has done the heavy lifting, allowing you to capitalize on the market without having to spend years building a brand. A well-established brand helps build customer loyalty and broaden your reach. Franchises can help provide a blueprint for success.
The business, as well as the brand through ambassadors, is already built and has a rich history. All the franchisee has to do is market a product that is already popular. This means you can spend more energy on other aspects of your business and less on marketing yourself and your business.
Good return on investment and additional revenue streams
Fitness franchisees have the opportunity to increase their profitability by choosing a franchise with a great business model. The fitness industry offers many revenue opportunities. When you own a fitness club franchise, you generate most of your revenue from membership fees. However, good health club models understand that there are other ways to increase revenue, such as health and weight loss products, personal training, classes, branded apparel, and amenities such as daycare. Nowadays, people prefer to take supplements in addition to the normal fitness routine and want to stay in shape for the long term. These are all diverse and stable sources of income.
The advantage of turnkey operations
Successful franchise models, with experience, provide their franchise owners with a turnkey type operation. The majority of fitness franchises provide the blueprint for success and assist with financing, location selection, equipment rental and marketing. This means that when the doors open, you are ready to go and the business should be able to run itself. It’s an almost automatic process.
Making a difference in people’s lives
There are few businesses where you can help make a difference in people’s lives. People join a fitness club to be healthier, have higher self-esteem and reduce stress. When you own a fitness business, you have a real impact on your members. The overall goal of investing in a fitness business also has a social benefit, as it encourages more people to take care of their health. Many fitness franchise owners also enjoy and look forward to their time at work.
Better work-life balance and time to work on other projects.
Having a competent and dedicated staff keeps the business running smoothly. Much of the revenue is generated by automatic payments, so there is less control over sales. This means more time to spend with family or on other business projects.
A franchisor offers support all along the way, before and after you open your outlet. The franchisor provides you with business support, marketing materials and advice, and training.
You’re investing in a proven business model, one of the main reasons someone might choose to start a business with a franchise. A franchise is also a lucrative career opportunity that will provide you with all the industry-specific training you need to run a successful business. The idea is that the business owner has already gone through the process of brand building, customer awareness and retention.
Difference between franchise and chain
Definition of a chain
A chain is a series of retail outlets, located in different geographical areas, owned by a single company and offering the same products and services. A chain store is one of these retail outlets. It aims to dominate the relevant industry and therefore covers the whole country or the globe.
Chain stores can range from supermarkets to restaurants to multiple stores. Chain stores are a collection of similarly branded retail stores owned and operated by a single central management. It represents a network of branches, located and operated in different parts of the country.
In addition, the markets with which they compete are primarily local markets.
Characteristics of chain stores
Chain stores are characterized by
- Similar architecture
- Similar infrastructure and design
- Product variety
- Uniformity of pricing
- Central management and supply chain
- A chain store is known by different names in different countries. In Europe and other Western countries, it is called “multiple stores”.
Key differences between franchise and chain
The difference between franchise and chain stores can be clearly established on the following basis:
A chain store refers to a retail establishment, owned and operated by a company, which follows standardized business methods and practices. On the other hand, a franchise is a form of business owned and operated by an individual, but is branded and managed by the original multinational.
The franchise depends on the relationship between the brand owner and the affiliated dealer, who is the local operator. In contrast, a chain store is represented by a network of various physical outlets, regardless of their location.
In a franchise, the outside party, i.e. the franchisee, owns and operates the store. In contrast, all units in the retail chain are owned and operated by the parent company.
The franchisor transfers a certain degree of risk to the franchisee, whereas the owner bears the entire risk in the case of a chain.
In the case of a franchise, profits/losses are shared between the franchisor and the franchisee. However, any profit or loss made by the store belongs to the parent company.
Employees of a franchise are hired by the franchisee, under the guidance and direction of the franchisor. In contrast, the recruitment and training of the chain store employees is handled by the parent company.
The franchisor does not have complete control over the business and its operations. Instead, the parent company has full control over the business and operations of the chain store.
In the case of a franchise, expenses are shared between the franchisor and the franchisee, whereas in a chain, expenses are borne solely by the parent company.
Most companies around the world use franchising as a growth strategy to increase their distribution, and companies do not need to invest their own money to open an outlet in a certain location.
Difference between licenses and franchises
Licensing is an agreement in which a company (licensor) sells the right to use intellectual property or produce a company product to the licensee for a negotiated fee, i.e. a royalty. Franchising is an agreement whereby the franchisor allows the franchisee to use a business model, brand or process, for a fee, to conduct its business as an independent branch of the parent company (franchisor).
In franchising, full training and support is provided by the franchisor to the franchisee, which is not the case in licensing.
In the case of a license, there is a one-time transfer of assets or rights, but in the case of franchising, there is ongoing support from the franchisor.
Essentially, franchising shows you how to replicate the success of the franchisor. Hurry, become a fitness franchise owner and help people maintain their health with GIGAFIT.