If you’re someone who’s itching to get involved in the fitness industry, we’re guessing you might have some questions. Actually you should have some questions, as a matter of due diligence. If nothing else, you’ve got to be asking yourself things like:
- Is owning a gym a good business idea?
- How profitable is opening a gym or gym franchise?
- What do gym owners struggle with?
Whether you’re thinking about big-name franchises (like Anytime Fitness or Pure Barre) or are intrigued by boutique fitness franchises (like YogaSix or StarCycle), you’ve come to the right place! At FranchiseOpportunities.com, you can browse a number of different gym franchises—as well as franchises across dozens of additional industries.
In this blog, we’re taking a closer look at health and fitness franchises.
Why Start a Gym Business in 2023?
Whether it’s because their go-to gym closed due to the pandemic or they’re just looking for a new environment or a new challenge, many fitness buffs are currently looking for a brand-new gym to call home. This means there’s plenty of opportunity for new gyms to gain traction and attract members by owning a gym or gym franchise. While many aspiring gym owners or franchisees might be feeling a little anxious about jumping into the fitness industry after the pandemic’s disruption, it’s clear that people are now, in fact, returning to gyms.
Of course, as you evaluate the positive opportunities of opening a gym franchise, it’s important to also consider the potential challenges or disadvantages of opening a gym franchise.
What Are the Challenges of Owning a Gym?
While owning a gym or fitness franchise can be an exciting and profitable endeavor, there are certain challenges worth noting—like equipment and facilities costs, attracting and retaining members, and staffing the gym. Let’s take a closer look at each of these potential difficulties, and how each can be mitigated somewhat by opting to open a gym franchise rather than building a new business from scratch.
- One of the biggest challenges of owning a gym is covering the costs of equipment and facility maintenance. Even a relatively no-frills gym can cost anywhere from $65,000 to $115,000 or more. That said, these aren’t areas you want to skimp on, as they’re why most people opt for a gym membership (as opposed to working out at home, for example). Franchising a gym is one way to manage these costs, since the larger brand will have existing connections with equipment providers which can result in a more manageable investment. You can find health and fitness franchises for sale across a wide range of investment levels at FranchiseOpportunities.com.
- Another challenge gym owners face is attracting (and retaining) members, with the average gym seeing 28.6% member churn rates annually. Some of this, of course, is outside of the owner’s control. After all, people are just flaky sometimes—and when they get overwhelmed or stressed out, things like going to the gym rapidly fall down their priorities list. When you franchise a gym, drawing members in is a little easier. In many cases, you’ll benefit from existing brand recognition, for example, and can expect to receive some support from the franchisor as well,since your success is related to their success.
- Staffing the facility and managing employees is another challenge, as is true within virtually any industry. When you work with a franchisor, they’ll most likely support you on this front, whether it’s recruiting advice or hiring resources (like staffing templates, job descriptions, and even help with training/onboarding).
Is It Better to Own a Gym or Franchise a Gym?
For many would-be gym owners, franchising offers a simpler path to success and can help with achieving work-life balance. Within a franchise arrangement, a franchisor will offer key guidance around many of the most difficult, yet pivotal steps—like developing a brand and building a member base. This alone makes franchising an attractive arrangement for motivated entrepreneurs who want to reduce their risk and increase their chances of success.
Is Opening a Gym Profitable?
You can absolutely make a profit by owning a gym franchise, though there are no guarantees! Of course, there will be some up-front costs right out of the gate, but once those are covered the path to profitability is more clear-cut (than opening a brand-new, independent gym from scratch). For some context, Investopedia estimates the average take-home pay for a franchisee at around $50,000—while also noting that some can make much, much more than that (up to or even exceeding $250,000).
What Scares Gym Owners the Most?
Most gym owners’ anxieties center around things like attracting members, keeping them happy and, of course, driving consistent revenue. Especially if you’re thinking about becoming a business owner or franchisee for the first time in your life, the potential unknowns can feel particularly daunting.
Franchising a gym enables you to rest a little easier, knowing that the franchisor is invested in your success, since your location would be an extension of their established brand. Not only that, but franchisees typically receive a great deal of support, instruction, and encouragement from the franchisor, including doing a lot of the heavy lifting when it comes to increasing brand awareness, developing marketing strategies, and so much more. You can learn more about the franchisee-franchisor relationship (and its many benefits) in our Ultimate Guide to Buying a Franchise.
The Perfect Gym Franchise Awaits—At FranchiseOpportunities.com
When you’re ready to explore your opportunities, visit FranchiseOpportunities.com to browse available health and fitness franchises. You can even narrow your search by factors like required investment level or location.
Still unsure whether franchising is right for you? Our resources page contains plenty of helpful information—we recommend starting with our guide to the Pros and Cons of Opening a Gym or our comprehensive Franchising FAQs.