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What is a Fitness Center Franchise?

Article Details
  • Written By: N. Madison
  • Edited By: Jenn Walker
  • Last Modified Date: 28 November 2016
  • Copyright Protected:
    2003-2016
    Conjecture Corporation
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A fitness center franchise is a type of business arrangement or situation through which a person is permitted to run a fitness center under another company’s brand. The person who wants to own a fitness center, the prospective franchisee, purchases a franchise from an established company, which is referred to as a franchisor. The franchisor usually provides equipment, marketing materials, signage, operation manuals, and business support.

To understand how a fitness center franchise works, it helps to consider an example. For instance, a large company may become well known in the fitness center industry. To expand, the large company could branch out into other areas, opening new branches and staffing them with employees. Some companies choose another option, however, which is selling the right to run a business under a particular brand. In this way, the company’s name may gain even more notice while the company continues to make money, but it does not have to open, operate, and staff numerous branches itself to do so.

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From the business opportunity buyer’s perspective, purchasing a fitness franchise center can offer many advantages as well. An individual could open his own independent fitness center, create a unique name for it, and stock it with the fitness equipment he chooses. Alternatively, however, he could open a franchise that already has a well-established name. He can also obtain equipment that has been carefully chosen by an already successful fitness company and gain access to the company’s marketing, business, and operational plans.

When an individual purchases a fitness center franchise, he may have an easier time attracting customers. The idea is that potential customers will see the well-known business name and patronize the new center because of the company’s established reputation. Essentially, the brand name encourages potential customers to trust in the franchise, even if it has recently opened. The new franchise owner may also have an easier time getting his business started efficiently. Since the franchisor typically provides equipment and operating instructions, the new business owner can skip some of the common start-up mistakes.

Purchasing a fitness center franchise can also provide a new business owner with valuable support. Some franchisors provide training to help new fitness center owners get started running their franchises. Others may provide a business support network or even consultations to help the new fitness center owner succeed. Some fitness center franchisors run national marketing campaigns that help to attract customers for franchisees. Many create local marketing materials as well.

There are also some disadvantages to opening a fitness center franchise. The initial purchase of the franchise is typically expensive and may exceed the cost of opening an independent center. Fitness center franchisors may charge fees for marketing materials and place restrictions on how a franchisee can run his business or use the company brand. A franchisee is usually required to pay a percentage of his sales to the franchisor as royalty payments as well.

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