Thinking of buying a gym?

We’re seeing increased levels of enquiry from people interested in buying a gym franchise.

It’s a fairly crowded market with a number of well established brands, but that hasn’t stopped a few new concepts coming onto the market.

And with F45 making a global play with its recent listing and associated publicity, this may have added extra fuel to the fire.

From a financial perspective, there are a number of factors to consider:

1. Build your member base. 

Fast. The quicker the better. 

If it’s a greenfield (new) site, make sure you have a fantastic pre-opening launch, and get your numbers before you open the doors. 

If it’s an existing site, plan your re-engagement strategy before you take over so you can get started from day one.

2. Retention. 

Hang on to your members ask long as you can. 

Engage. 

Nurture. 

Each additional week is incremental profit.

3. Attrition Rate. 

There is an ‘attrition’ rate in the industry, where members drop off after a while. Across the industry it’s been in the range of 4-5%. 

Find out what the rate is for your brand and continue to seek ways to reduce attrition.

4. Set up costs. 

Be conscious of your costs, but don’t scrimp too much. The key is to be fully informed before you go in, to make sure you budget for it. 

You’ll be required to have specified equipment and a certain standard of fitout. 

That’s fine, but just watch for blowouts. And be sure to have contingency funds available.

5. Trainers. 

Trainers are key to the success of your business. They represent you and your brand, as they are the ones dealing with your members on the ground. 

Be clear with them on your expectations.

6. Front desk. 

Such an important role. Don’t underestimate the ‘meet and greet’. Be interested, and engage, as this builds loyalty and community. 

See above re Attrition Rate to understand the importance.

7. Member goals. 

Each of your members join up for a reason. 

Each have a goal inside, while some can articulate it, and some can't. 

Take the time to find out what their goals are and help them achieve them. It’s the best way known to build loyalty, retention and raving advocates!

Gyms can definitely produce decent profits. But they are not a ‘set and forget’ business. Just like any business, they need to be worked on carefully and with consideration.

Let me know if you would like to discuss by contacting me HERE.

Peter

P.S. Fitness brands we’ve worked with include:

- Anytime Fitness

- F45 Training

- Snap Fitness

- Plus Fitness

- Listen To Your Body

- Curves

- Jetts Gym

- Tribe Functional Training

- KX Pilates

- PLC Fitness Clubs

And some newer brands coming on the scene

- Combine Air

- InLIFE Wellness