The Process to Take to Own and Operate a Successful Franchise Business
Owning and running a health fitness franchise appeals to you. It’s a big market, and the signs are that it will continue to grow for many years. It could be a business that generates some very handsome profits for you.
Before you jump in, you should prepare your business buying strategy. What do you need to consider? What finances should you have available to you? Just how do you buy a health fitness franchise, to give yourself the greatest chance of being the owner of a highly successful business?
We’ve broken the process down into 10 steps. Here’s the summary of those steps.
Step #1: Establish your goals (based on your knowledge and interests)
Before you make a decision to buy a health and fitness franchise, it’s important to know what you’re getting into and what you want out of the investment.
The first step is to identify your goals. Are you looking for a lifestyle change? An opportunity to work with others? Something that will provide financial stability? What are your passions, and what type of health or fitness franchise will maintain your motivation? What is your experience, and how can you put it to best use?
There are many different types of health franchises. Some examples include gyms, personal training, weight management, spas, mobility, physical therapy, and more. Defining your goals will help narrow down the choices and give you a better idea of which franchises might be right for you.
Step #2: Know your requirements as a franchisee
Franchisors usually offer various levels of support to their franchise owners. You must figure out what kind of help you need the most and what doesn’t matter to you too much. Your level of experience, training needs, and the equipment you will use should all be considered.
Most franchisors provide their franchisees with a support package, though the amount and type of support you benefit from will be different between franchisors. You must be self-critical and work out what support you need. You’ll need to consider your own experience, both in health and fitness and in business. This is a key to your success as a franchisee, so don’t cut corners or miss out on any detail ─ it’s best to seek advice from an external business consultant, especially if this is your first business.
Step #3: Make a list of the franchises you are interested in
There are a lot of different health fitness franchises to choose from, and by now you will have an idea of those that most interest you ─ and that offer the support you need. When composing a list of potential franchises, it is also crucial to search for a franchisor who shares your values, purpose, and goals.
Step #4: Request all the information you need
Research all the franchises on your list. Approach them and ask questions. Speak to other franchisees if possible. Key information you want to discover includes:
The type of staff they use
The amount, type, and quality of support they provide to franchisees
The training you will be offered
The health and fitness services in which they specialize
Step #5: Compare and contrast your top options
With all the key information at hand, including purchase costs, support packages, help with marketing, and training provided, you can make a comparison between all the franchises on your list. This will help whittle down to those that are most suited to you.
Step #6: Set your budget
Now it’s time to set your budget. When doing so, you should make sure to cover the running costs for the first few months ─ starting your business is always tricky.
As a franchise, one of the benefits is that you will be trading as a recognized brand, but even so, don’t leave anything to chance financially. It is best to err on the side of caution, and cover cash flow.
Step #7: Analyze the business costs and your personal finances
It’s only wise to plan ahead when running a new company. Do you think you will require an accountant to help you with your personal and business finances?
Step #8: Get funding
The best way to fund a fitness franchise is with your own money, but there are many other ways to finance your franchise business. These include:
If you have good relationships with your friends and family, you may even be able to borrow from them, though you should take care not to sour the relationship and ensure that all risks are fully explained.
Step #9: Know your competitors and your customers
Building a successful business is not easy. Some of the factors that have to be taken into account are who you plan to sell to (your target customers), and how they are currently accessing the services and products you will provide in your new business venture. You’ll need to be confident in your franchisor’s marketing strategy to help you build your business.
Step #10: Apply
Having moved through the previous nine steps now is the time to make your application to your favored franchisor. This is a much simpler process than opening a business from scratch due to the expertise, network, and resources it provides.
However, you should remember that the franchisor’s reputation hangs on the franchisees they accept. You will have to interview with the franchisor and prove that you are the entrepreneur they should be inviting into their business.
You now own your business!
You’ve got this far, and now you are the proud owner of a health fitness franchise business. Now the fun really begins!
Is a health fitness franchise the right business for you?
If you’re considering buying a health fitness franchise, take our franchise assessment to find out if you have what it takes.