By Janice Garman
This post was written in collaboration with F45.
The fitness industry holds one of the fastest growing franchise networks in the world. The 2018 IBISWorld Gym & Fitness Franchises Report found that gym and fitness franchises account for $4 billion dollars in revenue, and the entire gym and fitness industry in the United States estimates to be worth around $30 billion. The industry has come out on top during economic setbacks, and capitalized on a number of current market trends, making it the go-to option for entrepreneurs.
With a bigger awareness around obesity and healthy lifestyle choices, and the increasing need for low risk business opportunities, the fitness industry has come out on top in 2018, and looks set to continue successfully into 2019.
So why is this such a popular choice for budding entrepreneurs looking to join the small business sector? We take a look at the industry’s current trends, proving why it has shown a 4.9% annual growth over the last five years.
A big trend in fitness franchising is to have a simple business model, a model so easy to understand that even those with very little business or franchising knowledge can grasp it rather quickly. Numerous fitness companies offer a “if you’re motivated to learn, we can teach you” train of thought, and with a small number of staff and equipment, the space and inventory is easy to manage.
Whether the franchise is ran by an owner or manager, single unit fitness franchises are small-scale studios that are simple to oversee. Additionally, fitness franchisees often benefit from the use of pre-existing marketing assets to promote their franchise on the local level using an established name.
As fitness franchises don’t necessarily need a lot of space, they’re ideal for city centers and small buildings that other businesses are unable to occupy. This makes them perfectly situated for consumers who live or work in the city, and don’t want to travel great distances just to work out.
Unsurprisingly, California and New York are currently the areas with the most fitness franchises, with10.8% and 7.1% of the country’s franchises respectively. Location convenience is a sure win for both franchisees and their customers.
With a continued steady growth forecast for the fitness industry, and an annual increase rate of 5.4% by 2020, the industry will become more and more attractive to small business owners. Americans are becoming acutely aware of the need to lead healthier lifestyles, and as demand grows for fitness solutions, so too will the supply.
The fitness franchise industry provides a reliable and resilient business solution for entrepreneurs. According to Entrepreneur, “The U.S. market currently brings in about $31 billion annually. About one in 10 of those dollars comes through a franchise, but in recent years, franchise growth has outpaced the overall industry.”
High Profit, Low Risk
Franchisors have taken considerable steps to make the costs of investing in and starting up a franchise as low as possible for franchisees. With small studios and minimal equipment as the current trend, startup costs are relatively low. On top of this, investing in a franchise brings the added luxury of in-house marketing and training assets of a well-known brand, at your disposal.
With industry profits forecast to rise to 9% by 2020, this offers potential for a high-profit return on investment, and minimal risk during setup. F45, for example, requires a total investment of between $100,000 and $300,00, and a franchise fee of $50,000, with financing assistance available. In addition, franchisees have access to a wealth of marketing assets and training assistance at all times.
If you’re considering investing in a new business, perhaps an F45 franchise for sale, the benefits of a fitness franchise cannot be overstated. With demand growing, reasonable upfront costs and available spaces in prime locations, these trends look towards a bright future for investors in the industry.