The Best Fitness Franchise. http://MyFitBodyBootCamp.com
Hey! Bedros Keuilian here, and I'm the founder and CEO of Fit Body Boot Camp, and today, I want to talk to you about a long-overdue video that I've been meaning to make, which is how to find the best fitness franchise model for yourself.
I've done a lot of research while creating the franchise model, and I wanted to share this with you if you're out there looking for the best fitness franchise model to get into. So, here are some things you ought to look out for, and here are some things you ought to consider asking the franchisor before getting on board with them.
Fit Body Boot Camp Directory: http://FitBodyBootCamp.com
Thing #1 is, what is the buy-in fee, and what does the buy-in fee cover? Now, typically, every franchise has a buy-in fee, and that is a source of profit for them and it's also a source of revenue for them to use for the deliverables they're going to give you from the get-go.
Thing #2 to look at is the equipment that you're going to buy. Many franchises out there will ask you to buy the equipment through them, and when you buy the equipment to build out the franchise through them, there's a significant markup. It's in your best interest to find out what the equipment cost is going to be, in addition to the buy-in fee, and what your limits are -- whether you can shop outside for the best discount, or if you're committed to purchasing that equipment from them.
Thing #3 to ask and look out for is, what are my franchise royalty fees? Now, the standard practice out there is to charge between 6%-8% of your gross monthly revenues, which depending on the service they're offering and the support they're giving you as you're on board with them, that may be an awesome thing, but look at it this way -- if your franchise is doing $20,000/month after, let's say, a year of two of being open, and they're taking 6% of that, they're effectively getting paid $1200/month on the $20,000/month that you're making. As you grow your business to $30,000/month, that 6% now translates to $1500/month. You have to ask yourself, "Am I getting the equivalent of 6% of my gross revenue of services, support, and help from the franchisor? Are they helping me grow, or am I growing the business myself and giving them a larger dollar amount each month with that franchise fee?" Consider finding a franchise that has a flat franchise fee of a flat dollar amount.
The #4 thing that you're going to want to look at is, how long is the term of this franchise? Standard practice out there is as much as a ten-year commitment to a franchise, which is okay. There are plenty of franchises out there -- Subway comes into mind, McDonald's comes into mind. Now, if you're not comfortable with the track record of that franchise -- they haven't been around long enough and they're not a big, national brand yet -- you may not want to consider signing that eight or ten or even twenty-year franchise agreement with them, right? That's something you definitely ought to look out for as well.
Of course, the #5 thing you ought to consider when looking for a good fitness franchise model to be a part of is, what is the level of coaching and support they give you? As a business owner, your problems are going to always change. When you first get on board with the franchise, the #1 problem you're going to have is finding a location and negotiating your lease for that location. As you grow, you're going to have marketing and sales problems, right? They're all good problems to have, good challenges to have, but if you have the support from the franchisor in helping you negotiate the lease, guiding you in the size of the location you're looking for, the demographics to open up in, you're going to have a greater success rate from the get-go. As you get into your location and you grow your location, you're probably going to need more staff. Is the franchisor able and capable of helping you to hire and train those actual employees that are going to help you out in automating your business so you can actually take some time off?
Those are some of the top five, I guess, red flags that I would share with you when you're looking for a franchise business model, especially in the fitness industry, to go into. Of course, if you have any questions for me, if there's any support that I could give you, you can reach out to me by going to our websites here:
Visit my blog: http://ptpower.com/
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