WHAT IS A FRANCHISE
Quite simply put, franchising is a method of distributing products or services through a licensing relationship. In franchising the franchisor (the company providing goods or services under an existing brand) grants a license to a franchisee, who can operate under the trade name / brand of the franchisor. However, the function goes way beyond that. Below, we explore some of the characteristics of franchising, so if you are considering purchasing one, you will be more knowledgeable about it.
There are two different types of franchising models. The one that we will look into is Business Format Franchising. In this format the franchisor provides the franchisee with more than just a trade name. It provides the entire system for the operating business. The franchisee will generally receive site selection, development support, operating manuals, training, brand standards, quality control, a marketing strategy and business advisory support from the franchisor.
The truth is franchising is about relationships. The relationship between the franchisee and franchisor is what it is all about. The franchisor has to be able to deliver on the support, while the franchisee has to be able to meet its obligations in delivering the products and services in a way that is consistent with the system’s brand and quality standards. Here are some key stats as provided by the IFA (International Franchise Association).
90% of franchisees enjoy operating their business.
88% of franchisees enjoy being part of their organization
85% feel positive about their relationship with their franchisor
83% respect their franchisor.
80% feel their franchisor operates with a high level of honesty.
78% would recommend their franchise brand to others.
73% would do it all again if they had the option.
The majority of franchisees fit into the model described above. However, if you are looking into franchising there are additional things you must look at. As a very successful health club franchise, we believe these are the 3 top factors to consider.
1. Will you like what you will be doing?
You must truly enjoy what you do. That is why many of our franchisees chose to own a gym. They like fitness and wellness and appreciate being able to help people better themselves day in and day out.
2. Are you looking at the long term?
A successful industry today does not necessarily mean a successful industry in a year. We suggest you avoid trends or franchise business’ that appear to be the “the next big thing.” Our franchisees find comfort in knowing that this industry is consistent and has had year over year growth for a very long time.
3. Revenue Potential
Take a very careful look at the revenue potential. You need to forecast your profitability with best case and conservative scenarios. Also analyze the seasonality of the business and revenue streams. One thing our franchisees love about the fitness industry is the many sources of revenue that come from a fitness club such as: membership fees, personal training fees, classes, kids club, supplements, apparel, and more.
For more information on the exact cost of a Zoo Gym franchise and other details, we ask that you fill out the form below and request a Free Franchise Toolkit for Success. This will tell you everything you need to know so you can make an educated decision on whether this opportunity is right for you.