Multi-Unit Franchisee Magazine Issue II, 2013 | Page 11

Health Stats
By FRANdata

Franchising Health
FRANdata reports on the state of franchised health brands

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ittle has changed in health-related brands since last
year’s report. FRANdata still tracks 11 sectors across
four industries: child-related, health and fitness, QSR,
and retail food. The vast majority of brands aim at
helping shed excess pounds, treating weary bodies through massages, or on handling the decline of physical abilities through
home healthcare; only a minority focus on what goes into our
bodies by trying to influence what we eat.
At the end of 2011, the latest year with complete data,
more than 400 health-related brands operated about 33,000
franchised businesses. Fifty-three operated at least 100 franchised locations and controlled 28,665 units, 86 percent of
the total. Only 15 percent of health-related brands started
offering franchises before 2001. The oldest brands have roots
in the 1960s, e.g., Gold’s Gym (fitness centers) and Interim
Healthcare (home healthcare).

Only GNC operates in the food-related segment (some
may argue whether brands of this type are strictly in food as
GNC focuses on supplements, not healthy meals). With 924
franchised businesses, GNC is also the only food brand in
this segment that operates close to 1,000 franchised locations.
The next largest concept in food is Smoothie King, with 532
franchised businesses. In fact, the only food brands that have
managed to gain scale are dietary supplement outfits such as
GNC or Complete Nutrition. However, of the 10 largest food
brands in the health-related sector, 8 are smoothie concepts,
and Smoothie King and Jamba Juice have blazed the trail.

Ten Largest Food Brands in Health-Related

Brands Starting to Franchise in the Health Industry

As of 2011, the 10 largest brands in this industry were
dominated by fitness concepts such as Jazzercise and Curves.
Since it peaked at 7,885 franchised units in 2005, Curves has
continuously lost units at an average annual rate of 12%; as
of 2011, it was down to 3,523.

Ten Largest Health-Related Brands

More recent developments affecting health food concepts
include changing demands and new regulations. In anticipation of consumer demand and possible federal regulations,
regular restaurant chains not known for a specific focus on
health have started adding more nutritious choices to their
menus. For example, Sbarro now offers a “skinny slice,” with
a different mix of cheese and more vegetables at 270 calories.
This may have interesting implications for food brands
with an exclusive “health” focus. So far they have not managed to gain a significantly higher market share in the health
space. However, as their less healthy cousins in QSR discover
opportunities through providing healthy options, they may
add to consumer choice and thus increase the overall share of
healthy eating choices in the coming years. If and how smaller
and less well-known health food brands will rise with the tide
will be an interesting trend to observe.
Source: FRANdata, “Franchising in the Health Industry: A Report
on the Growth in Franchised Health Brands,” February 2013.

Multi-Unit Franchisee Is s u e II, 2013



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