Raising the Bar Issue 8 - Page 11

BUSINESS

HERE ARE SOME KEY TIPS TO HELP YOU CHOOSE A FITNESS FRANCHISE .

TIP 1 . Choose a franchisor who provides in-depth and consistent training .
TIP 2 . Does the franchisor have a proven and strong pre-sales strategy to get it off to a good start ? Pre-sales is key to your success ; most franchise models provide a cash flow positive opening , and these are the ones to focus on .
TIP 3 . Do your values and that of the franchisor align ? The mission statement should resonate with you .
TIP 4 . Franchisors are your support to success , so make sure they have industry professionals on their executive team as this will provide you with guidance when you need it .
TIP 10 . What ongoing fees are involved ( i . e ., percentage versus fixed weekly costs , marketing costs , etc )? As the franchisee partner , marketing levies can be audited by you . Ideally look for a fixed fee rather than a percentage for your marketing costs .
TIP 11 . What is the size of the population in your territory ? Average territory size should exceed 30,000 to 35,000 people .
TIP 12 . What workout programs are provided by the franchisor ?
TIP 13 . What are the equipment and set-up costs ( as these can be financed )?
TIP 14 . What is the digital experience and level of support for digital delivery ?
TIP 5 . Do you enjoy the style of training on offer ? It ’ s important that you believe in the product .
TIP 15 . Ensure you look at the net profit percentage ; ideally it should be greater than 35 per cent .
TIP 6 . Does the investment level match your capacity ?
TIP 16 . Wages should be no higher than 40 per cent of your net turnover / income .
TIP 7 . What is the break-even ? Boutique studios around the $ 150K break-even mark tend to be less risk , so more attractive , which is why they can be ideal entry options .
TIP 17 . Is there a re-entry clause by the franchisor , which enables the franchisor to step into the property / business in certain circumstances ?
TIP 8 . How much head office support is given during the franchisee recruitment process ?
TIP 18 . What are the KPIs built into the franchise agreement ? Make sure you see them , to ensure it ’ s a proven model .
TIP 9 . How satisfied are other existing franchisees ?
By considering these points while searching or selecting a fitness franchise , you ’ ll be positioning yourself for future franchise success . Good luck ! ®
ISSUE 8 / RAISING THE BAR 11