Shall I open an independent gym or a chain?

Starting a gym by yourself can be overwhelming. A number of opportunities may open up when you are able to turn your fitness experience into a business. However, holding a franchisee or owning a gym in Europe has its own set of opportunities and challenges. The below mentioned facts help you understand more about both independent and chain gyms and assist you in making an informed decision.

 

·   License Fee: Buying a franchise is not a cakewalk because such deals come with substantial costs. In order to obtain a franchise, you have to pay a license fee which might cost you several hundred thousand dollars. The payment on the revenues earned and the fees for co-operative advertising are additional. Unlike franchise, independent gyms do not require to pay the initial fees for licensing. Therefore, the buyers can make monthly payment rather than making one-time payment.

 

·      Expectations from the clients: As all franchise locations offer the same amenities, fitness enthusiasts know what exactly they can expect. But, the business operations, vendor relationships and marketing activities undertaken by the franchise gym owner must strictly comply with the franchisor’s guidelines. On the other hand, at independent gyms, the owner has the liberty to offer training, choose equipment and amenities which he/she finds most successful.

 

·     Information on Finance: In order to demonstrate that the franchisee has enough ability to build a gym, equip it and appoint enough staff, a franchisee must mandatorily submit documents that will prove its financial standing. A failed franchise will certainly affect the franchisor negatively. However, the owner of an independent gym doesn’t have to submit financial documents to anyone unless the owner is going for a bank loan. Also, the success rates of independent gyms are greater compared to chain gyms.

 

·    Marketing: Marketing advice and assistance for franchisee are mostly provided by franchisors. In an independent gym, the owner takes up the sole responsibility of marketing the services that his/her gym offers. If the owner isn’t professional in marketing activities, then there are possibilities that he/she may fail to implement effective marketing programs.

 

·   Support: In many aspects of the business, such as choosing business location, equipment, marketing and training, the franchisor guides the franchisee. Additionally, the franchisors are accountable for setting up vendors and negotiating discounts. This may curb the freedom of the franchisee. On the other hand, independent owners can focus on helping their clients to improve their fitness rather than worrying about restrictions imposed by the franchisors.

 

 

Though independent gyms and big chain gyms differ from each other in terms of atmosphere and amenities, independent gyms are always affordable and recommended. Some of the additional amenities that you can expect in independent gyms include:

 

·       A smaller, friendly and private space

·       Relatively less expensive packages

·       Close attention paid by trainers to fitness enthusiasts

·       Pay-as-you-go or monthly payment options

 

The emergence of cross-fit gyms, in the recent years, in Europe, has also enabled independent gyms to take over the franchise gyms. Furthermore, many chain gyms have failed to be on par with the latest trend in the fitness industry.

 

Notably, experts believe that franchising is a commitment. Only a good match between a franchisor and a franchisee can lead to the success of a franchise unit. Conducting an in-depth research can help you make an informed decision.