Are you a recent college graduate looking to break into the franchise business? If so, you are likely faced with various questions from the cost of investing in a franchise to the different franchise models available. To help you understand the process, this article answers some of the most frequently asked questions about the popular personal training franchise.
The personal training franchise model is an ideal option for those new to business ownership. Franchises in this industry offer an excellent return on investment, typically netting owners 50% or higher profit margins with relatively low overhead. Franchisees benefit from the security and support provided by the franchiser, reducing the risk associated with starting a business.
Before investing in any franchise, it’s important to understand the risks and benefits associated with the business. Below is a brief overview of the questions most commonly asked about the popular personal training franchise.
What is the approximate start-up cost?
The start-up cost for this franchise can range from $50,000 – $100,000, depending on the size and location of the business. This figure includes factors such as consulting fees, real estate leasing, equipment, and operational costs.
Are there any additional fees required on an ongoing basis?
The franchiser typically charges royalties and fees ranging from 2-8% based on the franchisee’s total revenue. Any additional fees, such as for marketing materials, will be outlined in the franchise contract.
What levels of support are provided to franchisees?
Franchisees of the personal training franchise receive extensive support from the franchiser, including operational and marketing training, comprehensive business plans, and access to a network of franchisees and vendors. The franchiser also offers a helpdesk to answer any questions or concerns.
What is the length of the contract?
The contract for this franchise typically ranges from 3-10 years, depending on the individual business agreement.
What is the renewal process?
Before the expiration of the franchise agreement, the franchisor contacts the franchisee to discuss whether they would like to renew their contract. If they decide to renew, they will need to review and sign a new contract with updated terms and conditions.
Are there any restrictions imposed on franchisees?
Franchisees are required to follow the operating guidelines set forth by the franchisor, such as operating hours, staffing, advertising, and product/service pricing. Additionally, companies have various guidelines for franchisees to adhere to in order to maintain a certain level of quality.
What type of businesses are accepted into the franchise?
Most businesses are accepted into the franchisor’s network, but there may be certain criteria that are used to determine the eligibility or fit of the candidate. The franchiser may require that the business have a certain level of revenue or cash flow, that it has prior management/marketing experience, or has participated in initial business coaching.
Are financing options available?
Yes, the franchiser offers various financing options which allow franchisees to pay for their investment over time. Additionally, some financial institutions may offer financing to qualified candidates.
What is the process for obtaining licensing?
The franchisees will need to secure the proper licensing from both state and local authorities before opening a location. Depending on the type of business, additional certifications may be required such as industry certifications, health and safety certifications, and business insurance.
Franchising into the personal training industry can be an exciting and rewarding venture. Investing in a franchise offers the support of a well-established brand, the guidance of an experienced franchiser, and the potential for a profitable return on investment.
If you have more questions or need assistance to better understand the franchising process, reach out to the IFPG team. Our experienced franchise consultants are here to help you make an informed decision that best fits your unique circumstances and goals.
Topics: Popular Personal Training Franchise, Franchise Risks, Start-up Costs