So you’re ready to embark on your next business venture, and you’re considering investing in the high-growth Australian fitness industry. If you’ve started looking at the market, you’ll have spotted that the majority of studios and fitness businesses in Australia are franchises.
While there’s no shortage of opportunity for both independent fitness businesses and franchise fitness businesses, there are some key reasons that franchises dominate the market – and not just here in Australia, but globally too.
At XTEND, we know exactly why the fitness franchise machine work so well. Let’s take a look at some of the reasons investors and customers continue to choose fitness franchises.
Why choose a franchise business?
1. The power of the brand helps build customer trust
One of the big differences between a franchise and an independent business is that you’ll be joining a brand that’s established in the market. An established brand means that right from the get go your business will already be recognisable and credible to your customers – a huge advantage.
When opening a new business, one of your first hurdles is finding customers. When you choose to invest in a franchise, the foundations for doing this have already been laid for you. Most franchise networks will support you in finding and retaining your customers, helping you get to break even faster.
You’ll also benefit from national exposure thanks to your franchise brand’s investment in marketing and media. This brand recognition will serve you well when it comes to growing and retaining your customer base.
A strong brand also means that customers know your business is credible and trustworthy. This is particularly important in the fitness industry, where your customers will literally be trusting you with their health, wellbeing and safety.
2. There are opportunities to grow and expand faster
Some franchises have neighbouring territories on offer, allowing investors to increase their footprint and customer base while sharing resources – helping maximise their return on investment.
At XTEND, we’ve seen huge success from our franchisees who have leveraged economies of scale and invested in multiple studios.
3. Gain access to proven systems and processes
The reason franchise brands are what they are is because they have easily replicable and clearly successful systems and processes. They know what works for their business model, and will have tested and refined their systems so that everything works as it should – saving you time in getting your systems set up and running smoothly.
From the platform your clients use to make a booking at your studio, to tools for local area marketing – your franchise should have all the systems and processes you need to make life easy for you, your staff and your clients.
4. Get your own built in support crew
When you join a franchise, you’ll have your own crew of business advisors and peers who are invested in your success. That means benefiting from their collective knowledge, and gaining valuable insights that have been uncovered after years of experience. In most cases, you’ll have a field manager to help answer any questions and get you on track to breaking even.
5. Franchise businesses have a higher rate of success
Did you know that franchise businesses in Australia have a higher rate of success than independent small businesses and start-ups? Franchises have a proven value proposition and model for success – and for this reason you may even find it easier to secure funding for your franchise business from banks.
6. There’s start-up support to get you up and running
Franchise networks have a tried and true methodology for launching new businesses – so it’s likely you’ll have support for things like finding your location, fitting out your space, and marketing your launch event. Your franchisor’s knowledge of market rates will be invaluable when it comes to negotiating your lease, and they may even help you with your negotiations directly.
So, is buying a franchise a good investment?
There are plenty of benefits when it comes to joining a franchise network, but there’s more to it than what we’ve just discussed. If you’re going into business with a franchise network, you want to be sure they’re on the same page as you.
When you’re starting your discussions with a potential franchise, don’t hold back with your questions, do your due diligence, and maybe even ask if you can chat with an existing franchisee. The right partners will be happy to help you, and it all helps to build a picture of whether or not a franchise is right for you.
Want to talk to our team about XTEND franchise opportunities?
We’re here to answer all your questions. Fill out the form below and we’ll be in touch.