The health industry is now a profitable area if you want to venture into business. Since most people are now getting conscious about their health, there are a lot of business opportunities you can explore from health supplements and even fitness gyms. One major player in the gym industry is Anytime Fitness. With a lot of franchise locations worldwide, there’s no doubt that it’s a strong player in its respective industry.
If you plan to invest in an Anytime Fitness franchise, here’s some information you need to know:
#1. Initial investment
Anytime Fitness is a health club business that originated in Minnesota. It opened its doors to customers in 2002. Based on its branding, it is widely available in more than 50 countries in the world with almost 4,000 locations. What makes it stand out from other gyms is that it provides 24-hour gym service to be able to cater to all gym goers who want to workout in their most convenient time. Also, its continuous operation makes it accessible to all members every day during the entire year.
For you to be able to franchise Anytime Fitness, the initial cost of investment is more than 50,000 USD. This usually covers the initial franchise fee, which is a payment you’ll be giving to the company to carry their brand. Tax is not yet included in this cost and other expenses that are needed to put up a fitness gym business. If you have limited knowledge the general costs associated with a franchise, you can check the franchiseknowhow blog to familiarize yourself with this topic more.
#2. Monthly flat fee
You also need to know that the franchise company requires you to pay a monthly flat fee of around 2,000 USD. Compared to other franchises that require franchise owners to surrender a certain percentage of their monthly sales, Anytime Fitness has this fee fixed.
This fixed monthly fee can be burdensome to branches that are underperforming in terms of their monthly sales and membership profits. However, branches that have huge monthly sales mostly benefit from the fixed fee.
#3. Other costs
The business owner will shoulder other franchise costs. Setting up a gym as a business can be quite costly, especially if there are a lot of equipment and facilities you need to invest in to keep your business strong. Here are some costs you need to consider when franchising Anytime Fitness:
- Space rental
- Gym equipment
- Staff training
- Benefits and compensation of staff
A large chunk of your investment will go to buying gym equipment because almost all of them are pricey, and you have to make sure that you purchase only high-quality equipment to attract customers. Also, you have to ensure that the equipment is safe to avoid any accidents and injuries that will result in the loss of your earnings. Taking the time to do ample research will help you avoid these, as well as the common mistakes franchisees typically make.
Now that you already have a background on what types of costs are involved in an Anytime Fitness franchise, here is how this business venture will gain profit:
#1. Gym membership
Anytime Fitness gains profit by offering gym memberships to their clients. Usually, this is a great strategy to generate more money in a smaller amount of time. Also, this can provide more savings to your clients.
There are different types of memberships, and this usually depends on the duration. Clients can choose from monthly, quarterly or even annual memberships.
It’s essential to take note that gym membership rates are different in every franchise depending on the demographics and facilities available in every franchise location. It’s also possible to offer discounts and other marketing strategies to attract more clients to sign up for membership.
#2. Open for other business ventures
Compared to other franchise businesses where franchisees have limited opportunities to profit from the industry, Anytime Fitness allows their franchisees to explore other options to benefit using the company. They provide flexibility in terms of services that their branches can offer while still ensuring that different standards of the business are met.
Some offers you can include in your franchise that can generate additional income are:
- Personal training
- Vending machines
- Health supplements store
This is advantageous for franchise owners who want to maximize profitability and utilize their customer base better.
Anytime Fitness is a strong contender in the business industry that specializes in health and wellness. This business has vast potential and is still young. It seems that the company will continue to grow in the future alongside the boom of the fitness industry, so it’s best to invest early and get a franchise.