Anyone who wants to realize their dream of owning their own gym has a choice of numerous franchise systems. The CrossFit company has come up with a somewhat different start-up concept. How does it differ from the conventional franchise system? What are the advantages and disadvantages?
What does the classic franchise system look like?
If you want to take the leap into self-employment and open your own gym with little risk, you can fulfill your dream with a franchise . In Germany alone, there are numerous options to choose from. The best-known franchisors include McFit, INJOY, clever fit and Mrs. Sporty. The absolute leader in terms of franchises is probably clever fit, with over 400 locations in Europe. Do you want to fulfill your dream of owning your own gym? Then the franchise concept is a good choice for you. We tell you which advantages and disadvantages result for you as a franchise partner.
Advantages of the franchise system:
- You take a lower risk because you open your studio under an established name and with a successful concept.
- You benefit from the reputation and experience of the franchisor.
- You get professional support with everything that is necessary to open your own gym.
Disadvantages of the franchise system:
- You have little freedom in designing your gym. The franchisor's existing concept is contractually binding.
- You need some equity capital. At clever fit, for example, the biggest player among the franchisors, this is around €60,000.
- In addition, there are franchise fees, which are calculated on the basis of the monthly turnover, as well as advertising and other fees.
- You often tie yourself to the franchisor for many years.
CrossFit Box: Equipment and costs
What does the licensing system consist of?
According to its own statement, CrossFit does not have a conventional franchise system. Therefore, opening a CrossFit Box franchise is not an option. However, you have the chance to obtain the Level I trainer license and become an affiliate . With this affiliate status, you simultaneously acquire the right to open a CrossFit box under the same name. Instead of a franchise system, CrossFit works with a license system.
In total, you have the opportunity to acquire three CrossFit licenses: trainer license level I, II and III. However, the basic requirement for opening a CrossFit studio is only the CrossFit license level I, which entails a two-day course and costs a one-time fee of 1,000 US dollars. In addition, an annual license fee of $3,000 must be paid, which goes directly to the parent company. However, compared to the franchise system of traditional gyms, there are no other fees. Besides this financial one, there are other crucial differences between franchise and license system.
Differences: License system versus franchise system
The big difference between the license and franchise system is that as a licensee, you don't have to pay any fees to the company besides the fees for the trainer's license and the annual license fee of $3,000. This is different from the franchise system, where in addition to a high level of equity, an annual sales-based franchise fee and an advertising fee must be paid. As a franchise partner, you are often tied to the company for several years, whereas as a licensee you can leave at any time without difficulty. You only have to pay the license fee and are otherwise not accountable to the licensor.
While as a franchise founder you can count on the professional advice and support of the franchisor, as a licensee you have to take care of many things yourself. This can be exhausting, but on the other hand, it gives you more freedom in designing your gym.
Thinking about starting your own CrossFit box business? Then take your chance and contact the professionals at fitnessmarkt.de. We will answer all relevant questions and guide you through the start-up process.
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Editorial fitnessmarkt.de (EA)
Picture credits: #172320801-watman-AdobeStock
Published on: 17 June 2019