The number of fitness franchise systems in Germany has grown strongly in recent years. There are now concepts in almost all segments and for all age and target groups. In this article, you can read about the advantages of franchising for fitness studios and what you should look out for as a franchisee.
There are basically two ways to start your own business. Either you develop your own business model, which the entrepreneur optimizes piece by piece and day by day. In doing so, he is challenged in operational management. Variant two: The start-up entrepreneur falls back on already established and successful business concepts. In this context, I like the saying I saw in advertising the other day: "Originality is overrated - smart minds copy smart minds."
What is franchise?
The word "franchising", influenced from the English language, stands in business for distribution systems, with the help of which products, services, knowledge or technologies are marketed in compliance with a given standard.
Almost everyone knows and thinks of McDonalds when they think of franchising. The business model of Richard and Maurice McDonald, who opened their self-service fast-food restaurant as early as 1948, was adopted as a restaurant concept by Ray Kroc. The latter defined the "QSS - Quality-Service-Cleanliness" mission statement, which is still binding for all restaurants today. Since then, the restaurant chain has experienced exponential growth. Did you know that the "Big Mac" we all know was invented by one of its later franchisees named Jim Delligatti in 1968?
So what exactly is franchising?
Franchising is a business concept in which franchisors grant their license to franchisees. Franchisors are usually established companies, franchisees, self-employed people. For the license, the self-employed person pays franchise fees to the franchisors because the business idea comes from the franchisor.
To put it simply, what happened to Ray Kroc with McDonalds at the time, he saw a good company with a successful business model. He decided to become a franchisee. He benefited from the experience of a good business model, from the idea to the implementation in the operational business.
What do you have to look out for as a franchisee?
Here's what you should look out for in franchise models:
- Where and for whom is the franchise concept suitable - potential analysis and target group.
- Is a franchise manual handed out with all important information about the business model, cost structure, training of the franchisee, current fees and charges, etc.?
- Are the contractual documents and the consulting services legally secured?
- Is there a marketing strategy - both for the franchise system and for the franchisee's own location?
- Does the potential franchisee receive training to support the business model and the necessary support for themselves and their employees?
By the way, one example of a successful McDonalds franchisee is the former professional boxer Henry Maske. He is now the proud owner of ten McDonalds stores with 350 employees.
Franchise model in fitness, health and rehabilitation sports
Anyone looking for a franchise model as a trainer or career changer will quickly find what they are looking for at the German Franchise Association. Examples in the fitness sector are clever fit, EASYFITNESS and INJOY.
In the area of rehabilitation and health sports, there is, for example, the RehaBox concept. In our market overview you will find the most important providers of fitness franchise systems.
Advantages for the franchisee
Franchisees benefit from several advantages:
- Lower risk due to a proven concept an already known and established brand
- Shorter start-up time and preparation for foundation
- Easier customer acquisition
- Transfer of know-how - franchise manual
- Location protection through territory protection
- Internal and external marketing campaigns
- Access to foreign industries also possible as a career changer
Some entrepreneurs feel somewhat constrained and dependent by the franchisor's predefined CI and CD. The chance to claim that one has developed it all oneself is not given.
The path to becoming a franchisee
- Research which different franchise systems exist and what makes them stand out. The franchise system should fit your needs, competencies and expectations.
- Check your own financial situation and the costs of the franchise system (onboarding and ongoing fees).
- Contact the selected franchisors. What is the philosophy and culture behind it?
- Once you have made a decision: Sign franchise agreement, complete necessary training and start doing business.
Conclusion
Franchising is a good option for those who want to start their own business and rely on proven concepts. By partnering with the franchisor, the risk is minimized - but it is not zero! Franchisees will and should commit to the franchise system of their choice for several years and implement consistently.
Source and image source: BODYMEDIA
Published on: 25 September 2023