With physical fitness a major concern among a majority of Americans—from Baby Boomers to Millennials—it is not surprising that gyms and fitness centers are more popular than ever. Many of those interested in beginning a career as their own boss have taken note of this recent “gym boom” and are keen to search out the best gym franchises for sale as an easier way to enter the market than a from-scratch startup. When perusing the available gym franchises for sale, you need to remember that although the service offered is different, at a business level running a gym franchise is subject to the same set of potential difficulties as any other franchise. Learning from the mistakes of others instead of your own is far less costly, so below we offer four common mistakes new franchisees make to help you avoid them:
1. Not Securing Enough Capital Up Front
The costs of opening a franchise, on average, are significantly lower than opening your own startup, but it is always best to over-prepare than under-prepare financially. Skimping can leave you exposed to insolvency when unexpected expenses arise. Taxes and CAM fees, for example, are sometimes more per month than your rent—which also may increase unexpectedly. Utility bills may be more than you anticipated, remodeling may become necessary, or repairs may be needed after a natural disaster. It is always wise to have a full year of funding in the bank, and some suggest securing twice the amount of financing that you think you will need.
2. Not Hiring a Lawyer and a CPA
Crunching the numbers for your new franchise will involve complex financial projections and calculations, and you want an experienced accountant to be making those calculations. When reading the contract you will sign with your franchiser, you will want a lawyer who specializes in this area to assist you so you understand the terms and know what to expect. When examining the franchise FDD (Financial Disclosure Document), both an attorney and an accountant will be invaluable. Don’t deny yourself this help to save a few dollars on an investment worth hundreds of thousands of dollars—it doesn’t make sense, and it doesn’t pay off in the end.
3. Overspending on the Wrong Things
It is worthwhile to spend extra for a great location, a move-in-ready building, or top-of-the-line equipment, but there are two areas in which many new franchisees tend to overspend. First, they often ignore the advice of the franchiser and buy lots of extra advertisements that salespeople pitch to them. Second, many well-intentioned franchisees ignore their franchise’s model for hiring employees and end up hiring too many and paying them more than recommended. In the long term, this tends to overburden their business financially.
4. Not Choosing the Right Franchise
Not all franchises are created equal, and it is crucial to work with the right one. Tapout Fitness has the name recognition, diversity of programs, extensive support network, and multiple revenue streams necessary to maximize your ability to gain and keep customers. Tapout Fitness also has a track record of attracting many of a city’s top trainers, who bring their clients with them. To learn more about opening a new gym franchise with Tapout Fitness, call us today at 800-598-8872 or fill out the online form. When it comes to gym franchises for sale, Tapout Fitness is at the head of industry, and it is also very accessible due to its highly competitive franchise fee/royalty rate.