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How the fitness market is driving healthy profits

Posted: 15 Feb 2019
Estimated Read Time: in 12 minutes

The fitness industry is leading franchise success worldwide, according to Tom Welter, chief operating officer of Snap Fitness

How the fitness market is driving healthy profits

In one of the most competitive sectors in the world, fitness franchises have continued to be a leader in the franchise industry by evolving with trends and the needs of members.

With low costs of membership, low overheads and the interest in health and wellness increasing across the globe, the fitness industry is leading the revolution in franchise success worldwide.

It’s never been more exciting to be part of the fitness industry. The fitness market is estimated to grow at 1.5 per cent between now and 2022, with franchise brands estimated to grow twice as fast, according to research by IBISWorld.

Additionally, according to a July 2018 study, as disposable incomes increase, purchasing gym memberships will increase as well.

US and European fitness trends

The fitness industry in the US has grown approximately 2.8 per cent in the last five years, increasing revenue to over $34 billion in the 2018 fiscal year. The number of fitness club members has increased to 60 million, with a four per cent growth in membership growth across the EU, including Norway, Russia, Switzerland, Turkey and Ukraine.

Across both markets, there has been an increase in offering low cost memberships with available perks for additional costs, longer operational hours for convenience and group fitness classes and boot camps to build a stronger community.

Growth opportunities

Consumers are seeking opportunities to improve their health and wellness more than ever, while there’s an influx of executives looking to leave the daily grind of the 9-5 and make a greater impact on their community, thus making the fitness industry one of the most rewarding industries to be in.

However, the success of fitness franchisees stems from a much deeper intent to help people. They get up every morning and want to make a difference in other people’s lives and help them succeed in their mission for better health and wellness.

The growth opportunities continue to increase, mainly because for every one person who belongs to a gym, there are four more who don’t. Gym owners have the opportunity for their business to be advertised both by word of mouth and through the marketing efforts provided by their corporate office.

Wellness mania is taking over, which means the fitness industry is not a zero-sum game, as fitness franchisees have the opportunity to combine their offer of fitness with other tools to create custom health and wellness plans.

This means owners can offer more than a fitness opportunity. They can provide a membership that includes personal training, custom fitness plans, heart rate training technology, fitness trackers, nutrition plans and subscriptions to protein or vitamin distributors, which provide additional value.

And as the fitness industry becomes more fragmented, it will grow further. Every gym offers unique value propositions that members can opt for, which will inevitably drive revenue.

Snap Fitness, for example, gives members the opportunity to purchase a heart rate training belt and work one on one with a trainer to achieve their goals, while building personal relationships and keeping members coming back.

The customer base is also wide. The focus on health and wellness is reaching every demographic, with a focus on preventing long-term diseases, fighting obesity and living a healthy, active lifestyle.

Biggest benefits

Individuals who are passionate about health and wellness often become fitness franchisees. People who have a background in business, personal training or who want to help people change their lives are also attracted to the industry. The biggest benefit of investing in a fitness franchise is that the business model provides franchisees with all the tools they need to stay on trend, build their business and continue evolving.

Another upside is brand recognition. Buying into a brand that has already established itself is going to give you a competitive edge against smaller, local fitness clubs.

Whether you’re interested in focusing on a boutique-style fitness experience or a big box gym, there are a variety of growth and success opportunities across the board.

Snap Fitness prides itself on offering variety, including functional fitness, cardio and strength training, group fitness classes and personal training.

Recently, the brand started focusing on providing members with daily intensity workouts known as MYFIT, a new 18-minute workout that’s available to members any time, anywhere.

As a results-focused business, Snap Fitness offers a full suite of business support for every owner to ensure they have the tools they need to succeed. From financial options to marketing and overall business support, the company seeks to provide both owners and members with everything they need to achieve their goals

Future of fitness

As public health initiatives continue to add to our health conscious climate, fitness franchises will rise to the occasion and be among the most successful opportunities in the franchise industry.

With a growing demand for variety in the fitness industry and trends changing so quickly, fitness franchises are focused on providing their owners with the opportunity for financial achievement from the very beginning.

It’s clear that a focus on health and fitness is not going anywhere any time soon, so if you’re interested in getting in on the ground floor, now is the time to join the charge.

 

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