2006-10-20 20:16:59 · 6 answers · asked by corkie 1 in Business & Finance ➔ Small Business
Its almost always easier to go with a franchise. They've already done what you are trying to do. The have the business plan, contacts, market research, brand name, etc. They will even provide training and support. You will not have any of that starting on your own.
If you were to open a no name sandwich shop, next to say a Subway, the Subway already has a well known name. People may come to you, but most will first go to the name they know.
Going through a franchise may also save you money in the long run. Ballys purchases thousands of treadmills. Surely they get discount rates from manufacturers that you wont be privy to ordering only 10.
Consider also, costs you save with advertising, etc. Curves advertises nationwide. You will only pay a portion shared amongst everyone.
People trust what they know and are comfortable with. Brand names are generaly more trust worthy. Wont you sign a three year contract with Ballys before you signed one with CKS Gym that might be gone in 3 months?
2006-10-20 20:25:07 · answer #1 · answered by M G 3 · 0⤊ 0⤋
Franchises have developed plans that include advertising, initial equipment, guides to running the business, including employees, insurance, and guidance on expected business planning and strategy. You often benefit from a national television campaign, or other major advertising. Franchises are spread out in such a way to minimize competition.
You pay for this through franchise fees. But it's easier (and in the long run, more profitable sometimes!) to use a franchise to set up a business.
2006-10-21 03:31:35 · answer #2 · answered by Polymath 5 · 0⤊ 0⤋
In short, you are buying into an established organization who chances are, they are already well known.
They have already had the trials and tribulations of successes and failures at different types of advertisement, marketing, demographics (help you in selecting the best location for your area).
Of course the all time favorite....they sometimes give you some starting capital to work with, which may include outfitting your center with equipment, interior decor, etc.
Ask yourself these questions, from the customer viewpoint of someone looking to join a new fitness center:
a. If you are driving up the street, would you stop at "Joe's Fitness Shack" or something more established like "Lifetime Fitness" or "Power House Gym" etc.?
b. If you are looking over coupons in the paper and the local yellow pages, which one is more appealing to you? The one for "Joes Fitness Shack" in the little corner ad with not much to offer since they have very little experience in marketing? Or the one which stands out with a well known name, good price, and reputation?
2006-10-21 03:31:13 · answer #3 · answered by mushindo98 1 · 0⤊ 0⤋
You have already been given many good reasons why you should use a franchise. I would like to recommend that you get a job in a fitness center so that you can see the inside workings of the business. You may get some ideas, see problems that you didn't expect, etc. Good luck in your venture.
2006-10-21 16:24:59 · answer #4 · answered by Anonymous · 0⤊ 0⤋
becuz you give them the money and u have a turn key operation, the formula already works, the decide if ur location is rite and u need exellent credit or lots of cash, if you dont know much about the biz this is a good way to go, I own part of a gym and we have it set up to franchise, but we mostly have a famous name and our formula is very negotionable
2006-10-21 03:21:22 · answer #5 · answered by menguss 3 · 0⤊ 0⤋
If its a good fitness center you already have the advertisement
2006-10-21 08:41:10 · answer #6 · answered by money maker 3 · 0⤊ 0⤋