" This is more than a gym. This is a movement. A movement to redefine strength. To commit to your goals. To prove we can do anything." - Gold's Gym
The business I chose to franchise was Gold's Gym. I chose to get into the fitness industry because I am very passionate about fitness and would bring enthusiasm and determination to the business. It is a personal goal of mine to own a gym in the future and franchising the world's most famous and recognizable fitness center would be a very smart decision. The fitness industry is also one of the few businesses around that can survive any sort of economic downfall as regardless of the state of the economy, people will always value their health and stay with a fitness club. Gold's Gym has been in business since 1965 and now has over 650 locations in 42 states and 30 countries. Starting out by franchising a business would be a lot less risky than opening your own business for many reasons. One would be the franchisees lack of experience running, promoting, and marketing a business. Franchising a recognizable and already well known and trusted business gives you an immediate advantage as customers will already know your business and the services offered. The challenge that comes with this is that the franchisee must live up to the expectations and high level of service that the business is known for.
In order to open a Gold's Gym franchise, minimum start up capital is $400,000 and an initial investment value of $500,000-$1,000,000. The high investment is based off the reasoning that more famous, well known businesses will provide the franchisee with big returns and profits, resulting in the franchisor asking for larger amounts of investment. Gold's Gym averages $2,000,000 dollars in annual revenue so an initial investment of up to $1,000,000 makes the life span and overall return and profit of the business seem well worth it and very promising. Generally franchisors will also ask for an annual fee for the use of their name, trademarks, logo, and marketability. Gold's Gym does not specify what their fee is or whether or not they collect one.
Finding information on franchising a Gold's Gym was relatively easy. The specifics of costs and fees was limited and required a request for more information through mail or email. Basic information and overviews of how to get started were available through franchise expo and http://www.goldsgym.com/golds/franchising/
Matt after reading your blog I feel I have a better feel for the person you are also a clearer idea about Gold’s Gym. Before reading this I did not know all that much about Gold’s Gym. I believe the closest Golds Gym to me is about 40 minutes away. I myself am very interested in physical fitness and personally feel that a Gym should be like a second home and have all the amenities you could imagine. The point you made about “The fitness industry is also one of the few businesses around that can survive any sort of economic downfall as regardless of the state of the economy, people will always value their health and stay with a fitness club”, I feel you are completely correct and that self image is very important. I am interested to know if you have any ideas or a business plan for you future as a gym owner?
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