Jim Judy

Jim Judy

Franchise Business Consultant
ID-100114046

Franchise profile: High margins + Low Hours = Big Win

I recently wrote about the booming fitness boutique franchise model that gives franchisees the freedom of operating a semi-absentee business while enjoying high profit margins. These businesses are a win-win for their owners, but recently one in particular has been outstanding.

 

One of the largest premium networks of boutique fitness studios in the world is boasting some staggering growth numbers this year. Already, in 2017, they are prepared to open more than 400 locations in 30 states. Their executive model is perfectly suited for owners interested in owning multiple units, while their investment return has averaged a whopping 47 percent EBITDA margins.

Not only that, but owners are enjoying these terrific margins while only working part-time. That’s because this franchise operates a semi-absentee franchise model, meaning franchisees are able to run this business investing only 10-15 hours per week. Want to know more about the semi-absentee franchise model? Read this.

 

Why are so many people winning with this franchise? Here’s why:

  • The financial structure is the popular, “Pay As You Go” consumer model so there are no contracts, no commitments and no accounts receivable.
  • Internet-based business: No salespeople required because revenue is generated online 24 hours a day, seven days a week.
  • Proprietary method of fitness instruction that teaches Flowing Block training along with several signature designed class formats in order to fit the needs of many clients. They also offer a proprietary 500-hour teacher training program.
  • Multi-unit franchise advantage: Because of the semi-absentee model, franchise owners are able to own multiple units. In fact, 80 percent of franchise owners are multi-unit franchisees.
  • Recession resistant: This style of exercise has been around for 30 years and is one of the most recession proof businesses in franchising today. During economic downturns people focus more on themselves with personal services and fitness.

Functions of the Owner

  • Oversee real estate site selection and lease negotiation. (Corporate provides knowledge and support here, additionally have contracted third-party vendors to support real estate and construction management.)
  • Oversee Grand Opening (Corporate provides knowledge and support here and spends 10 days in the studio with Owner/Manager after initial training at corporate offices.)
  • Oversee marketing (Corporate provides knowledge, plans and support here.)
  • Manage the Manager(s) (Corporate provides knowledge, tools and support here.)
  • Manage finance/accounting.
  • Hire, train, and manage Manager.

Investment

  • Investment Range: $151,150 – $237,250

Want to know if this franchise is right for you? I’ve helped more than 2,000 franchise candidates make that decision, free of charge. Give me a call at 919.846.7111 or send me a note at jjudy@franchoice.com.

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