As social distancing guidelines loosen and business activity resumes, industry operators are expected to see an uptick in demand for industry services in the remainder of 2020.
Due to the health crisis with the coronavirus, the concern about the rates of obesity, high blood pressure, diabetes (the high costs of medical care), the need is evident and greater awareness is created about the benefits of physical activity, the Americans are gearing up for a return to gyms, turning fitness franchises into a growth industry with the implementation of new security protocol measures and renewed
Consumers are beginning to view gym fees less as a leisure expense and more as a vital expense.
According to a recent report from IBISWorld, gym and fitness franchise revenue grew at an annualized rate of 4.9 percent over the past five years, to an estimated $ 2.9 billion in revenue for a total of 9,427 businesses. In the five years leading up to 2020, revenue is projected to grow even faster at an annualized rate of 5.4 percent to $ 3.7 billion.
Fitness equipment facilities
The main service provided by gym and fitness franchises is access to facilities with fitness equipment, including weights and mats, and exercise machineries such as treadmills, ellipticals machines and exercise bikes.
Additionally, health clubs offer instructor-led classes that include yoga, spinning, and kickboxing (15 percent of income) on a fee basis or as part of the membership.
Specialty and high intensity
Consumers seeking comfort are also drawn to specialized studios that offer high-intensity workouts, which means less time in the gym and more calories burned, training efficiently, longer hours.
For whom and where?
Americans are striving to make healthier lifestyle choices and join fitness centers in greater numbers. Additionally, health insurers and employers encourage these healthy choices by subsidizing or reimbursing membership dues, in hopes of reducing costs in the future.
In general, the key demographic that goes to the gym (adults ages 20-64) is growing.
The group includes both baby boomers and their adult children. Due to its huge purchasing power, boomers can pay for more memberships in gyms AND, health clubs that can meet the needs of their senior clientele by offering new products focused on blood pressure measurement, bone mass monitoring among others.
Adults ages 18 to 34 attend gyms the most at 35 percent, followed by those ages 35 to 54 and those over 55.
Preferably the location for clients in urban areas, which are close to their residence and places of work
High profits, low barriers to entry with the franchise
Automate training and implement keychain entry and security systems to provide 24-hour secure access without the need for additional staff. Gyms can also improve their margins by serving a growing segment of higher-income but busy members seeking the services of personal trainers.
Franchisors have also taken various steps to reduce franchisees’ startup costs. Franchisees benefit from modest initial investments to start, with a single location, Entrepreneurs benefit by obtaining a franchise in aspects such as the purchase of equipment, advertising in-house design service, real estate services, and financial assistance through obtaining the franchise.
Use of technology
As the industry acquires more participants, the most competitive franchises will make the smartest use of technology, not only to streamline operations but to offer more personalized virtual services, from meal planning and goal tracking to online personal training programs. and community forums.
However, the more Americans perceive exercise as a health necessity, the less likely they are to drop their gym memberships.
As the American people, the government, and insurance providers continue to place greater emphasis on health and fitness, we can expect to see the demand for easy access to fitness centers continue to grow.
If you are considering becoming a gym owner, you can move forward knowing that it is a healthy option for your future.