UK Fitness Franchising Boom

by Jo Talbot (Health Club Management Journalisat)

Franchise opportunities in the health and fitness industry in the UK are booming. Jo Talbot delivers a round-up of what’s available

If you’re thinking of expanding your business, franchising could be a sensible option. Jan Spaticchia, chair and CEO of The énergie Group and widely regarded as one of the pioneers of the recent UK fitness franchise emergence, explains: “Franchising allows for significantly faster growth and makes it entirely possible to grow a much larger network of clubs than any of the current market leaders have achieved. With owner-operators investing in their own futures, franchisors are able to focus their investment into the brand, infrastructure, systems and centralised services.”

Likewise, franchisees benefit from a ‘business in a box’ – an established business and brand with a support package that takes all the guesswork out of running your own company.

Says Spaticchia: “Franchising in general has grown rapidly in recent years. The industry is very well developed in the UK – it’s now worth an estimated £10.3bn per year and has extensive support from both the key UK banks and a very effective Franchise Association.

“Franchising in the fitness sector, however, has only started to develop on any sort of scale in the last five years, and early entrants such as Curves and The énergie Group have uncovered strong appetite among British entrepreneurs.”

The énergie Group is an example of the potential for success. With a network turnover now passing £5m, it has a portfolio of niche products including énergie fitness clubs; énergie fitness for women; SHOKK énergie for the youth fitness market; and énergie personal fitness. Further products coming on line this year include énergie physio, énergie day spa, and Juice Master powered by énergie, with more are in the pipeline in the areas of weight management, performing arts and business impact.

Spaticchia adds: “One of my cofounders, Steve Philpott, had extensive experience of pub tenanting as a method of stimulating growth. We identified that there was an opportunity to replicate this success in fitness.

“Through franchising, we take advantage of an ‘alternative capital market’ and leverage the power of the owner-operator to achieve network growth. Larger groups have the advantage of scale, brand awareness, systems and buying power. Conversely, independent clubs have the advantage of being close to their customers, the ability to make swift decisions, and the ability to make a direct difference on the coal face. Franchising offers the best of both worlds.

“Pub groups discovered the power of tenanting years ago; it’s time for fitness clubs to discover this same advantage.”
Over the next three pages, we provide a round-up of some of the franchise opportunities available in the health and fitness industry.

For a round-up of health club based franchises visit www.health-club.co.uk/images/HCMApril08-franchise-roundup-table.gif

Other health & fitness franchises are listed below: -

JUICE MASTER POWERED BY ÉNERGIE
Offer: Brand new joint venture between énergie and Juice Master juice bars
Cost: From £30k, inc. £15k franchise fee, plus 6% continuing fee
Return: 20% profi t, return 150%+
Qualifications needed: None
Website: energiefranchise.com

4DFITNESS
Offer: Mobile personal training and lifestyle coaching company offering franchisees a high level of support
Return potential: £40,000
Experience: Sport/exercise experience preferred, energetic, friendly
Website: 4Dfitness.com

TUMBLETOTS
Offer: Physical movement for 2-5-year-olds
Cost: £8,500 + 20% royalties fee after yr1
Projected turnover: Assuming 10 nurseries, from £26,880 Year 1 (24% ROI)
HQ: West Midlands (16 support staff)
Training: Technical and business training
Website: leaps-and-bounds.co.uk

FITKID
Offer: Community fitness classes for kids
Cost: From £8,500+VAT + 8% of turnover
HQ: Poole, with five support staff
Included: Onsite training (a national qualification), play equipment, merchandise, marketing plan
Website: fitkid.com

ACTIVEKIDS
Offer: Multi-sport activity teaching in schools for children aged 3–11
Cost: £8,000 plus 10% sales fee and 10% advertising levy
HQ: London, with 6 staff
Included: Ongoing training, equipment, marketing, set-up and business support
Website: activekids.biz

YOGABUGS
Offer: Only franchisor of children’s yoga
Cost: £9,900 +VAT
Continuing fee: 12% less VAT paid monthly plus 2.5% marketing levy
Potential turnover: £150,000 year one, £300,000 year two
HQ: London
Website: yogabugs.com

ROSEMARY CONLEY
Offer: Diet and fitness clubs
Franchise fee: £18,500 +VAT (£16,222 +VAT for qualified exercise instructors).
Potential turnover: £100,000 assuming 12 classes per week.
Existing UK franchisees: 180
UK HQ: Leicestershire, 40 support staff
Website: rosemaryconley.com

COACH ME SLIM & TRIM
Offer: A low cost start-up six-week weight loss diet and fitness coaching programme delivered in a personal training format
Cost: Licence £395, plus equipment
Return: Take home all profi ts from sessions, e.g.10 sessions per week at £38 = £1,520 per month
Included: Training seminars, subsidised workshops, marketing materials
Qualifications: REPs Level 2
Website: coachmeslim-trim.co.uk

THE LITTLE GYM
Offer: Curriculum-based gymnastics for children aged 4 months to 12 years
Cost: £150k-£250k (franchise fee £55k)
Includes: Gym equipment, training, marketing, support consultant
HQ: US. Belgium holds master franchise for Europe. 1support staff member in UK
Franchisees: 366, 15 in UK
Website: thelittlegym.co.uk

CLICK PERSONAL TRAINING
Offer: Home-/studio-based PT business
HQ: Yorkshire (4 support staff)
Cost: c. £15,000 (inc. franchise fee £9,990 +VAT) + 10% continuing fee
Includes: CYQ Level 3 personal trainer qualification, business training, website with online bookings system, £1,500 of equipment, uniform, CPD
Turnover: £53,600 working full-time, expect to pay off investment in 6 months
Website: clickpersonaltraining.co.uk

BOND FITNESS
Offer: A mobile personal training business. Total package provided
Cost: £12k + van lease, £52 p/w management fee (£70 after yr 1), and £18 advertising levy (£23 after yr 1)
ROI: £62,100 (for 10 sessions per week)
HQ: Hertfordshire, four support staff
Included: Business training and support, PT equipment, marketing support
Website: bondfitness.co.uk

INSPIRING FITNESS
Offer: A personal training business
Cost: £15k plus 20% of income
Includes: Training (24 CPD points per year), equipment, marketing plan, materials and support, IT package, car
Turnover: £50k (assuming 25 sessions pw), profit £35k
Number of franchises: 12
HQ: Coventry, with 9 support staff
Website: personal-trainer-franchise.co.uk

LIGHTER LIFE
Offer: Weight loss/management business
Total personal investment: £25,100 Licence is £1,000 per year after year 2
Turnover: From £40,000 pa
HQ: Harlow, 86 support staff
Qualifications: None – comprehensive training provided. There is a careful selection process
Website: lighterlife.com