As the proud owner of a fitness company, you know more than anyone that the same workout routine day in and day out will get you good results for a while, and then eventually you’ll hit a plateau. The same works for business, running with the same strategy and business model can lead you on the path to success for years, but innovation and taking some risks to become bigger and better is what will truly take you to the next level.
As a fitness company with multiple locations, franchising seems like the natural next step. Becoming a franchisor can be a great way to ensure the future growth of a business. However, if you’re considering franchising, you’ll want to ensure that your company is ready for it. You wouldn’t put as much weight as possible on the squat rack just to fall and injure yourself, would you? The same concept works for becoming a franchise; you shouldn’t take on too much and risk harming your business without being truly prepared for it. That’s why we’ve compiled these five signs that indicate franchising is the right next move for your business.
- You’ve developed a strong brand
Once you branch out into multiple locations, consistent branding becomes crucial to maintaining your position in the mind of the customer. A franchise’s success hinges on whether all locations have the same recognizable logo and color scheme. This reassures customers that they can expect the same quality of service no matter which location they frequent. It doesn’t matter whether your location is in New York or Los Angeles, you need to have a standard of quality customer service, staff, and facilities that is recognized and matched no matter who walks through your front doors.
- Your business processes are easily replicated
Do you have a step-by-step checklist in place for the opening of a new location? Are there common processes that all of your managers follow when hiring, tracking financial information, and ensuring the smooth operation of daily business? If your company’s locations are able to essentially run themselves, then you might be ready to hand the reins over to a franchise operator. It might be a challenge to let go of complete control of all of your locations and trust someone else to carry the weight, but in order to grow, you need to be able to trust that someone else will be able to run the show just as well as you do.
- There’s growing demand for your services
A big part of being a franchisor is making your company attractive to franchisees. If demand is growing and you see opportunities for more locations in the future, that will prove to be a big draw to anybody looking to operate a successful franchise under your established brand. In today’s health and fitness crazed world, there is always a need for a more convenient workout facility for members or a different kind of workout experience to offer to the neighborhood. The chances of the demand in this industry to run dry in the near future are very slim.
- You have money set aside to bootstrap a franchise operation
It takes money to make money, right? If you believe becoming a franchisor is in your business’s future, start setting aside funds now to assist in the transition. There will be many preparations to make, such as hiring legal and design consultants and advertising to franchisees. Come up with a franchise strategy that details all the moving parts with prices attached so you get a better idea if you’re financially ready to make the jump now or how to work harder to make it a reality in the future.
- You’re ready to be assisted by qualified professionals
As the owner of a franchise company, you will need to interact with a variety of consultants and other professionals, from lawyers to designers, to the franchisees themselves. We understand and admire that you’re the big dog in the gym, but at the end of the day, you’re only one person and will need a strong team, both internally and externally, in order to make a smooth transition to franchising. In order to grow those business muscles, sometimes you need a spotter. Make sure that you have established processes for outsourcing tasks essential to your company’s successful operations and that whoever is communicating with possible franchisees is well-versed in your business model to make sure that standards of practice are being transferred over smoothly.
Becoming a franchisor is no small feat, but neither is building a multi-location business and look how far you’ve come now. With these five steps, you’ll be able to better evaluate what it takes to make the transition and reap the potential benefits that franchising your business can bring. If you would like your own personal trainer to help with a strategy on how to take your multi-location business to the next level, please contact us!