Franchise Spotlight: Sports and Fitness
Lean business models and financial muscle power the success of numerous franchise networks.
Sports and fitness franchises predominantly provide instructors, facilities and equipment needed for various forms of sport and exercise. This can include gym and health club chains, and dance, yoga or cycling studios. However, the sector can also include businesses like retailers of sports and fitness clothing, equipment and accessories.
The industry growth rate is propelled by the fact that three in 10 Australian adults are members of a gym or health club, according to market research statistics, while active lifestyles contributed to Australians ranking as the seventh healthiest nationality in a 2019 Bloomberg index.
The sector also benefits from considerable repeat business, with customers often returning weekly or tied into monthly or annual memberships.
Franchise industry analysis
Capital requirements tend to be comparatively large given the expensive premises and equipment typically required, although banks are comparatively disposed to lend to well-established franchise networks with a proven track record.
Franchisees are also given support in everything from finding and equipping premises to sales and marketing, business strategy and capitalizing on the latest industry trends.
With 225 indoor cycling studios operational worldwide and more than 400 locations in the pipeline, CycleBar offers franchisees a recurring revenue model and strong profit margins.
Listen To Your Body franchisees, meanwhile, generate between $8,000-$15,000 per week and boast an average 91% member retention rate, claims the franchisor, which describes the business model – personalised fitness plans and a combination of one-on-one training and group training – “truly unique”.
XTEND Barre, which has 70 studios in the UK, US, Canada, Australia and New Zealand, combines dance with pilates to provide a comprehensive workout that builds muscle, fosters flexibility and offers cardiovascular benefits.
Several global gym franchises also operate in Australia, including Anytime Fitness, Jetts, Plus Fitness, and Snap Fitness 24-7.
On the retail front, Sportsco and TheAthlete's Foot promise quality sportswear at competitive prices.