|
Fitness 19 Franchise ProfileFitness Franchises > Gyms |
What Are the Initial Investment Requirements for a Fitness 19 Franchise?
To open a Fitness 19 franchise, you will need to consider a range of initial investments. The total investment can vary significantly, with a low end of approximately $724,190 and a high end reaching up to $1,941,100. This includes a franchise fee of $15,000, along with ongoing royalty and marketing fees of 5% each. Additionally, prospective franchisees must demonstrate a net worth between $500,000 and $1,000,000, ensuring they have sufficient financial backing to support their new venture.
What Is the Revenue Potential for a Fitness 19 Franchise?
Fitness 19 franchises show promising revenue potential, with average annual revenues reported at $240,000 per unit. However, revenue can vary widely, with some units generating as low as $31,500 and others reaching as high as $1,500,000. This variability highlights the importance of location, management, and market conditions in determining financial success. With a breakeven time of just 12 months, franchisees can expect to recoup their initial investment relatively quickly if they effectively manage their operations.
What Are the Operating Costs for a Fitness 19 Franchise?
Understanding the operating costs is crucial for Fitness 19 franchisees. The average annual operating expenses are approximately $59,879, which includes professional fees, taxes, and miscellaneous expenses. With operating expenses exceeding revenues in the early stages, it's essential for franchisees to maintain tight control over costs while striving to increase membership and revenue. Effective financial management can help mitigate these challenges and enhance profitability over time.
What Is the Growth Trend for Fitness 19 Franchises?
Fitness 19 has experienced fluctuations in its number of franchised units over the years, with a peak of 109 units in 2019, declining to 89 units by 2021. This trend may indicate challenges in market saturation or competition within the fitness sector. However, the franchise model remains appealing due to its relatively low initial investment and potential for profitability. Aspiring franchisees should conduct thorough market research to assess the viability of opening a new unit in their desired location, considering both local competition and consumer demand for fitness services.
Fitness 19 Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Fitness 19 Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2019 | 2020 | 2021 |
|---|---|---|---|
| Total Units | 109 | 95 | 89 |
| Net Change YoY | -14 | -6 | |
| Franchised Units | 109 | 95 | 89 |
| Net Change YoY | -14 | -6 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY |
Initial Investment
The Fitness 19 franchise requires a low to moderate initial investment, ranging from $724,190 to $1,941,100. This includes a franchise fee of $15,000 and other startup costs. Prospective franchisees should be prepared for a cash requirement that aligns with this investment range to ensure a smooth launch.
Royalty and Marketing Fees
Franchisees are required to pay a royalty fee of 5% on gross sales, along with an additional 5% marketing fee. These fees contribute to the overall support and marketing initiatives provided by the Fitness 19 corporate team, helping to drive brand awareness and customer engagement.
Financial Performance
The average annual revenue per Fitness 19 unit is reported at $31,500, with a median annual revenue of $240,000. Revenue can vary significantly, with the lowest annual revenue at $31,500 and the highest reaching $1,500,000. This range indicates the potential for profitability depending on location and management.
Breakeven and Payback Period
Franchisees can expect to reach breakeven within 12 months of operation. This quick turnaround time is appealing for investors looking for a faster return on their investment, as the payback period is also estimated at 12 months, allowing for timely reinvestment in the business.
Franchised Units Growth
The number of franchised units has seen a decline from 109 in 2019 to 89 in 2021. This trend highlights the challenges faced in the fitness industry, emphasizing the importance of strong operational management and local market strategies to maintain and grow unit numbers.
Operational Expenses
Average operating expenses for a Fitness 19 unit total approximately $59,879 annually. This includes costs such as professional fees, taxes, and miscellaneous expenses. Understanding and managing these costs is crucial for franchisees to optimize profitability and ensure financial stability.
Frequently Asked Questions
The initial investment for a Fitness 19 franchise ranges from $724,190 to $1,941,100. This includes the franchise fee, equipment, and other startup costs.