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GYMGUYZ Franchise ProfileFitness Franchises > Personal Training |
What Are the Initial Investment Requirements for a GYMGUYZ Franchise?
To open a GYMGUYZ franchise, you will need to prepare for an initial investment ranging from $66,600 to $131,500. This includes a franchise fee of $40,000. Additionally, you should have a net worth between $100,000 and $300,000 and be ready to cover ongoing costs such as a 6% royalty fee and a 2% marketing fee.
What Is the Average Revenue Potential for GYMGUYZ Franchisees?
GYMGUYZ franchisees can expect an average annual revenue of approximately $114,115 per unit, with a median revenue of $90,259. However, revenue can vary significantly, with the lowest reported annual revenue at $7,692 and the highest at $177,039. Understanding these figures can help you assess the financial viability of this opportunity.
How Long Does It Take to Break Even with a GYMGUYZ Franchise?
The breakeven time for a GYMGUYZ franchise is estimated at 24 months. This aligns with the investment payback period, indicating that franchisees can expect to recover their initial investment within the same timeframe, assuming average performance.
What Are the Trends in GYMGUYZ Franchise Growth?
GYMGUYZ has experienced a decline in the number of franchised units, dropping from 132 in 2019 to 95 in 2021. Conversely, corporate units remained low, with only 2 corporate locations by 2021. This trend may reflect market challenges or shifts in franchisee interest, making it crucial for potential investors to conduct thorough market research before committing.
GYMGUYZ 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:
GYMGUYZ 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 | 152 | 111 | 97 |
| Net Change YoY | -41 | -14 | |
| Franchised Units | 132 | 110 | 95 |
| Net Change YoY | -22 | -15 | |
| Corporate Units | 20 | 1 | 2 |
| Net Change YoY | -19 | 1 |
Investment Overview
The GYMGUYZ franchise offers a low initial investment ranging from $66,600 to $131,500, making it accessible for aspiring entrepreneurs. The franchise fee is set at $40,000, with ongoing royalty and marketing fees of 6% and 2%, respectively. To qualify, potential franchisees must have a net worth between $100,000 and $300,000, ensuring they have the financial backing to support their business.
Financial Performance
Franchisees can expect an average annual revenue of $114,115, with a median revenue of $90,259. While the lowest annual revenue reported is $7,692, the highest can reach $177,039. This range highlights the potential for profitability in different market conditions, allowing franchisees to gauge their financial expectations realistically.
Breakeven and Payback
The GYMGUYZ franchise has a breakeven time of approximately 24 months, which is a crucial metric for new franchisees to consider. This timeline indicates that franchisees can expect to recover their initial investment within two years, assuming average performance. This quick payback period can be an attractive feature for potential investors.
Franchised Units Growth
The growth trajectory of GYMGUYZ is evident in its franchised units, with 132 units in 2019, decreasing to 110 in 2020, and further to 95 in 2021. This decline may raise questions about market saturation or operational challenges, which potential franchisees should investigate further to understand the brand's current positioning and future prospects.
Operational Insights
Franchisees should be aware of the operational expenses involved, which include significant costs for selling, general, and administrative expenses, totaling $2,669,532 annually. Understanding these costs is essential for effective budgeting and financial planning, as they heavily influence overall profitability and operational efficiency.
Brand Vision
GYMGUYZ aims to revolutionize the fitness industry by providing convenient, at-home personal training services. The brand is committed to making fitness accessible and enjoyable for everyone, focusing on personalized training programs that cater to individual needs. This vision not only enhances customer satisfaction but also positions GYMGUYZ as a leader in the mobile fitness market.
Frequently Asked Questions
The initial investment for a GYMGUYZ franchise ranges from $66,600 to $131,500, which includes a franchise fee of $40,000.