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The Exercise Coach Franchise ProfileFitness Franchises > Personal Training |
What Are the Initial Investment Requirements for The Exercise Coach Franchise?
To become a franchisee of The Exercise Coach, you’ll need to prepare for a total initial investment ranging from $136,009 to $348,693. This includes a franchise fee of $49,500, along with other startup costs. Additionally, you should have a net worth between $500,000 and $1,000,000. It's essential to have sufficient cash on hand to cover these expenses and ensure a smooth launch of your fitness studio.
What Are the Ongoing Fees for The Exercise Coach Franchise?
As a franchisee, you will be responsible for ongoing fees, which include a royalty fee of 6% on your gross revenue and a marketing fee of 1%. These fees contribute to the overall support and marketing efforts provided by The Exercise Coach, helping to promote brand awareness and drive customer traffic to your location. Understanding these costs is crucial for maintaining profitability over time.
What Is the Average Revenue Potential for The Exercise Coach Franchise?
The Exercise Coach franchise offers promising revenue potential, with an average annual revenue per unit reported at $280,594. The median annual revenue stands at $267,955, while some units have achieved as much as $568,210. This range highlights the potential for strong earnings, but actual performance will depend on various factors, including location, management, and market demand.
How Long Does It Take to Break Even as a Franchisee?
Franchisees of The Exercise Coach can expect to reach breakeven within approximately 15 months of operation. Moreover, the investment payback period is estimated at 24 months. This relatively quick return on investment can be appealing for entrepreneurs looking to enter the fitness industry, but success will hinge on effective operational management and local market conditions.
The Exercise Coach 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:
The Exercise Coach Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2020 | 2021 | 2022 |
|---|---|---|---|
| Total Units | 70 | 95 | 130 |
| Net Change YoY | 25 | 35 | |
| Franchised Units | 68 | 93 | 130 |
| Net Change YoY | 25 | 37 | |
| Corporate Units | 2 | 2 | 0 |
| Net Change YoY | 0 | -2 |
Investment Overview
The Exercise Coach franchise offers a low to moderate initial investment, ranging from $136,009 to $348,693. This includes a franchise fee of $49,500, along with ongoing royalty and marketing fees of 6% and 1% respectively. The required cash to start the business aligns with the initial investment range, and potential franchisees need a net worth between $500,000 and $1,000,000 to qualify.
Revenue Potential
On average, an Exercise Coach unit generates annual revenue of approximately $280,594, with a median annual revenue of $267,955. Revenue can vary significantly, with the lowest reported at $46,987 and the highest reaching $568,210. This diverse revenue range highlights the potential for success, depending on location and management.
Breakeven and Payback
Franchisees can expect a breakeven period of around 15 months, which is relatively quick for the fitness industry. The investment payback period is estimated at 24 months, allowing owners to recoup their initial investment within a reasonable timeframe, provided they effectively manage their operations and marketing strategies.
Franchise Growth
The Exercise Coach has shown consistent growth in franchised units, increasing from 68 in 2020 to 130 in 2022. This expansion indicates a strong market demand and franchisee interest in the brand, suggesting a robust support system and potential for future growth within the fitness sector.
Operational Expenses
Average annual running expenses for The Exercise Coach franchise total approximately $196,428. Key expenses include monthly rent of $36,960, payroll of $104,640, and marketing costs of $39,432. Understanding these costs is crucial for franchisees to maintain profitability and manage cash flow effectively.
Corporate Structure
The Exercise Coach operates as a franchise model with a focus on personalized fitness coaching. The corporate structure supports franchisees through comprehensive training and ongoing support, ensuring that each unit maintains high standards of service and operational efficiency. This structure is designed to empower franchisees to thrive in a competitive market.
Frequently Asked Questions
The initial investment for an Exercise Coach franchise ranges from $136,009 to $348,693, which includes the franchise fee of $49,500.