The fitness industry continues to expand, presenting lucrative opportunities for entrepreneurs. Among the various options available, Fitness Premier 24/7 Clubs stands out as a compelling franchise opportunity for 2025. This article explores the unique aspects of Fitness Premier, its financial implications, and the support it offers, providing a comprehensive overview for potential franchisees.
The Fitness Premier Advantage
Fitness Premier 24/7 Clubs distinguishes itself by offering a hybrid model that combines the personalized service of boutique studios with the affordability and accessibility of big-box gyms. This approach caters to a wide range of fitness enthusiasts, creating a broad appeal within local communities. The brand was founded in 2002 by Jason Markowicz, a former franchisee and collegiate athlete, and began franchising in 2017. It has since expanded to 23 franchised units and 2 company-owned locations, primarily in Illinois and Indiana. The company aims to reach 200 locations by 2030.
Key Differentiators
- Community-Centric Approach: Fitness Premier emphasizes creating a community-focused environment, fostering personal connections and long-term relationships among members.
- Hybrid Model: The brand uniquely blends the personalized experience of boutique fitness studios with the wide array of equipment and affordability of big-box gyms.
- 24/7 Access: Members enjoy the flexibility of 24/7 access, accommodating varied schedules and fitness preferences.
- Technology Integration: Fitness Premier utilizes technology to enhance the member experience, offering innovative tools and training methods.
- Flexible Membership Tiers: The brand provides various membership options, from basic access to comprehensive packages with group training, nutrition guidance, and recovery services.
- Focus on Smaller Markets: Fitness Premier strategically targets smaller communities, differentiating itself from competitors who typically focus on larger, more saturated markets.
Financial Insights
Understanding the financial commitment and potential return is crucial for any prospective franchisee. Here’s a breakdown of the financial aspects of owning a Fitness Premier franchise:
Initial Investment
The total initial investment to start a Fitness Premier franchise ranges from $275,000 to $798,000. This includes expenses for:
- Franchise Fee: $49,500
- Construction and Leasehold Improvements: $25,000 to $275,000
- Lease Deposits: $3,000 to $10,000
- Furniture, Fixtures, and Equipment: $150,000 to $225,000
- Signage: $2,000 to $9,000
- Computer, Software, Tech Package, and POS System: $15,000 to $25,000
- Grand Opening Marketing: $10,000 to $15,000
The exact amount varies based on the type of facility, location, and whether the franchisee leases or purchases the property.
Financial Requirements
To become a Fitness Premier franchisee, you should have:
- Minimum Net Worth: $500,000
- Liquid Capital: $40,000 to $150,000
These requirements ensure franchisees have the necessary resources to successfully launch and operate their club.
Ongoing Fees
Franchisees must pay:
- Royalty Fee: 6% of monthly gross sales
- Marketing Fee: 2% of monthly gross sales
These fees support ongoing brand development and marketing efforts.
Potential Earnings
The average gross sales for a Fitness Premier franchise are approximately $0.53 million per location. With an assumed 15% operating profit margin, this can result in an annual EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of around $80,000. Some sources indicate that the average annual gross sales for franchised Fitness Premier 24/7 Clubs in 2021 were $491,443.86, with an average of 1,160 active members across all clubs, showcasing consistent growth and demand.
Comprehensive Support System
Fitness Premier is committed to its franchisees’ success and provides a robust support system covering various aspects of business operations.
Training and Onboarding
- Hands-on Training: Franchisees receive comprehensive training covering day-to-day operations and financial management.
- On-site Experience: New franchisees can work at corporate-owned gyms to gain real-world experience.
- Initial Training: A five-day training program at the corporate office in Manhattan, IL, is required before opening.
- On-site Support: The Director of Training provides on-site support for three days before each new location opens.
- Weekly Training: Ongoing weekly training sessions focus on key performance indicators, sales, and business optimization.
- Quarterly Updates: Regular updates inform franchisees about new technology, model changes, and industry trends.
Operational Support
- Back-end Support: The franchisor assists with HR, marketing, payroll, and financial planning.
- Financial Support: Assistance with the financial aspects of the business, and support in running the club, and overcoming member issues.
- Club Support Director: A dedicated support professional helps franchisees operate smoothly.
- Site Selection Assistance: The brand helps franchisees find suitable locations for their gyms.
- Lease Negotiation Support: Guidance is provided to help franchisees negotiate favorable lease terms.
Marketing and Technology
- Marketing Support: Access to national and regional advertising, social media marketing, SEO, website development, email marketing and loyalty programs.
- Innovative Technology: Fitness Premier integrates technology to enhance member experiences.
- Operational Flexibility: Franchisees can focus on member engagement while the franchisor manages back-end tasks.
Advantages of a Fitness Franchise
Investing in a fitness franchise, like Fitness Premier, offers several benefits over starting an independent gym:
Brand Recognition
Operating under a recognized brand can attract members more easily than starting a new, unknown gym. This established brand recognition and trust is a significant advantage.
Proven Business Model
Franchises come with a tried-and-tested business model, reducing the risk and guesswork involved in gym management. This model structures costs around membership fees, staff wages, opening hours, and classes.
Reduced Risk
A franchisor’s proven economic model improves the chances of securing capital and reduces the risk associated with starting a business from scratch.
Marketing and Advertising Support
Franchisors typically provide substantial marketing support, a major advantage for new business owners. This support includes national and regional campaigns, social media strategies, and digital marketing tools.
Training and Ongoing Support
Extensive training and continuous support helps franchisees navigate the complexities of gym management. This includes initial training programs and ongoing support options, such as on-the-job training, classroom sessions, purchasing co-ops, newsletters, meetings, and online support.
Multiple Revenue Streams
Beyond membership sales, fitness franchises offer various revenue streams including personal training, group classes, nutrition coaching, and sales of merchandise, workout equipment, and supplements.
Challenges and How to Overcome Them
While the benefits are substantial, potential franchisees should be aware of the challenges:
High Initial Costs
Starting a franchise often involves significant initial fees. Fitness Premier has an initial investment range from $275,000 to $798,000. Thorough financial planning and exploring financing options can help mitigate this.
Ongoing Royalty Fees
Franchisees are required to pay ongoing royalties, which can affect profitability. Fitness Premier requires a 6% royalty fee. Careful management of operational costs can help offset this.
Limited Autonomy
Franchisees have limited freedom to make changes to the gym’s operations, layout, or services. Adhering to the franchisor’s model is essential, but franchisees can express their passion by creating a great culture and connecting with gym members.
Competition
The fitness industry is competitive. Franchisees should differentiate themselves through exceptional customer service, a focus on community, and taking advantage of their franchisor’s support and marketing. Fitness Premier’s focus on smaller markets is also a competitive advantage.
Market Saturation
In some areas, the gym membership market may be saturated. It is crucial to select a location where demand is high and competition is manageable.
Hiring Qualified Staff
Finding qualified and certified personal trainers is essential. Setting high standards for hiring and creating an effective team is crucial for success.
The Fitness Industry Landscape
The fitness industry is experiencing significant growth driven by increasing health awareness and lifestyle changes. This presents opportunities for franchise owners to build wealth, generate recurring revenue through memberships, and build a lasting business. The global fitness and wellness market is projected to reach $1.8 trillion in 2024, underscoring the strong market position and potential for growth in the fitness sector.
Conclusion
Fitness Premier 24/7 Clubs offers a compelling franchise opportunity for those passionate about fitness and entrepreneurship. Its hybrid business model, comprehensive support, and strong community focus present a promising avenue for success in the ever-evolving fitness industry. While challenges exist, a thorough understanding of the financial requirements, operational demands, and industry landscape can equip franchisees to thrive. Fitness Premier’s 24/7 access, multiple membership options, and focus on smaller markets make it a unique and attractive investment for 2025.
