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The fitness and health industry is projected to grow at a rate of 8.7% per year, fueled by the top three trends for 2021 online exercise, wearable technologies, and bodyweight training.
Some fitness clubs are reporting a promising start for 2021; however, some operators and business owners are still struggling. It will be in some while for the industry to recover from the impact of COVID-19.
As the pandemic continues, more people stay at home to work out instead of driving to the gym. This is placing much pressure on fitness franchises as they need to remain competitive and develop better services.
It’s possible to run your own Anytime Fitness franchise with the right amount of hard work and determination. However, there are a few things you should consider before leaping.
5 Reasons Why Not to Buy Anytime Fitness Franchise
There can be a lot of troublesome obstacles in the fitness industry. One problem is the lack of regulation on social media. It’s easy for people to post information about fitness, health, and pretty much anything without factual backing. You face two other main challenges when you decide to invest in Anytime fitness Franchise; first, it has exceptionally high startup costs — equipment, trainers, classes, gym memberships, costing more than what Anytime Fitness franchise owners earn in a year. Second, customer acquisition is challenging.
Fransmart guides you through the process of buying a new franchise or existing Franchise. Our franchise consultants provide you with any information, guidance, and support you need to make rational decisions. We have keenly observed Anytime Fitness’s unhappy franchisees’ complaints, FDD Red Flags, and industry trends. We have found loopholes and drawbacks, which everyone should consider before buying the Anytime fitness franchise.
#1 The Initial Investment Of Buying The Anytime Franchise Is Extremely High
Your first franchise fee for Anytime Fitness Franchise is $42500 and also includes a comprehensive business training program and royalty fees for life. This Franchise has an initial investment range of $50,759-$693,917, and the anytime fitness franchise owner’s profit is estimated only at $114,611, which is not such encouraging numbers. Apart from the cost, the new franchisees also require a 3500- 5000 sq ft area to set up the gym area. With rising property prices, the cost of owning this Franchise is way more than a man can afford to spend at once.
#2 The area requirement and the setup requirement of the Franchise is stringent
In addition to the initial investment that a franchise requires, many more red flags need to be considered before buying Anytime Fitness Franchise.
The territory, for instance, is only allocated when the Franchisor team comes down to inspect the area and the site for a new franchise buyer. While most existing franchise owners have positive things about Anytime Fitness, some have complained that they are forced to open in a territory that competes in crowded markets with other fitness facilities, ultimately leading to low profits. It is an unfortunate situation that most new franchise owners would want to avoid.
The franchise requirement for Anytime Fitness is also a little restrictive. For instance, you compulsorily have to buy specific equipment from their chosen vendors at a high cost.
#3 The process of buying the Anytime Fitness Franchise is lengthy and tiring
The Anytime Fitness Franchise purchasing process can be time-consuming and tiring for potential franchisees. Franchise buyers are required to submit their initial application online, meet with an Anytime Fitness franchise representative, send in additional application forms, pass a background check, and have their criminal record reviewed. Once you are a part of the Anytime Fitness franchise, you have to undergo extensive training to learn marketing strategies, the policies of the company, and the fitness strategies the company follows.
New franchise buyers should understand that the Anytime Franchise purchase process is a lengthy one that will test their patience.
#4 Anytime Fitness’ failure to manage COVID Crisis on time
Four thousand five hundred franchisees of Anytime Fitness sue Markel for refusing to honor the terms of their insurance policy in the wake of the COVID crisis.
The sudden closures of several Anytime Fitness franchises in the US forced a pause in billing for prepaid memberships. The lost time was added to the end of memberships, resulting in a loss of revenue for franchisees. These changes led to a significant decrease in sales and huge losses for insured franchisees, but the insurance company failed to reimburse.
Despite the recent legal confrontation between franchisees and the corporation, one fact remains intact: the failure of Anytime Fitness to properly manage its COVID Crisis is a defining moment in the company’s history that jeopardizes its credibility and reputation.
Take Away
Anytime Fitness franchise can be an excellent option for business ownership, but it is essential to know all the information before becoming a part of one. Purchasing a franchise often provides the owner with greater financial security and better long-term growth prospects, which means more risk. The owner of a business must make sure that the company’s current and future financial health is sound. In addition, hiring good employees and providing them with training can be an essential step in laying a successful foundation for the business.
Fransmart has a strong team of consultants who provide prospective franchisees with all the information they need to get started.
Sources:
https://www.reddit.com/r/smallbusiness/comments/kqf6vf/anybody_own_an_anytime_fitness/
https://www.startribune.com/anytime-fitness-owner-retools-as-it-comes-out-of-pandemic/600074692/
https://www.technogym.com/gb/newsroom/worldwide-survey-fitness-industry-trends/
https://www.ihrsa.org/improve-your-club/fitness-industry-still-feels-covids-negative-impact/
https://www.anytimefitness.com/wp-content/uploads/2021/09/AF-2021-FDD-1.pdf