August 9, 2022

The 6 Biggest Dangers of Opening a Fitness Franchise Pure Barre Franchise, Barre3 Franchise, how to open a barre studio, how to open a pilates studio, club pilates franchise, yoga franchise, how to open a yoga studio

Are you considering opening a studio and wondering if you can do it alone or if you need a franchise?
When you are considering opening a fitness studio, there are some definite huge benefits of a fitness franchise, but there are also some large dangers of choosing a franchise.

In our last video, we discussed the biggest benefits of a Fitness Franchise. Today, I want to cover the biggest dangers of a Fitness Franchise. I also want to clarify that Studio in a Box provides the systems of a franchise – without the rules or fees of a franchise.

1. A franchise has MUCH higher start-up costs.

When you consider the $50k upfront franchise fee – you’re immediately spending much more added costs for the “brand standards”

2. Encroachment

Many barres, yoga, pilates, and other fitness franchise agreements protect your “territory” for up to only 5 to 10 miles. I have seen some franchises come CORPORATE OWNED studios less than 10 miles from a franchisee. Imagine spending 3 years building your clientele, only to have a corporate-owned franchise with all its resources (and its access to your database) coming in as your competitor. They can email your clients and notify them that the company is opening another store in your backyard and take your clients.

3. Limited Independence

You are limited to ONLY offering what the franchise allows – with little to no deviation. As our studios grew, we added additional programming and services. That would not have been allowed as a franchisee. A franchise is created to ensure that you receive the same experience across a brand no matter where you go. If you want to do anything any different from the franchises, it is not typically allowed – limiting your growth and customization options in your business

4. Ongoing royalty and advertising fees.

With most fitness franchises’ 7% annual royalty fee and 1% marketing fee, you are required to pay 8% of your GROSS income to the franchise every year. This means that $24,000 on a $300,000/year studio, or $40,000 on a $500,000/year studio!

5. Unfair termination

Most franchise agreements are written to protect primarily the franchisor. They want to ensure that a franchisee can not improperly use their systems, their name, their brand, their marks, their choreography; or in any way sully the franchise brand. You could very easily build your business for 3 years and have the franchisor go and cancel your contract if they choose to.

6. Franchisor Mark Up

This never seems like much until you start to run the numbers. One franchisor charges $140 for a mat you can get for $40 on your own. At 30 mats, that’s $3,000. Something that we sold a lot of in our studio was branded sticky socks – over a year, we sold about 5000 pairs (or 13 pairs/day). Many franchisors sell a $4 pair of socks for $9 – that’s a difference of $25,000 to your BOTTOM LINE on just one item. Now add in tank tops, apparel, props, equipment, etc. It all adds up to a LOT!

According to the US Small Business Association, businesses with established systems have a 95% higher likelihood of success over 5 years.

If you have considered opening a studio such as a:

  • Barre Franchise
  • Barre3 Franchise
  • Bar Method Franchise
  • Dailey Method Franchise
  • Core Pilates Franchise
  • Lagree Franchise
  • Corepower Yoga Franchise
  • Pvolve Franchise

Like so many others, you can get the tools and success systems of a franchise without those upfront $50,000 + Franchise fees and the rules and regulations that the franchise will impose.

If you’re interested in knowing more about the:

  • Barre Franchise Fees
  • Barre3 Franchise Fees
  • Bar Method Franchise Fees
  • Dailey Method Franchise Fees
  • Core Pilates Franchise Fees
  • Corepower Yoga Franchise Fees
  • Pvolve Franchise Fees

You’re in the right place. If you want to know:

  • How to open a barre studio
  • How to open a yoga studio
  • How to open a Pilates studio
  • How to open a fitness studio

If you want to know how to open a fitness studio and are wondering if you need a franchise, reach out and book a free consult.

We’ll tell you about Studio in a Box, and why we created an educational and consulting program versus a franchise.

We’ll tell you how you can create your studio, WITH the successful tools and systems that you’d normally get with a franchise, without the franchise fees or rules!

If you’re ready to learn more, click below to get your free guide on how to open a fitness studio without the fees or rules of a franchise: