Households have increased discretionary spending, which includes children's fitness
(PRWEB) October 18, 2014
The Children's Fitness Center Franchises industry has fared well over the past five years, as it recovered from the economic downturn. Rising per capita disposable income as well as growing awareness of the benefits from exercising regularly, especially in response to a rising childhood obesity rate, have driven demand over the period. However, steady external competition from afterschool programs, child athletic programs and child daycare programs has offset further growth in the industry.
IBISWorld Economic Analyst Sally Lerman says in the updated report, "programs such as Michelle Obama's Let's Move campaign and the National Football League's Fuel Up to Play 60 program have driven awareness of the negative effects associated with childhood obesity." Such awareness has resulted in parents being more active in finding fitness programs for their children, which has resulted in revenue growth for the industry. Because of this IBISWorld estimates that industry revenue will grow in 2014. Efforts to fight childhood obesity are expected to continue throughout the five years to 2019, acting as a key factor in this industry's future growth. "During the past five years, households have increased discretionary expenditures, which includes children's fitness classes," Lerman says. Furthermore, with declining national unemployment, parents looked toward fitness alternatives for their children as fewer parents were at home to take care of their children and make sure they stay active. In response to the increase in demand, many franchises have expanded; although, prices have been kept low to compete with less expensive afterschool programs. As a result, the number of franchise units is expected to increase in the five years to 2014.
Over the next five years, rising per capita disposable income and lower unemployment levels will continue to drive up demand for franchises. Furthermore, more variety in classes and more classes per age group will further aid Children's Fitness Center Franchises industry growth as establishments are forecast to increase over the next five years.
For more information, visit IBISWorld’s Children's Fitness Center Franchises in the US industry report page.
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IBISWorld industry Report Key Topics
This industry operates franchised fitness and recreational sports facilities for children aged 18 and younger. Reports in our Business Franchise collection focus solely on the operation of franchised outlets and exclude non-franchise data. They show the total number of franchise outlets, total franchise revenue and the average profit margin earned by franchisees. Our reports also highlight the largest franchisors by market share.
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