Gym and Fitness Franchises in the US Industry Market Research Report from IBISWorld Has Been Updated

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Rising demand and a favorable investment environment have led to growth of fitness franchises. For this reason, industry research firm IBISWorld has updated a report on the Gym and Fitness Franchises industry in its growing industry report collection.

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The growing popularity of budget and boutique gyms and fitness facilities increased demand for franchise establishments.

The Gym and Fitness Franchises industry is experiencing robust growth as a result of growing membership and a more health-conscious population. In addition to greater demand, favorable interest rates and new technology have spurred industry expansion during the past five years. Many franchisors have also invested in franchise consultants and regional training in order to gain a large customer base. Additionally, many franchisors implemented franchise business models for both single and multiunit franchise investments.

During the five years to 2015, the yield on a 10-year treasury note is expected to remain low, encouraging borrowing activity. According to IBISWorld Industry Analyst Darryle Ulama, “Many franchisors responded to the favorable investment environment by providing more franchise opportunities, which bolstered industry revenue. Many, for example, developed networks to assist franchisees in obtaining a loan for franchise investments.” As a result, industry revenue has expanded over the past five years, and is expected to grow in 2015. As low-cost, low-amenity gyms gained popularity over the period, lower franchise investments were required, causing profit to rise. “Additionally, contained start-up costs, such as low marketing costs due to franchisors' already established brand awareness, spurred many franchisees to enter the industry,” says Ulama. “The growing popularity of budget and boutique gyms and fitness facilities increased demand for franchise establishments.”

During the five years to 2020, industry revenue is forecast to grow at a faster pace. The proliferation of public health campaigns that raise awareness about health and fitness will prompt new gym and fitness franchises to enter the market. Further, more time-strapped consumers will require high-margin services, like fitness trainers and individually tailored nutritional plans, to achieve fitness results despite limited available time. Because more individuals prefer gyms that are catered toward local clientele, franchises will become more popular.

For more information, visit IBISWorld’s Gym and Fitness Franchises in the US industry report page.

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IBISWorld industry Report Key Topics

This industry operates franchised fitness establishments and gyms. Franchisees receive branding, marketing, administrative support and training for their franchise. Reports in our Business Franchise collection focus solely on the operation of franchised outlets and exclude nonfranchise 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.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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Gavin Smith
IBISWorld
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