The growing popularity of budget and boutique gyms and fitness facilities increased demand for franchise establishments.
New York, NY (PRWEB) February 05, 2015
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.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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