Fitness Professionals The Hype versus the Reality of Franchising By Erak Simsson Founder & Director of Coach Me Slim & Trim®

What is a franchise?
A franchise is a legal commercial relationship that exists between the franchisor (the owner of the brand) and the franchisee (the owner of the individual franchise). The franchise agreement sets strict guidelines on how the business will be run. For the use of the business system and the trademarks the franchisee pays a monthly royalty, which can be between 2% – 20% depending on the franchise. It can often be more in the fitness / personal training industry. The franchisor usually assists in offering the following:

• Site selection (not applicable for free lance trainers)
• Training
• Product and service suppliers
• Assistance of development of business plan
• Assistance development of Marketing and Advertising
• Ongoing head office support.

These are the basics for most franchises

The UK franchise market is still playing catch up with the USA market where franchising is aggressively promoted as a less risky way to go into business instead of starting your own independent business from scratch.

Often franchising is supported with low failure rates in franchising and high failure rates in independent business. Franchises are not a guarantee for success it is true that a well positioned and properly implemented franchise can generate significant profits for the franchisee. The other side is a poorly positioned and implemented one can lead to loses and disappointment.

A figure that is often used in the world of franchising is 95% of franchisees succeed while 80% of independent business fails. Let’s just challenge this statement which is often used to lull people into a false sense of security.

The above statement may be true for large well established blue chip franchises, but can it be applied to newly established companies.

As a potential franchisee you must identify what is marketing hype versus what is reality. And when you combine some of the hype about franchising with the current obesity epidemic it’s very easy to become carried away with the thought of all those people you see walking down the high street paying for your help.

Keep your conservative glasses on when reviewing income figures, if they sound too good to be true they probably are.

To see a similar set up to a franchise visit: where I have set out all of the benefits of a franchise without all of the length legal paper work. A licence can offer you the same benefits as a franchise whilst retaining your own individuality and existing business name.