Snap Fitness Essay Example for Free

Snap Fitness Essay Why Snap Fitness Is Your Right Choice Starting your own business is a big decision. As you consider options, here are four factors that make us a proven business model with a history of success: The Fitness Franchise Opportunity is a Growing Industry Fitness is in. The percentage of people belonging to health clubs and gyms has doubled over the past 20 years. More growth is expected, fueled by an aging Baby Boomer generation in search of eternal youth and the reality that regular exercise can prevent or control diseases that are driving health care costs relentlessly upward. The 24/7 fitness opportunity is the newest model of fitness centers today. Economically, the health club industry has proven to be recession-proof, averaging an 8% annual growth rate since the early 1990’s across all health clubs and gyms. The gym and health club industrys fastest-growing segment is the 24/7 fitness franchise segment and Snap Fitness is the segments growth-rate leader. Industry Leaders in 24/7 Fitness Franchises [pic] Our fitness franchise concept enables you to offer customers fast, convenient and affordable workouts in clean, comfortable fitness centers just minutes from their homes 24/7. They enjoy the same quality equipment and workout experience offered in traditional full-service gyms but without the crowded parking lots, long waiting lines and inflated monthly dues. In addition, we lead the way in value-added products and services including personal training, tanning, health and wellness programs and much more, helping members to get the best value for their fitness dollar. Our member-friendly policies lead the health club industry we do not require contracts: members pay month-to-month and may freeze their gym memberships when not using them. Best of all, members can work out at any one of our thousands of fitness club locations worldwide, day or night. Combine these amenities with our round-the-clock safety and security system, including in-club surveillance that can be accessed from your home computer, along with panic-button technology and electronic keycard access, and you have a concept unmatched by any of our competitors in the industry. Better Support Systems to Help You Find Success When evaluating the choices for starting your own business our space, youll quickly conclude were the easy decision. From the moment you sign your Franchise Agreement, the support, service and training we provide is unparalleled in the health club industry. Our turnkey operational systems enable you to run your club with as little as one employee, allowing you to be your own boss. Our product lineup extends well beyond what comparable fitness franchises offer giving you more tools to recruit and retain members and create new revenue streams. Whats more, our financial model favors you over the long run. Like us, other franchisors take care of member billing through automated systems. But their monthly fee typically is a percentage of your total dollar transaction the more successful you are, the higher their fee. In contrast, we charge a nominal flat-fee per transaction. The difference can add up to thousands of dollars over a year. It’s your money, why shouldn’t you keep it? If you dont like paying higher taxes simply because you work hard to earn more, youll appreciate our franchisee-friendly financial approach. An Affordable Investment [pic] As outlined in our Franchise Disclosure Document (FDD) a prospectus-like document every franchisor is legally required to provide to potential investors your total investment in a Snap Fitness will range from $76,113 to $361,695. In addition, we have finance options available to help you achieve your goal of starting your own business or growing your existing business. Best of all, our ongoing royalty and marketing fees are a set flat-rate, as opposed to other franchises that charge you a percentage of your monthly revenues. For more information, contact us now. A franchise enables you, the investor or franchisee, to operate a business. You pay a franchise fee and you get a format or system developed by the company (franchisor), the right to use the franchisor’s name for a limited time, and assistance. For example, the franchisor may provide you with help in finding a location for your outlet; initial training and an operating manual; and advice on management, marketing, or personnel. The franchisor may provide support through periodic newsletters, a toll-free telephone number, a website, or scheduled workshops or seminars. Buying a franchise may reduce your investment risk by enabling you to associate with an established company. But the franchise fee can be substantial. You also will have other costs: for example, you may be required to give up significant control over your business while you take on contractual obligations with the franchisor. Typically, franchise systems have several components. Costs In exchange for the right to use the franchisor’s name and assistance, you will pay some or all of the following fees. Initial Franchise Fee and Other Expenses Your initial franchise fee, which will range from several thousand dollars to several hundred thousand dollars, may be non-refundable. You may incur significant costs to rent, build, and equip an outlet and to buy initial inventory. You also may have to pay for operating licenses and insurance, and a â€Å"grand opening† fee to the franchisor to promote your new outlet. Continuing Royalty Payments You may have to pay the franchisor royalties based on a percentage of your weekly or monthly gross income. Often, you must pay royalties even if your outlet isn’t earning significant income. As a rule, you have to pay royalties for the right to use the franchisor’s name. Even if the franchisor doesn’t provide the services they promised, you still may have to pay royalties for the duration of your franchise agreement. Indeed, even if you voluntarily terminate your franchisee agreement early, you may owe royalties for the remainder of your agreement. Advertising Fees You also may have to pay into an advertising fund. Some portion of the advertising fees may be allocated to national advertising or to attract new franchise owners, rather than to promote your particular outlet. Controls To ensure uniformity, franchisors usually control how franchisees conduct business. These controls may significantly restrict your ability to exercise your own business judgment. Here are a few examples. Site Approval Many franchisors pre-approve sites for outlets, which, in turn, may increase the likelihood that your outlet will attract customers. At the same time, the franchisor may not approve the site you’ve selected. Design or Appearance Standards Franchisors may impose design or appearance standards to ensure a uniform look among the various outlets. Some franchisors require periodic renovations or seasonal design changes; complying with these standards may increase your costs. Restrictions on Goods and Services You Sell Franchisors may restrict the goods and services you sell. For example, if you own a restaurant franchise, you may not be able to make any changes to your menu. If you own an automobile transmission repair franchise, you may not be able to perform other types of automotive work, like brake or electrical system repairs. Restrictions on Method of Operation Franchisors may require that you operate in a particular way: they may dictate hours; pre-approve signs, employee uniforms, and advertisements; or demand that you use certain accounting or bookkeeping procedures. In some cases, the franchisor may require that you sell goods or services at specific prices, restricting your ability to offer discounts, or that you buy supplies only from an approved supplier even if you can buy similar goods elsewhere for less. Restrictions on Sales Area A franchisor may limit your business to a specific territory. While territorial restrictions may ensure that you will not compete with other franchisees for the same customers, they also could hurt your ability to open additional outlets or to move to a more profitable location. In addition, a franchisor may limit your ability to have your own website, which could restrict your ability to have online customers. Moreover, the franchisor itself may have the right to offer goods or services in your sales area through its own website or through catalogs or telemarketing campaigns. Terminations and renewal You can lose the right to your franchise if you breach the franchise contract. Franchise contracts are for a limited time; your right to renew is not guaranteed. Franchise Terminations A franchisor can end your franchise agreement for a variety of reasons, including your failure to pay royalties or abide by performance standards and sales restrictions. If your franchise is terminated, you may lose your investment. Renewals Franchise agreements may run for as long as 20 years. At the end of the contract, the franchisor may decline to renew. Renewals are not automatic, and they may not have the original terms and conditions. Indeed, the franchisor may raise the royalty payments, impose new design standards and sales restrictions, or reduce your territory. Any of these changes may result in more competition from company-owned outlets or other franchisees.