One of the top 10 health and fitness trends in 2017, as predicted by the American Council on Exercise, will be the increase of In-Club Studios. As the result of the dramatic influx of smaller boutique studios across the U.S., health clubs will look to evolve their business models by offering an “In-Club Studio” workout experience. As more and more health clubs transition unused space into unique and results-based In-Club Studio programs and services, the question will become “what is the best solution to duplicate the smaller boutique studio experience?”
Benefits of purchasing an In-Club Studio franchise
There are several benefits of purchasing a franchise. In addition to the founders of the franchise streamlining the business to remove many of the challenges already encountered and resolved, there are many other advantages:
- Much more guidance is provided to you as a business owner. This can include everything from training your staff on systems, software, service delivery to product training and proprietary training methods. The franchisor has already gone through the trials and errors for you and can show you the methods that have proven to be most successful.
- A franchise is more likely to gain income much sooner since most aspects of getting the business started are ready to go. Everything from space design, buildout construction, FF&E selection, pre-sale and grand opening will be provided to get the business up and running.
- Valuable legal rights, such as patents and copyrights are provided with a franchise. This can be a long and costly process when trying to patent and copyright new concepts.
- Reduced risk of failure due to existing brand identity and success. More money tends to go into a new venture during the first few years of existence while trying to build a customer base and increase brand recognition. Well-established franchise brands offer immediate recognition and customer base.
- Brand separation helps increase unique marketing impressions. In addition to creating new platforms to promote the club brand (separate website and social channels), purchasing an In-Club studio franchise also provides new opportunities to market niche consumer groups that traditionally may not respond or be interested in the general health club brand or experience.
Just as there are many advantages to purchasing an existing franchise business, there are some benefits to creating the boutique In-Club Studio business internally. It may not provide the brand separation you are looking to ultimately accomplish, but the cost could be significantly cheaper. Here are some of the advantages to creating an In-Club Studio internally:
Benefits of creating an In-Club Studio internally:
- Many health clubs have the necessary staffing already in place. From personal trainers, group fitness instructors, and nutrition coaches to sales and marketing professionals … the ability to staff and operate an In-Club Studio is obtainable.
- The short-term cost to open, operate and learn the business may cost more initially, but the long-term cost may be less. Most franchise groups provide ongoing support, but there is an ongoing royalty fee. When you develop your own internal In-Club Studio you eliminate those ongoing franchise royalty fees.
- You maintain 100 percent control of your brands and make all marketing decisions internally. If you have the manpower to create a new and unique In-Club Studio, the ability to cross market and utilize your existing database will benefit both businesses.
As more and more boutique studios open as predicted and put competitive pressures on the traditional health club model, the growth of the In-Club Studio is inevitable. The ultimate question is will health club owners choose to develop their own boutique studio brands or partner with existing established franchise brands?
Jeff Stokes is the Vice President North America of HYPOXI. For more information on franchising opportunities visit https://www.hypoxibody.com/start-a-franchise/.
