It’s no secret that the health and fitness market is booming in Australia. In fact, with more than six million (32%) Australians holding a gym membership and a 3.7% annual growth predicted for the industry in 2024, the fitness industry is one of the most fast paced and profitable markets in Australia.
With so many options flooding the fitness industry in recent years, from boutique studios to larger big-boxed gyms, when it comes to investing into the fitness market, it’s easy to be confused on where to start and how to find the right fit.
Here at Jetts Fitness Australia, we’re old pros at the game. Our franchise model revolutionised the Australian fitness industry over a decade ago, with 24/7 access and no lock-in contracts. Jetts’ gyms made a fit and healthy lifestyle accessible to more people than ever before, with their foundation evolving into the franchise model which is now implemented across the country.
To help encourage savvy Australians to find the right investment for them and opting for a franchise that has a large return of investment, there are a few things Australian’s need to consider when investing in the fitness industry.
Firstly, it’s important to be aware of the economy you’re investing into. Currently, with the cost-of-living crisis and the rising Consumer Price Index, it’s clear our economy is in turmoil. This is affecting the growth that we’re seeing, particularly in boutique gyms – less are opening as customers are cutting back on spending big.
But from a consumer’s point of view, when the economy is under pressure, they want value for money and people aren’t willing to give up health and fitness completely– cardio and strength will always be the industry’s bread and butter.
Currently consumers are looking for affordable options and will downgrade from more expensive gyms. The knock-on effects mean the smaller businesses are seeing more growth across the board, so there’s more opportunities for franchise owners to cultivate their businesses.
Australians should also consider how the franchise business supports the franchisee. A key advantage of investing into a franchise is that new business owners are given support and proven blueprint models of success. It’s essential to choose a franchise that offers comprehensive support and guidance, including site selection, lease negotiation, marketing, floor print designs and operational guidance.
The survival rates for franchise businesses are also significantly better then opening a business on your own. In fact, research shows that for every 100 startup businesses opened, only 20 will survive past the first year, and after 3 years 60% will close. If you compared these statistics to a franchise lead business, the erosion rate would be substantially less at around 10 – 20%.
The Jetts franchise model is a proven blueprint, with two elements that are the key to its success: a high-return on investment model build for growth and it continues to be Australia’s most loved gym.
Our DNA is quite entrepreneurial, and our brand personality is more community driven than other gyms. Our business owners feel like family, and this is something you should look out for when investing into a franchise business. You are buying into a tribe, and the tribe doesn’t change, so, it’s important that your values and business goals align. The majority of our growth also happens organically – from members who’ve joined and loved our culture, or existing owners looking to build their portfolio.
The franchise system has enabled us to expand to areas that were previously out of reach. Understanding the local demographic and having a relationship on the ground with the community is vital in kickstarting a new gym, and one of the factors you should consider when investing into a franchise business. It’s crucial to find a local connection point and build a community of like minded people.
After opening more than 240 gyms, both franchised and corporately owned, we have the process down to a fine art. The franchise model itself operates with a lean structure; relying on our Gym Managers to run it like their own. So many business owners have chosen the Jetts model for this reason, as it enables them to continue with their day-to-day commitments, be it family, career or travel and they can spend as many hours as they choose adding value to their business through sales and marketing, fitness experience, business management and leadership.
Since becoming a global leader in the fitness industry, the Jetts Fitness franchise model is the bones of our success. The longevity of our achievement is down to one simple ingredient: the people and the culture. This is why we’re championing new business owners and encouraging Aussies to invest. The customer-centric focus and the combination with extensive market research have enabled the franchise model to evolve and adapt ensuring the brand remains relevant to future generations of fitness enthusiasts.
For more information go to www.jetts.com.au