In this episode of Industrious Radio, the hosts continue their franchise discussion by delving into the financial requirements for opening an Industrious gym.
Overview of Costs
The episode kicks off with a brief recap of earlier discussions on franchise values and opportunities. The hosts outline the financial landscape for opening an Industrious gym, noting that costs can range from approximately $340,000 for a smaller operation (around 5,000 square feet with 14 halos) to about $900,000 for a larger, fully-equipped facility. The average initial investment is around $664,000, encompassing various costs such as real estate, leasehold improvements, equipment, marketing, insurance, and more.
Breakdown of Costs
A comprehensive breakdown includes:
- Real Estate/Rent: Initial deposits range from $6,000 to $42,000.
- Leasehold Improvements: Costs can vary significantly based on renovations needed, from $50,000 to $400,000.
- Furnishings and Equipment: Estimated between $200,000 and $250,000.
- Initial Marketing and Promotions: Around $20,000 to $25,000.
- Franchise Fee: A set fee of $45,000.
Comparing Franchise Opportunities
Industrious is strategically positioned in the middle of the fitness franchise market regarding cost. For instance, it is more expensive than F45 (which ranges from $313,000 to $485,000) but less costly than Orange Theory (which can range from $576,000 to $1.5 million). The hosts emphasize the potential for profitability, noting that Industrious franchisees typically reach 15% profitability by year two.
Financing Options
The conversation shifts to financing, highlighting that securing capital for a franchise is generally easier than for an independent business. The SBA loan program is recommended as a primary financing route, allowing potential franchisees to secure funding with as little as 20% down. Other options include personal loans, home equity lines of credit, and equipment leasing, which can help bridge any financial gaps.
Next Steps for Interested Franchisees
Potential franchisees are encouraged to fill out an application on the Industrious website to kickstart the qualification process. This application leads to a values assessment, followed by connections to financing options. The hosts stress the importance of taking action and exploring available financing opportunities, emphasizing the need to be prepared for informed decision-making.
Conclusion
The episode wraps up with an invitation for listeners to actively pursue their franchise dreams, highlighting the support available from Industrious throughout the process. A follow-up episode is teased, focusing on what happens after financing is secured and the franchise agreement is signed.
