The sad truth is many smaller gyms are behind the scenes already debating closing down or selling out because they know they can't fight against this new trend. They are wondering where the shoe/mega gym will drop next. We are not talking about the mythical bad gym that everyone blames for bad tumbling, scary stunts, untrained coaches yet we never really identify who they are. We are talking about some solid, great, well respected names and programs. They know how much this industry has built up the value of a name and how the name gets you in the game type mentality. You could be solid on you way to some great things and see your whole business wiped out in literally no time. You don't just lose your Level 5's, you lose your younger 4, and 3's. Now you are set back 3 years to developing your high level teams which all agree are a marketing strength of any gym. You lose the kids/parents who want the immediate success now. You lose the kids who now have a chance to cheer for their dream gym regardless who the coaches are. You lose the gym hoppers. You lose the ones who just want to wear that new uniform one time to say that they cheered for ___________.
Many of these smaller gym owners are throwing in the towel and in effect doing it on their own terms before it happens to them. And I feel that is sad that it has come to this. This again is something that was discussed many years ago on the boards. That after awhile most local gyms would end up only being low level gym feeders into the larger mega type gyms, effectively reducing competition locally. Unless the gyms planned for it like you said and created a sustainable business model that would allow them to survive long term if that did happen.
I don't blame the bigger gyms, mega gyms in this scenario. If you believe in capitalism, they have the right to open wherever they choose to. If I was on their side of the issue, it makes sense to open where there is a proven market for cheerleading with numbers readily available. If they can make it work, great. With the horror story of vendors, bad parents, burnout, staffing issues, etc. I also know why in some cases some gyms would approach a larger gym to be bought out, which has also happened in some cases.