- May 25, 2015
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I believe there are multiple business models being used by the various gyms. Some are more along the "franchise" line where the individual gyms are owned by someone local and a fee or other arrangement is sent to the "main" gym in exchange for using the name/logo. (There may also be varying levels of advice/services being provided by the main program.). On the other end of the spectrum are gyms that are run that owned at least in part by the "main" program. There are also probably hybrids that fall somewhere in the middle.
There are pros and cons to each arrangement. I am curious to hear opinions about the two. Do you think that one style is better for the industry?
I don't feel strongly enough about this subject to have a solid opinion in any direction but what I will say is:
1.) It always seems a bit ludicrous when I see XYZ Elite North competing against XYZ Elite South in the same division. Just something that kind of never felt right for multiple reasons.
2.) If I owned a program with franchised facilities my first concern would be maintaining consistency. Because, let's face it, XYZ Elite's main location is light years beyond XYZ Elite's North East Middle-of-Nowhere Nebraska Location. No amount of advice, guest-coaching or clinics have changed that. I guess I would be concerned that new customers are approaching my brand at a secondary location and they're expecting a certain level of excellency that isn't being delivered.
Those reasons don't really have any bearing on whether or not 'Franchises' are good for the industry. Just my little two cents.