Fitness Franchise Opportunities

Questions and Answers

Is the fitness industry in Brazil profitable? Are there any major chain gyms? If so what are their names?I am a Personal Trainer and Fitness Program Manager for a major gym in New York and would like to work in Brazil someday doing the same. All info and advice is appreciated.

Posted by Van

adminSince 1994, the Brazilian market for fitness equipment has grown very fast. In the last three years, this industry grew at a rate of 10-15%. Despite all of the economic crises faced by Brazil in the last years, the fitness industry did not suffer much. According to trade contacts, there are over 50 manufacturers in Brazil, but only ten of them carry weight in the market. Most of the manufacturers are merely unregistered small shops, many of which only assemble. An increasing number of manufacturers import parts from Asian countries. Usually, these components are of an electronic nature such as monitors, or pace timers. In recent years, Brazilian-made products have enjoyed a higher level of quality, proving that the sector is adopting new technologies and getting ready to compete with foreign companies that are starting to produce in Brazil. The following is a market breakdown of fitness equipment by consumption sectors.

Spas and Hotels

Today, spas and hotels have the highest growth rate potential within the fitness equipment market. It is expected to grow 20-25% in the next three years as more tourist resorts are being opened in Brazil. In addition, the tourist industry in Brazil is diversifying from the traditional tourist areas, e.g., Rio de Janeiro, and expanding into new ones, e.g., northern Brazil. This translates into new resorts and thus greater demand for fitness equipment.

Fitness Centers / Social Clubs

According to market analysts, there are today 2.5 million people going to fitness centers in Brazil, which is only 1.5 percent of the population. This demonstrates a huge opportunity for growth as people get more health conscious. Demand has driven a large increase in the number of fitness centers in Brazil. They are becoming an integral part of the urban culture. Due to fierce competition, these establishments are currently improving their facilities and investing substantially in new equipment.

There is an enormous potential market for U.S. Companies to target since these gyms represent approximately 92% of the total market. Conversely, there are gyms throughout the country that focus predominately on aerobics and dance, sometimes using lighter weights. Another potential target segment are the franchised gyms. Presently, they offer the most sophisticated equipment. Furthermore, this market segment is relatively price inelastic. Therefore, profit margins may be higher for suppliers to this segment.

Home Market

The home market has a high growth potential, currently accounting for only 1% of the total market. Convenience and time restraints are the driving forces that propel Brazilians into opting to exercise at home. Social stratification contributes to a greater percentage of upscale homes buying equipment. Hence, industry experts expect this segment to increase 15% over the next three years. Other driving forces for the growth of this market are:

1. The verticalization of residences. Most buildings will have to offer a sports/work-out facility and the demand for good quality equipment will most likely favor U.S. Companies.

2. Safety in the large cities is a serious problem, leading more and more people to engage in indoor exercise activities rather than using public parks.

Hospitals

This is a segment not yet explored by Brazil. The potential for U.S. Companies is tremendous for treadmills and other specialized equipment. According to sector specialists, 90% of the training equipment in hospitals in the Brazilian market comes from the United States

Corporate

Brazilian and foreign companies operating in Brazil are witnessing growth of a fairly new segment in the fitness market, the corporate niche. Multinational companies are adopting the concept easily because of the positive experience at companies’ headquarters. Human resource executives believe in the benefits of exercise for employees and, consequently, for the efficiency and returns of the company. These corporations tend to purchase imported products, since most of what is used in other branches of the company is purchased in the United States or in Europe. Corporations also seek long-lifetime products. Corporations are less price-sensitive than fitness centers.

For more information on the potential for U.S. Exports on the fitness equipment industry in Brazil, please contact:

U.S. Commercial Service

Rua Estados Unidos, 1812

01427-002 – Sao Paulo – SP – Brazil

Patricia Marega, Business Development Specialist

Tel: 55/11/3897-4051

Fax: 55/11/3085-9626

For fun watch this video

Http://youtube.com/watch?v=xLNPQfZE1zw

I am looking to purchase a franchise where do I begin?

Posted by Jonathan M

adminA great website to identify opportunities is:

Http://www.worldfranchising.com/

Once you identify an area or type of business, the best way to truly assess whether to buy any franchise is to speak directly with several (at least six, preferably more) franchisees for the company you are considering. A self-examination as to whether owning a business is what you really want is also essential, as is a very thorough due diligence. Here are 10 steps that should be taken by anyone considering investing in a franchise:

1 – Conduct due diligence on yourself
2 – Find a great accountant
3 – Find a great attorney specialized in franchise law
4 – Conduct due diligence on the business
5 – Refresh and enhance your business acumen
6 – Write a business plan
7 – Identify and hire a great team- then create a culture to retain it
8 – Hone your leadership skills
9 – Hone your sales skills
10 -Create a schedule that allows some time for family and friends

Some other information you may find helpful:

Most franchise contracts are 10-year commitments for which the franchisee has virtually no rights. They’re structured such that the franchisee has very little latitude or say in how the business is operated. You have flexibility to hire your staff, manage them and set your own prices, but most everything else, from displays to products you may/may not carry to signage/advertising, equipment, technology, etc. Is usually either governed by or subject to the approval of the franchisor. It’s not like owning your own business, it’s more like being a store manager who, if the business is profitable, takes home most of that. And if the business is not profitable and you want to sell it or close it after five years, these are both very difficult to do. The former is usually via either a very large fee (an example is a local franchisee who paid $100,000 to terminate his franchise contract with one of the more popular women’s fitness center franchises) or personal bankruptcy (franchise contracts generally require you that you be personally liable your business debts, not just through whatever type of corporate entity you might establish; e.g., LLC, S Corp., Partnership, etc.). The latter option of selling your franchise is generally accomplished only at a very large discount.

There are dozens of things to investigate when considering investing in a franchise, but here are some fundamental questions to ask current franchisees:

About how many hours per week do you dedicate to your franchise business?

How would you describe your relations/communications with your franchisor?

Is the franchisor fair with you in resolving any grievances?

Are territories equitably granted?

How would you describe the initial and ongoing training provided by your franchisor?

In what ways could the parent company most improve?

Is your income A) more, B) less or C) about what you expected prior to opening your business?

If you could turn back time to the day you signed your franchise agreement, would you make the same decision to buy your franchise?

The last one is of course the most important. There are many very happy, wealthy franchisees out there, but it’s not a guaranteed formula for success. Every opportunity is unique and requires extensive due diligence of both the franchise itself as well as the regulations governing the industry. If you have more specific questions, please feel free to contact me.

Good luck.

I am thinking of opening a coffee franchise…?Either a second cup or Timothy’s. Anyone who has done this have any feedback to give? It would be greatly appreciated!

Posted by Kristina M

adminHere are my thoughts as a former franchisee and someone who’s done extensive research on franchising:

Whether it’s worth investing in a franchise can only be answered after the fact. The best way to truly assess whether to buy any franchise is to speak directly with several (at least six, preferably more) franchisees for the company you are considering.
A self-examination as to whether owning a business is what you really want is also essential, as is a very thorough due diligence. Here are 10 steps that should be taken by anyone considering investing in a franchise:

1 – Conduct due diligence on yourself
2 – Find a great accountant
3 – Find a great attorney specialized in franchise law
4 – Conduct due diligence on the business
5 – Refresh and enhance your business acumen
6 – Write a business plan
7 – Identify and hire a great team- then create a culture to retain it
8 – Hone your leadership skills
9 – Hone your sales skills
10 -Create a schedule that allows some time for family and friends

Some other information you may find helpful:

Most franchise contracts are 10-year commitments for which the franchisee has virtually no rights. They’re structured such that the franchisee has very little latitude or say in how the business is operated. You have flexibility to hire your staff, manage them and set your own prices, but most everything else, from displays to products you may/may not carry to signage/advertising, equipment, technology, etc. Is usually either governed by or subject to the approval of the franchisor. It’s not like owning your own business, it’s more like being a store manager who, if the business is profitable, takes home most of that. And if the business is not profitable and you want to sell it or close it after five years, these are both very difficult to do. The former is usually via either a very large fee (an example is a local franchisee who paid $100,000 to terminate his franchise contract with one of the more popular women’s fitness center franchises) or personal bankruptcy (franchise contracts generally require you that you be personally liable your business debts, not just through whatever type of corporate entity you might establish; e.g., LLC, S Corp., Partnership, etc.). The latter option of selling your franchise is generally accomplished only at a very large discount.

There are dozens of things to investigate when considering investing in a franchise, but here are some fundamental questions to ask current franchisees:

About how many hours per week do you dedicate to your franchise business?

How would you describe your relations/communications with your franchisor?

Is the franchisor fair with you in resolving any grievances?

Are territories equitably granted?

How would you describe the initial and ongoing training provided by your franchisor?

In what ways could the parent company most improve?

Is your income A) more, B) less or C) about what you expected prior to opening your business?

If you could turn back time to the day you signed your franchise agreement, would you make the same decision to buy your franchise?

The last one is of course the most important. There are many very happy, wealthy franchisees out there, but it’s not a guaranteed formula for success. Every opportunity is unique and requires extensive due diligence of both the franchise itself as well as the regulations governing the industry. If you have more specific questions, please feel free to contact me.

Good luck.

In2It Nutrition & Fitness Franchise Business Opportunity …

http://hotfitnessfranchises.com/gym-f…

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