How To's
How Much Does A World Gym Franchise Cost?
For people who put a premium on fitness, operating a gym can be a promising venture. Not only will it allow you to help others maintain a healthy lifestyle, but you can also earn big bucks if everything works out. If you’ve always wondered about the World Gym franchise cost, this article will guide you through the ins and outs of owning your own gym as well as the money you need to invest.
Franchise Description
Before we get to the World Gym franchise cost, let’s review a few crucial details about the business. The business began in 1976, during the glory days of Muscle Beach in Los Angeles, California. The small gym filled with custom equipment, soon became a fitness destination for fitness buffs, including celebrities like Arnold Schwarzenegger.
It was in 1982 that the business started franchising. Presently, World Gym International, LLC franchises the business and has over 220 locations globally. Aside from workout equipment and fitness training, the franchise also offers nutritional menu items, supplements, and other related items.
Training Overview
There’s an initial training program required for franchisees or their successor. If they’re not available, an operator or a gym manager can be tasked to undergo the training. The attendee must complete the training before the franchisor can allow the location to open.
Preparations include classroom training and on-the-job training. The former includes lectures, and tutorials. On the other hand, the latter is hands-on training in a designated location. Aside from the initial training, there are also on-going training and certification programs. The franchisor may also conduct mandatory or optional training to update operators’ knowledge and skills.
Territory Granted
Though the franchisor doesn’t grant an exclusive territory, they provide protected territory. As indicated in the agreement, the approved location is surrounded by an area where no new franchise will be granted. The area measurement depends on the size of the site per square feet.
Obligations and Restrictions
Aside from the World Gym franchise cost, franchisees must also prepare to comply with duties that come with the business. For instance, the franchise owner or a designated operator should have overall control of the gym and be accountable for its operation. The franchise owner must also always employ a sufficient number of employees. These employees must receive proper training and be approved and qualified according to the franchisors’ standards.
In addition to that, franchise owners must only offer products and services specified in writing and stated in the agreement and the manual. For instance, if there’s an agreed-upon supplier to serve as a sole source for goods or services, franchisees must abide by those rules.
The initial franchise term lasts for ten years. If the franchise meets the requirements, the franchisor could grant an additional 10-year period. The franchisor doesn’t offer financing, whether direct or indirect. They also don’t guarantee a franchisee’s note, lease or obligation.
Your Investment
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $30,000 | $30,000 |
| Pre-Opening Membership Fee | $20,000 | $80,000 |
| Build-Out and Leasehold Improvements | $200,000 | $1,000,000 |
| Premises Lease Deposits | $10,000 | $50,000 |
| Initial Inventory | $5,000 | $10,000 |
| Deposits/Lease and Other Down Payments for Fitness Equipment, Fixtures, Other Fixed Assets | $40,000 | $200,000 |
| Audio/Visual Equipment | $10,000 | $50,000 |
| Furniture and Displays | $5,000 | $20,000 |
| Signs and Branding | $10,000 | $30,000 |
| Office Equipment and Supplies | $5,000 | $10,000 |
| Insurance | $15,000 | $60,000 |
| Utility Deposits | $1,000 | $5,000 |
| Professional Fees | $5,000 | $20,000 |
| Initial Training | $0 | $10,000 |
| Licenses and Bonds | $0 | $25,000 |
| Additional Funds (1st 180 days after opening) | $100,000 | $200,000 |
| ESTIMATED TOTAL | $456,000 | $1,800,000 |
Other Costs
| Type of Fee | Amount |
|---|---|
| Royalties | 5% of gross revenues received during the preceding month (plus any gross revenues for earlier periods for which monthly royalties have not been paid). |
| Promotional Fees | 2% of gross revenues received during the preceding month (plus any gross revenues for earlier periods for which franchisees have not paid promotional fees). |
| Digital Marketing and Other Fees | If any, based on voluntary marketing and promotional program the franchisor may offer and franchisees participate from time to time. |
| Reimbursement of Initial Mandatory Training Expenses upon any Renewal or Transfer | Estimated expenses of $3,500 to $5,000 for the cost of travel, lodging, meals and incidental expenses incurred by the franchisor’s trainer(s) for training conducted at the franchisee’s facility. |
| Reimbursement of General, Ongoing Training Fees and Expenses | There are no general training fees, but franchisees pay for the cost of travel, lodging, meals and incidental expenses incurred by the franchisor’s trainer(s) for training conducted at the franchisor’s facility; the franchisor may charge a reasonable fee in the future. |
| World Gym Athletics Training and Certification Fees | Coach fee of $500 to $1,000 per trainer per day; Certification host fee of $795 for one day training session and $1,495 for two day training session; Coaching certification fee of $99 for non-host World Gym attendees (i.e., attendees from another World Gym facility) and $199 for non-World Gym attendees (i.e., attendees from fitness facilities not affiliated with World Gym) for the one day training session and $199 for non-host World Gym attendees and $399 for non-World Gym attendees for two day training session. |
| Audit Expenses | Amount of the franchisor’s costs for conducting the audit. |
| Future Performance Rights License Fees | If in the future the franchisor later implements a public performance rights licensing program, the proportionate share of the aggregate license fees charged by MPLCC, ASCAP, BMI and/or SESAC under a blanket agreement with the franchisor, plus an administrative charge not exceeding 10% of the license fees it collects from franchisees. |
| Renewal Fee | $5,000 |
| Transfer Fee and Transferee Training Expenses | $5,000, plus reimbursement by the transferee of the franchisor’s training expenses. |
| Annual Franchisee Convention Registration Fee | No registration fee for Designated Operator and key staff members. |
| Annual Franchisee Convention Nonattendance Fee | $500 |
| Relocation Fee | $500 |
| Annual Insurance Evaluation Expenses | Not more than $500 (if payable). |
| Interest on Late Payments | 1.5% per month or the highest amount allowed by law, whichever is less. |
| Declined Payment Charge | $35 or the franchisor’s actual expenses, whichever is more. |
| Indemnification | All expenses and liabilities from, relating to or connected to the operation of the Facility. This includes, for example, claims for errors or omissions of franchisees or their employees, contractors, officers, directors, managers, shareholders, members, invitees and vendors. |
| Attorney’s Fees and Costs | Actual expenses incurred by the prevailing party. |
Did You Know?
Here are a few fun things you might want to know about the World Gym:
- World Gym banks on their reputation as a pioneer in fitness. They take pride in knowing the “difference between cheap fads and time-proven techniques.” And with 40 years of experience under the belt, they surely earned the right to claim that they know a thing or two about fitness.
- Despite having over 200 locations worldwide, they strive hard to make each gym connected to the community. The team also loves working out, and their passion for fitness shows through their daily grind.
- The people behind World Gym know just how difficult it could be to maintain a healthy lifestyle. So, they work hard to build a positive and encouraging atmosphere to support each client. As they say, if you train with them, you’ll not only be part of a team but part of a family.
- Though gym amenities vary per location, each one typically includes cardio machines with monitors, and strength equipment. Facilities also provide personal and nutritional counseling as well as group classes like yoga, spin, kickboxing, and boot camp. Many of the locations also have swimming pools, tennis and basketball courts, saunas, and a lot more. With this franchise, you can have the ultimate fitness hub.
- As part of their tools to help clients maintain a healthy lifestyle, the business has even launched an app where members can check-in to the gym and sign up for classes and events. You can also sync the app with the client’ heart rate monitor for added training benefits.
If the World Gym franchise cost fits your investment budget and you’re ready to take on the duties that come with the business, opening your own franchise is definitely worth considering.