Because, Kyle, it takes money to expand a business. You can wait until you have enough surplus from your initial business. You can borrow it. You can go public and have a share issue. Or you can franchise. A franchisee should be looking to buy a business with a proven track record. Buying, then next big thing is a gamble.KyleSchuant wrote: ↑Fri Oct 26, 2018 4:24 amActually, my strength-focused clients - which was a bit over half of them - had the best retention. And it was the same for the other guy who did stuff like me. There's less of them, but they stick with it.mgil wrote: ↑Fri Oct 26, 2018 4:15 amI don’t doubt that the Y picks up a lot of training income, but they also have open access and a larger community. A lot of these folks paying for training are also paying for personal interaction. And you know as well as I do that telling these folks to do 4/5 lifts over and over again is likely not going to retain them as well as “let’s try something new today."
Personally I'm very sceptical of franchises. If it's such a sure thing, why wouldn't you just open the place yourself and employ someone to run it for you? Instead you're shifting at least some of the financial risk onto the staff. Now, what could be the reason you wish to minimise your financial exposure to a new place opening, hmmm? Is it because you think it'll succeed so much the big wads of cash flowing in will frighten you too much?
Speaking of gambles. Gyms are a growth area. Not so long ago a couple of major gym chains in the Uk had to divest themselves of a lot of branches. They branches were taken over, presumably by someone who can run them more profitably.