The Snap Fitness Franchise has an appealing business model. You invest a couple of hundred thousand dollars, sit back and money rolls in! But is it that easy? And how much can you actually earn owning a Snap Fitness? We’ll take a look today on Franchise City.
The cost to open a snap fitness franchise is between $153,980 to $529,899, depending on the size of club and a number of other local variables. You’ll pay a fee of $569 every month to Snap Fitness, a National marketing fee of $275 per month, local marketing fund is $200 month, a member services fee of $1 per member, a membership processing fee of $5.90 for each new agreement and 61 cents each month. There are a few other fees we wont go into here, but we will give you the total amount that Snap Fitness earns from it’s franchisees – stay tuned.
The fitness franchise model is seductive. It’s supposedly a passive model where you can keep your job, hire someone to run the club while you just sit back and make money. But let me ask you this. What happens if you can’t find someone good to run your club. And finding the right fit can be challenging because they need to have a very specific skillset of sales and fitness. It’s hard enough these days to retain quality people even in non-skilled labor situations with unemployment the lowest it’s been in a while. So bear in mind that if you can’t find anyone, or you keep losing your key manager, you will absolutely need to take a more active role in your club so be prepared to do so. If you are being told how easy it is to run a fitness club and it’s completely passive, well it might be, and it might not be. Hope for the best, prepare for the worst and if your job or other business does not allow some flexibility you may want to reconsider.
Also note that these revenue figures included personal training revenue, and not all clubs have that. Their own FDD states Personal training revenue varies widely by club depending on the ability to find qualified and motivated personal trainers, types of services and management of the personal training programs. In other words, it might be a challenge to find trainers. In which case you will need to back this revenue number out from your Gross annual cash flow. So even if you have a club that is higher than the average at 617 members, your $110,000 becomes $71,433, now you have to pay your staff, taxes, and everything else, whatever is left you get to keep.