Becoming the owner of a truGym franchise allows you to enter the fitness market with a high-quality studio that still has plenty of locations available throughout the UK. As an affordable fitness option that offers a wide range of classes, you’re likely to reach a broad audience. 40% of UK citizens believe gyms are too expensive, which allows you to position yourself to a large portion of the market with truGym’s low membership fees and flexible contracts, making this a key USP of the brand.
In this article, we look into truGym franchise opportunities, including the requirements to become a part of this organisation and the key factors you must consider before beginning your investment.
Benefits and opportunities of becoming a truGym franchise owner
As a truGym franchisee, you stand to enjoy opportunities and benefits, such as:
• Benefit from a comprehensive turnkey fitness franchise that includes extensive training so you can get started quickly with all the help you need to make a success of your truGym franchise
• Enjoy a strong marketing presence with behind-the-scenes help for investors with their social media presence, such as managing regional accounts to make sure you can reach a broad audience in the local area
• Achieve rapid growth and ROI with annual net profits from £250,000 to £300,000
• Join forces with a gym brand that is continuously growing worldwide – with 11 franchises available across the UK as well as other nations, making truGym an exciting investment
• Enjoy broad appeal thanks to low-cost, flexible memberships from just £19.99/month, allowing you to address the needs of low-income groups who aren’t able to visit other gym brands
• Find the site that’s right for your truGym franchise area and demographic, starting from boutique-style premises at 3,000 square foot through to 20,000 square foot fitness centres
• Offer a timetable of diverse classes suitable for every age and ability, such as yoga, spin, and 24/7 gym access, allowing you to improve accessibility and maintain a consistent and engaged customer base of your truGym franchise
• Feel secure and supported with rigorous health and safety truGym franchisee support to guarantee the continued safe operation of your club – ensuring you have peace of mind about your own services
How does the truGym franchise model work?
Founded by Parm Singh in Maidstone in 2010, the truGym franchise model is built on a no-frills approach that ensures members only pay for the facilities they need.
Here are a number of factors to think about before becoming a truGym franchisee:
1. truGym franchise requirements
The usual truGym franchise requirements include:
• Moderate investment:
truGym franchises usually cost around £300,000 depending on the club’s size, with the minimum and maximum set at £100,000 and £850,000 respectively.
• A good location:
truGym already has a number of planned franchise sites throughout the UK, and you should be able to demonstrate why your chosen location is a suitable investment for the brand. Given its low membership fee ( around £287 / year), the brand model assumes a very high membership base – this means that the location has to reflect its demographics, including a large enough population in the area, and medium to low-level income.
• Liquid capital:
Although you can finance the gym through a bank, you will need at least £100,000-£150,000 of liquid assets to show that you’re able to financially handle a truGym franchise. Of course, the actual liquidity depends of the amount of investment in your truGym franchise.
2. Minimum cost/investment to buy and own a truGym franchise
The cost to open a truGym franchise varies quite a lot, ranging from a minimum investment of £100,000 to up to £850,000. Most often, a truGym franchise is implemented as a boutique option, with an initial cost in the range of £100,000 to £300,000.
3. Initial truGym franchise startup fees
Your initial truGym franchise fees are around £25,000 plus VAT. This represents the value that the brand can give to your franchise and forms only a small portion of the total initial investment fee. As a reminder, investors in a truGym franchise are required to hold a minimum of £100,000 to £150,000 cash assets.
4. Expected truGym franchise revenue
truGym predicts that owners will experience an average gross turnover between £600,000 and £950,000 – this mainly depends on the size of your club, but an overall net profit of 25% to 35% is expected.
5. Costs associated with running a truGym franchise
As a 24-hour gym with plenty of machines and equipment, these gyms can have high utility bills. This could use up to 125,000 kWh a year, costing the gym £42,500. Staffing costs might also be a factor – with truGym general managers requiring an average salary of £29,592 per year.
Royalty fees, equipment maintenance fees, technology fees, marketing fees, and other similar should also be considered when deciding on taking on your truGym franchise.
6. Predicted average income/profit of a truGym franchise owner
The franchisors predict that a truGym franchise owner’s average profit can be up to 25-35% depending on your location. Boutique gyms may be more lucrative because of their high ticket/low volume model. Information on the average income of a truGym franchise owner is scarce, but a short calculation based on an average investment of £300,000 initial cost and a 30% net annual profit, would assume a break-even point in just over 3 years.
A look at the truGym franchise agreement & policies – main points
Here are the main policies of a truGym franchise agreement:
1. Support provided by the truGym franchise team
The truGym franchising agreement details the support provided to the owner, including access to an experienced team of real estate specialists, construction and architectural teams, truGym’s corporate training programme, its operational manual, POS systems, collateral i.e. marketing materials, branding, signage, and more
2. Contractual expectation from truGym franchise owners
All monthly fees i.e. royalty, marketing, equipment maintenance, technology fees, and similar are included in your truGym franchise agreement. Brand standards are also detailed, including the fees for violation of these standards.
3. Terms of forfeiture
There are a number of reasons why this brand requires forfeiture clauses in its franchise agreement, such as needing to retain overall control of the company. If a truGym franchisee takes the brand in a direction that is incompatible with the franchisor’s approach, then the fees and process associated with violation of the franchising agreement are also detailed.
What are the truGym franchise terms of agreement and renewal?
It is unclear how long the terms of the agreement last for a truGym studio – but most fitness franchises range from 5 to 10 years before renewal. This is enough time for franchisors to be secure in the new owner’s commitment to the brand but still allows for significant operational changes at the conclusion of this period.
If you decided not to continue as the truGym franchisee after your contract expires, your franchise agreements will also detail the relevant transfer of ownership fees.
Is truGym a good fit for you?
There are various factors you must take into account before deciding upon truGym as your franchise, such as:
1. The target market of the average truGym franchise
truGym is mainly a budget choice for low-income exercisers and even has lower average prices than easyGym, which fulfills a similar niche. Their memberships start at £19.99 depending on location – a sharp contrast to the national average of £40. The exercises are also suitable for any age group or experience level.
Hence before deciding on taking a truGym franchise, you will need to assess your ability and willingness of managing a business that requires close P&L management, with a specific focus on costs i.e. staffing levels, amenities, etc. Not all gym franchisees are able to balance the competing requirements of strict budgetary control and strict adherence to truGym’s brand standards, hence this is an important aspect that potential owners must consider.
2. Is a truGym fitness franchise right for your chosen location?
As boutique options are available for this brand, you don’t need to worry too much about finding a big enough space in your area. More generally, you could target a low-income location with a diverse mix of age groups to ensure you receive a broad audience in need of your service. You do however need to keep in mind the requirements of the truGym franchise, which are:
• 5000 -25,000 sq meters
• Visible road presence close to town centres
• Planning for D2
• Large parking space
Hence, given the large initial costs and high volume membership model, truGym franchises are not most suitable in affluent areas, where high costs and high-income population would hinder the brand’s ability to increase membership while managing costs.
3. Other factors to consider when deciding whether owning a truGym franchise is right for you
As a 24-hour gym, you might want to consider the increased utility demands and how much they contribute to the long-term truGym franchise cost. You should also consider whether a boutique or full-scale gym can better suit your preferences, especially as the former is potentially more profitable.
Are you a good fit for the truGym franchise?
Whilst truGym offers comprehensive training that helps first-time owners understand how to run the gym, you should still think about if you would be a good franchisee. The high initial liquid capital requirements can show if you have the financial acumen to deal with the utility costs of a vast 24-hour gym. If you would prefer a rapid return on your truGym investment, you may want a gym with high membership fees. Ultimately, you should be passionate about helping people who might otherwise be unable to attend a gym.
And of, course, you should be well suited to the high volume / low cost model of the truGym franchise, and the pressures associated with it.
Process of taking a truGym franchise
Here are the five main steps for opening a truGym franchise:
1. Decide on a brand
Knowing which brand best suits your requirements is important before making your decision. You may want to investigate the profitability or financing options, for example. This helps you check if the cost to buy and own a truGym franchise can fit your budget.
2. Apply as a franchisee
If you can afford the truGym franchise cost, apply online, and provide the team with information on your liquid capital, location, and potentially a specific site. This helps the brand assess if you would be a good owner – and the location’s likely profitability.
3. Pay for the gym
Once truGym approves you as an owner, this is usually when you sign the franchise agreement. Make sure you understand, and agree with, everything in the document before signing. This includes the truGym startup fee – which you could secure from HSBC, the brand’s official lending partner.
4. Prepare the gym
After you pay the truGym franchise startup cost, you should attend the brand’s training sessions. The time the gym’s preparation takes depends on its size; a boutique can be ready much faster. The brand also conducts its marketing campaign at this stage.
5. Launch the franchise
When your truGym franchise is complete, you can set a launch date and begin offering pre-sale memberships, possibly with a founder offer discount for the first few weeks. Make sure to also conduct your own marketing in the local area through physical materials.
Conclusion
Investing in a truGym franchise for sale could lead to high revenue – allowing you to experience high profits while helping people from all backgrounds. With low membership prices and a broad appeal to the local community, it’s more likely to become a successful gym franchise owner with this brand. Thorough truGym owner training also helps to make sure you know how to navigate a range of complex situations that may arise during your tenure.
FAQs
1. How to start a truGym franchise
• Get in touch with the truGym team and give them your details.
• Sign a franchise agreement once they approve your ownership.
• Consult with the team’s real estate experts to find a viable site.
• Pay for the gym, potentially with the help of HSBC financial aid.
• Attend the truGym training as your studio begins construction.
• Hire a receptionist, manager, and other general truGym staff.
• Launch the gym and reap the benefits of a truGym franchise.
2. How much does owning a truGym franchise cost?
There is tremendous variety in terms of the price of these gyms – especially as you may open a small boutique or an extensive full-scale studio. On average, the fee is around £300,000 and might become higher if you need more equipment or otherwise wish to expand in the future.
3. Is a truGym franchise profitable?
A truGym franchise owner’s average profit is also highly variable, especially as it depends on the franchise cost and its success. However, this brand is definitely profitable and can lead to a net profit of up to 35%. Your gym could break even within 3 years, though of course many other factors contribute to its success.
