Founded in the 1970s, The Little Gym is one of the world’s leading children’s enrichment brands. The Little Gym sessions allow children to work on physical skills, motor skills, strength and balance in a safe and fun environment. The Little Gym has over 400 franchise locations in over 30 countries, with more franchise opportunities available in the UK and overseas.
In this article, we’ll explore The Little Gym’s franchise model and consider the costs and potential profits that investors should be aware of before investing in The Little Gym.
The Benefits and Opportunities of Becoming a
Little Gym franchise owner
Little Gym franchise opportunities allow investors to quickly launch reputable, tried-and-tested children’s gymnastics centres. Some of the benefits of becoming a Little Gym franchise owner include:
- Become part of an international children’s enrichment chain, voted the number one Children’s Fitness Franchise of 2020 and 2019 by Entrepreneur Magazine with $995,185 in average gross sales in 2022
- Align yourself with an ambitious, growing brand that has 400+ locations open or in development available across the UK and Europe
- Occupy a niche in the market that targets above-average-income families with children aged 0 to 12 to capitalise on more opportunities within your catchment area
- Enjoy a high return potential of £350,000 in revenue annually, with an average payback period of only 5 years and the potential to break even on operational costs before the end of the first year of trading
- Access data through ready-made dashboards to help you monitor and improve the performance of your business with targeted insights
- Get extensive training before launching your site from the Little Gym team, including assistance and advice with finance, real estate, training and marketing.
How does The Little Gym franchise model work?
The Little Gym is a children’s enrichment brand that offers classes and sessions for parents and children with a focus on all aspects of physical development: coordination, balance, flexibility, agility, and strength. Parents can sign their children up for classes designed for their age group (up to 12 years old) or book Little Gym parties and camps.
1. The Little Gym franchise requirements
The Little Gym group will check that you meet the Little Gym franchise requirements before they offer you a franchise location. These requirements include:
- Demonstrating that you have enough capital to cover The Little Gym franchise cost, which usually means showing that you have at least £150,000 in liquid capital
- A willingness to open a Little Gym franchise in a location that’s suitable for the franchisor and goals that align with those of the group
- A passion for working with people and children, although no experience of working with children is necessary
2. The minimum cost to open a Little Gym franchise
The total Little Gym investment that franchisees will have to make to get started with a Little Gym in the UK is around £300,000 for the classic Little Gym model, or £228,000 for the small model. Investors can choose to fund some of this total through a bank loan, but it’s recommended that they put up at least 30% of the total investment cost themselves.
3. Initial Little Gym startup fees
The Little Gym franchise price for starting a Little Gym in the UK is currently £40,000. This Little Gym startup fee will cover your access to bespoke training and tools as well as all of the support that you’ll get before you launch your Little Gym.
4. Expected Little Gym franchise revenue
The Little Gym group doesn’t publish the average Little Gym franchise revenue online, but estimates suggest that the average Little Gym franchise makes around £350,000 in revenue per year, or almost £30,000 per month.
5. The costs associated with running a Little Gym franchise
You won’t be able to keep all the revenue that your Little Gym franchise makes because you’ll have to pay costs including Little Gym franchise fees. Some of the biggest costs associated with running a Little Gym include:
- A management fee equal to 8% of gross monthly revenue
- A marketing fee equal to 1% of gross monthly revenue
- Ground rent or venue fees, utilities, and staff wages
6. The predicted average profit of a Little Gym franchise
It’s possible to calculate the Little Gym franchise owner’s average profit by subtracting these costs from the average revenue of a franchise. Some sources estimate that the Little Gym franchise owner average profit is around £113,000, which is just under £10,000 per month. This reflects an EBITDA of 33%, which is quite high for a fitness franchise.
A look at the Little Gym franchise agreement and policies
When you sign up to become a Little Gym franchisee, you’ll have to agree to the Little Gym franchise agreement and meet the obligations of your contract.
1. Territory
As part of your initial franchise agreement, you’ll be given territory protections in your location for the duration of your franchise term. There is no minimum protected area designated by the group, but typically territories will contain at least 10,000 children aged 0 to 4 years with an average household income of above £50,000 or thereabouts.
2. Ownership
The Little Gym requires that all franchisees play an active role in the day-to-day management of Little Gyms in the UK, serving as the general manager of the franchise. This means that Little Gym franchises are not suitable for investors interested in making a passive investment.
What are the franchise terms of agreement
and renewal for The Little Gym?
Your initial Little Gym franchise agreement will last for ten years, after which franchisees can extend their contracts for two further terms of five years each, provided they have met all of the conditions of their initial contract.
Is The Little Gym a good fit for you?
It’s important to ascertain whether The Little Gym is a good fit for you before you invest in the franchise. Becoming a Little Gym franchise owner will mean being involved in the daily management and operation of a children’s enrichment business that may bear more resemblance to a nursery or daycare centre than a traditional fitness centre.
1. The target market of the average Little Gym franchise
The target market of Little Gym franchises is young children and their families, with most Little Gym classes aimed at children between the ages of 0 and 12. Families with above-average household incomes who are prepared to spend money on their children’s enrichment make up the core Little Gym audience.
2. Is a Little Gym franchise right for your chosen location?
If you’re thinking of opening a Little Gym franchise in a town or area that’s serviced by a lot of private schools, private nurseries, and educational classes and camps, this indicates that there are plenty of local families who are keen to invest in their children’s education and development.
Towns and villages with ageing populations or high populations of young professionals and fewer families are not good choices for a Little Gym franchise, nor are areas where most families don’t have enough disposable income to afford extracurricular classes and activities.
3. Other factors to consider when deciding whether a Little Gym franchise is right for you
There are currently around 14 Little Gyms across the UK, with most of these located in the South East except a few in Yorkshire. This means that there are plenty of affluent, family-friendly towns and cities in the country with opportunities to open a Little Gym.
However, this also means that the Little Gym brand is less well-known in most of the UK outside of London and South East, which could make it harder for franchisees to establish themselves at first. Investors looking for a hands-off investment – or one that will market itself easily – may not be right for Little Gym.
Are you a good fit for The Little Gym franchise?
It’s important that potential investors consider more than just whether they can pay the Little Gym franchise costs and whether the franchise can be profitable. Investors wanting to start a franchise within the fitness industry might find that The Little Gym isn’t what they’re looking for because the brand arguably has more in common with the traditional childcare and educational sectors than it does with health and fitness.
You’ll also have to be prepared to play an active role in the management of your Little Gym, and willing to work with children as part of your job.
The process of starting a Little Gym franchise
If you want to open a Little Gym franchise, follow the steps below.
1. Book a franchise call
The first stage of starting a Little Gym franchise is placing a call with the Little Gym group. During this call, you’ll learn more about The Little Gym and their representative will ask about your background, experience and finances.
2. Spend a day with The Little Gym
If you’re still interested in investing, you’ll be invited to spend a day at The Little Gym, where you’ll get an overview of the company, meet the Head Office team, and learn more about what it’s like to be a Little Gym franchisee.
3. Sign the contract
If your application to become a Little Gym franchisee is successful, you’ll sign a contract and set the terms of your agreement at this stage. You’ll also work with the franchisor to choose a suitable location to open your Little Gym centre.
4. Undergo management training
All Little Gym franchisees undergo extensive training before they launch their franchise. As well as learning how to manage your Little Gym, you’ll learn a little about children’s development and how the services your gym offers can contribute towards healthy childhood development.
5. Hire staff and market your Little Gym
Before you launch your Little Gym, you’ll have to invest further capital to purchase Little Gym equipment from the franchisor, hire staff to run classes and market your Little Gym to local parents and families.
6. Launch your Little Gym
When you’re ready to launch, you can open your Little Gym to the public and start taking bookings from local families. Running a Little Gym is an ongoing role that will require a significant amount of work for the duration of your franchise term.
Conclusion
The Little Gym franchise opportunities are available across the UK and Little Gym franchisees include gym instructors, nursery practitioners, parents, and professionals from other specialisms.
With a relatively high EBITDA of 33% offering franchisees the chance to break even operationally within a year of launch, The Little Gym can be a profitable franchise for investors interested in a fitness brand that’s a little bit different.
FAQs
If you want to become a Little Gym franchisee, read some of the most frequently asked questions below.
1. How to start a Little Gym franchise
If you want to start a Little Gym franchise:
- Contact the Little Gym group to discuss your proposal
- Demonstrate that you meet the requirements to invest
- Pay the Little Gym franchise startup cost and choose a location for your Little Gym
- Equip and fit out your new Little Gym
- Market your gym to attract customers and hire staff
- Launch your Little Gym
2. How much does owning a Little Gym franchise cost?
The total cost to open a Little Gym franchise is usually between £228,000 and £300,000 for UK franchisees. The amount that you spend will depend on whether you open a classic or small Little Gym, and how much you can raise from other funding sources.
3. Is a Little Gym franchise profitable?
As the owner of a Little Gym franchise, you could make up to £10,000 per month in profits, with an EBITDA of 33%. This is high for a fitness franchise and ensures that successful Little Gym franchise owners are able to make a return on their investment relatively quickly.
4. What questions to ask when buying a Little Gym franchise?
Before you sign up to owning a Little Gym franchise, make sure that you ask these questions in your franchisee meetings.
What is the total cost to buy and own a Little Gym franchise?
How much support will I receive from The Little Gym?
What is the average income of a Little Gym franchise owner?
When can I put up my Little Gym franchise for sale?
