{"id":999,"date":"2023-06-14T08:43:42","date_gmt":"2023-06-14T07:43:42","guid":{"rendered":"https:\/\/hitsona.com\/?p=999"},"modified":"2023-07-28T17:33:09","modified_gmt":"2023-07-28T16:33:09","slug":"pure-gym-franchise-opportunities-requirements-costs","status":"publish","type":"post","link":"https:\/\/hitsona.com\/blog\/pure-gym-franchise-opportunities-requirements-costs\/","title":{"rendered":"Opening a Pure Gym Franchise – Opportunities, Requirements, Cost, Owner Profit, Ownership Fees & More!"},"content":{"rendered":"
PureGym is a market-leading global gym franchise<\/a> with a portfolio of 555 gyms globally, comprising 1.7m members. Its core focus is offering high-quality, low-cost gym memberships to customers who value flexibility and affordability.<\/p>\n Investing in PureGym franchise opportunities could enable you to turn over a profit of over \u00a310,000 a month if you choose the right location and venue.<\/p>\n PureGym focuses on providing affordable, low-cost health and fitness services in markets where there is high demand. Statistics show that budget gyms are increasing their market share<\/a> in the UK, from 5% in 2012 to 27% in 2019.<\/p>\n <\/p>\n Aside from a growing industry, just some of the key reasons to consider PureGym franchise opportunities include:<\/strong><\/p>\n <\/p>\n <\/p>\n <\/p>\n <\/p>\n <\/p>\n <\/p>\n <\/p>\n <\/p>\n <\/p>\n <\/p>\n The PureGym franchise model is a step-by-step process that first ensures that potential franchisees have the experience, capital, and vision to open a PureGym franchise.<\/p>\n Next, franchise owners work closely with PureGym to create a business plan that\u2019s tailored to the location and demographics selected by the franchisee.<\/p>\n <\/p>\n <\/p>\n Before you can open a PureGym franchise, you\u2019ll have to prove that you meet the minimum requirements for the brand and undergo an onboarding process. This includes:<\/p>\n <\/p>\n <\/p>\n You\u2019ll have to show a healthy cash flow and financial background, with a minimum net worth of $2,000,000 and minimum liquid assets of $500,000.<\/p>\n <\/p>\n Ideally, you\u2019ll have professional experience working in the fitness industry, especially within a management role, along with a proven commitment to helping people lead healthier lives.<\/p>\n <\/p>\n <\/p>\n PureGym will seek to find out about your investment plans, including the number of gyms you wish to open and location to help them ensure your goals are consistent with their growth plans.<\/p>\n <\/p>\n A more thorough onboarding process will help PureGym ensure you pass their feasibility checks and regulatory requirements while assisting you in your business planning.<\/p>\n <\/p>\n <\/p>\n One of the biggest hurdles to opening a PureGym franchise is the minimum amount of capital that you\u2019ll have to demonstrate you and your business partners have.<\/p>\n PureGym states that the minimum net worth that you must have to open a PureGym franchise is $2,000,000 while holding a minimum of $500,000 in liquid assets. This figure may help a potential PureGym franchisee to ascertain the level of PureGym investment they may be expected to make.<\/p>\n <\/p>\n <\/p>\n PureGym hasn\u2019t published any official PureGym franchise fees online, although it\u2019s likely that starting a PureGym start-up fee is less than many other fitness franchises due to their relatively low-cost business model. Similar gym franchises to PureGym cost in the region of \u00a350,000 to \u00a3200,000 to start up.<\/p>\n <\/p>\n <\/p>\n PureGym does not currently publish the average revenue made by their franchisees, although it\u2019s possible to extrapolate some information from the state of the PureGym brand as a whole. In 2017, the average LTM EBITDA (the pre-tax revenue over a 12-month period) of a mature PureGym venue was \u00a3571,000.<\/p>\n The revenue of PureGym franchise venues since 2017 may well have increased since then. In 2022, PureGym reported a generally healthy turnover topping \u00a3300 million<\/a> from a total of 500 venues across the UK and Europe, which is up 11% on the previous year. This shows that PureGym remains competitive and shows an average revenue of around \u00a3600,000 per site owned by the franchise. This estimate also aligns with PureGym’s published data on average gym memberships and revenue per membership, which suggests that PureGym venues make, on average, around \u00a355,000 a month.<\/p>\n However, it\u2019s important not to assume that this figure reflects the average income of a PureGym franchise owner. PureGym revenue will vary greatly between sites, and established sites are more likely to turn over large amounts of money than brand-new franchises.<\/p>\n <\/p>\n <\/p>\n After revenue, it\u2019s important to consider the costs of running a PureGym franchise, which will impact your final profits. Over the group as a whole, in 2021 PureGym’s operating expenses were around \u00a3190 million from total revenue of \u00a3307 million.<\/p>\n <\/p>\n Some of the PureGym franchise fees that you will have to pay out of your revenue include:<\/strong><\/p>\n <\/p>\n These are fees that you pay to PureGym for using their brand name. These can vary from around \u00a3500 per month to \u00a32,000 per month.<\/p>\n <\/p>\n You will have to ground rent for your premises as well as pay for electricity and gas to power and heat the gym.<\/p>\n You will have to pay staff, including trainers, administration staff, and caretakers, which is around 50% of the industry average for PureGym.<\/p>\n <\/p>\n To market your new gym, you will need to cover the cost of marketing materials and promotional campaigns. As a PureGym franchise\u00e9, you benefit from their web-first approach which reduces costs.<\/p>\n As well as these monthly costs, it\u2019s also important to know that if you decide to put up your PureGym franchise for sale at a later date, you will likely have to pay a franchise resale fee which sees a proportion of your sale profits go to PureGym.<\/p>\n <\/p>\n <\/p>\n PureGym franchises are still in their infancy so there are no recorded profit figures available. The above costs will come out of the total revenue of a PureGym facility, but your profit may be very healthy if your franchise follows a sound business plan and marketing and acquisition strategy.<\/p>\n PureGym states that both their old and newer UK sites achieve over 34% ROCE, with revenue up 58% and memberships up 8% over the last year, indicating a good return for investors.<\/p>\n The total operating expenses of the group as a whole are roughly 61.5% of total revenue, but franchise\u00e9s will also pay royalty fees to the company on top of operational expenses.<\/p>\n Royalty fees, utilities and staff costs can add up to between \u00a320,000 and \u00a340,000 per month or higher, depending upon the size of your gym, the number of staff you hire and other factors. This significantly cuts the average revenue of PureGym venues, which stands at around \u00a350,000 per month, but it does leave the possibility of earning up to \u00a310,000 in profits per month or more as a franchise owner for PureGym.<\/p>\n New franchise owners are likely to make less than this, at least to begin with<\/a>. According to Investopedia<\/a>, most franchise owners earn around $50,000 per year, with just a small minority earning over $250,000.<\/p>\n <\/p>\n When you\u2019re considering PureGym franchise opportunities, it\u2019s important to understand what you\u2019re taking on when you sign a contract to become a PureGym franchisee and what PureGym may expect from you as a franchise owner.<\/p>\n <\/p>\nThe benefits and opportunities of becoming <\/strong><\/h2>\n
a PureGym franchise owner<\/strong><\/h2>\n
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How does the PureGym franchise model work?<\/strong><\/h2>\n
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1. PureGym franchise requirements<\/strong><\/h3>\n
Financial investment<\/strong><\/h4>\n
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Experience check<\/strong><\/h4>\n
Aspirations<\/strong><\/h4>\n
Onboarding<\/strong><\/h4>\n
2. Minimum cost or investment to buy and own a PureGym franchise<\/strong><\/h3>\n
3. Initial PureGym franchise start-up fees<\/strong><\/h3>\n
4. Expected PureGym franchise revenue<\/strong><\/h3>\n
5. Costs associated with running a PureGym franchise<\/strong><\/h3>\n
Royalty fees<\/strong><\/h4>\n
Rent and utilities<\/strong><\/h4>\n
Staff<\/strong><\/h4>\n
Marketing<\/strong><\/h4>\n
6. Predicted average profit of a PureGym franchise owner<\/strong><\/h3>\n
A look at the PureGym franchise agreement and policies<\/strong><\/h2>\n
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