How do I compare gym franchise opportunities?

Gym franchise brands look alike in a brochure and very different once you open the agreement. The useful comparison is not which brand sounds strongest but which one fits the way you want to work, the neighbourhood you have in mind and the money you can commit. Write the same list of questions down once, then put every brand through it in the same order so the answers line up side by side.

Start with the format

A round-the-clock, low-staff club runs very differently from a boutique studio built around coached classes. One leans on equipment and membership volume. The other leans on instructors, schedules and the feel of the room. Decide which kind of daily work you would actually do well, and which kind of member you want to serve, before you look at a single fee schedule.

Territory, fees and equipment

Ask how the territory is drawn and whether the franchisor can place another location close to yours. Then list every payment the franchisor expects: the initial fee, ongoing royalties, marketing contributions and technology charges. Ask what equipment is required, whether you must buy it from the franchisor, and whether the brand requires refreshes or renovations. Those refresh cycles are cash you will need later.

Support and what franchisees say

Find out what training, opening help and ongoing coaching the franchisor provides, and who you would call when something goes wrong. Then ask for a list of current and former franchisees and call several yourself. Ask what they were told before signing, what surprised them, and whether they would sign again. Ask to speak to former franchisees as well as current ones.

• The format and the daily work it needs from you
• Territory protection and how it is defined
• Every fee, royalty and required purchase
• Equipment rules and renovation cycles
• Training, support and franchisee references

If you are buying an existing location rather than a new one, the same questions apply, and the franchisor may need to approve you as the buyer, so check the agreement. Our guide to finding a gym franchise for sale covers where such listings turn up.