MAKE A HEALTHY PROFIT - Health, Fitness and Beauty franchises - Business Franchise ...
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MAKE A
HEALTHY PROFIT
Health, Fitness and
Beauty franchises
If you enjoy a healthy
lifestyle, looking great
and keeping fit, then
look no further than
franchising to provide
you with a multitude
of exciting business
opportunities.
Business Franchise Australia and New Zealand 61
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The health, fitness and beauty industry
Franchising has been a fantastic format for successful covers an enormous choice of businesses,
businesses across these growth areas. People are ranging from gyms to fitness programs, to
hairdressers and a wide range of beauty
becoming more aware of maintaining a healthy lifestyle, services including nails, hair removal, and
and are taking better care of themselves than ever male grooming.
before. Keeping in shape, being healthy and
well-groomed can make you feel vibrant
and attractive, on the inside and out. Fit
and healthy people radiate happiness,
self-confidence and vitality. Likewise,
owning a customer-focused franchise that
helps to promote a sense of well-being and
happiness can be just as rewarding, not to
mention lucrative!
EXPANDING WAISTLINES
The number of people who are overweight
in Australia continues to rise according to
the Australian Bureau of Statistics.
The 2011-12 Australian Health Survey - the
largest check up on the nation’s health ever
undertaken - found that nearly two-thirds
(63 per cent) of the population are now
classified as overweight or obese.
Men are more likely to be overweight or
obese (70 per cent) than women (56 per
cent) while one quarter (25 per cent) of our
children are overweight or obese.
With these staggering figures, it’s no
wonder that fitness franchises have
experienced rapid growth over recent times.
BRW’s fast franchise 2012 list is headed by
Jetts Fitness which has experienced average
growth of 403.3 per cent over three years.
Many franchised gyms, in varying formats,
have experienced similar success in recent
years.
FRANCHISED GYMS –
IMPROVE YOUR BOTTOM LINE
In recent years, franchised gyms have
experienced outstanding success as people
become more and more aware of the
importance staying active and looking after
their physical wellbeing.
Added to the mix are 24 hour gyms -
catered specifically for our busy lives,
single sex gyms and more - and you have
a sector of franchising that has boomed
across the country and the world.
CHECK OUT THE FIGURES!
A report released in October 2012 by
IBISWorld predicts Australian fitness
62 Business Franchise Australia and New Zealand
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industry revenue of $3 billion in 2012-13.
Australians are expected to spend:
Women have always loved to be pampered • Having a loyal customer base. It is
• about $1.7 billion on gyms and personal and preened, and now with ‘man-scaping’ important for a salon to build up a base
training; rising in popularity it’s men too who like to of satisfied clients, to ensure repeat visits
• about $380 million on weight-loss be buffed and waxed – not just their cars! and attract new customers through good
services; Just about every aspect of the beauty word-of-mouth.
• about $292 million on dietary industry is covered by franchising. From • Ability to control stock on hand.
supplements; and teeth whitening to cosmetics, hair dressing, Controlling stock levels, particularly
manicures and pedicures, massages, hair-care and beauty products, is
• about $121 million on surgery.
waxing, tanning, and all the beauty important to maintain the liquidity and
The Australian Fitness Industry Report products to keep you looking great, there’s cashflow of the business.
2012 (by Deloitte Access Economics for a business opportunity out there for you. • Superior financial management and debt
Fitness Australia) highlights some key
Perhaps you have been a beauty therapist management. Financial and business
statistics:
working out of a salon for many years; management skills are vital to ensure
• Among Australians, aerobics, fitness or now may be the right time to build your cashflow and the survival of the salon.
gym workouts are now the second most own business based on a tried and tested • Access to highly-skilled workforce.
popular physical recreational activity successful formula offered by a franchise. A salon depends on the skill of its
after walking.
According to an IBISWorld report hairdressers and/or beauticians.
• Over four million Australians participate (Hairdressing, Beauty Salons Market Maintaining and updating skills is
in fitness industry activities. Research Report) key success factors for important to stay abreast of new hair
• Users are typically female (42 per cent) operators in the industry include: styles and beauty treatments.
and younger (25-34 years). • Having links with local health • Marketing of differentiated services.
• The biggest increase in users was from professionals. Beauty salons can benefit Salons can move away from price based
the 45-54 year age group. from client referrals from local doctors only competition by offering quality,
and dermatologists. value-added and higher priced services.
• Looking forward, participation will
continue to increase exponentially with • Use of specialist equipment or facilities.
total demand increasing to 7.15 million Having specialist equipment enables NOT JUST FOR HIPPIES…
users by 2020. salons to provide value-added, higher- Alternative health therapies are also
priced services. becoming increasingly popular among
BEAUTY IS BIG BUSINESS • Proximity to key markets. It is an people searching for alternatives to
advantage to be located in a high profile, prescription medicine, which has resulted
The beauty business is big business. These
preferably wealthy area with significant in an increase in the popularity and use of
days, people are spending more money on
beauty than ever before, and the industry is passing pedestrian traffic and easy herbal remedies in recent years.
constantly growing and evolving. parking. Alternative health therapies are also
Business Franchise Australia and New Zealand 63
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banker and put together a realistic sum of
money you can afford to put into this new
venture. This will most likely weed out
some systems quite quickly – as the larger,
more well-known fitness names come with
a hefty price tag. They are strong, tried and
tested and have proven success stories – but
you must truly be able to afford to buy into
them.
Once you have an amount in mind, you can
begin to shop around. You will be able to
narrow down your search, but don’t rush. If
you get to your short list, it is time to direct
all your attention to the franchise system
and the franchisor.
KNOW YOUR FRANCHISOR
The franchisor holds the key. The
management system, the operational
procedures, the leasing agreements, the
contracts, and the fees have been generated
by the franchisor. Check the franchisors
background – is it solid? Meet with him
or her. Do they seem to be a person of
integrity? Do they answer all of your
questions openly and honestly? Do they
invite you to do your own investigations
into the company? Are they eager for you
becoming increasingly popular among MAKING THE RIGHT CHOICE to talk to existing franchisees?
Australian with recent financial figures
The decision to purchase a franchise is no If at any point you feel pushed, rushed,
showing the sector, which includes Chinese
doubt a difficult one, and with so many bullied or even ignored by the franchisor
medicine, acupuncture and other therapies
successful offerings out there on the – it is time to consider walking away.
to grow by around six per cent per annum
market, how do you decide which one is Hopefully though, the franchisor will be
over the next five years.
right for you? professional, honest and open.
According to the Australian Trade
Passion for the industry is an obvious The next step is to meet with existing
Commission; “The Australian natural
must. Franchisors are looking for people franchisees. While it’s fine to have all the
(complementary) healthcare industry has
who are passionate about what they will manuals in place and have the franchisor
domestic sales of over $1 billion per year.
be committing a large part of their lives tell you how great and successful the
Market research shows that the popularity
to. If you already love to spend time at the business may be, it’s the franchisees that
of natural healthcare products is increasing
gym, enjoy exercising and living a healthy have the real story. Visit them in their
with a growth rate of seven per cent year lifestyle, then that passion for the industry place of business, ask questions, and ask
on year. Three-quarters of Australians, will be a great back bone for building a their employees if they enjoy working there.
including 92 per cent of women aged 20- successful business.
24, take at least one dietary supplement
and a quarter of the population visit Becoming a franchisee could be a great NOW THE HARD WORK
complementary healthcare practitioners step towards improving your lifestyle. BEGINS!
each year. Once you’ve done the hard yards in
Once you have made the decision to
establishing the business it could give you
The Australian industry continues to grow purchase your franchise then the hard
more opportunity for flexibility to work
to meet these requirements. Already work really begins, and that’s where your
around family life, or other commitments.
attuned to alternative approaches to health, passion and drive to succeed will be vitally
discerning baby boomers (Australia’s important.
MONEY MONEY MONEY
largest population group) increasingly So if being healthy, looking great or
demand greater choice and adopt a Once you have made the decision about keeping fit is something that will get you
preventative healthcare approach to which industry is right for you, the next step out of bed every day, ready to work hard
maintaining healthier lives. In Australia, is working out whether you can actually at growing your business then perhaps a
the fastest growth areas are nutritional oils, afford it! franchise from one of these exciting growth
men’s health and eye health.” You must then get with your franchise areas is the one for you!
64 Business Franchise Australia and New Zealand
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