Bulking up: Franchises will continue to grow as consumers become more health conscious

The Gym and Fitness Franchises industry is experiencing robust growth as a result of growing membership levels and a more health-conscious population. Over the five years to 2016, the yield on a 10-year treasury note has declined, encouraging borrowing activity. Many franchisors responded to the favorable investment environment by providing more franchise opportunities, which bolstered industry revenue. The growing proliferation of public health campaigns that raise awareness about health and fitness will prompt new gym and fitness franchises to enter the market...purchase to read more.

Industry Statistics & Market Size
Revenue
$3bn
Annual Growth 11-16
3.9%
Forecast Growth 16-21
Profit
Employment
59,040
Businesses
6,758

Industry Threats & Opportunities

  • Industry operators will benefit from an increasingly health-conscious environment, driving membership growth
  • Low start-up costs led to a greater number of industry entrants
  • Gym and fitness franchises will begin targeting specific demographics
  • Industry Report - Starting a New Business Chapter

    Barriers to entry for this industry are moderate but increasing. The industry is experiencing solid growth as a result of rising demand from health-conscious Americans. However, accelerating competition has characterized the past five years, as the industry’s major players dominate the market; in 2016, the top four industry players are expected to generate 72.4% of industry revenue, demonstrating the industry’s intense competitive landscape.Access to finance is the primary barrier to entry in the industry. Adequate financing is crucial for a franchisee to meet its obligation to the franchisor and to remain operative. After paying upfront fees, industry operators must be able to pay employees, purchase exercise equipment and lease gym space. Sec...purchase to read more.

    Additional Insights for the Gym & Fitness Franchises Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Gym & Fitness Franchises Industry are

  • Easy access for clients
  • Effective product promotion
  • Provision of appropriate facilities
  • IBISWorld analysts also discuss how external factors such as Time spent on leisure and sports and Number of adults aged 20 to 64 in the Gym & Fitness Franchises industry impact industry performance..

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    What's in this report

    What is the Gym & Fitness Franchises Industry?

    This industry operates franchised fitness establishments and gyms. Franchisees receive branding, marketing, administrative support and training for their franchise. Reports in our Business Franchise collection focus solely on the operation of franchised outlets and exclude nonfranchise data. They show the total number of franchise outlets, total franchise revenue and the average profit margin earned by franchisees. Our reports also highlight the largest franchisors by market share.

    Industry Products
  • Gyms and fitness centers
  • Recreational classes and services
  • Swimming pool and spa services
  • Dance studios
  • Ice rinks, courts and others
  • Industry Activities
  • Operating aerobic dance and exercise centers
  • Operating athletic club facilities for physical fitness
  • Operating body building studios for physical fitness
  • Operating fitness centers, health clubs and gyms
  • Operating recreational sports club facilities
  • Operating ice or roller skating rinks
  • Operating spas
  • Operating squash, racquetball or tennis clubs
  • Operating swimming pools
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Time spent on leisure and sports
  • Number of adults aged 20 to 64
  • Per capita disposable income
  • Participation in sports
  • Yield on 10-year Treasury note

  • Current Performance
  • Health consciousness grips the public
  • Franchise trends
  • Employment and enterprises
  • Chart: Revenue Growth

  • Industry Outlook
  • Cost synergies
  • Technology and retention
  • Establishments and wages
  • Table: Gym & Fitness Franchises Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Gym & Fitness Franchises Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Athletic & Sporting Goods Manufacturing
  • Gym & Exercise Equipment Manufacturing
  • Heating & Air-Conditioning Contractors
  • Plumbers

  • Products & Services
  • Gyms and fitness centers
  • Recreational classes and services
  • Ice rinks, courts and others
  • Dance studios
  • Swimming pool and spa services
  • Chart: Gym & Fitness Franchises Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Individuals aged 25 to 44
  • Individuals aged 18 to 24
  • Individuals aged 45 to 64
  • Individuals under 18
  • Individuals aged 65 and older
  • Chart: Major Market Segmentation for the Gym & Fitness Franchises Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchases and feesRent and utilitiesDepreciation, franchise fees and other expenses
  • Chart: Cost Structure Benchmarking – Sector vs Gym & Fitness Franchises

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Gym & Fitness Franchises Industry

  • Industry Globalization
    Anytime Fitness, PFIP LLC, Snap Fitness,
  • Table: Anytime Fitness - financial performance
  • Table: PFIP LLC - financial performance
  • Table: Snap Fitness - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Gym & Fitness Franchises Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Gym & Fitness Franchises Industry
    Includes:
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Wages (2007-2021)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Cardiovascular Equipment
  • Equipment used for aerobic exercise, meant to be used at light to medium intensity for a long period of time, e.g. treadmills, elliptical trainers and stationary bikes.
  • Pilates
  • A physical fitness system developed in the early 20th century by Joseph Pilates with a focus on the strength and endurance on core muscle groups.
  • Retention Rate
  • A rate comparing the number of new gym memberships to canceled gym memberships.
  • What Our Customers Say

    Why buy this report?

    The Gym & Fitness Franchises industry market report contains data and analysis of the most influential current and future trends shaping the industry. IBISWorld’s in-depth industry market research is presented in a logical, user-friendly format, and provides growth and profit forecasts for a five-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Gym & Fitness Franchises:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Gym & Fitness Franchises market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Gym & Fitness Franchises, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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