We’ve proven what it takes to develop successful Charter Fitness locations. We’ve made certain our company-owned and operated health clubs generate the kind of financial outcomes you’re looking for. We created a business model that we would want to own, that integrate the support systems that operators want and need. Over 35 Charter Fitness company-owned and operated locations are a strong indicator of the belief in our system.
As a franchisee, you’ll receive pre-opening and on-going support services. This includes hands-on training related to business systems, procedures and operations. We’ll provide you with the resources to streamline recruiting, development and training.
Additionally, our financial metrics provided by ABC Financial help you clearly understand where the gaps in operations exist so you’re able to accurately and quickly address any issues. You’ll also have access to impactful marketing and advertising materials to build awareness of your club and drive membership.
What drives consumers to become members at a fitness facility? Conversely, what turns them away? When you’re developing a franchise system, these are just a couple out of many questions that help shape your business model.
Here’s what we know:
- Globally, there are nearly 53 million people who are members of a health club.*
- Their reasons for joining essentially fall into two categories:
- They’re looking to stay in shape or stay healthy.
- And others want to lose weight.
- However, people tend to quit for a very simple reason—cost.
- Forty-four percent of former fitness club members indicated it was too expensive to keep their membership.
- Meanwhile, convenience and location play a big role in member retention.
- Members who remain at the club also cite the variety of equipment to be a main draw.
*IHRSA Health Club Consumer Report
Our health club operations revolve around three key pillars:
|The sheer quantity, variety and quality of our equipment and flexible hours of operation ensure that members are never left waiting or wanting.||From our equipment to our changing rooms, we’re dedicated to providing a member experience that ensures a clean, orderly and sanitary environment.||Members and guests are welcomed from the moment they step in a Charter Fitness, and provided an intimidation-free experience.|
In addition to these three fundamental principles, Charter Fitness delivers an exceptional value to its customers, with highly competitive membership fees—starting at $10/month—and outstanding personal training services.
Charter Fitness clubs range in size from 16,000 to 20,000 square feet. This efficient design allows us to place a volume of equipment that would equal the amount found in competing clubs that require much more square footage. As a franchisee, your unit economics are far more attractive because you’re maximizing the available space for members.
It boils down to this: What’s your return on investment when you join the Charter Fitness network?
While your initial investment for operating a Charter Fitness will range between $692,850 and $1,482,000, you have the opportunity to generate significant profit margins. In fact, the average top-line sales generated at Charter Fitness locations is $1,051,830.*
At the same time, the average Charter Fitness health club achieves $305,965 EBITDA. As a result, the average profit margin is nearly 30 percent. Without question, Charter Fitness has put in place a franchise system that will work for you.
Over the past decade, Charter Fitness and its affiliates has worked hard to establish its footprint in the Midwest.
Consider the company’s growth:
Our focus on greater Chicagoland area has allowed to create a strong footprint in the Midwest and beyond. As a result, franchisees have an enormous opportunity to develop the Charter Fitness brand throughout the rest of the U.S.
When you become a franchisee, your franchise agreement provides you a protected territory based on a combination of demographic factors such as population, density of potential members and other factors. Accordingly, franchisor will not operate a Charter Fitness or allow another franchisee to open a Charter Fitness within your territory as long as you are in good standing with the franchisor.
Where do you want to realize your dream of business ownership? With Charter Fitness, the opportunities are virtually endless.
As opposed to other health and fitness franchise systems that focus on a limited number of products or services to generate income, Charter Fitness’ network has built in multiple cash flows:
We are proud of the fact that we can provide an outstanding value to our membership with an extremely affordable basic monthly fee—$10. For those who want access to an even greater value, the Signature Circle membership allows customer access to every location, a free personal training session, a free TEAM training session, virtual training workouts and number of other benefits.
This multi-tiered approach to membership gives Charter Fitness franchisees the opportunity to attract a large, diverse membership—as well as the chance to upsell to existing members. Furthermore, Charter Fitness achieves a collection rate of 93.4 percent, far outstripping the industry standard.
Charter Fitness’s personal training system provides members with one-on-one attention from National Association of Sports Medicine-accredited trainers. By incorporating ongoing fitness evaluations, your Charter Fitness location ensures a high-yield cash flow from members who consistently turn to their personal trainers for support and guidance. It’s this type of support that has helped Charter Fitness maintain a member attrition rate under 4 percent—3.79 percent.
In addition to membership fees and the consistent cash flow generated from personal training and annual fees give your franchise location additional revenue streams to bolster your bottom line.
Want to Know More?
Get in touch with us to get more information about investing in a Charter Fitness franchise.
*Disclaimer: This information is not an offer to sell or solicit an offer to buy a franchise from Charter Fitness or anyone acting on our behalf. Franchises are offered solely in compliance with our Franchise Disclosure Document. We currently offer to sell franchises only in certain states according to the applicable laws governing the offer and sale of franchises. We do not offer to sell franchises in geographic locations unless and until we have complied with all applicable legal requirements for the subject jurisdiction. The financial projections referenced above are based upon reasonable past performance as included in Item 19 of our 2014 Franchise Disclosure Document but in no way guarantee future performance.