Do you think a healthy lifestyle and image has become more important to Australians in the last five years and is this driving growth in your Fernwood
franchise?
Since the inception of Fernwood 16 years ago and our steady growth in size, profitability and systems, we have seen the health and beauty sector grow from a fledgling industry to one in huge demand and increasing. The reason for this is that more and more Australians are aware of the need to stay fit, healthy and at the right weight to maintain a quality life. The most important thing is they have a variety of choices. Fernwood is unique in offering the widest range of exercise and weight loss options suitable for women. This is essential to attract and retain members.
What type of people do you look for to become franchisees and what attributes do they require in order to succeed?
A Fernwood franchise is more suited to people who are looking to go into business rather than those who are looking to buy themselves a job. So good business sense, the ability to drive a business and focus on the bottom line is important to us. That’s what we look for in our franchisees. It’s a fun and rewarding business to be in and can offer excellent returns both personally and financially to the right people.
What is the cost of your franchise and what does that include?
The Fernwood franchise fee is $55,000 plus fit out and equipment. Due to the success of our brand and the profitability of our franchisees, Fernwood is accredited with the major banks who will loan to our franchisees on the cash flow of the business. The resale return for franchises has been as much as $2.1 million in goodwill after generating a substantial annual profit over $900,000.
Describe the training and ongoing support you provide to franchisees?
Fernwood training is extensive and ongoing. Our objective is the profitability of our franchisees and so training them and their staff is vital. Initially franchisees undergo four weeks training followed by an intensive week of training when the club is opening. We provide ongoing monthly training thereon. Fernwood trains franchisees in how to run a business as well as how to run a gym which is very important to ensure their success.
What is your strategy for the future growth of the system and how many franchises do you expect to have in five years time?
At Fernwood we focus much more on the growth and profitability of each franchisee than we do on the number of clubs that we open. We are not in this business to have the largest number of clubs, but to have the highest percentage of profitable franchisees. Unlike the US model of franchising, the Australian based franchise systems tend to focus more heavily on franchisee profitability. That is why it is important that our franchisee training covers how to run a business as well as how to run a gym. We feel that 150 profitable clubs is an achievable target.
24-May-2006