Buying a fitness franchise: Elemental Hot Yoga
Before you invest in a fitness franchise, check out how Elemental Hot Yoga is tapping into fitness trends.
This yoga studio offers niche services to the core demographic of 35-45 year old women, also inclusive of 25-35 year olds. Director Linda Blythe says Elemental offers hot yoga with clean and cutting edge technology.
“Yoga is a $27 bn a year industry across the world and $1 bn here in Australia. And it’s largely untapped a far as a franchising model.”
Trends also play a part in the studio’s offering.
“We definitely do look at US trends,” she explains, but they do need to fit in with Aussie culture.
Franchisee profitability under the Elemental Hot Yoga model is sustained through an affordable, well-valued membership system which Blythe says is easy to sell. Clients can choose from three month, six month, and annual terms. There is also a loyalty program driven by the marketing department, and 40 percent of memberships come from customer referrals as a result of loyalty programs. The model also focuses strongly on promoting sustainable business practices like disciplined handling of cash flow and developing franchisee passion.
Although multi-franchising depends on the owner, Blythe says more than one site can offer greater leverage, buying power, and opportunities to provide more classes to yoga teachers.
Ideal locations are those with ample parking and situated in rent-friendly homemaker. The franchise model costs an initial sum of $20,000 which includes all training, support, software subscriptions, opening marketing campaign.
Blythe is quick to assert that the business appeals to “yogis”, when it is suitable for people of all abilities.
“Franchisees need to have a love of seeing people transform in a healthy, happy way,” she explains.
A business background is also helpful, and the need to build a community amongst clientele.
Her advice to potential franchisees considering a fitness franchise is to be sure to explore the various types (gyms, swim schools, other studios), be aware of the behind the scenes responsibilities like managing the accounts, and to do their due diligence. She also advises franchise buyers to find out what makes a successful franchisee.
Blythe says potential franchisees should “be prepared to hit the pavement” especially at the beginning, and not to expect growth simply from the brand. Buyers need to be aware not to assume success is guaranteed and that they can come in as investors with a working manager in place.
Sound like a franchise fit? Find out more about owning an Elemental Hot Yoga franchise.