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My Gym Enterprises Franchise ProfileChildren’s Franchises > Children's Fitness |
What Are the Initial Investment Requirements for a My Gym Enterprises Franchise?
To open a My Gym Enterprises franchise, you should be prepared for a low initial investment of around $36,750, with the potential to go up to $385,000. The franchise fee is set at $25,000, and you will also need to account for a royalty fee of 7% on your revenue and a marketing fee of 1%. Cash requirements range from $111,700 to $385,000, and a net worth of $250,000 to $500,000 is necessary to qualify for franchise ownership.
What Is the Financial Performance of a My Gym Enterprises Franchise?
My Gym Enterprises franchises generate impressive average annual revenues of approximately $6,023,745 per unit, with a median annual revenue of $200,000. The lowest reported annual revenue is $29,000, while the highest reaches $1,581,051. The breakeven time for new units is around 12 months, with an expected investment payback period of 36 months, making it a potentially lucrative opportunity for franchisees.
What Are the Ongoing Expenses for a My Gym Enterprises Franchise?
Operating a My Gym Enterprises franchise involves various ongoing expenses. Average annual costs include $8,000 for rent and utilities, $8,500 for marketing and advertising, and $25,000 for management and administrative salaries. Other expenses, such as insurance and miscellaneous costs, bring the total annual expenses to approximately $49,000. Understanding these costs is crucial for managing your franchise's financial health.
How Does My Gym Enterprises Support Its Franchisees?
My Gym Enterprises is dedicated to ensuring the success of its franchisees by providing comprehensive training and ongoing support. This includes assistance with operational challenges, marketing strategies, and customer engagement techniques. The franchise team aims to equip you with the tools necessary to thrive in the competitive children's fitness industry, fostering a collaborative environment that encourages franchisee growth and success.
My Gym Enterprises Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
My Gym Enterprises Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 166 | 163 | 165 |
| Net Change YoY | -3 | +2 | |
| Franchised Units | 166 | 163 | 161 |
| Net Change YoY | -3 | -2 | |
| Corporate Units | 0 | 3 | 4 |
| Net Change YoY | +3 | +1 |
Investment Overview
The My Gym Enterprises franchise offers a low initial investment ranging from $36,750 to $385,000, making it accessible for various entrepreneurs. The initial franchise fee is set at $25,000, with ongoing royalty fees of 7% and a marketing fee of 1%. To get started, franchisees need a cash requirement between $111,700 and $385,000, alongside a net worth requirement of $250,000 to $500,000.
Revenue Potential
My Gym Enterprises showcases impressive revenue potential, with an average annual revenue per unit reported at $6,023,745. The median annual revenue stands at $200,000, while the range of annual revenue varies significantly, from a low of $29,000 to a high of $1,581,051. This variance highlights the potential for profitability depending on location and management.
Breakeven and Payback
Franchisees can expect a breakeven time of approximately 12 months, indicating a relatively quick return on investment. The investment payback period is projected at 36 months, allowing franchisees to recoup their initial investment in a manageable timeframe, which is crucial for financial planning and sustainability.
Franchise Growth
My Gym Enterprises has shown a steady franchise growth trajectory, with 166 franchised units in 2021, a slight decrease to 163 in 2022, and 161 in 2023. The introduction of corporate units has also been noted, with 3 corporate units in 2022 and 4 in 2023, suggesting a strategic approach to market presence and support for franchisees.
Financial Performance
The average annual revenue for My Gym units is reported at $5,335,948, with a gross profit margin of 88.71%. However, operating expenses are significant, totaling $4,752,180, which highlights the importance of effective cost management. The EBITDA figure shows a slight loss of $19,135, indicating challenges that may need to be addressed for improved profitability.
Operational Expenses
Franchisees should anticipate annual running expenses totaling around $49,000. Key expense categories include rent and utilities at $8,000, marketing and advertising at $8,500, and management and administrative salaries at $25,000. Understanding these costs is essential for accurate budgeting and financial forecasting within the My Gym franchise model.
Frequently Asked Questions
The initial investment for a My Gym franchise ranges from $36,750 to $385,000, which includes a franchise fee of $25,000.