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Post by Guest on Feb 9, 2020 0:51:25 GMT
My spouse is considering becoming a franchisee with Snap. Worth it? Do you make a profit? Should he proceed? Thank you.
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Post by gymballer on Feb 9, 2020 19:23:06 GMT
My spouse is considering becoming a franchisee with Snap. Worth it? Do you make a profit? Should he proceed? Thank you. don't do it, and here are a few reasons why: -Snap is a franchise. Franchise agreements give enormous amounts of control to the franchiser. In fact, as a franchisee you really dont own the business, rather you are renting the trademark for a 10 year period, during which the franchiser can do practically anything they want (franchise law is complicated but generally it heavily favors the owner of the intellectual property you are renting). In addition, most of the perceived benefits or truths you think exist in franchising are false such as: -the franchiser only makes money if its franchisees are successful (not true) - you'll get everything cheaper due to buying power of the franchise (usually not true and certainly not in Snaps case. In the case of snap and most franchises you'll pay way more for the same products as would a mom and pop operator. Why you ask? Because the franchise Mark's the products up and you contractually forced to buy them via the franchise agreement. It's a huge source of profit for many franchises. those are just 2. There are many more Secondary to the broad franchise issue, is that Snaps have a very hard time competing in 2020 fitness landscape in the US (it's not just Snaps it's all the small key card access gym franchises). The value proposition they were founded on has largely dissolved, consumer tastes have changed, and competition has grown extremely fierce, with gyms like Snap lacking a niche that protects them (like real boutiques...Snap is NOT a boutique, even though some owners on this board try to call them that), impressive facilities that wow customers, or 10$ prices that get people saying why not. The 2500k to 5k sq ft gyms have inadequate equipment lists, no specialized group training, and prices are too high at $40ish a month for the perceived value, especially with a PF or Crunch or Youfit 10$ gym every few miles everywhere now. A Snap (or Anytime) being successful at this point in the fitness industry is much more about the individual owner, and will almost be in spite of the franchise not because of it. if you have any questions feel free to email me at centerlineholdinggroup@gmail.com, I own a chain of gyms (Not Snaps!) and would be happy to offer some advice
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