Is a World Gym a good franchise to buy?
“I’m thinking of buying a World Gym franchise. What things should I be looking at?”
Apart from the financials, there’s some important questions for you to consider:
How much is it?
Can you afford it?
Will you need to borrow to buy it?
If so, can you access the funds?
How much do you want to make from the business?
How much can you get by on during the first 12 months, if you need to take a pay cut while you build the business up?
Why is the business for sale?
How well do you know the area?
What is the opportunity for growth in the area?
Have you run a business or gym before?
Will the key staff will be staying on?
How involved do you want to be in the day-to-day operations?
What is the wages cost per year?
Are all employees on the books?
How many instructors are there?
Is super up to date?
Is the business up to date with lodgements and the tax man?
How far down the track are you with the purchase? (ie, early days, just looking, or you've already fallen in love?)
How much is the rent per year?
How much will the rent go up each year?
Do you have to pay outgoings as well?
What is the current membership?
What is the highest number of members over the life of the club?
What is the drop off rate?
Is there a good sales process?
How can you improve the business?
What is the monthly royalty, or fixed fee?
What is the marketing levy?
What is the upside for you to buy this business?
What is the downside for you in buying this business?
Do you have much experience with numbers and the financial side of things? (This is where we can help)
Why do you want to buy a business?
Why do you want to buy THIS business?
World Gym Australia have a tremendous record with the development of the World Gym franchise brand in Australia. It has an incredibly strong brand and tremendous support for their franchisees. It remains true to its core business, which is the gym floor. And body building. It uses a big format footprint, with significant floor space. This helps attract and retain members.
The above questoins were developed to assist a prospect work through their due diligence process as he evaluted a World Gym. Over that time I have gotten to know the owners of the brand and have been impressed with their knowledge of the industry and their support for their franchises.
If you’re looking to buy a World Gym franchise, feel free to give me a call to discuss.
Peter
