Gold’s Gym, one of the world’s largest health club chains, is launching its franchise system in the UK.
The chain – which consists of more than 550 franchised gyms in 25 countries – plans to open six clubs within the next two years, which will be intensively supported by the company to ensure success before the brand is rolled out across the rest of the UK.
The move is part of Gold’s strategy to change licensed clubs into franchise facilities. The company originally licensed the use of its brand to test consumer demand and popularity in new markets. The success of this strategy led to the development of the full-blown franchise, which in addition to using the brand, requires franchisees to follow a business format and adhere to Gold’s Gym’s systems.
“With the growth of the network, the only way to maintain our number one status was to create a platform from which we could disseminate best of breed business practice based on more than 30 years’ experience in the industry,” said Gold’s senior vice president of franchising Luis M Campalans. “The most efficient way to do that was through a fully-fledged franchise system.”
The company now only offers franchise agreements.
The UK franchise fee has been set at £20,000 and includes training, annual conferences, membership sales and retention systems, marketing and brand support, business support by Gold’s Gym head office and additional revenue centres – such as Gold’s nutrition programmes, branded apparel and vendor relations.
Franchisees can also benefit from up to 45 per cent savings on equipment packages and favourable financing terms, site selection, design and layout support.
There are currently four licensed Gold’s Gym clubs in the UK, which will continue to be operated as licensed operations unless they wish to become franchised sites.
