I received two comments recently regarding
about a fitness franchise that are very instructive to anyone considering
franchise ownership. One is from an enthusiastic future
franchisee eager to sign with the fitness franchisor, and the other is
from a disillusioned franchise owner in the same chain who
is shuttering her club.
I’ve spoken with very happy owners. No one says
Corporate Support is stellar but each one felt they didn’t need any
hand holding and are very active in advertising their business. I’m
considering a purchase. The concept is too good to fail.
The last sentence made me run for the Pepto Bismol. I truly believe
that anyone who says “The concept is too good to fail” should be banned
from business ownership for at least two years, and then have to take a
test (written by ex-Quiznos, UPS Store and iSold It franchisees) before
the ban is lifted.
There’s NO concept that’s “too good to fail.”
There’s no such thing as a concept that’s “too good to fail.” Why?
Because there’s much more to achieving success than a good concept.
Many prospective franchisees miss this point, thinking that a great
concept assures success. Successful franchisees recognize that the
franchise concept and program are a blueprint and a set of tools. The
franchisee must do the building. It’s up to the franchise owner to sign
up enough members and keep them coming back month after month. A good
franchisor will make sure a prospect understands that before they take
An uninformed fitness franchisee with unrealistic expectations and
no clue about business is a danger to themselves, their employees,
their members and the franchisor. If KAT had done a minimum of
research (like actually reading the publicly available franchise disclosure documents) she would have seen the six pages of store closings in the company’s Offering Circular. Six pages of people with concepts that couldn’t fail.
Sean Kelly is a 20 year veteran of the franchise industry, and founder of the
award-winning marketing firm IdeaFarm. In 2006, he founded the FranBest franchise network, best franchise opportunities, the top new franchises, franchise marketing, franchise public relations and small business marketing. Contact
him at seankelly[at]ideafarm.net.