There are five areas of interest that would be play an essential role in the variable factors for a fitness center. The first interest would include utilities. Lighting and water plays a crucial role in maintaining the livelihood for a fitness center. The fitness center uses water to provide hot or cold showers to their members after workout, water fountains are available on almost every hall, and not to mention swimming pools and hot tubs that uses large amount of water throughout the year. Quality lighting as well as quantity offers a lot in a fitness center. Fitness centers need adequate amount of lighting so their members can work out effectively as well as safely.
Everyone room in a fitness center requires some light source and some requires a magnificent amount of lighting, for example, a gymnasium requires large bulbs which uses a lot of energy to illuminate light successfully. Light and water are variable factors because these resources are dependent on the amount of members who use the facilities that requires light and water. If there is a decrease in membership then the amount of lighting and water that were being used will decline as well. The less active members are than the less resources management would use concerning lighting and water in certain facilities.
The second variable factor for a fitness center would be toiletry items. The amount of soap, hand sanitizer, tissue, and disposable hand towels will vary based on the number of members a fitness center has as well as the business those members bring. A fitness center should keep inventory to avoid over-spending and ordering items that will not be used. If membership declines at a fitness center, management should be aware and carefully watch the portion of their budget that is spent on toiletry items. Fewer members will equate to less usage and need of soap, hand sanitizer, tissue, and disposable hand towels. However, if business increase at a rapid rate, then management should order toiletry items accordingly to accommodate their members.
The third variable factor for a fitness center would be repairs. It is not uncommon for fitness centers to experience their equipment being worn down, broken, or just over-used. Although one can argue an optimistic point of view and suggest damages are due to the consistent amount of usage by members, which means a consecutive flow of business for the fitness center. However, when equipment is hardly being used because members are not using the equipment or perhaps there are no members, then repairs are not needed. The more members that uses fitness center equipment or machines, it is expected to be more repairs or replacements. Sometimes equipment or machines that need to be repair result from the improper usage of the equipment or machine. If members are not following the instructions on the equipment or machines that explains how each one should be operated than one can expect repairs in the near future.
The fourth variable for a fitness center would be laundry as it relates to amount of bleach and detergent that is being purchased. Laundry can get very hectic at a fitness center. One should always have enough towels for members after a shower and hand towels to wipe away the sweat from a long session on the treadmill. Laundry is a never ending cycle for a fitness center that experience a consecutive flow of business and especially when membership increases. A large membership may require around the clock laundry and excessive amount of bleach and detergent to properly ensure that towels and hand towels are being cleaned properly. Also, if the amount of members decreases than the usage of laundry facilities will decrease because the high the demand for those items are no longer needed.
The fifth variable factor for a fitness center would be hiring and release of trainers and instructors for a fitness center. Fitness centers who have qualified trainers and instructors offer the proper education and training to their members to effectively workout to achieve their desire goals. The number of trainers and instructors will be dependent on the membership of a fitness center. The more members that a fitness center has will increase the amount of trainers and instructors to equally distribute their knowledge, skills, and teachings to members. However, if membership decreases than fitness centers may not have a need to have twenty-five trainers or instructors if they could operate with just seven. So, this may affect opportunities for employment on both ends of the spectrum, positively and negatively.
D.) Franchise Decision
Many people today are turning towards making better lifestyle decisions, those that particularly affect one’s health. If one hasn’t noticed, even fast food restaurants are turning towards healthier food choices. Who would have ever though that McDonalds would actually start selling fruits? People choose to take control of their health benefits in different ways; however, numerous people have turned to fitness centers to stay health and in shape. “The percentage of people belonging to health clubs and gyms has double over the past 20 years” (Snap Fitness, 2012). One contributing factor for this extensive growth is due to the cost of health care continuously increasing. In addition, we are living in a baby boomer generation which plays a major role in the population rate. “Economically, the health club industry has proven to be recession-proof, averaging an 8% annual growth rate since the early 1990’s across all health clubs and gyms” (Snap Fitness, 2012).
That is very impressive due to the fact that most business were suffering great losses. The quoted statement proves that no matter what economic state the economy may be in, the need and demand for fitness centers will always be on the rise. Because of the high demand of fitness centers, one believes that entering into a franchise with Snap Fitness would be a great idea for countless reasons. When entering into any kind of business, cost plays a major role in decision making. Snap fitness seems to be an affordable investment. Snap Fitness points out in their Franchise Disclosure Document that one’s total investment in Snap Fitness will range from $76,113 to $361,695. The numbers seem very large, however, Snap Fitness offer excellent financing options. Furthermore, Snap Fitness “ongoing royalty and marketing fees are a set flat-rate, as opposed to other franchises that charge you a percentage of your monthly revenues” (Snap Fitness, 2012).
This is great because one will always know what the marketing fees will be. Therefore, one will be able to keep additional profits if the business is doing particularly well without having to pay a higher percentage as a result of a successful month. Furthermore, Snap Fitness (2012) website points out even though the company use automated systems for member billing like other fitness businesses, Snap Fitness is different because their monthly fee is not a percentage of their total dollar. This means that no matter how much money is made through membership billing, the flat rate will always remain the same. Entering into a franchise agreement with Snap Fitness will be a good idea because one will be able to be his or her own boss. Snap Fitness (2012) website states “From the moment you sign your Franchise Agreement, the support, service and training we provide is unparalleled in the health club industry.
Our turnkey operational systems enable you to run your club with as little as one employee, allowing you to be your own boss. Our product lineup extends well beyond what comparable fitness franchises offer giving you more tools to recruit and retain members and create new revenue streams.” There just seems to be no loosing with Snap Fitness. The business has a team that is always there and available to help one push through any difficulties. The nature of the work environment seems to mimic that of a family-oriented business.
The idea of being able to have one employee and a boss is very convenient because when a new business is introduced, the rate of success is unpredictable. It is always best to hire fewer employees as possible to ensure that one can break even. The breakeven point is the stepping stone to making a profit. Entering into a franchise agreement definitely has undeniable benefits. A franchise agreement with Snap Fitness may be the best option for anyone interested in this line of business.