Franchising: Adapting to industry changes without veering off course

In the ever-evolving fitness and wellness industry, ensuring a successful franchise operation will always require a measure of tweaking and adjusting. In a dynamic sector such as ours, operators need to be prepared to finetune and have the ability to adapt.?

This is particularly true as new fitness technologies, trends and consumer behaviors emerge, when we need to consider whether they could, or even should, be harnessed and/or utilized –?especially if member feedback demands it.?

However, while flexibility can be an important element of future-proofing and maintaining a competitive edge, building a successful franchise also requires solid foundations, a strong brand and identifiable selling points. Jumping on every trend going, or looking to innovate too much can destabilize and even alienate both franchisees and their members.?

My view is that the fitness industry has a fantastic core product. It offers exercise and movement in controlled, safe environments in an age in which we, as humans, are constantly looking to reduce the need to move and limit physical effort in our daily lives (through automation and technology).?

So there’s a balance to be struck. Adapt and tweak – even innovate if you need – but don’t lose sight of what your core product is.?

“Ok, but what does that look like in practice”, I hear you ask.?

I’m glad you asked.

Embrace technology

Our sector has been –?and is still being –?reshaped by technological advancements. This has created big opportunities, which many have ceased on. From utilizing fitness trackers to introducing AI-driven personal trainers, integrating new fitness technologies can be a great way to add to your core product and strengthen the bond between the gym and a member. Virtual classes and personalized training plans through apps can enhance the member experience.?

However, it's crucial to ensure the technology you introduce is in line with your brand identity. The aim is to expand your offer - not hinder it.

At Snap Fitness, I believe we have got this right by offering an omnichannel experience through our proprietary Snap App. Through it, we can offer members access to workout plans, nutrition guidance and support wherever they are. By embracing technology without compromising the core values of our brand, we have created an entirely new way for members to stay engaged with us.

Exploring and tapping into new audiences

Following the pandemic, there has been a real shift in the way consumers view gyms. Rather than simply a space for “gym bunnies” to build muscle and look good, they are now considered places where one can improve both physical and mental health. As a result, gyms and health clubs are being looked at by entirely new groups of people – from those with long-term health conditions to the older generations.?

Identifying and tapping into these new and expanding consumer groups can set your franchise apart and provide an element of future-proofing. Operators can do this by offering specialized classes, targeting specific demographics or focusing on holistic wellness or mental health. For example, franchises might offer classes for seniors, programs for individuals with specific health conditions, or wellness retreats that combine fitness with mental health support.

This can all be done without changing the core product –?the gym floor and exercise spaces.?

Also, while adding new ways for members to improve their overall wellbeing can work, they should not be created in silos without anything binding them together to the core product. Rather, adding new classes and services should be part of a holistic and inclusive approach, carefully drawn out as part of the brand’s strategy.?

If done well and communicated correctly, prioritizing mental health for members – as well as staff and franchisees – a business can address a crucial aspect of overall wellness that resonates with today's health-conscious consumers.

Following the pandemic, we repositioned Snap Fitness with a core focus on how exercise makes people feel – not just how it makes them look. As using the gym was at the heart of this shift, we didn’t fundamentally change the product.?

Updating business models and core offer

Successful franchises are often able to adapt the way they package their core products –?without changing the successful formula. In the fitness sector, this could involve modifying membership plans, tweaking gym layouts or enhancing customer service protocols.?

Upgrading equipment and enhancing the core offer with new services which support it –?rather than change it –?are also a way of doing this. The most obvious examples of the latter are the addition of a digital, omnichannel platform (like we did with the Snap App) or the introduction of entirely new pieces of kit (I’m sure we’ve all witnessed the proliferation of glute, or “booty”, training equipment in recent years).

However, when it comes to upgrading the offer, it is important to differentiate between short-lived fads and lasting trends and solutions. Incorporating every new trend or product can lead to brand dilution and strategic missteps. Any “new stuff” should probably only account for about 5% to 10% of your overall strategy. This allows for small course corrections that keep your franchise aligned with evolving market conditions without compromising your core identity.

Look beyond fitness

By casting an eye into other sectors, we can often predict which adjustments to consumer demands we might experience in the fitness industry. That way, a fitness franchise can become the one that sets the trends, rather than try and follow them.?

At Snap Fitness, we have demonstrated this flexibility and pioneering spirit by being both a trendsetter and an early adopter of innovations that align with our brand.?

During the pandemic, we saw how the fitness landscape was beginning to change, with people being less interested in how exercise made them look and more keen to discover how it made them feel. We placed this shift at the heart of our repositioning, which has allowed us to grow rapidly following the pandemic.?

Learning from Leaders

We believe that with Snap Fitness we have got the balance right.?

When future-proofing, we look for a delicate balance of innovation, flexibility, and brand integrity. By integrating new technologies, exploring new markets and maintaining a flexible yet consistent core product, we have successfully navigated the dynamic, post-pandemic landscape faced by the fitness industry.?

This measured approach has helped us avoid the pitfalls of rapid, extensive changes that can be difficult to correct.?

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