What makes a franchise a successful one?

Why do some franchises fail, while others succeed? What do the successful ones do that the not-so-successful brands don’t?

And how can franchisees “on the ground” ensure they create sustainable businesses, which both deliver a great service to customers and achieve a return of their investment? What should franchisees, for example, demand from franchisors to ensure they have the best chance of success?

These are some of the questions I often come across when having conversations about franchising. The simple answer to all of them is that there is no magic bullet or secret formula which will guarantee a win. Rather, a successful franchise is one that does a lot of things –?both big and small –?the right way, over a long period of time.?

At Snap Fitness, we have successfully grown into a global business since our launch in 2003. We now have 1,000+ sites across 19 markets.?

Crucially, much of our growth has been organic, with existing franchisees taking on additional units. In 2023, we sold 77 licences, the most since 2012. Of these, 70 per cent went to existing franchisees. For us, the trust that our existing partners place in us is the best confirmation we can have that we are doing a lot of those big and small things right.??

That isn’t to say that the individual franchisees don’t play a crucial role in their own success –?they do.?

For me, the success of any franchise depends on a strong partnership and shared vision between the franchisor and franchisee. At Lift Brands, we call this our #oneteam ethos, demonstrating our commitment to being in this together with our franchisees. Their success is our success, and vice versa.

What does this look like practice?

On the franchisor side, there has to be:

A strong brand identity

Successful fitness franchises have a clear, strong brand identity that resonates with their target market. Whether it’s a low-cost, value for money gym or a hyper-personalized boutique experience, the proposition has to be based on consistent branding across locations.

Comprehensive support for franchisees

Offering franchisees robust initial, as well as ongoing, support is crucial. From training, marketing assistance and operational guidance to technology support, the most successful franchises are ones that are “always there” for their partners.

Innovative use of technology

Much has been written in recent years about how technology has changed (and is changing) how business is done. And for a good reason. The most successful franchises are often early adopters of tech –?whether a back-of-the-house data and insight solution or a customer-facing app –?and have a knack of harnessing it effectively.?

Strategic location selection

It’s obvious, but some still get choosing locations wrong. Opting for high visibility, accessibility and a large target market are important factors to consider – but not as important as choosing a site based on detailed research. Successful franchises are lazer-focused on their location selection and have clear processes for making decisions.?

Maintaining of consistent brand standards

Ensuring that all locations adhere to the brand’s standards –?in terms of appearance, service quality, and member experience –?is hugely important. A chain is only as strong as its weakest link. Any adverse experiences (never mind publicity) can have a devastating effect on the entire business.?

Creating an inclusive, listening environment

Offering inclusive support systems that enable two-way communications are important for navigating the competitive fitness landscape. At Snap Fitness, we have developed a franchisee advisory council, which serves as a vital bridge between franchisees and the home office team, providing a platform for open communication, collaboration, and feedback. The Snap Fitness advisory council comprises elected representatives from various franchise units who advocate for the interests and concerns of franchisees while offering insights and recommendations.

Our advisory councils improve our brand by creating a culture of transparency and mutual respect by facilitating regular meetings, forums, and workshops, allowing franchisees to voice their opinions, share experiences, and contribute to strategic decision-making processes.?

Meanwhile, at franchisee level, there needs to be a commitment to:

Exceptional customer service

Providing excellent member experiences, in line with the brand standards, helps retention and attracts new members through positive word-of-mouth. Consistency builds trust and loyalty.

Effective marketing and community engagement

Consistent and targeted marketing efforts, both at the national and local levels, help in building brand awareness and attracting members. Spending big on marketing and high-profile campaigns, however, can be fruitless if there isn’t buy-in and follow up by individual locations.?The most successful franchised sites utilise larger campaigns effectively by also engaging with their local communities through events and partnerships.

Investment in staff training?

A business is its people. Having well-trained, motivated and engaging staff is often the difference between a member staying or leaving. Without proper training, staff might also be unaware of brand guidelines, leading to inconsistent member experiences. Continuous support through regular updates, best practices and new program implementations is essential.

Creating a positive work environment

Training staff and then losing them is costly and time-consuming. Treat your staff as assets and as an investment –?they deserve a positive work environment in which they can thrive and are happy in.?

At Snap Fitness, we pride ourselves on doing these (and many other areas) to the highest quality. As a result, we have built a global operation which we are looking to grow further –?our ambition is to increase the number of units from 1,000 to 1,350 by 2028. Such expansion plans can only be achieved by focusing on delivering the best experience for both our franchisees and their members.?

Want to know more about running a Snap Fitness franchise? Get in touch!