Having made a mark in the express sector, Rajkumar Saboo, a multi-unit franchisee of Gold's Gym India is scaling new heights in the fitness sector too. After successfully setting up two gyms, he is eyeing the third one. In a talk withFranchise India, Saboo traces his entrepreneurial journey so far and experience as the franchise partner of the brand.
Tell us about your entrepreneurial journey.
My forte is express industry in which I spent almost three decades. I came to fitness world about five years ago. I actually used to go to a Bandra gym for my work out and I somehow liked the overall feel and vibration of the place so much so that I invested in Gold’s Gym and became 49% shareholder of the company wherein 51% is owned by corporate group of Master Franchisee of Gold’s Gym India.
How many franchise gyms do you own at present?
We started with one gym in Kandivali West and opened another gym in Kandivali East. Everything was going fine but things went upside down when we had a major dispute with landlord and had to shift the gym to another nearby location and we all shareholders had to put in another Rs 1.5 crore as a loan to company to meet the interior cost etc. Our patience paid off and today Gold’s Gym is totally a debt free company.
What are your plans ahead?
We have a very stable team managing the operations and we are keen to start third gym and looking for some suitable area with a long term lease.
What are the operational costs in opening a franchise gym?
Operations cost includes many items such as rent, electricity, salary, incentive, royalty, maintenance and housekeeping and it could vary anywhere between Rs 26 to 29 lakh against the monthly revenue of approximately Rs 35 lakh and above.
Are there any hidden costs a franchisee comes across while opening a franchise centre?
There is no hidden cost as such but it’s better to take certain approvals such as from local Municipal Corporation, society etc to avoid any surprise element once the gym is operational.