Hotline: 1800 102 2007
Search Business Opportunities
Fitness franchise 2015-10-09

Seeking franchise partners in small towns: Gold’s Gym VP

Listed among the top fitness brands, Gold’s Gym has etched its name in bold in the wellness franchise segment. The brand is successfully running 75 franchise owned gyms in 48 cities and has elaborate plans to launch 20+ outlets.

Operating successfully through sub franchise model in India, Gold’s Gym has spread its presence via city, population and paying capacity. In an exclusive conversation with WI Bureau, Nikhil Kakkar, Vice President - Franchising Operations, Gold's Gym India, disclosed the brand’s expansion plans through franchising.

“We work on revenue sharing model with franchisees, with a payback period of 3-4 years on investments. We do have company owned gyms, but we majorly operate on franchise format. The ratio is 80:20 (franchise: corporate),” informed Kakkar.

Emerging trends
The trends have changed a lot in the past 5 years. We see a lot of young entrepreneurs joining business in wellness franchise, as they want to do something different from their conventional family business. Also, a lot of changes are emerging in tier 2 and 3 cities, where wellness is catching up big time.

Selection criteria
We feel apart from money, Passion is something which drives the health & wellness business. Since franchising is a long term business, we look at Compatibility, Involvement in business & Management bandwidth in the prospective franchisee. We also check the professional and financial background and ensure the same are as per the internal benchmarks.

Top franchisees
The quality is always a mix, the top franchisees are the ones, who follows the S.O.P’s and guidelines set by the franchisor. The reason for top franchisees is not only the revenue or profits they make, but the level of customer service they offer to their clients, standards, hygiene & maintenance levels are other reasons for success.

Franchisee & franchisor relationship
It is directly linked with franchisors health, as a happy customer gets you more customers, and more happy franchisee would get you more franchisees. We have several examples wherein a happy and successful franchisee started with single franchise unit has now opened multiple franchise units.The franchisee & franchisor relationship is very sensitive & requires a lot of understanding, bonding & hand holding, wherein both need to cooperate & accommodate each other.

Support on offer
We assist franchisees in setting up the business i.e. Site selection, Layout planning, Vendor Management, Staff recruitment, Staff training (Sales / operations / Marketing / trainers), manuals training / design. The training for the staff is in our scope for entire franchise term.

Touching untouched areas
Yes, we are expanding big time in tier II & III towns. We have opened franchise in cities like Ajmer, Haldwani, Rohtak, Siliguri, Bilaspur, Jodhpur, Jalgaon in past 6 months and are soon opening in cities like Patiala, Phagwara, Aligarh, Bareilly, Aurangabad & Hisar. We are looking for franchise partners in similar towns across country for future expansion.

Challenges faced
The biggest challenge is quality of service & compliance of terms in this relationship.

Roadmap ahead
We are looking at expanding across country, but small towns are going to play a vital role in the next few years. We are working on a mission to have 150 operational gyms by March 2018 and we are quite optimistic to achieve the same.

No. of operational franchise units

We have 91 operational gyms in the country, out of which 16 are corporate owned and 75 are franchise-owned gyms in 48 cities. We have 20+ gyms under construction in 15 cities, which are expected to become operational over the next 6-8 months.

Related opportunities
  • Manufacturing & Ancillary
    About:   Wintex is a leading brand in tissue paper products which..
    Locations looking for expansion Delhi
    Establishment year 1982
    Franchising Launch Date 2018
    Investment size Rs. 1 Cr. - 2 Cr
    Space required 7000
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New delhi Delhi
  • After School Activities
    About Us: Kumon is the world’s leading after-school enrichment programme. Founded..
    Locations looking for expansion New Delhi
    Establishment year 1958
    Franchising Launch Date 2005
    Investment size Rs. 5lac - 10lac
    Space required -NA-
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater South Delhi New Delhi
  • Fine Dine Restaurants
    Want to run your own traditional food family restaurants? Partner..
    Locations looking for expansion Lakshadweep
    Establishment year 1974
    Franchising Launch Date 2012
    Investment size Rs. 2lac - 5lac
    Space required 300
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Lakshadweep Lakshadweep
  • Tea and Coffee Chain
    About: The Tea Junction operates 25 outlets in the lovely city..
    Locations looking for expansion West bengal
    Establishment year 2004
    Franchising Launch Date 2017
    Investment size Rs. 10lac - 20lac
    Space required 250
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Saltlake West bengal
Insta-Subscribe to
The Franchising World
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities
More Stories