The health and fitness industry has remained a niche choice for investors over the years, promising great benefits and lucrative results in the long run.
Over the past few years in particular, the industry has been booming in Southeast Asian countries. In nations like Malaysia, where a high percentage of the population suffers from health issues like diabetes, heart disease and obesity, there is great scope for it to flourish in the coming years.
Here are some reasons why gym franchises make a good investment option in the region.
1. Turnkey operations
Franchised gyms are categorised as turnkey businesses. An established franchise is likely to be successful as it already has a proven operating framework that the franchisee can replicate.
With an established business plan and operating procedures, equipment fit-outs, and training provided by the franchisor, new investors can operate successfully.
Investing in a gym in Southeast Asia, coupled with sound marketing strategies, can generate good returns – more so if the franchise is a well-known brand.
2. Growing health consciousness
Gym franchises have benefited greatly from public health initiatives that raise awareness of conditions such as obesity and diabetes, and the importance of combating them.
This has led to more people joining gyms and fitness centres in recent years, which has helped franchisors build a larger client base for their partners.
The easing of movement restrictions since October has seen the reopening of gyms with safety protocols in place, and with it greater awareness of the importance of health and wellbeing.
3. Low entry points
Unlike starting a business in most other industries, setting up a franchise does not require heavy initial capital outlay. Investments are relatively safer due to low overheads and maintenance costs.
Gyms and fitness centres also have simpler business models, where one can venture into this field without needing any specialised knowledge of the industry.
4. Sources of income
Besides membership subscriptions, gyms can generate revenue through other methods such as sponsorships, marketing, and sales of consumables and merchandise.
5. Non-seasonal
There are higher risks associated with investing in businesses that are seasonal, such as travel- and recreation-related ventures.
The health and fitness industry, on the other hand, operates year-round. As a franchisee, you can expect a steady revenue stream throughout the year.
Erika Peres is a social media influencer, entrepreneur and director of multiple companies. She is a mother of two boys and has a passion for sports, fitness and lifestyle. She can be reached on Instagram, LinkedIn and Facebook.