The idea of starting a gym franchise in India is a good business idea as franchising has many benefits. However, it is important to consider the cost factors. To make it easier for you, here is a detailed guideline of the gym franchise cost in India.
Initial Franchise Fee
The initial franchise fee is one of the biggest parts of the gym franchise cost in India. The amount of this fee may greatly differ depending on the brand and its location. The amount you are likely to pay over average varies from roughly ₹5 lakhs to ₹20 lakhs. This fee gives the rights of using the brand name and also using and adopting their business model which entails training and other support services.
Setup Costs
Setting up a gym involves several key expenses:
- Rent: The cost of using commercial space always depends upon the place where it is situated. The cost range can vary from ₹50,000 to ₹2 lakhs per month according to charges of an available number of top gyms in India. Prime locations will, therefore, have higher costs.
- Renovation and Interiors: The process of establishing a professional gym setting requires the process of remodeling and redesigning the interior of the building. You should spend between ₹10 lakhs to ₹30 lakhs to get a good space designed along with appropriate flooring, lighting, fixtures, etc.
- Equipment: The quality of equipment used in the gym is important. The cost of machines, free weights, and other fitness accessories may vary between ₹15 lakhs to ₹40 lakhs. The quality of equipment determines the appearance of the gym to clients and the performance of the gym’s activities.
- Licensing and Permits: To do business legally you will require licenses and permits. These may range from ₹1 lakh to ₹3 lakhs along with health and safety permits.
Ongoing Costs
Ongoing costs are also an important part of the gym franchise cost in India. They include:
- Royalty Fees: Most franchises demand royalty fees monthly, and these are often charged as a proportion of your gross revenue. This charge often ranges between 5% to 10% of your monthly earnings. This assists in retaining brand consistency and backing.
- Marketing Costs: Every organization wants to have many members meaning they need to invest in the marketing field. For local advertisement, promotion, and digital marketing, plan to spend about ₹50,000 to ₹1 lakh per month.
- Staff Salaries: Proper staff recruitment, especially trainers and support staff is a key determinant of the success of a gym. These charges may cost as low as ₹3 lakhs to as high as ₹10 lakhs for your team of professionals, depending on the size of your team and their skill.
Additional Expenses
Other costs to consider include:
- Utilities: Electricity bills, water bills, and internet bills are some of the necessities that cost about ₹30,000 to ₹1,00,000 monthly. Proper management of these utilities can assist in reducing their costs.
- Insurance: Take an insurance policy to cover your business. This may range from ₹50,000 to ₹1 lakh per annum depending on the amount of coverage required.
Conclusion
The gym franchise cost in India is high but not unattainable with proper planning. Start-up costs, recurring costs, and incremental costs are some of the costs involved in calculating the total investment. Knowing these costs will help you in planning for an effective gym franchise as you seek to lay down the groundwork for your franchise.
