If the Franchise business model interests you and you have a passion for a healthy body then consider owning a fitness franchise. In order to achieve your goal of owning a fitness franchise you should observe and analyze all sorts of financial aspects. A prospective franchise owner with a strong knowledge of financing always succeeds in the fitness sector. There are many financing options available for different kinds of business models. But, one must be familiar with all of the clauses associated with each specific business sector. For the best options, you need to connect with specialized government agencies which offer various valuable resources on the financing of franchises.
Got Enough Money?
Before you start a new business endeavor, determine whether you are financially stable to maintain a dynamic venture like a fitness business. You must be able to foresee the initial and recurring costs, the maintenance charges, the salaries of trainers and other employees and other miscellaneous charges as well. If you are able to arrange alternative financing resources apart from the loans from banks and assistance from private organizations, you will have an edge over the other applicants.
Preparing Financial Documents
All personal and financial statements are to be arranged properly for smooth approval of loans. You are required to have an updated credit history to get loans from lenders. You should get any errors removed from your credit history. Income statements, residential proof, educational and professional profiles are other important documents required by the lenders and financial organizations.
Franchise owners must mention the amount of loan required and the amount of your personal assets. For legal purposes, your agreement with the franchisers, commercial registrations and other essential business related documents should be submitted.
A well knit business model is neccessary to help your business succeed. One is expected to prepare the overall concept of the particular business, its main objectives, the description of the products or services of the franchisee, the commercial credibility of the investors, the target audience of the franchise, its location, financial status of the owner or owners and other important points of your business. This helps both the franchise and the franchisers to make a checklist with the different clauses set by the financing institutions. A fair idea of the average revenue generated by the fitness franchise may be disclosed by the franchiser.
Help from Franchiser
These days, the franchisers themselves have opted for providing financial assistance to prospective owners. They can also connect the franchises with third party lenders or financial agencies. Direct financing from the franchisers are more beneficial than from other sources. Most of the branded franchise names have kept both the initial investment and the monthly fees competitive.
Aid from SBA
The Small Business Administration has collaborated with several financial organizations to encourage the franchise business model. You can gain a lot of information from the SBA regarding the new rules of the government and about other beneficial programs of the private sector. It is a strong platform where you can meet suitable lenders, eager to support a fitness franchise business.
It also compiles a Franchise Registry where all franchise related information is stored in a database. Most of the top fitness brands in America are listed on this registry. Prospective franchise owners can trust this registry and all the procedures involved are done as per the rules and regulations of the government.
Local Financial Assistance
Becoming a member of the Chamber of Commerce in your town can help you gain access to many individuals from the financial sector like bank executives, real estate property owners, agents of top notch insurance companies and others. These renowned names can provide a gamut of information regarding the free funding of your fitness center.
The Money is readyâ€¦Get set goâ€¦.
Given the options and platforms available for financing, an individual seeking to purchase a fitness franchise or kickboxing franchise can confidently move forward with the business logistics. You do not need to worry about the unnecessary hassles involved from unknown lenders. You are able to work with government based agencies and get peace of mind.
Shannon Hudson “The Cannon”, founder and CEO of 9Round Franchising, LLC is the current IKF Light Middleweight Kickboxing Champion of the World. He won his title on October 1, 2011 with a 6th round TKO victory. He trains under legendary boxing trainer Xavier Biggs, brother of 1984 Olympic Gold Medalist Tyrell Biggs. Shannon began martial arts at the age of seven, and has continued training ever since then. He has a 5th degree Black Belt in Japanese Shotokan Karate and a 4th Degree Black Belt under Joe Lewis’s Fighting System JLFS.