How to become a Plus Fitness franchisee
Learn how to apply for and finance a Plus Fitness franchise.
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Plus Fitness is an Australian gym franchise with over 200 locations throughout Australia, New Zealand and Asia. Members can attend any Plus Fitness location, with most offering 24-hour access.
If you're looking at opening a gym and are interested in a Plus Fitness franchise, learn how to do it and compare your finance options below.
What is a Plus Fitness franchise?
Plus Fitness is a franchise option for those looking to open a gym, but who don't want to start a business from scratch. You could potentially benefit from the brand awareness and marketing support of the franchisor, but will not have the same autonomy as you would if you were to open your own gym.
You will pay an initial franchise fee that covers the equipment and set-up costs of your gym. As a franchisee, you will also receive help in planning and locating your gym site, as well as initial and ongoing franchisee training and support. You are then responsible for the running and management of the gym.
How much does a Plus Fitness franchise cost?
The initial cost of a turnkey Plus Fitness franchise is $249,000* for a 250-sqm site. This covers equipment, the aesthetic fit out of the gym, furniture, IT systems and signage. You will also pay a flat monthly franchise fee of $895 in return for ongoing support from the franchisor.
The initial franchise cost will scale with the size of the premises you want, as follows:
|Site size||Initial cost|
*All figures are taken from the Plus Fitness website and accurate at time of writing.
Other costs to consider
Along with your initial and ongoing franchise fees, there are a number of other costs you will need to keep in mind when planning to open your franchise:
- Property costs. The initial franchise fee does not cover the cost of the land or the building itself, and these costs must be factored into your budget when considering whether to purchase a Plus Fitness franchise.
- Working capital. While you will be provided with equipment and infrastructure as part of your franchise purchase, you will still need funds in reserve to cover the ongoing costs and expenses of running your gym.
- Cost of finance. If you plan on using a business loan or other form of finance to purchase your franchise, you will need to factor the cost of your interest repayments into your budget.
How to apply for a Plus Fitness franchise
If you've decided to apply for a Plus Fitness franchise, you will need to follow these steps:
- Submit an enquiry via the Plus Fitness website.
- A Plus Fitness employee will call to discuss and complete your application.
- You will receive budgeting and projection tools, as well as the full disclosure document.
- Complete a Q&A session, then confirm if your desired territory is available.
- Plus Fitness will help you select and negotiate a suitable site for your gym.
- The development application is prepared and sent to the relevant local council.
- You will attend the Plus Fitness Franchise Induction Training program.
- Construction of your site begins, once the council has approved.
- You begin your membership pre-sale.
- The Plus Fitness team will complete the fit out of the gym once construction has finished.
What are my finance options?
Given the high upfront costs of starting a Plus Fitness franchise, you may need additional finance to help fund your purchase and provide working capital going forward. You have a number of finance options, including:
- Secured business loan. A secured business loan requires you to use an asset, generally a commercial or residential property, as security against the loan. As this represents less of a risk to lenders, you will generally receive a lower interest rate and a loan term of up to 10 years. Some lenders will also let you borrow up to $1,000,000.
- Unsecured business loan. You can generally borrow between $5,000 and $500,000 with an unsecured business loan. Unlike a secured loan, you do not need to use an asset as security, but you will likely get a higher interest rate as a result.
- Business line of credit. Unlike a normal business loan, a line of credit gives you access to a specified credit limit, which you can draw on as you need. You can generally borrow up to 80% of the value of your asset if you choose a secured line of credit, but you may still be able to borrow up to $400,000 with an unsecured line of credit.
- Peer-to-peer business loan. If you don't want to get your loan through a traditional lender, you can also apply for finance using a peer-to-peer loan. Instead of a bank, your loan is financed by an investor or group of investors.
How to compare finance options
Consider the following when comparing your finance options:
- Loan amount. If you need finance to cover the initial purchase of your franchise, you should make sure the lender will allow you to borrow the right amount. It's also important to make sure you do not borrow more than you need, as otherwise you may be stuck making unnecessary and expensive interest payments.
- Interest rate. The higher the rate you receive, the higher your loan repayments will be. You should always compare a range of options to find the loan that is most competitive and that best suits your needs.
- Fees and charges. Many loans come with additional fees and charges that you may need to pay depending on your loan agreement. These should also be factored in when you are calculating the true cost of the loan.
What to consider before applying for finance
- Eligibility criteria. Different lenders will have different criteria that you will need to meet in order to be eligible for a loan. This may include having a minimum turnover amount or trading history, so make sure you meet these requirements before applying.
- Do you have any previous business experience? You may need to provide evidence of your ability to run a business before you are approved for a loan.
- Do you have an asset to use as security? Using an asset such as a property may improve your chances of getting a business loan, and will generally give you access to a lower interest rate than if you were to apply for an unsecured loan.
- How much can I afford to borrow? You should have a clear idea of how much you can afford to borrow and a detailed plan for how you will repay the loan.
- Do I need ongoing access to finance? If you believe you will need access to finance in the future and do not want the full lump sum upfront, you should consider a business line of credit.
How do I apply for finance?
Once you have found a business loan that suits your needs, you can click "Go to site" on the table below and follow the instructions to begin your application.
You will need to provide personal and financial information as part of your application, including your credit history, business experience and any other debts, liabilities or assets. Some lenders will also not provide finance for new businesses, or may require you to provide a detailed business plan and financial forecast as part of your application.
Compare some Plus Fitness finance options available to you
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