Set for double-digit growth in 2021 and indexing across a plethora of blossoming market opportunities in the wake of the COVID-19 pandemic, have you thought about boutique fitness franchising? Here’s what you need to know.
A booming market segment
Over the last decade growth in the fitness sector has taken place in two distinct segments – low-cost and boutique. The emergence and growth of low-cost concepts caused a boom in the overall addressable market for gym membership.
Then, simultaneously, boutique studios emerged at the higher-end of the market capitalizing on an emerging ‘experience culture’, offering high-service, focused fitness concepts that deliver rich ‘tribal’ consumer experiences.
This want for experiential fitness has only intensified in 2022 as we emerge from the pandemic. Consumers want workouts that offer more and are worthy of sharing both with friends and on social media.
The booming boutique sector, valued at over £95bn globally in 2019, represents the fastest-growing proposition within the fitness industry, indexing well with the large and influential Gen Z and millennial generations who, in 2018, represented around 70 per cent of membership/affiliation with boutique studios. These consumers are willing to pay more for specialized and experiential fitness concepts.
And one brand is leading the charge. Boutique fitness franchisor TRIB3, founded in 2016 and franchising since 2018, has exploded into eight global territories despite the recent pandemic with an unrivaled business model.
Offering the ultimate high-intensity group workout experience, underpinned by gamification and proprietary heart-rate tracking, TRIB3 has taken the world of franchising by storm with its highly shareable industrial-luxe design and extraordinary commercial model.
Volume boutique
The secret is the brand’s aptly named ‘volume boutique’ concept. Each studio is designed with three signature zones – Treadmills, Resistance and Intensity – uniquely engineered to maximiZe class capacity.
That means franchisees can break even at average occupancy levels of less than 25 per cent and made the model highly resilient to recent distancing measures. In fact, in 2020, despite vast temporary closures, all TRIB3’s stores across the United Kingdom were cash positive and profitable for every month they were open. Likewise, net promoter scores (NPS), were at an all-time high as consumers returned to the studio post-lockdown.
TRIB3’s chief development officer Karl Dietrich says: “For me, the loyalty cultivated is the most exciting thing about the TRIB3 business model; along with the returns this drives for our franchisees. Our NPS scores are consistently +60 and were even higher after lockdown – there is such power in the communities we are creating.
“This is also evident in the longer-term results the TRIB3 business model offers for franchise partners; as a store matures, 80 per cent of your revenue will come as repeat purchases from your existing customer-base and a huge proportion of your new leads will be generated by referrals from this highly engaged base.
“Naturally, with such a resilient and exciting business model, we’re always thrilled to welcome new franchise partners into our family and open new stores but now more than ever, we see how important it is to keep growing the sector and get more and more people physically active.”
Join the family
TRIB3 is actively recruiting for area development partners and master franchisees to be part of exciting and rapid global growth. With five territories already secured including the Netherlands, Belgium and Republic of Ireland, and advanced discussions on several more markets, there’s never been a better time to step into the boutique fitness market with a proven and established brand.
Underpinned by an industry-leading support team, TRIB3 CEO and founder, Kevin Yates, was one of the pioneers of the U.K. boutique fitness market. He leads a senior team with over 150 years of combined industry experience meaning franchisees – whether single unit, multi-unit or master – can have the confidence to step into a new market and achieve fast and ongoing returns.
With global partnerships on equipment and technology, a seamless digital ecosystem and a highly-curated and value-engineered store design and brand, TRIB3 offers the perfect opportunity for investors looking to roll-out a highly-accessible franchise model.
Dietrich further explains: “With our flexible modular design, individual stores range from 190sqm to 418sqm depending on the property and the market demographic, meaning TRIB3 stores can be augmented to suit highly corporate, dense residential areas and high-street locations, being compact enough – despite the spacious studio design – to slot into properties where larger more traditional gyms can’t.
“That, plus the fact that the TRIB3 workout itself is designed to be intensive yet highly inclusive, means we have the widest addressable consumer market and unmatched property opportunities.”
Opening costs for a single store start at £235,000 or initial fees for master franchise or exclusive area development agreements starting at £150,000.
“Our network of trading stores will have more than tripled compared to December 2021 by mid-2022, so now is the perfect time to get in touch,” says Dietrich. “Our dedicated franchise development team will walk you through the business model and projected returns, plus we have several banking and leasing partners to support funding where required.
“Likewise, if you’re looking to bring TRIB3 to a market exclusively, we will build out a bespoke proposal for you with the support of our finance, property, brand, and design team. Franchising with TRIB3 is a true partnership and this is truly an exciting time to join the family.”
At a Glance TRIB3
Year established: 2016
Number of franchised outlets: 13 and 60+ sold worldwide
Location of units: U.K., Spain, Finland, China and area development agreements for the Netherlands, Belgium, Luxemburg, and Republic of Ireland
Investment range: Cost to open for a single unit: £235,000 – £422,000
Minimum required capital:
£130,000 for a single unit master agreements and exclusive area
Developer agreements start from initial fee of £150,000 depending on territory
Multi-store development agreements start from £60,000 initial fee
Contact: franchise@trib3.co.uk
