Crossfit: Comparison Between Franchise and License

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If you want to realize your dream of having your own gym, you have the choice between numerous franchise systems . CrossFit has come up with a slightly different concept . How is it different from the traditional franchise system? What are the advantages and disadvantages ?

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What Does the Classic Franchise System Look Like?

If you want to take the plunge into self-employment with little risk and want to open your own gym, you can fulfill your dream with a franchise . In Germany alone there are numerous options to choose from. 

The best-known franchisors include McFit , INJOY , clever fit and Mrs. Sporty . Absolute leader in terms of franchise is probably clever fit with over 400 locations in Europe. Do you want to fulfill your dream of having your own gym? Then the franchise concept is a good choice for you. We’ll tell you the advantages and disadvantages of being a franchise partner for you.

Advantages of the franchise system:

  • – You take less risk because you open your studio under an established name and with a successful concept.
  • – You benefit from the awareness and experience of the franchisor.
  • – You will receive professional support for everything that is necessary to open your own fitness studio.

Disadvantages of the franchise system:

  • – You have little freedom in designing your gym. The existing concept of the franchisor is contractually binding.
  • – You need some equity. At clever fit, the largest player among franchisors, this is around € 60,000, for example.
  • – There are also franchise fees , which are calculated on the basis of monthly sales, as well as advertising and other fees.
  • – You often tie yourself to the franchisor for many years. 

What is the License System Made of?

According to its own statement, CrossFit does not have a conventional franchise system. A CrossFit box franchise to open, is therefore not an option. However, you have the chance to obtain the Level I trainer license and thereby become an affiliate . With this affiliate status, you also acquire the right to open a CrossFit box under the same name. Instead of using a franchise system, CrossFit works with a license system.

In total, you have the opportunity to acquire three CrossFit licenses: Trainer license level I, II and III. The basic requirement for the opening of a CrossFit studio is only the CrossFit license level I, which entails a two-day course and costs a one-time fee of $ 1,000. 

In addition, an annual license fee of $ 3,000 must be paid, which flows directly to the parent company. Compared to the franchise system of traditional gyms, there are no additional fees. In addition to this financial, there are other crucial differences between the franchise and license system.

Differences: License System Compared to Franchise System

The big difference between the license and franchise systems is that, as a licensee, you don’t have to pay any fees to the company other than the trainer license fee and the $ 3,000 annual license fee. Unlike the franchise system, in which, in addition to high equity, an annual, sales-oriented franchise fee and an advertising fee are also payable. 

As a franchise partner, you often tie yourself to the respective company for several years, while as a licensee you can get out at any time without any problems. One only has to pay the license fee and is otherwise not accountable to the licensor .

While as a franchise founder you can count on the professional advice and support of the franchisor, as a licensee you have to do a lot yourself. This can be exhausting, but it also gives you more freedom in the design of your fitness studio.

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