How Fitness Premier’s Diversified Revenue Streams Are Driving Franchisee Success

Diversified revenue streams are crucial for franchisee success, as they offer multiple ways to generate income. Fitness Premier franchisees benefit from diversified revenue streams beyond gym memberships, making the potential return on investment more robust. 1851 Franchise spoke with Rick King, chief operating officer of Fitness Premier, about how the franchise has effectively expanded its offerings, bolstering its franchisees’ income, while providing an exceptional experience for their members. 

The traditional gym membership remains the backbone of the business. On top of that, Fitness Premier offers a group training program, one-on-one and personal training options, and small group training. However, the introduction of recovery areas as a new revenue stream has significantly boosted income for franchisees.  

“The recovery services and amenities have been a huge success,” said King. “We tested out our Relax + Restore Suites at two of our locations here in Illinois about a year ago.”

This strategic move has allowed Fitness Premier to offer a unique experience that is distinct from the typical gym setting, featuring amenities like saunas, massage beds and compression boots. 

“Since the concept was so successful, we are designating between 600 and 1,000 square feet for recovery in every location, and members have to have a certain amenity access to get into that room,” said King. 

These offerings not only attract new members but also encourage existing members to upgrade their plans, opening up new streams of revenue for franchise owners. 

King further elaborated on the financial impact of these diversified services, noting that about 40% of new members opt for the recovery area right from the start. “Our average ticket price for new members is in the high 60s,” he said. “They’re coming right in for the first time and instead of opting for the $30 plan, many new members are choosing the $69 plan so they can access the additional recovery amenities.” 

This substantial increase in the average ticket price demonstrates the effectiveness of offering premium services, which enhances overall profitability without the need for a proportional increase in member volume. Long-term customers were given a discounted price to upgrade their memberships for a limited time and an impressive number took advantage of this opportunity immediately.

Many of the new members represent a new segment of the population for the franchise. By appealing to individuals interested in recovery and wellness rather than just fitness, the franchise is expanding its market reach. This strategy has led to deeper market penetration, with people who were previously uninterested in traditional fitness now joining the gym because of these new offerings, and, over time, Fitness Premier is seeing some of these members gradually try out some of the traditional gym offerings, as well. 

“They’re coming in for the recovery amenities, trying them out, and then working their way to the fitness side over time,” said King.

By offering more services and amenities to its members, Fitness Premier is also offering more opportunities for franchisees to generate revenue. Through broadening their market appeal, Fitness Premier is driving sustainable growth and setting franchisees up for success.

To find out more information on costs to buy this franchise, please visit https://1851franchise.com/fitness-premier.