Dave's Franchising Journal

                                    Journal #2: Franchising

            Franchising in a nutshell is when you purchase a lease from an established, hopefully known, company and open a “franchise” of that company; sending percentages to the actual company, but in the end (hopefully) make a pretty large amount of profit back on your investment. The company I would choose is CATZ (Competitive athlete training zone), which in short, is a cross-fit training facility, usually used by various types of athletes to increase anything from conditioning, speed, agility, and overall proper athletic form. One of the big reasons I would choose this as a business to franchise, is that I have been a member at CATZ, and have seen its effectiveness, large class sizes, and amazing satisfaction rate. CATZ has maintained a very professional and positive reputation because of this, and that makes this a really attractive opportunity.

           

            The cost of a business also has to be taken into mind when thinking of starting a project along these lines, and though decently expensive, a CATZ franchise doesn’t cost over 350,000$ which in comparison to some franchises is a pretty good price. The initial investment fee is forty thousand dollars, along with a royalty fee of approximately six to eight percent that I, the franchisee have to make sure get back to the company. They do allow third parties to pay for several things, such as the initial Franchise Fee itself, the startup costs, and the actual fitness equipment that will have to be used. Then on the other hand they do not allow for the third party to pay for things like the inventory, payroll, or anything along those lines. Lastly the franchise itself also offers training and instruction to the particular opportunities, which will likely give the franchisee a background on how the business functions on a day in, day out basis.

            Being an athlete who believes other athletes always want to increase their skill and fitness, I do truly believe this business will take off, and give me a very positive opportunity to make some income. The lease lasts for ten years, which is long enough in my eyes to make my investment back big time. Thanks for reading everyone, let me know what you think!