Franchise
BUSINNESS PLAN
Gravity Stretching studio
BUSINNESS PLAN
Gravity Stretching studio
The calculation is based on the average figures of Gravity Stretching studios on Bali as of mid-2024.
1. Introduction
- Description of the studio concept.
- Advantages of the franchise "Gravity Stretching Studio".
- Main goals of the business.
read here
- Description of the studio concept.
- Advantages of the franchise "Gravity Stretching Studio".
- Main goals of the business.
read here
2. Main parameters of the Gravity Stretching studio franchise
- Lump sum fee: $25,000 one-time.
- Royalty: 6.5% of turnover monthly.
- Advertising fee: 3% of turnover monthly.
- the right to use the "Gravity Stretching" brand
- the right to use the "Gravity Stretching" method
- the cost of five sets of equipment for group classes and one set of equipment for individual sessions (equipment for inverted positions and gravity therapy);
- training of two instructor-assistants and their subsequent professional development to the level of trainer-therapist;
- the "Video Trainer" program;
- consulting on the selection of premises, its equipment and installation of exercise machines;
- consulting on the selection of personnel;
- branding (logo, initial design)
- consulting on the choice of marketing strategy in your location, transfer of marketing know-how;
- training of a customer service manager;
- consulting the owner on management and control;
- further support and consulting on the optimization of all processes.
3. Income from services:
Gravity Stretching allows for individual, group and paired sessions.
The prices are selected so that the income from different types of classes is the same and is $60 for 1.5 hours.
These prices are slightly lower than the actual prices in working studios and fully cover bank commissions, etc.
The time of sessions and content can be adjusted to the request of your clientele.
We assume that there are 25 working days in a month.
So:
- Group classes: 2 sessions per day × 5 people × $12 × 25 days = $3,000 per month.
- Paired classes: 2 sessions per day × $60 × 25 days = $3,000 per month.
- Individual classes: 3 sessions per day × $60 × 25 days = $4,500 per month.
Thus, at 100% capacity, the studio can bring in $10,500 per month in income from classes.
Additional income from selling equipment is 20% of $300 = $60 for a basic set.
Gravity Stretching allows for individual, group and paired sessions.
The prices are selected so that the income from different types of classes is the same and is $60 for 1.5 hours.
These prices are slightly lower than the actual prices in working studios and fully cover bank commissions, etc.
The time of sessions and content can be adjusted to the request of your clientele.
We assume that there are 25 working days in a month.
So:
- Group classes: 2 sessions per day × 5 people × $12 × 25 days = $3,000 per month.
- Paired classes: 2 sessions per day × $60 × 25 days = $3,000 per month.
- Individual classes: 3 sessions per day × $60 × 25 days = $4,500 per month.
Thus, at 100% capacity, the studio can bring in $10,500 per month in income from classes.
Additional income from selling equipment is 20% of $300 = $60 for a basic set.
4.EXPENSES:
Fixed expenses:
Fixed expenses:
- Trainers' salaries (2 people at $300) — $600.
- Manager's salary — $300.
- Cleaning lady's salary — $150.
- Rent and utilities — $1,000.
- Local advertising: 20% of income.
- Royalty: 6.5% of income.
- Advertising fee: 3% of income.
- Repairs, additional equipment of the premises (usually compensated by cheaper rent or done at the expense of the landlord)
- Travel expenses for instructor training (optional, online training is possible)
- Cost of equipment shipment
- Legal registration of the business in accordance with the laws of the country of location.
- Ordering uniforms for employees.
5.EXAMPLE CALCULATION
Let's take as a basis the example of Gravity Stretching studio in Bali, designed for a group of 5 people.
The premises have an area of __80___ sq.m. with access to a toilet/changing room and a table for the manager.
Staff 4 people: two trainers, a customer service manager and a cleaner.
Studio working hours: from 7:00 to 20:30, trainers work in shifts.
Sessions are 1.5 hours long with a 30-minute break, for a total of 7 sessions per day:
1) 7:00-8:30
2) 9:00-10:30
3) 11:00 - 12:30
4) 13:00 - 14:30
5) 15:00 - 16:30
6) 17:00 - 18:30
7) 19:00-20:30
Let's assume that the studio occupancy rate will range from 30% to 80% as it grows:
- 1st month: 30%
- 2nd month: 50%
- 3rd month: 70%
- From the 4th month onwards: 80%
Let's assume that equipment sales increase from 1 set per month to 10.
Let's calculate the profitability forecast for 12 months.
- Net profit = Total income - Total expenses.
- It is taken into account that in the first month a lump sum payment of $25,000 is deducted from the net profit, this is reflected in the accumulated profit.
Let's take as a basis the example of Gravity Stretching studio in Bali, designed for a group of 5 people.
The premises have an area of __80___ sq.m. with access to a toilet/changing room and a table for the manager.
Staff 4 people: two trainers, a customer service manager and a cleaner.
Studio working hours: from 7:00 to 20:30, trainers work in shifts.
Sessions are 1.5 hours long with a 30-minute break, for a total of 7 sessions per day:
1) 7:00-8:30
2) 9:00-10:30
3) 11:00 - 12:30
4) 13:00 - 14:30
5) 15:00 - 16:30
6) 17:00 - 18:30
7) 19:00-20:30
Let's assume that the studio occupancy rate will range from 30% to 80% as it grows:
- 1st month: 30%
- 2nd month: 50%
- 3rd month: 70%
- From the 4th month onwards: 80%
Let's assume that equipment sales increase from 1 set per month to 10.
Let's calculate the profitability forecast for 12 months.
- Net profit = Total income - Total expenses.
- It is taken into account that in the first month a lump sum payment of $25,000 is deducted from the net profit, this is reflected in the accumulated profit.
Table with forecast of income, expenses and net profit by months
From the table you can see that after 8 months the lump sum payment is fully reimbursed and from the 9th month the net profit starts.
Already the first year of work provides a return of 56% per annum, and this is taking into account the launch period and repayment of the initial investments!
You can see it more clearly in the diagram, where the net profit by month is marked in blue, and the accumulated profit is marked in red.
Already the first year of work provides a return of 56% per annum, and this is taking into account the launch period and repayment of the initial investments!
You can see it more clearly in the diagram, where the net profit by month is marked in blue, and the accumulated profit is marked in red.
Net Profit and Accumulated Profit Growth Chart
6. Conclusions:
1. Payback:
The investment in the franchise will pay off in the 8th month of the studio's operation.
Up until this point, the net profit will be negative, since a lump sum payment of $25,000 must be made in the first month.
2. Average monthly profit: After reaching full occupancy (from the 6th month), the net profit will be approximately $4,286 per month.
3. Annual profit: For the first year, the net profit will be approximately $14,035. This value includes the initial payback period and the slow growth of the studio's occupancy.
4. Expected profit after payback: Starting from the 9th month, when the studio reaches a stable occupancy level (80%) and the initial investment (lump sum payment) is fully repaid, the monthly net profit will be approximately $4,286 per month.
This gives you approximately $58,562 in profit per year of normal operation.
5. Risks and Reserves: The main risks are related to achieving the planned occupancy rate. If it is lower than expected, the payback period may increase. It is important to provide a reserve fund in case of delays in achieving the income targets.
1. Payback:
The investment in the franchise will pay off in the 8th month of the studio's operation.
Up until this point, the net profit will be negative, since a lump sum payment of $25,000 must be made in the first month.
2. Average monthly profit: After reaching full occupancy (from the 6th month), the net profit will be approximately $4,286 per month.
3. Annual profit: For the first year, the net profit will be approximately $14,035. This value includes the initial payback period and the slow growth of the studio's occupancy.
4. Expected profit after payback: Starting from the 9th month, when the studio reaches a stable occupancy level (80%) and the initial investment (lump sum payment) is fully repaid, the monthly net profit will be approximately $4,286 per month.
This gives you approximately $58,562 in profit per year of normal operation.
5. Risks and Reserves: The main risks are related to achieving the planned occupancy rate. If it is lower than expected, the payback period may increase. It is important to provide a reserve fund in case of delays in achieving the income targets.
7. Recommendations
1. Actively attract clients in the first months:
Identifying target clients near your location, intensive advertising campaigns, special offers and discounts for the first clients can help you reach your planned studio occupancy faster.
2. Optimize expenses: Review opportunities to save on expenses such as rent or salaries to minimize financial risks in the first months.
3. Expansion plans: If the studio is operating at full capacity and has achieved a stable income, consider opening additional locations or expanding the current studio.
1. Actively attract clients in the first months:
Identifying target clients near your location, intensive advertising campaigns, special offers and discounts for the first clients can help you reach your planned studio occupancy faster.
2. Optimize expenses: Review opportunities to save on expenses such as rent or salaries to minimize financial risks in the first months.
3. Expansion plans: If the studio is operating at full capacity and has achieved a stable income, consider opening additional locations or expanding the current studio.
8. Conclusion
The Gravity Stretching Studio franchise shows positive profit dynamics with a predictable payback within the first 8 months.
The main sources of income are group, pair and individual classes, as well as sales of equipment for home use.
If the planned occupancy rate and active marketing support are met, the franchise can become a profitable business already in the first year of operation.
The Gravity Stretching Studio franchise shows positive profit dynamics with a predictable payback within the first 8 months.
The main sources of income are group, pair and individual classes, as well as sales of equipment for home use.
If the planned occupancy rate and active marketing support are met, the franchise can become a profitable business already in the first year of operation.
" The one who walks will master the road"
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