About Believe Fit Franchises
Believe Fit is an active lifestyle company founded in Edmonton in 2011, to promote active living and encourage people of all ages to look and feel their best. We are the exclusive Canadian distributor of Lorna Jane Activewear, the number one activewear company in Australia. We also carry a wide range of some of the best supplements and health products on the market today. We strive to continually improve and to provide unsurpassed service to our key target demographic, the active female. We aim to create a welcoming environment, operated by friendly, informative and approachable franchise partners that share our passion for active living.
We currently have 10 locations across Alberta, with 5 franchise locations and 5 corporate stores. Now that we have proven our expansion model in the marketplace, we will be moving towards exclusively franchising new stores, and we may even franchise some of our existing corporate stores.
We owe the enormous success we have had so far, to our unique business and marketing model, and our management team. We’ve been successful in developing and packaging our system, in a way that puts our franchisees in a strong position in our fast growing and ever changing marketplace.
We aim for markets with strong local economies, strategically placed to have access to both residential and commercial markets, near major traffic routes, in areas with above average incomes. Our stores are typically in leased commercial retail units, ranging in size from 1,000 – 2,200 sqft. That difference in size mostly depends if a location has a fitness centre, where we host fitness classes, workshops, events and speakers. These centres generate rental revenue and bring significant traffic through our locations.
We plan to expand throughout Canada in coming years, and we have already identified a number of markets and specific locations as prime expansion opportunities. We are open to suggestions about new potential markets or locations, but the final decision will be based on our extensive market and competitive analysis.
What is a franchise?
A franchise is a business arrangement where a franchisee pays a royalty to a franchisor, in exchange for the use of a business system, and training on its use. Though our management teams years of experience in the industry, we have removed much of the guesswork from opening a store, and now we offer franchisees our system, training and supplier relationships, in exchange for royalties.
What costs are involved in opening a Believe Fit franchise?
Believe Fit charges an initial franchise fee of $25,000, a royalty of 3% of gross sales, and an advertising fund contribution of 2% of gross sales. Our fee structure is quite a bit lower than similar franchises in this industry. Wed be happy to show you our competitive analysis of franchises in our industry as a part of our process.
In addition to the ongoing fee structure, the franchisee is responsible for the costs of construction and renovation of the selected location. This cost is highly variable, depending on square footage, the amount of structural renovations needed, the previous tenant, market factors, etc. The construction and renovation costs for our current locations have ranged from $50,000 to $70,000. When we are discussing a specific location, in a specific marketplace, we should be able to give you an accurate budget.
The biggest cost of opening a franchise is the cost of inventory, which ranges from $50,000 to
$80,000. Over time this inventory will be sold and repurchased many times over, but to get started, you need to fill your shelves with our products. This inventory is purchased directly from our suppliers, so we make nothing from your store until you start earning revenue.
We are happy to help our franchisees obtain financing, through relationships with financial institutions, and through referrals, although we are not a bank, and we dont lend money.
What can I expect to make as a return?
Its hard to give a clear answer to this, but keep in mind that a successful location can generate huge cash flow and profit, and that every one of our existing locations is currently profitable. After screening, and signing of a non disclosure agreement, we are willing to open our books to show you a clear financial picture of our corporate stores, and our franchise locations, as well as financial projections and supporting data, for your location. It's not uncommon for a successful store to repay it's opening costs with profit in its first year.
Will I need to run the franchise myself?
You do not necessarily need run the franchise yourself. However, each store must have a full time manager, who has completed our thorough training process. We will evaluate each corporate structure and ownership arrangement separately, but the arrangement will be taken into account when selecting which franchisees we approve.
Will I get a territory?
You never need to worry about us opening up another location down the street. We offer each franchisee a well defined area, where they have the exclusive rights to the Believe Fit franchise system. This territory may have to be defined by streets and avenues in larger markets, or may just be an entire city or town in smaller markets.
We are also open to discussing the purchase of larger territories, either as a way to lower the franchise fee for each individual location when planning on opening multiple, or as a master franchise.
Where are you planning to franchise?
At this time we are not franchising Believe Fit Stores to the public, if you are interested in a franchise location we can put you on a waiting list. Please email firstname.lastname@example.org