New Club Investment
The costs involved in establishing a new fitness club include:
- A franchise fee of $55,000 plus GST to join the Fernwood network;
- Club design, the local council approval process, and building fit-out;
- Furniture and fittings;
- Marketing campaign for the club launch;
- Lease deposits and bank guarantee;
- Administration and legal fees;
- Working capital
The fitness equipment is usually financed through a fully maintained operating lease. To ensure competitive pricing and customer service Fernwood have approved suppliers to assist existing or new franchisees with their equipment needs.
Investment costs may vary between new clubs due to the nature of our lease negotiations and will also depend on whether the landlord is willing to make contributions such as lessor works, cash contributions towards the fit out or a rent-free period. During the franchise selection process, you will complete your own set-up budget based on the further information we provide as the process evolves.
What does Fernwood look for in a new site
We select sites based on the following criteria:
- Approximately 550-1000 square metres in size;
- Centrally located within the Primary Marketing Area;
- Prominence and good exposure on main road;
- Street presence for signage;
- Ground floor location;
- Parking to accommodate a minimum of between 30-40 cars (depending on local council requirements);
- Concrete floors;
- Minimum ceiling height of 2700mm;
- 3-phase power;
- Good air-conditioning and natural ventilation;
- Natural and artificial lighting.
On occasion Fernwood may secure the head lease on a property and grant the franchisee a Licence Agreement to operate from the premises under the same terms and conditions as the lease.
Existing Club Investment
On occasion, a number of Fernwood clubs become available for sale. Generally speaking, our Fernwood businesses have sold for the written down value of assets and liabilities as is, in addition to a goodwill consideration of between two and three times multiple of maintainable earnings. Westpac provide special lending deal to Fernwood franchise partners for the purchase of existing clubs.
To find out more, please visit our existing club opportunities page.
Major Bank Accreditation
The Fernwood system has been accredited by Westpac bank. We will provide contact details for the appropriate Franchise Relationship Manager in each state and they will be happy to discuss lending options with you.