7 AFFILIATE STARTUP COSTS
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Opening an Affiliate is a very appealing business venture to most perspective gym owners. The costs for entry may appear to be very low at first, and in relation to many other businesses they actually are.
While many businesses might require you to bring $500,000 or more to get started, you can usually start an affiliate for much less than that. Most gym owners are able to start their affiliates with less than $100,000. |
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Average Cost To Start An Affiliate in 2014 = $50,475.61
1. Affiliation.
Currently, as of July 2013 the CrossFit affiliate fee costs $3,000 per year. This is a cost that must be paid up front and is a reoccurring expense each year you wish to remain an Affiliate.
2. Insurance.
Every gym must have an insurance policy covering it's owners, trainers, facilities, and members. There are several companies out there that will insure a gym, but make sure you choose the right one. Most traditional fitness insurance policies are not structured to cover the unique activities performed in a gym. Risk Retention Group is probably the most popular company out there and they offer affordable prices as well. The average cost for insurance will run you between $1,000 - $3,000 per year depending on the size of your facility, number of members, and a variety of other factors.
Currently, as of July 2013 the CrossFit affiliate fee costs $3,000 per year. This is a cost that must be paid up front and is a reoccurring expense each year you wish to remain an Affiliate.
2. Insurance.
Every gym must have an insurance policy covering it's owners, trainers, facilities, and members. There are several companies out there that will insure a gym, but make sure you choose the right one. Most traditional fitness insurance policies are not structured to cover the unique activities performed in a gym. Risk Retention Group is probably the most popular company out there and they offer affordable prices as well. The average cost for insurance will run you between $1,000 - $3,000 per year depending on the size of your facility, number of members, and a variety of other factors.
3. Permits.
Obtaining the right permits for your gym can be one of the most frustrating pieces of owning your new business. Make sure you hire the right real estate agent and learn the regulations of the area in which you will be operating. Permits for a gym can cost anywhere from $100 up to $10,000.
4. Property.
Finding the right location for your gym is important so that you can provide a safe and adequate area for your members to work out. You will need enough square footage to allow you to fit enough clients to pay your bills, but you don't want so much space that the cost is too high for you to afford to pay your rent. Remember to budget up to 4 months rent (first two months and last two months) as a down payment. Some property managers will accept less, but be prepared to pay out some cash up front regardless. Rent on a facility can cost you anywhere from $1,000 - $20,000+ depending on the size and location of your facility.
Obtaining the right permits for your gym can be one of the most frustrating pieces of owning your new business. Make sure you hire the right real estate agent and learn the regulations of the area in which you will be operating. Permits for a gym can cost anywhere from $100 up to $10,000.
4. Property.
Finding the right location for your gym is important so that you can provide a safe and adequate area for your members to work out. You will need enough square footage to allow you to fit enough clients to pay your bills, but you don't want so much space that the cost is too high for you to afford to pay your rent. Remember to budget up to 4 months rent (first two months and last two months) as a down payment. Some property managers will accept less, but be prepared to pay out some cash up front regardless. Rent on a facility can cost you anywhere from $1,000 - $20,000+ depending on the size and location of your facility.
5. Level 1 Certificate.
Every affiliate owner must obtain the Level 1 Trainer Certificate before being approved for affiliation.
The cost for this certificate is currently $1,000. The certificate is good for 5 years, at which point you must pass the certification test again.
Every affiliate owner must obtain the Level 1 Trainer Certificate before being approved for affiliation.
The cost for this certificate is currently $1,000. The certificate is good for 5 years, at which point you must pass the certification test again.
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6. Equipment.
Depending on the size of your facility and number of members you start with, you will need some equipment to run your workouts when you open your doors. For a minimal equipment list, you can see an example here: Equipment. You should budget anywhere from $5,000 - $20,000+ for your initial equipment purchase. Logo Design, Branding, and Signage should also be considered. |
7. Technology.
You will need a computer with some type of management software and at least a Microsoft Office Package in order to keep your gym organized. You will probably want a printer and scanner as well in order to be able to print receipts, documents, and any other paperwork you might need to during the daily operations of your gym. Budget $1,000 for these type of technology items to be safe.
The costs to open a affiliate may seem small to some, and large to others. It is important to properly budget your finances prior to opening your gym. Proper planning prior to opening will allow you to focus on the important things once your doors are open, like training your members and creating a positive and motivating environment within your box. Keep in mind that paying your coaches a rate that is competitive with an athletic trainer salary is an expense that will come up as well.
This is a list of some of the costs you should be aware of, and factor into your planning process when thinking about how to open a CrossFit gym. This list is not all-inclusive, but it will give you an idea of the more common costs associated with starting your affiliate.
You will need a computer with some type of management software and at least a Microsoft Office Package in order to keep your gym organized. You will probably want a printer and scanner as well in order to be able to print receipts, documents, and any other paperwork you might need to during the daily operations of your gym. Budget $1,000 for these type of technology items to be safe.
The costs to open a affiliate may seem small to some, and large to others. It is important to properly budget your finances prior to opening your gym. Proper planning prior to opening will allow you to focus on the important things once your doors are open, like training your members and creating a positive and motivating environment within your box. Keep in mind that paying your coaches a rate that is competitive with an athletic trainer salary is an expense that will come up as well.
This is a list of some of the costs you should be aware of, and factor into your planning process when thinking about how to open a CrossFit gym. This list is not all-inclusive, but it will give you an idea of the more common costs associated with starting your affiliate.
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