In order to support our franchisees, we provide an initial two-week training program at Corona, CA. Weekly franchise calls for existing franchisees, another call each week of franchisees opening their first Sudore Wellness. There are quarterly field reporting inspections and daily monitoring of the exercise class to maintain quality. If the daily approved workout is changed the trainer on the floor loses their Sudore Certification and must retest in Corona, CA at their expense. The franchisee must operate with two Sudore Wellness Certified Trainers at all times or at their expense. Corporate sends a Certified Trainer at $350 per day until the franchise is compliant with the agreement. National franchise participation conference is also held on an annual basis, and regional training clinic will be available across the US and Canada.
Sudore Wellness is set up to grow our franchisees and we are not looking for single operators. Our ideal franchisee will open a Sudore with zero debt. They will open their second gym in their market at 50% debt and their third gym at 75% debt. From there they will write their own story. We only want one franchisee per market, we have identified 200 markets that will hold from 2 to 50 Sudore Wellness Centers. In our agreement, if you change the system we will open Sudore Wellness Studios in the market to maintain the brand and dilute the position of the out of compliance franchisee. Remember to protect all of us, not one of us.
Revolutionizing the franchising industry
Jim Belanger: We have developed Sudore Wellness to be different from other franchises. First, we have no personal guarantee of the franchisee or their families. This is a huge difference in the franchise arena. Attorney’s use guarantees to the disadvantage of the franchise community. If a store fails we all must work to minimize damages, not foreclose on the family home. We want quality franchisees that have the discipline to follow the Sudore Way, step by step. Second, royalties are 5% and do not start until 150 paying members. Again a huge difference, we only want the royalties when the unit is profitable. We are all in this together. We believe if one location fails we all fail. The third and most important difference is we will not make a penny beyond our franchise fee and royalties off the franchise community. Any funds, kickbacks or advantages will be a split amount of the advertising budget of the total stores in the system. The system and number of stores are the reason for any savings and it will be passed on.
Sustaining growth
Jim Belanger: 2020 is our year to roll out franchising awards. We see many competitors expanding too large and the last 200 units fail to meet the expectation. We do not see a market for 1200 quality franchise locations. We see a market of 400 to 700 great sites in the U.S. We will not open substandard locations just to sell franchises.