Should You Franchise Your Health and Wellness Business?

Health and wellness franchises have gained in popularity over the years and are considered one of the top franchise categories for growth. The increasing focus on personal well-being has created a demand for businesses that offer healthcare in a medical setting, as well as wellness products and services in spas, salons, fitness centers, yoga studios, meditation centers, massage therapy, and other relaxation and wellness-oriented offerings.

Franchising can indeed be a viable strategy for expanding your health and wellness business as it allows you to leverage the entrepreneurial spirit and resources of others to grow your brand and reach a wider customer or patient base. Wellness franchises often appeal to individuals looking to invest in businesses that promote a healthy lifestyle and cater to the growing consumer interest in self-improvement and self-care practices.

Here are some recent and exciting statistics in the health and wellness industry:

• The global wellness market is valued at over $5.3 trillion in 2023, a figure which is set to increase to almost seven trillion U.S. dollars by 2025.¹
• The U.S. health and wellness industry is valued at $1.2 trillion, making up 28% of the worldwide wellness market.²
• The health and wellness industry growth rate is 10% and is expected to continue at this pace until 2025.¹
• June 17, 2023 (Market Insights Reports) – The Medical Wellness Market is expected to reach a CAGR of 7.5% during the forecast period of 2023 to 2029.³
• Gen Z and millennials are fueling a new wave of wellness brands.⁴

Is this the Right Time to Grow Your Self-Care Business?

If you currently own a thriving health and wellness business, and are thinking about expanding, consider seeking advice from franchise experts, business consultants, and legal professionals who can provide guidance tailored to your specific circumstances.

While franchising can offer multiple benefits, such as faster expansion, increased brand recognition, and the ability to leverage the time and capital of franchise owners, it may not be suitable for every business. Here are some considerations to help you evaluate whether franchising is right for your health and wellness business:

1. Does your business have an established track record of more than five years? (Ideally, a business should be in operation for at least one year before franchising)
2. Is your business profitable?
3. Is your business sufficiently differentiated from your competitors?
4. Does your business generate repeat customers?
5. Can your business model be duplicated in other areas, and easily taught to others?
6. Are you committed to growing your business and investing the capital necessary to develop the franchise concept?
7. Do you have trademarks and/or patents in place?

If you answered yes to most of these questions, your business may be a great fit for franchising. If not, your business may be more suited for expansion using an alternative strategy such as licensing, joint ventures, or other method. Either way, the consultants at iFranchise Group can help determine the appropriate path for future expansion for your wellness business.  

Examples of Thriving Franchises in the Health and Wellness Space

Massage Envy is a popular massage and spa franchise known for its affordable and convenient services. Massage Envy hired the iFranchise Group with only one location and the goal of expanding via franchising. In less than 3 years of working with iFranchise Group, the brand had sold over 200 franchises. It reached over 1,000 locations and was acquired by Roark Capital.

QC Kinetix is a nonsurgical medical franchise that provides customized regenerative medicine treatments.  After hiring iFranchise Group to help with their growth goals, QC Kinetix had sold over 420 franchises, just in the first year of franchise expansion.

Determining whether to franchise your health and wellness business is a complex process that depends on various decision-making factors. It’s essential to carefully evaluate these factors and conduct a thorough analysis before deciding to grow your business via franchising. Contact iFranchise Group to set up your free expert franchise consultation today: (708) 957-2300 | [email protected]

Want to learn more about franchising in the health and wellness industry?

Request a free copy of our whitepaper “Franchising: A Business Expansion Solution for the Healthcare Profession“.

Sources

¹ https://www.wellnesscreatives.com/wellness-industry-statistics

² https://blog.gitnux.com/health-and-wellness-industry-statistics/

³ https://www.marketwatch.com/press-release/medical-wellness-market-growth-opportunities-and-global-outlook-2023-to-2029-massage-envy-steiner-leisure-limited-world-gym-2023-06-17

⁴ https://www.businessinsider.com/business-trends-for-2023-ai-blockchain-health-secondhand-shopping-2023-1

https://www.statista.com/topics/1336/wellness-and-spa/#topicOverview