own your own 5ef

Not Your Typical Franchise
A Real Turn Key Opportunity

Partner with

the most advanced & opportunistic

franchise model
in the world

5EF was born out of a need and demand in the marketplace for a fitness franchise that offers the right tools, systems, and processes to let the fitness professionals be precisely that, fitness professionals!

Our proven idea was to create an environment where the investor could make a passive one-time investment and allow us, the franchisors, to handle every step from research and leasing to pre-sales and opening and become a genuine “turn-key” franchise opportunity.

Investor vs. Operator

Comparison

5EF is unique in franchising due to how the model works.

We decided at an early stage that we wanted a model that an owner continuously operated, which is surprisingly hard for Franchisors to control, especially if you look at the traditional franchise model.

It doesn’t matter if you live out of state, want to diversify some assets and let us do the work or you want to be hands on in the studio day in day out, we have two options that will have you covered.

Most people buy a franchise and ultimately recruit staff to run the operations on their behalf, paying a large amount of money primarily on wages to people that don’t care as much about the business as the owner.

All this ultimately leads to unsatisfied clients, retention rates decreasing, churn rates increasing, and less money in the owner’s pocket, not to mention what it does to the business’s brand.

5EF found this to be a problem that needed addressing, so we reenvisioned and reshaped how Franchising is done by coming up with a strategy that works exceptionally well, having an owner-only model.

5EF on your behalf, should you not want to work in the business, will recruit two (2) highly qualified people to run the studio on your behalf; moreover, we will train them on all the systems, processes, and operations of the 5EF business.

The recruits! These recruited individuals, which we refer to as ‘operators,’ are in charge of everything. They are even in charge of paying all the bills!

The operators receive 50% each of the net revenue that runs through the business. Essentially, after paying all the bills, including rent, electricity, Internet, Insurance, CRM’s, Marketing, Investor Royalties, etc., they split what is left 50/50. Hence they certainly have a lot to gain by putting in the extra effort!

A majority of the people who buy a 5EF franchise opt to be passive investors and allow 5EF to guide the operators in their business.

In terms of returns, we pay investors a monthly royalty based on the number of memberships at their studio, and because we get paid the same as our investors, it is designed to entice 5EF to continue to grow their numbers.

The formula for royalties is as follows:

0-199 members10% of gross membership revenue
200-299 members12% of gross membership revenue
300-399 members14% of gross membership revenue
400-499 members16% of gross membership revenue
500+ members18% of gross membership revenue

Ultimately 5EF created a model where there are ‘investors’ & ‘Operators’,
giving the investor an option to be one or both depending on the direction they want to take.

Have you ever looked at starting your own business

and had hundreds of questions pop into your head before you start?

Where is the best location for my business? What kind of property do I need? What costs are involved with leasing, insurances & legal documentation?
How will I generate leads for sales?

What systems and CRM’s do I need to use to help track data and process transactions?

Whether you are new to business or have years of experience, questions like this can be daunting to face as a business owner and ultimately problematic if the proper research is not conducted.

Research is the first and arguably the most crucial step that 5EF takes to help ensure the overall success of your 5EF Studio.

Superior Market Location

Firstly, we need to find a suitable location for your studio, and many elements determine where will be best!

The 5EF Team go to great lengths to supply the investor with the most up to date market research possible – we present the investor with location options based on strict criteria.

Our approach is in line with our corporate slogan, “Data-Driven People-Focused.” We must first understand the relevant data to help base our decision on what suburb to place a studio in. To find the data, we use Core Logic, specifically the Suburb Statistic Reports to unveil the following information:

The above reports reveal vital information that we can report directly to you, the investor, to open a discussion about whther the suburb is worth looking into further.

Marketing

Unlike any other fitness franchise on the market today, 5EF on your behalf runs preliminary social media ads in the specified suburb to determine the Cost Per Lead (CPL).

In each State, we spend up to $20,000.00 to establish how much it will cost to generate a lead to be sure on the chosen suburb and ensure we do not waste any of the marketing budgets from your one-off Franchise payment.

Doing this unique 5EF tactic helps us meet the investor’s expectations regarding the studio’s performance. It also allows us to, if needed, relocate to a suburb that produces a lower cost per lead, thus helping improve revenue in the studio.

Choosing a Location

5EF takes a team specializing in leasing commercial properties to the predetermined list of suburbs to get a first-hand view of the property and verify all the information that 5EF previously gathered. We at 5EF also investigate the sites to determine what locations will be best suited based on:

Leasing

Our first step after the research is to send a ‘letter of intent to lease’ drafted by our in-house leasing specialist to the acting agent with ideal terms and conditions suited to 5EF; these terms can include:

  • Rent-free period; 
  • Fit-out inclusions, i.e., acoustic walls/paneling, Painting, etc.; 
  • Noise from premises permitted;
  • Extra car parking; and
  • Early access to the site before commencement of the lease.

 

5EF will follow up with the acting agents daily until such a time that they respond with the response from the landlord. During this process, there is always a lot of back and forth until both parties are happy with the deal.

The second step of the leasing process is when both 5EF and the landlord are satisfied with the terms of the arrangement. 5EF, on behalf of the investor and Landlord, pays for the lease which the Landlord’s solicitors draft; the process can take up to two (2) weeks for the lease to be drafted.

When 5EF receives a copy of the lease, we internally review it to ensure that the information outlined in the letter of intent to lease translates across to the lease; often, this is the longest part of the process as with every change, there must be a new review to ensure the integrity of the lease.

We must scan the document in our internal reviews for clauses or provisions that are not suitable for the 5EF model; this helps ensure the longevity of your business.

Once all criteria are met, we ask the solicitors acting on behalf of the Landlord to send the final copy lease ready for signing.

At this point is where 5EF emerges on top because once the final copy of the lease is sent, though, we don’t send it to the investor for execution no! Instead, we at 5EF sign the lease, ensuring less liability for the investor.

5EF once the lease is signed and guaranteed by 5EF leasing co, pay the total security deposit and rent advancement to the landlord and secure keys. It should be noted that the cost of security deposits and rent advancement is covered in your one-time franchise fee; we don’t go back to the investor for further funds.

Lastly, 5EF conducts a final site inspection to ensure everything is in working order and is still in the condition it was when initially inspected.

Insurance

Many business owners overlook the insurance on and for their business;
we always find it better to be proactive rather than reactive, especially when it comes to insurance.

Our list of policies include:
Public liability insurance$20,000,000.00
Professional indemnity insurance$5,000,000.00
Contents Insurance$120,000.00
Products liability$20,000,000.00
Management liability$1,000,000.00
Stock insurance$5,000.00
Removal of debris$100,000.00
Rewriting of records$50,000.00
Playing surfaces insurance$50,000.00
Business interruption insurance$250,000.00
Theft insurance$40,000.00
Signage insurance$10,000.00
External and internal glassCovered

Usually, a new business owner must have the insurance before being allowed to access their newly leased commercial property, and often opt to partner with the first insurance company that appears on google;

however, 5EF wanted to make sure that we had an extensive range of policies best suited to protect the investors, operators and the franchise business.

Our goal is to create comfortability and trust that everything is being handled and the investment itself is safe in the investor’s mind.

The process to secure such comprehensive insurance is comprehensive in itself;
5EF must send a representative out to attain the following details on the property:

Once all the details are confirmed, 5EF sends the information to our insurance partners
and has the policies drafted and submitted to the Landlord as an interested party.

Studio Fit-Out Covered

Can you imagine for the moment that you bought into a typical fitness franchise model and you have spent a considerable amount of time researching your market, looking into viable suburbs based on your desired demographic, and benchmarking data from one suburb to the next to ensure you make the right choice in your chosen market while looking for viable properties on the internet?

What about, finding the suburb you would like to have your studio in and then driving from one property to the next for inspections, asking the property agents the same questions over and over again to then sending in countless Letters of intent to lease that mostly come up rejected and the very few that do go forward require another month or two of negotiations that have no guarantee of a result.

How about finally receiving the lease to a property that may not have been your ideal pick but ultimately, you had to choose because of time restraints around delivery orders and then having to review your own lease or pay for solicitors to do the job!

Now envision after all of this work you have put into finally finding and securing a site that you now must fit-out the entire studio, imagine the project in its entirety from unpacking hundreds of boxes, laying and gluing the flooring, building each piece of equipment some of which takes professionals 5 hours to complete a piece, measuring wall mounts, drilling transition strips and the list goes on!

 

It all sounds pretty exhausting, right?

This is why 5EF made the entire Fit-out a part of the service provided to our investors!

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5EF, after the lease has been executed, run logistics on all the supply chains to ensure your authorized equipment arrives at the studio location on time and ready for Fit-out.

Not to mention, if needed at no extra charge to the investor, building toilets or installing acoustic paneling. 5EF has ensured that absolutely everything is covered in the Fit-out process, right down to the last pen, pad, or toilet paper roll.

This service is covered by the franchise fee paid by the investor. 5EF wanted a system that was a genuine ‘Turn-key’ opportunity and help put our investor’s minds at rest.

Once all the equipment has arrived safely onsite,
5EF organises the Fit-out team to commence works which include:

Hear from some of our Investors