Pros and Cons of Starting Cryotherapy Franchises
Franchising is becoming a popular option for entrepreneurs in the US.
There were about 759,200 franchise establishments in the United States in 2018, with an output of $760 billion and employing over eight million people.¹
While most of these businesses are in the fast-food restaurant industry, some believe that the same concept can be used successfully in cryotherapy.
When it comes to starting your own cryo business, there are 2 main realistic options: you can either start and run your own cryotherapy brand or join an already established franchise.
For the franchise model, there is an established business model and systems of operation in place. You have to adopt these established methods of running the business, and also pay the periodic payments, buy cryotherapy equipment from the franchisor, and run the business as per the franchise contract.
Cryotherapy franchisees can have stability, but also be restricted.
Advantages Of Cryotherapy Franchises
Low Start-Up Capital Needed
Lack of capital is one of the most common barriers for entrepreneurs starting a cryotherapy business.
The business requires a lot of starting capital, including the cost of a cryotherapy machine, employee training, rent, etc.
A franchise contract may possibly offer you an alternative way to finance your business.
The franchisor may offer to take up some costs for your business through the franchise agreement at an acceptable and workable payment plan.
No Experience Required
The franchisor usually offers training on how to run the business and operate the equipment before you begin operations.
There is, therefore, no need for prior experience in the industry.
Franchises May Make It Easier for You to Succeed
25% of start-up businesses will fail within their first year, with 50% of the remaining ones failing within the first five.² Alarming, isn’t it?
Franchises sometimes offer a proven formula for success and an already tested business system. This may give your business a better chance of success.
Brand Awareness
In the cryo business, service quality is an important aspect when it comes to attracting customers.
Franchising with a recognized brand can sometimes help you get clients without having you spend much on branding and marketing.
Disadvantages Of Cryotherapy Franchises
Reduced Creativity and Innovation
Franchises operate as per set guidelines and have very little room for creativity. The franchisor controls all aspects of the business, including the strategies and the technology to be used.
The lack of control can be very demotivating. Especially for creative entrepreneurs.
Franchise Fees and Royalty Payments
Joining a franchise requires you to pay a substantial upfront fee and make periodic payments to the franchisor.
These fees are usually very high and reduce your part of the profits earned from the business significantly.
Restrictive Contracts
The franchisor usually drafts the contracts. This gives them the power to model the contracts to their benefit, giving you very restrictive contracts in the process.
Most cryotherapy business franchise contracts, for example, waive the franchisee’s rights to legal recourse, have non-competition post-term clauses, and necessitate payment of very high fees.
Proceed with caution and make sure you hire a lawyer to help you out.
Is Starting A Cryotherapy Franchise A Good Idea?
Starting a cryotherapy business franchise should be a decision made with absolute caution. The business model offers a lot of advantages but also has equally devastating disadvantages.
Before buying into a franchise, research and know about the company’s business models and strategies.
Make sure to read the franchise contract carefully and consult legal and business professionals before signing it.
Founded on facts: for peer-reviewed articles, scholarly journals, and articles cited above please see the below sources.
Franchising in the U.S. - Statistics & Facts - https://www.statista.com/topics/5048/franchising-in-the-us/
Franchise vs. Start-up: Which One Works for You? - https://www.entrepreneur.com/article/285035
NOTICE: Information contained within this website and in all materials, communications, or presentations by Cryo Innovations and Cryo Recovery Lounge is for informational purposes only. Whole Body Cryotherapy, infrared sauna, hyperbaric chamber, and any and all recovery methods described and/or offered by Cryo Recovery Lounge or Cryo Innovations are neither designed nor advised for treatment or cure of any illness or disease. No cryotherapy chambers (including the XR) have been tested or approved by the FDA. Please consult with your medical professional before beginning any cryotherapy or recovery method. All material contained within this site is copyrighted and may not be reproduced in any form without prior written permission. All rights reserved. For permissions contact Cryo Innovations.