Skip to content

Should I Licence or Franchise my Fitness Business?

Fitness and nutrition are big business in Australia. From the Michelle Bridges to those rugged ex-My Kitchen Rules blokes, it pays to be in the know on all things health. If you successfully run a fitness or nutrition business, it’s only natural you will want to expand and spread the healthy word beyond your own business’ capacity.

In essence, a licence is a right to use and applies to the intellectual property (branding, copyright and trademarks) and the systems (i.e. the processes in place behind your “get fit quick” program). Licensing also limits your ability to place conditions on that right – something businesses typically overlook when seeking to expand. 

Whether you’re a yoga studio, an outdoor boot camp or a health and wellbeing spa, if you’re thinking of expanding but are unsure whether to licence or franchise, we set out some points for you to consider. 

1. Do You Want to Implement Systems?

Do you want to dictate the precise methods and systems implemented across the brand? For example, do you want to dictate how classes are run or transactions concluded? If you’ve developed, for instance, Yogalates or a specialist Power Zumba machine, chances are you’ll want that precise model replicated in any other branches of your business. If so, this is more indicative of a franchise relationship.

2. Do You Want Common Marketing?

If it’s your plan to run common marketing campaigns to which all business owners contribute and benefit, this is more indicative of a franchise relationship. 

Continue reading this article below the form
Loading form

3. Do You Want to be Able to Monitor and Regulate Performance?

It’s often important, for the purpose of maintaining the integrity of your brand, to put in place minimum KPIs and, further, be able to enforce them. If this is an important aspect of your proposed growth, a franchise will likely be the way to go.

4. How Much Interaction Do You Want Between Businesses?

As a franchisor, you will have obligations regarding ongoing training and monitoring which, of course, takes time. Do you have the capacity and willingness to do so? Do you have the experience and business acumen to analyse financial performance and/or provide coaching and training to individual business owners? If you intend to retain your existing business but provide others the opportunity to exploit your systems and intellectual property, you should think about the additional burden this will impose on you as a franchisor. 

The legal side of setting up a franchise and licence is very different. What’s more, operating a franchise under the guise of a licence agreement can have negative ramifications in the long run. Talk to a franchise or commercial lawyer to understand the difference in documentation and ongoing legal compliance.

***

Whichever model you propose to adopt, it’s important that you understand the legal ramifications from the outset. If you have any questions about the differences between licencing and franchising, and what they will mean for you and the growth of your business, get in touch with our franchise team.

Register for our free webinars

Demystifying M&A: What Every Business Owner Should Know

Online
Understand the essentials of mergers and acquisitions and protect your business value. Register for our free webinar.
Register Now

Social Media Compliance: Safeguard Your Brand and Avoid Common Pitfalls

Online
Avoid legal pitfalls in social media marketing and safeguard your brand. Register for our free webinar.
Register Now

Building a Strong Startup: Ask a Lawyer and Founder Your Tough Questions

Stone & Chalk Tech Central, Level 1 - 477 Pitt St Haymarket 2000
Join LegalVision and Bluebird at the Spark Festival to ask a lawyer and founder your startup questions. Register now.
Register Now

Construction Industry Update: What To Expect in 2026

Online
Stay ahead of major construction regulatory changes. Register for our free webinar.
Register Now
See more webinars >
Emma Jervis

Emma Jervis

Read all articles by Emma

About LegalVision

LegalVision is an innovative commercial law firm that provides businesses with affordable, unlimited and ongoing legal assistance through our membership. We operate in Australia, the United Kingdom and New Zealand.

Learn more

We’re an award-winning law firm

  • Award

    2025 Future of Legal Services Innovation Finalist - Legal Innovation Awards

  • Award

    2025 Employer of Choice - Australasian Lawyer

  • Award

    2024 Law Company of the Year Finalist - The Lawyer Awards

  • Award

    2024 Law Firm of the Year Finalist - Modern Law Private Client Awards

  • Award

    2022 Law Firm of the Year - Australasian Law Awards