According to the International Franchise Association (IFA), the health and wellness industry has been growing at a rate of 5 to 10 percent annually and was valued at $480 billion as of 2024. Does this mean that it’s time to buy a health and wellness franchise in 2025? National franchise attorney Jeffrey M. Goldstein shares his thoughts:
IFA: Health and Wellness is “One of the Fastest Growing Spaces in Franchising”
Based on its current growth rate, the IFA reports that the health and wellness sector is “one of the fastest growing spaces in franchising.” Businesses that the IFA includes within this category are:
- Fitness studios
- Gyms
- Home health care
- Massage spas
- Sauna and recovery centers
- Diet and weight control centers
- Cosmetic, hair care and tanning salons
- Sports and recreation franchises
Notably, the IFA reports that while the COVID-19 pandemic, “adversely impacted the industry’s unit performance” in 2020, it also “positively influenced consumer sentiment and their proactive approach towards preventive and holistic health and wellness services.” Based on the IFA’s data, this increased interest in health and wellness does not appear to have waned—at least not yet. As the IFA also reports:
“According to a McKinsey survey in 2024, 82 percent of U.S. consumers considered personal health and well-being a top priority in their everyday lives. In addition, favorable macroeconomic factors such as low unemployment and an increasingly young working age population with rising disposable incomes and the propensity to spend on multiple facility memberships has fueled the expansion of franchises in the segment.”
This, in turn, has led to growth within the health and wellness sector of franchising. According to the IFA, both the number of franchised brands in the sector and the number of individual franchise owners have increased steadily since the post-pandemic recovery began.
Is a Health and Wellness Franchise Right for You?
Does all of this mean that you should buy a health and wellness franchise in 2025?
Ultimately, this is a question that only you can answer. Buying any type of franchise is a significant, long-term and high-risk investment. If you are passionate about health and wellness, if you find a franchised concept that you believe presents a reasonable opportunity for success, and if you are prepared to accept the financial and legal risks involved, then buying a franchise could be a viable option.
On the other hand, if you are only considering the health and wellness industry because of others’ success, you may want to reconsider. One of the first pieces of advice franchise consultants give their clients is that they should be passionate about the business in which they are investing. You will be spending a lot of time working on your franchise; and, if you aren’t interested in the underlying business, this could compromise your chances of success. Similarly, if you don’t have a background in health or wellness, you may lack the industry insight you need to build a profitable business—even with a franchisor’s brand recognition, system standards and support network on your side.
It’s also important to keep in mind that other franchisees’ past success is not necessarily representative of your potential success in the future. As a franchisee, you will be responsible for your own success—and you could encounter market forces or other factors that existing franchisees haven’t encountered previously. As a result, along with assessing your personal interest level and capabilities, it is essential to conduct thorough due diligence and market research before you commit to moving forward.
If You Decide to Buy a Health and Fitness Franchise in 2025…
Let’s say you decide that you want to buy a franchise in the health and fitness sector in 2025. How do you move forward?
Buying any type of franchise is a complex process that involves a variety of legal, financial and practical considerations. Once you decide on the specific health and wellness franchise opportunity you want to pursue, one of your first steps will be to communicate with the franchisor and obtain a copy of its Franchise Disclosure Document (FDD) and franchise agreement. This will most likely involve filling out an application and “pre-qualifying” for the franchise opportunity.
You should thoroughly review the FDD and franchise agreement yourself, but you will also want to have them reviewed by an experienced franchise attorney. These are complex documents with significant legal implications, and it is imperative that you have a clear understanding of your rights, responsibilities and risks. An experienced franchise attorney will be able to provide advice and insights based on his or her experience, and you will be able to use these to inform your decision-making.
While your franchise attorney is reviewing the FDD and franchise agreement, you should continue with your due diligence. Among other things, this will involve:
- Attending a “discovery day” at the franchisor’s headquarters
- Talking to current franchisees
- Talking to former franchisees
- Evaluating the franchisor’s financial statements and any financial performance representations (FPRs) in the FDD
- Determining what territory options you have available
Even if you are absolutely certain that you want to buy a franchise in the health and fitness sector, it is important not to become emotionally invested too soon. You need to make an informed and reasoned decision about whether to move forward—and, if moving forward isn’t the right choice, you need to be prepared to reevaluate and walk away. There are other opportunities out there; and, if you commit to a franchise opportunity that does not provide you with a reasonable opportunity for success, you could end up making a very costly mistake.
Request a Free Consultation with National Franchise Attorney Jeffrey M. Goldstein
Are you thinking about buying a health and wellness franchise in 2025? If so, we invite you to contact us for more information. To inquire about our fixed-fee franchise business review programs for prospective franchisees, please call 202-293-3947 or request a free initial consultation online today.
