What is a franchise?

A franchise is a form of partnership in which one party (the franchisor) grants another (the franchisee) the right to use the franchisor’s brand and business model, while providing ongoing support for operations.

A major advantage is that you join an established network. You benefit not only from ready-made know-how, procedures, training, tools, and brand recognition, but also from the experience of other entrepreneurs who have already been through the early stages of building a business.

This means you learn from the network’s experience rather than your own mistakes – shortening the early stages of the business, reducing risk, and enabling faster scaling.

A franchisee is an entrepreneur running their own business under the network’s brand. They are responsible for daily operations – building and managing their team, overseeing sales, handling marketing, and building relationships with customers. While they use the franchisor’s tools and support, the franchisee is ultimately responsible for the business.

The franchisor owns the brand and business model and grants the franchisee the right to operate under it. They provide know-how, training, tools, and operational systems, set standards across the network, and ensure consistent quality of service.

Franchise systems can be categorised in several ways: by the type of business, the scope of know-how provided, and the system’s structure.

By type of business:

• Distribution Franchise – the franchisee receives the right to distribute and sell the franchisor’s products under the brand within a defined territory.
• Service Franchise – the franchisee provides specific services under the franchisor’s brand, using an operational system and standards developed by the franchisor.

By scope of know-how:

• Product Distribution Franchise – the franchisor provides know-how related mainly to products or services.
•  Business Format Franchise (Full Business Concept) – the franchisor provides a complete business concept, including operations, branding, and processes.

By system structure:

• Single-Unit Franchise – the agreement is signed directly between the franchisor and the franchisee, who operates a single location.
• Multi-Unit Franchise – the franchisee has the right to open and operate multiple locations within a defined territory.
• Master Franchise – the franchisee has the exclusive right to develop the franchise network within a specific territory and may grant sub-franchises to other franchisees.

A franchise agreement formalises the relationship between the franchisor and franchisee, protecting both parties.

A typical franchise agreement covers:

• The scope of the licence (brand, territory, duration)
• The rights and responsibilities of both parties
• The fees and payment structure
• Training and support provided by the franchisor
• Quality control procedures and operational standards
• Termination conditions
• Protection of know-how

Franchising offers several key benefits:

• A proven, tested business model
• The opportunity to run your own business under an established brand
• A faster route to market compared to building a concept from scratch
• Ongoing operational and training support
• Access to marketing tools and brand resources
• Professionally designed locations and business standards
• Economies of scale and stronger purchasing power within the network
• The potential to grow and open multiple locations

Franchising also comes with certain responsibilities and limitations:

• Operating within established brand standards
• Active personal involvement in the business – this is not a passive investment
• Ongoing fees and contractual obligations
• Shared responsibility for maintaining the brand’s reputation.

To join our network, an initial contribution of 450,000–475,000 PLN is required. The total investment is approximately 1.1–1.2 million PLN. In-house financing is available from 750,000 PLN. The initial franchise fee is 230,000 PLN. In addition, franchisees pay a monthly franchise fee (for Xtreme Fitness Gyms: 5% of net sales + 5 PLN per square metre), as well as monthly marketing and technology fees.

Our fitness clubs typically reach operational profitability within three months. After three years, annual profits can reach approximately 400,000 PLN.

This is made possible by the pre-sale campaigns we run ahead of opening, detailed market analysis using modern tools, careful location selection, and professionally designed spaces built to perform from day one.