Gymboree Franchise Costs [Detailed Guide]
If you are looking for a business opportunity and are interested in child development, purchasing a Gymboree Play & Music franchise may be just the ticket. With over 40 years of experience in over 40 countries and 800 locations, Gymboree provides a safe space for children to learn, grow, and develop a love for education.
The Gymboree Play & Music name is associated with organized, customized play and learning that includes parents or caregivers. The outcome and goal of every Gymboree franchisee is to produce engaging ways for children to gain self-esteem and confidence in education.
Requirements For A Gymboree Play & Music Franchise
A potential franchisee can start the process by inquiring via the Gymboree Play & Music website. This first step is contacting the company to provide some basic information, including the capacity to meet the financial stipulations. These qualifications consist of a net worth (current value of all assets less debt) in the range of $100,000 to $270,000.
Candidates must have a minimum of $50,000 to $90,000 in liquid assets. The costs include the franchise fee, use of the branded Gymboree Play & Music name and design, training, IT support, access to a business plan, a unique equipment package for your location, and a network of GPM franchises, exclusive territory rights, and more. Meeting the financial prerequisites is essential to the success of any franchise.
How Much Does It Cost?
As with anything, there are costs that you don’t count on. When purchasing a franchise, it is vital to know all of the expenses before you start. That way, you can be prepared, and there won’t be any surprises. The average price for a Gymboree start-up is $270,000 total. On the high end, you should expect to invest $385,000 while the low end will run $150,000. The average cost range would be $175,000 to $250,000.
Price variations occur due to the size of your location if you have to build or design something or can use an existing location, and other key factors. For example, if your center is smaller, your deposit and rental fees could be as low as $3,500, while a larger venue could go as high as $30,000 or more.
A new building, construction, architect fees, permitting, and other related expenses can add up to $150,000 or more. The size of your location is also an ingredient in the insurance expense category. The larger your space, the more expensive the insurance will be. This could be $4,000 to $7,000. Security deposits for utilities generally cost $250 to $500.
|Average Range||$175,000 - $250,000|
Source: franchisedirect.com and franchisegator.com
All franchises charge an initial franchise fee. These fees are used to pay for your license to operate the business and use the Gymboree name. For the GPM franchise, the fee runs from $45,000 to $55,000. Keep in mind that these charges only cover the rights to the franchise and don’t include other start-up costs.
Training will cost $1,000 per person. After the franchise fee is paid, the other costs begin to kick in. Making the place look appealing, fun, and ready for customers involves signage, decor, equipment, and inventory. This portion is a large part of the total expenses. Gymboree Play & Music centers feature special equipment geared to specific age groups and are moveable to create an ever-changing environment.
The estimated price for the equipment is $50,000 to $55,000. Decor and signage run around $4,000 to $10,000. A new GPM location should plan to sell branded merchandise and other educational toys and books. The expense of setting up the inventory for the merchandise sales is $9,500 to $11,500.
Every GPM location needs an office and counter area to ring up sales, handle phone calls, make copies, and greet incoming clients. Items such as a computer, software, credit card processor, copying machine, and office supplies can cost anywhere between $5,000 to $10,000.
Professional fees include attorney costs, closing costs, music rights, accounting charges, and anything related to legal or financial business. Although it might not seem like a lot, it can add up. Franchisees should expect to spend $1,500 to $6,000 on these expenses. There is also an ongoing Care.com licensing fee of $240 per month.
Marketing and Support
The GPM marketing team will supply the new franchisee with many branded materials, including social media ads, posters, email blasts, and graphic design assistance. Franchisees should anticipate no less than $4,000 a year in marketing spending. There is also a regional advertising and promotional coop that charges not more than $250 per month.
Additionally, an IT team will be available to help with setting up a Customer Management system. You will be able to receive payments, manage memberships, and promote your business. A team of experts is a phone call away should you require assistance at any time.
Ongoing support will include conventions and meetings, a newsletter, and an online chat or toll-free number to speak with a GPM representative. Your location will also be awarded an exclusive territory to market to a particular area that you only service. This means no competition from other Gymboree franchisees for your business. All owners must attend the Gymboree annual meeting at the cost of $400 to $1,000 per attendee. Franchise approvals are good for 10 years and can be renewed at 10% of the current initial franchise fee for an additional 10 years.
Using the well-known Gymboree name and brand comes at a price. Royalty fees are charged at 6% of gross receipts, and the Brand Fund receives 5% of gross receipts.
Last but not least are the pre-opening salaries and at least a three-month cash cushion. During the training period, there may be travel and living expenses that come up as the franchise is prepared to open. The staff will need to start before the grand opening to become familiar with policies and procedures. The franchise fund should include $250 to $4,000 for pre-opening salaries.
Additionally, there will be a period of time before the GPM actually begins to function and create cash flow. The experts at GPM recommend at least 3-6 months of funds set aside to float the business until money begins to come in. This amounts to $30,000 to $60,000.
Origin of Gymboree Play & Music
The story of Gymboree began in 1976. An enterprising California mom, Joan Barnes, wanted a place to play with her child that involved age-appropriate activities. Through hard work and passion, Joan began the first Gymboree test class. Joan’s play and music center grew over the years to include arts, sports, clothing, and a brand of educational products. . Known for its expertise and success, the GPM business model franchise is a recognized brand. It provides the finest in training for its owners.
Gymboree Play & Music franchises offer age-specific, uninterrupted 45-minute classes in a safe play space for children ages 1-5. The curriculum and focus of these classes are done in 6-15 month increments to ensure that all stages of development are included. Each play session encourages the use of social and cognitive skills combined with a spark for learning.
Why Gymboree Play & Music Franchise?
The Gymboree philosophy is based on three basic principles: Social/Emotional, Cognitive, and Physical. These three vital keys to early childhood learning combined with our innovative, constantly changing play areas and themes mean children can explore, climb, and have their curiosity peaked.
From infants to toddlers to pre-schoolers, there is something for everyone. GPM also provides an age-combined family play session for ages six months – 5 years. This enables siblings to play together and older children to lead and create diverse age learning experiences.
Do You Have What It Takes?
Franchisees who possess certain characteristics are the most prosperous. These characteristics include:
- Enjoy a challenge, have an entrepreneurial spirit, and be a natural-born leader
- Endowed with keen organizational and managerial acuity
- Ability to utilize the training and resources provided by the GPM global community
- Marketing and brand awareness combined with a desire and skill to make use of these faculties
- Understand and agree with the time and energy demands a GPM business will entail
- No experience is required but teachers, counselors, retail salespeople, managers, or other hands-on professionals will do well in this arena
Summing Up The Costs
The numbers for starting a Gymboree Play & Music center do vary according to location, size, and a variety of other factors with a range from $150,000 to $385,000. If you feel motivated and excited about running a business that teaches positive, age-appropriate play along with a love for learning, the Gymboree Play & Music franchise is a great option.
With the well-known Gymboree name and a successful, hands-on community of support, investors are sure to see a profit from this franchise. The fulfilling world of child development joined with the sense of accomplishment that comes from owning your own business, will be a rewarding experience. You may be interested in another play center franchise such as Monkey Joe.