Fixed Costs Covered on Day 1

Our goal at Parmasters Waterloo Region is to have enough revenue on our first day of operation to cover our fixed costs. How do we do so? We sell memberships before we open.

As soon as we have our site selected, we start “pre-selling” memberships. Members that sign on prior to our opening day receive various benefits that will not be offered once we’re open. On the day we open, we start billing monthly membership fees.

There are many benefits to the new members. First, they get a bargain when they sign up early. This bargain has not been fully defined. Parmasters makes recommendations, but we have final say at the local level. Also, members that purchase ahead of time receive updates, and are fully prepared for and aware of the day we open.

Parmasters Halifax is using this model. They are now up to 460 members! And are they open yet? NO! They’ll open in March 2007! And they’ll open with their fixed costs covered!

We’ll be doing the same.

This is just another in a long list of reasons why the Parmasters franchising and franchise models are head and shoulders above all others.