In the FOCO model, what do I own and what does COREO manage?
FOCO means Franchise Owned, Company Operated: you participate as the franchise owner, while COREO runs the gym’s day-to-day operations. Before committing, review the proposed division of responsibilities for the property, equipment, staffing, member services and operating expenses. The agreement should make clear who funds, owns and manages each part.
Who pays for the team, rent and other monthly expenses?
Company-operated describes who manages the gym; it does not, by itself, specify who bears every expense. Ask for a breakdown of rent, payroll, utilities, equipment maintenance, marketing and other recurring costs, including how they are funded and accounted for under your proposed arrangement.
What should I include in my investment budget?
Request a complete project estimate covering any franchise or brand fees, property deposit, fit-out, equipment, technology, pre-opening costs and working capital. Ask which items are included, which are separate and when payments fall due. The amount will depend on the site, facilities and agreed scope; this page does not quote a fixed investment.
How are revenue, fees and partner payouts structured?
Ask the team to explain how membership revenue is collected, which costs and fees are deducted, and how any partner payout is calculated and scheduled. Review the assumptions behind projected membership, pricing and operating costs. Revenue sharing, payout terms and any proposed commitments need to be set out in the commercial proposal and agreement.
I have a property. What information should I share?
Send the city, exact location, usable floor area, floor level, floor plan, photographs and expected rent or ownership details. Include what you know about access, parking, ceiling height, power, ventilation and permitted use. These details help frame a discussion about whether the space could support training areas and the proposed facilities.
Can I explore a franchise before finding a property?
Yes. Share your preferred city or neighbourhood, approximate investment range and whether you plan to own or lease the premises. You can use the first conversation to understand the FOCO arrangement and discuss what kind of location to look for before taking on a property commitment.
How will I know how my franchise is performing?
Discuss the reporting you would receive and how often you would review it with COREO. Useful measures include active memberships, new sales, renewals, collections, operating expenses and member feedback. Agree the reporting access, review schedule and process for addressing performance issues as part of the operating arrangement.
What should be agreed before signing, and when can the gym open?
Review the investment scope, operating responsibilities, fees, reporting, agreement term, renewal and exit provisions, and any territory rights before signing. The opening schedule also needs to account for the property, design, fit-out, equipment, required approvals and operational readiness. Ask for a project-specific plan with dependencies and milestones rather than relying on a standard launch date.
BOOK A DEMO
Share your details and the COREO team will contact you.