What Is a Cryotherapy Chain?
Multiple Locations
What do Gold’s Gym, Massage Envy, and Palm Beach Tan all have in common? They all started as single locations with only a handful of clients. Gold’s Gym opened in Venice Beach in August of 1965. It now has 740 locations worldwide. Massage Envy opened its first location in Scottsdale, Arizona, in 2002. It has since expanded into 49 states and has delivered over 100 millionth service. Let that sink in. Palm Beach Tan opened its doors in 1990 and now has over 460 locations.
The first Gold’s Gym. It started with a dream in 1965.
Dream Big
You too can open one of these franchises if you have the startup money and you pass their tests (e.g., net worth, credit check, background check, business experience, etc.). Or you could start your own business and design it to scale into a franchise from the ground up. With hard work, determination, and a bit of luck you too could be the next Massage Envy and rack 100 million sales.
With the proliferation of reality shows like Shark Tank and The Profit more and more Americans are motivated to start a small business. Everyone has dreamed about starting a legendary company, and with Cryo Innovations it isn’t as expensive as you might think. The XR Cryotherapy machine retails at the time of this writing at $59,000. Other startup costs will be a location lease, permitting, legal fees, and insurance. If you are willing to do some painting, your own marketing, and work long hours then you can realistically start a cryotherapy business for under $95,000.¹
Existing Cryo Chains
U.S. Cryotherapy is a franchise currently operating 26 locations nationwide using electric-powered cryo chambers. To become a franchisee you will need a net worth of 500K, liquidity of 100K, pay them 20-30K per year, and fork over 7% of your gross sales for their name and services. At an average of $40 dollars per cryo session you would need to hustle like never before to turn a profit. It is not impossible, but there is an easier way that costs less and protects your profit for much less.
Starting is the Scariest Step
Cryo Innovations designed the XR Cryotherapy Chamber (and all of its future products) as a franchisee-friendly system. With the purchase of an XR the owner can monitor every session remotely, even from a mobile phone, from anywhere in the world. With 2, 5, or even 1000 locations an owner or manager can monitor every cryo session in real time as it occurs. Starting with the first location is the hardest step, but once you become a successful cryotherapy business adding another chamber and finding investors becomes significantly easier.
Adding cryo to your existing business is even easier. If you already have a brick and mortar location such as a day spa or fitness gym adding the XR Cryo Chamber is as easy as adding a tanning bed or a massage table. But it is more than merely another piece of equipment: it is a magnet for new clients young and old and will expand your reach. Tanning salons who add cryo have seen 40% of existing customers adopt regular cyro into their appointments, and 1 in 5 walk-ins arrive for cryo alone.² Gyms that add cryo increase their revenue with the first session conducted but also keep clients longer due to reduced inflammation and prevention of overuse injuries. Fitness centers that add cryo attract higher-end clients who want better services.
Become Your Own Competition
If you have an existing cryo business you are always at risk of a competitor stealing your clients with a similar or better service. The cryo industry is projected to reach over 5 billion by the year 2025. It is only a matter of time for a competitor to have their grand opening a short distance from your front door. The easiest way to prevent this and protect your business is to become your own competitor. Open a second location to secure your local area, and plan to open a third in the next city. If you are able to keep two locations profitable you can move to the next step: becoming a franchise and entering into the ranks of Gold’s Gym, Massage Envy, and Palm Beach Tan. They all started with a dream on a shoestring budget. You can too, and we will be there the entire way providing logistics support, nitro sourcing, marketing materials, and fresh social media assets delivered monthly to your inbox.
Founded on facts: for peer-reviewed articles, scholarly journals, and articles cited above please see the below sources.
1. This is a bare-bones estimation but not at all impossible. A less stressful approach would be starting capital of $125 or $150K.