Originally posted on njbiz.com.
Whether they are launching a multi-unit enterprise based on their own brands or teaming up with a more established operation, New Jerseyans are finding success through franchising. Of the 33.2 million small businesses in the U.S., roughly 851,000 operate as a fully or partially franchised venture. In 2024, franchised establishments generated $896.9 billion and employed more than 9 million people nationwide, according to the International Franchise Association.
Food service – an area that encompasses both fast food and fast casual – are the largest segment within the franchising industry. Other top categories include retail food, products and services; business services; personal services and commercial/residential services.
NJBIZ recently chatted with several local entrepreneurs who are involved at various levels of a franchise business on the ups and downs of their experiences
The Little Gym
According to a recent study by small business financing firm Guidant Financial, there is a growing trend among women toward franchise ownership. In 2024, female entrepreneurs accounted for 39% of new franchise locations that opened while an additional 9% of women business owners invested in existing franchise sites, the report said.
Along with a structured model, brand recognition, support and marketing resource access, franchising gives business owners a wide range of industries to get involved in, like fitness- or beauty-related concepts, sports & recreation, travel & hospitality, health care and food. Compared to their male counterparts, women from Generation X and Generation Y are particularly interested in ownership of franchises — especially those aligned with their passions and values, according to Franchise Insights. After launching their businesses, female franchisees are also outperforming men in several areas, including employee satisfaction and work-life balance, Franchise Business Review found.
However, launching a franchise – like any business – involves hard work and risk. That’s what Danielle Sporcic learned when she and her husband, Timothy, opened their first location of The Little Gym in Jersey City six years ago. After growing the Newark Avenue center to become one of the system’s top revenue-generators in the country, the couple recently opened their second gym in Florham Park in partnership with the longtime director of The Little Gym’s Montclair site. Between the two facilities, they employ about 40 to 50 workers and serve hundreds of local families, she said.
With 400 locations across 31 countries, The Little Gym is an enrichment and physical development center for children ages 4 months through 12 years old. The Unleashed Brands-owned concept’s three-dimensional curriculum includes physical activities, cognitive skills, and social and emotional learning all aimed at creating opportunities for kids to build self-confidence and achieve.
According to its website, The Little Gym’s initial franchise fee is $59,500 with an estimated start-up cost range of $506,197 to $673,197.
After graduating from New York Law School, Sporcic began a career in Manhattan in the securities industry. However, after becoming pregnant and giving birth to her son in 2018, Sporcic’s perspective dramatically shifted.
“I loved my job, I enjoyed what I was doing. And then my son was born in 2017, and it really changed everything. I had never considered being a stay-at-home mom, and that wasn’t really an option at the time either. But I knew that I couldn’t go back to an office environment. I wanted to have flexibility and to be able to spend time with him,” she said.
While on maternity leave, Sporcic had an epiphany during a Mommy & Me class she attended with her son.
“I couldn’t believe how many people were participating in this class on a Wednesday morning. And I was like, ‘Wow, this is so fun. I could totally see myself doing this,’” she said.
While she didn’t have any formal background in child care, Sporcic reached out to a former classmate from high school whose parents own The Little Gym location in Wayne to learn more about the world of child-service oriented franchises.
“And they welcomed me with open arms. They were so helpful. My son started taking their classes and I really fell in love with the curriculum and just the mission and philosophy of The Little Gym,” she said. “It turned out that the territory where I lived – which was Jersey City at the time – was available. So, it was honestly perfect. I never went back to work after having my son. We just immediately started the process of opening up the gym, and it did take a while. It took us 18 months from the time we bought the franchise.”
Sporcic said she was drawn to The Little Gym brand because it’s “not a play place or somewhere your child goes because you have nothing else to do.”
“We have an amazing curriculum that’s designed to help your child become well-rounded and focused on physical, social and cognitive skills,” she said. “And it’s disguised as fun. All the skills that the kids are learning are tied to milestones that the American Academy of Pediatrics sets out.”
Sporcic credits The Little Gym’s support system and other franchisees for helping her learn the ins and outs of ownership. She also made a point of teaching classes at every single age group “to become an expert by doing it so I could train my team.”
“And I really feel that by studying the curriculum, you learn so much. And it helped me become a better mother too, because I knew how to help my son get a leg up and how to help him reach his milestones,” she said.
In addition to their 7-year-old son, Sporcic also has a 4-year-old daughter. And her husband is getting ready to leave his job at American Express to handle their business’s financials full-time, she said. “He also wanted the freedom of not just being tied down to corporate America. And so, it’s risky, obviously, because it’s been great that he’s had his solid job, and he’s really enjoyed that too. But we really need him, too,” she said.
As for advice for others who are considering franchise ownership, Sporcic said, “Make sure that you’re passionate about what you’re going to be selling. I think that’s a make-or-break. If you feel passionate about what you’re doing, failure is not an option because you’re going to be so good at what you do that you’re going to succeed.
“You also have to do your research if you really want to understand your territory. You want to make sure you have a territory that is viable and that your franchisor is helping you protect your territory so that someone else can’t come in. You don’t want it like Dunkin’ Donuts where they’re on every block,” she said.