It seems like no businesses are flourishing in this economy, but this particular type of business is surprisingly doing well, especially at this time of year! With the combination of New Year’s resolution and the increasing health awareness of the nation, fitness businesses are booming! Learn about 3 particular franchises which have found success here!
Entrepreneur highlights…
Anytime Fitness
Headquarters: Hastings, Minn.
Year it began franchising: 2002
Number of franchises: 1,764
Startup costs: $46,000 to $321,000
Year it began franchising: 2002
Number of franchises: 1,764
Startup costs: $46,000 to $321,000
Anytime Fitness is the 800-pound gorilla (all muscle of course) of fitness franchises. Even in the face of the recession this 24/7 concept has opened roughly 300 clubs a year and is now on pace to open its 2,000th location in 2012. At the same time new clubs are opening, per-club membership has steadily increased. In 2007, the typical club had 650 members; in 2011 it was 740. Thanks to state-of-the art technology, the clubs needn’t be staffed around the clock. As a result, payroll represents just 10% of operating costs. Virtually no market is too small. The Anytime Fitness Express model, for example, is designed for clubs under 2,500 square feet and in markets with fewer than 5,000 residents.
Planet Fitness
Headquarters: Dover, N.H.
Year it began franchising: 2003
Number of franchises: 473
Startup costs: $1.2 million to $1.7 million
Year it began franchising: 2003
Number of franchises: 473
Startup costs: $1.2 million to $1.7 million
Average monthly membership fees of just $15 and a “no grunting or weight throwing” policy have helped Planet Fitness capture a growing share of clients looking to be fit and frugal. In 2011, membership in the no-frills, no-attitude gym increased a whopping 30% to 3 million. For franchisors that kind of volume translates into average annual membership revenue of $1.7 million per club versus about $1.2 million for the industry average. Meanwhile, average payroll expenses of 28% are quite a bit leaner than the industry’s average of 43%. The higher start-up costs are attributed to considerably larger gyms, which range from 17,000 to 25,000 square feet and can have 80 to 100 pieces of cardio equipment and two full circuits of strength equipment.
Koko FitClub
Headquarters: Rockland, Mass.
Year it began franchising: 2008
Number of franchises: 58
Startup costs: $143,000 to $258,000
Year it began franchising: 2008
Number of franchises: 58
Startup costs: $143,000 to $258,000
Rather than pay $50 or more an hour for a personal trainer, members of Koko FitClub get coached by a virtual fitness guru using the company’s patented “Smartraining” system. For a $59 monthly fee, members gain access to the club and receive a USB drive that contains information about who they are and what they did during their last workout. When they plug the device into any of the club’s cardio or strength machines, they get personalized instructions on how long and how intensely they should work out, and can track their progress online. (Turns out, technology might just improve how we work out.) With nearly 250 franchises sold, Koko FitClubs expects to have 120 clubs open and operating by mid-2012.
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