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VOL 03 ● ISSUE 06
NOV/DEC 2021
WHY DOES A FITNESS
FRANCHISE DO SO WELL?
SUCCESS IS ALL IN THE SET UP
CONNECTED FITNESS IS THE FUTURE OF THE FITNESS INDUSTRY
HEALTH AND FITNESS
FRANCHISES ARE RACING
BACK F ROM TH E PANDEMIC
THE POWER OF PERSONALIZED MARKETING TRANSFORMING VETERANS
INTO FRANCHISE OWNERS
FITNESS FRANCHISES
SBA Funding for Franchises:
WHAT TO EXPECT WHY TAKING ACTION MATTERS MEET THE PEOPLE BEHIND THE BRANDS
RESTORE
HYPER WELLNESS
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TOP 100 FITNESS
FRANCHISES 2021
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EDITORIAL CALENDAR JAN/FEB – WINTER 2022 Home Services
MAR/APR – SPRING 2022
Meow. Woof. Chirp. Peep. Squeak.
Pet Franchises
"A MAN WHO STOPS ADVERTISING TO SAVE MONEY IS LIKE A MAN WHO STOPS A CLOCK TO SAVE TIME." – Henry Ford
MAY/JUN – LATE SPRING 2022 Education Franchises Children’s Products and Services
JUL/AUG – SUMMER 2022 Senior Care and Healthcare Franchises
SEP/OCT – FALL 2022 Food, Drink, and Restaurant Franchises
NOV/DEC – LATE FALL 2022 Sports and Fitness Franchises
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TOP 100 Home Services Franchises INDUSTRY REPORT Meet the People Behind the Brands Expert Advice Commercial Real Estate Legal Advice Franchising, Sales & Marketing, Finance, Technology, Leadership, Design, and Business articles
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TOP 100 Pet Franchises INDUSTRY REPORT Meet the People Behind the Brands Expert Advice Commercial Real Estate Legal Advice Franchising, Sales & Marketing, Finance, Technology, Leadership, Design, and Business articles
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TOP 100 Education Franchises INDUSTRY REPORT Meet the People Behind the Brands Expert Advice Commercial Real Estate Legal Advice Franchising, Sales & Marketing, Finance, Technology, Leadership, Design, and Business articles
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TOP 100 Senior Care Franchises INDUSTRY REPORT Meet the People Behind the Brands Expert Advice Commercial Real Estate Legal Advice Franchising, Sales & Marketing, Finance, Technology, Leadership, Design, and Business articles
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TOP 100 Food Franchises INDUSTRY REPORT Meet the People Behind the Brands Expert Advice Commercial Real Estate Legal Advice Franchising, Sales & Marketing, Finance, Technology, Leadership, Design, and Business articles
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TOP 100 Fitness Franchises INDUSTRY REPORT Meet the People Behind the Brands Expert Advice Commercial Real Estate Legal Advice Franchising, Sales & Marketing, Finance, Technology, Leadership, Design, and Business articles
WHAT'S INSIDE
09
FROM THE PUBLISHER The Fitness Franchise Industry Is Growing Sitki Kazanci
18 COVER STORY
10
FITNESS FRANCHISES
EXPERT ADVICE Why Does a Fitness Franchise Do So Well? By Christopher Conner
INDUSTRY REPORT 2021
12
EXPERT ADVICE Success Is All in the Set Up By Kimberley Daly
Franch Conneise ct ®
TOP 10 0
15
FIT
FRANCNESS HISES 2
5 Ways to Be a Success at Failure By Nancy Friedman
22
EXPERT ADVICE Connected Fitness is the Future of the Fitness Industry By Amy Bickler
28
EXPERT ADVICE What Is in a Franchise S.Y.S.T.E.M.? By Tiffany Dodson
30
TAKEAWAY Post-Pandemic: Fitness Models Must Adapt or Become Irrelevant By Michael Peterson
31
START SMART Why Taking Action Matters By Patrick Laforet
021
36
LEGAL ADVICE SBA Funding for Franchises: What to Expect By Justin Lee and Lynne D. Shelton, Esq.
26
MEET THE PEOPLE BEHIND THE BRANDS
38
The Power of Personalized Marketing By Mary McHugh
40
LEGAL ADVICE Transforming Veterans into Franchise Owners By Candra Jackson and Lynne D. Shelton, Esq.
42
Check Out these Growing Fitness Boutique Franchises By Brian LaCour
44
EXPERT ADVICE Health and Fitness Franchises Are Racing Back from the Pandemic By Rick Grossmann
52
INFOGRAPHIC BY THE NUMBERS FRANCHISE CONNECT 7
AMERICA’S BEST BUSINESS OPPORTUNITY MAGAZINE
FRANCHISE CONNECT MAGAZINE JAN/FEB – WINTER 2022
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VOLUME 3, NO 6, NOV/DEC 2021 1751 Pinnacle Drive, Suite 600 McLean, VA 22102 info@franchiseconnectmag.com www.franchiseconnectmag.com (703) 665-5507 ADMINISTRATION FOUNDER / PUBLISHER
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FROM THE PUBLISHER
A BY 2024, THE WEIGHT LOSS INDUSTRY IS SET TO HAVE A GLOBAL VALUE OF US$ 269.2 BILLION, WITH A COMPOUND ANNUAL GROWTH RATE OF AROUND 6%.
THE FITNESS FRANCHISE INDUSTRY IS GROWING
After a year of being in lockdown, fitness is at the forefront of many people’s minds. It is projected that the fitness industry is set to boom in the next few years. Selecting the right kind of fitness franchise is extremely important. Many people gained weight during Covid. With a population looking to lose weight and get in shape, the demand for weight loss tools is likely to increase in the coming months and years. One out of every five Americans is either hitting the gym or at the very least paying for a membership. Numerous studies have shown that weight loss clubs are more successful than going it alone, meaning that this type of franchise offers a plethora of benefits when it comes to attracting membership. By 2024, the weight loss industry is set to have a global value of US$ 269.2 billion, with a compound annual growth rate of around 6%. This translates to tremendous revenue opportunities for franchisees looking to gain a foothold in weight loss franchises. If you’re considering buying into a fitness franchise there are many benefits: The franchise owner has done the heavy lifting, which allows you to capitalize on the market without putting in years of establishing a brand. Franchises can help provide a blueprint for success. You’re investing in a proven business model, one of the main reasons why a person may choose to go into a business with a franchise. In many instances, franchises can be cheaper to open than if you were going it alone. The brand may already have relationships set up with suppliers and can buy large volumes of equipment, meaning the cost of kitting out your gym may be cheaper. Unlike opening your own business, a franchise offers support throughout the whole journey from before you open your gym to beyond. Business support, marketing materials and direction, and training are all readily available from franchises. This means that an individual with a passion for fitness doesn’t necessarily need to have previous experience to start a business. A franchise can offer career opportunities that will provide all the industry-specific training you need to run a successful business. You can get more detailed information about Fitness franchises when flipping through the magazine's pages. In our next issue, we will focus on Home Services Franchises If you are interested in this sector, you shouldn't miss our next Franchise Connect magazine. Stay safe and healthy.
SITKI KAZANCI / Founder-Publisher
NOV-DEC 2021 | FRANCHISE CONNECT 9
Boutique fitness is fueling growth. By Christopher Conner
I
t has been a while, 1936, since Jack LaLanne opened the first fitness brand in Oakland, California, and began to change the world by opening people’s eyes to the value, opportunity, and experience of a facility designed to help people get into shape and be more fit. At the time, this was basically an insane idea that no one understood or gave any credit. Fast forward to 2021 and fitness brands
10 FRANCHISE CONNECT | NOV-DEC 2021
are as much a part of our everyday lives as any other business category and certainly make up a large part of the franchise industry. This year’s Entrepreneur rankings for the top 500 franchise brands included dozens of fitness brands which have proven their value through successful unit economics and speed of growth in opening new locations throughout the U.S. and even around the world. It makes you wonder, why does fitness in franchising work so well?
The fitness industry is synonymous with residual, membership-based revenue streams. This model was mainstreamed by some of the original gym brands such as Gold’s Gym. Gold’s was a brand inspired by the bodybuilding greats and was launched during the golden age of bodybuilding and fitness. The brand had enormous success using a “big box” fitness concept with a strong recurring membership program. The brand grew into the thousands of locations and started the fitness franchise craze.
PHOTO BY PIXABAY
WHY DOES A FITNESS FRANCHISE DO SO WELL?
This year’s Entrepreneur rankings for the top 500 franchise brands included dozens of fitness brands which have proven their value through successful unit economics and speed of growth in opening new locations throughout the U.S. and even around the world.
EXPERT ADVICE
Many, many brands developed following the Gold’s model and emulating their success in scaling fitness models. As the big box trend evolved, the market turned to a price war, and the Planet Fitness model came out as the winner in the discount membership fitness franchise model. The Planet Fitness franchise expanded from 450 locations in 2011 to over 2100 locations in 2021, a mind blowing 366.67% increase in ten years in number of locations and the company went public in 2015 (Ticker PLNT). Planet Fitness capitalized on a $10 per month membership model and literally changed the landscape for big box fitness franchising. As the fitness industry evolved, the fitness model transitioned from a big box, 5000+ square foot size to more of a boutique fitness model where the focus was on classes and individual training and less on quantity of members. Average membership rates increased as people have become more willing to pay a premium for a higher quality experience in their fitness membership. The leader that drove this change throughout the market is Orange scaled globally to almost 1,600 locations other members, and keep coming back for Theory, which created an amazing, game- and in 2021 took the company public more. The fitness segment of franchising changing group fitness brand. From 13 (Ticker FXLV). Brands like Burn Boot Camp, is big and getting bigger. If you have a paslocations in 2011, the brand opened 1,385 9Round, SPENGA, and CycleBar all have sion for fitness and would like to explore locations by 2021, a rocket ship growth grown significantly over the past five to ways to make a living in a market you enjoy, percentage of 10,553.85% over the ten ten years, focusing on a boutique fitness I strongly recommend the fitness market years. The new focus on boutique fitness franchise model. Out of this growth has as a viable option. w was in full effect and as what happened come niches in the boutique fitness market For more information, visit the FMS fitwith the Gold’s franchise, Orange Theory segment like boxing studio fitness brands ness client site: www.fmsfranchise.com/ set the trend, and many new fitness fran- such as 9Round, RockBox Fitness, May- about-us/our-clients/fitness/ chise brands were born following their lead. weather Fit, and others that have focused Christopher Conner started his career Franchise Marketing System’s client entirely on the boxing studio fitness segin franchising in 2002 working for a Anytime Fitness has expanded to almost ment. Brands such as LIT Method and franchise consulting firm in Chicago. He founded Franchise Marketing Systems 5,000 locations focusing on the boutique TotalGym have launched boutique fitness in 2009 after seeing a need for full serfitness model where members could access brands based on classroom fitness models vice franchise development services for the gym 24 hours a day with a keycard using proprietary equipment and systems. new and start-up brands. Today, Conner's membership. The F45 Fitness Franchise All these boutique franchise systems focus team has expanded to 27 consultants between the US and focused on a recorded, group studio fitness on relationships, individual customer con- Canada and has worked with over 200 brands to support successful franchise development strategies. model where the experience was the same nections, and creating an amazing experi- For more information on Chris Conner or Franchise Marketing for each location and they successfully ence, so people get in better shape, refer Systems, visit www.FMSFranchise.com NOV-DEC 2021 | FRANCHISE CONNECT 11
PHOTO BY PIXABAY
EXPERT ADVICE
Success Is All in the Set Up Failing to plan is planning to fail. By Kimberley Daly
TIMELINE FROM SIGNING TO OPENING
uccessful people have successful habits. Business planning is a successful habit. Owners who have businesses that are consistently growing are working from a plan. November is the time to start thinking about that plan for the new year. If you are a candidate exploring a franchise right now, consider what saying YES! will mean to your first year if you say YES! in November compared to saying YES! in January.
Creating goals and timelines is a critical component to success in your franchise due diligence process. If you are serious about your franchise investigation, consider asking the franchisor for a plan working back from an opening day to saying YES! Many candidates are surprised to learn how long it can take to get even the simplest of home-based businesses open. For example, let’s say you are starting a business that requires
S
12 FRANCHISE CONNECT | NOV-DEC 2021
special equipment. How long does it take to receive that equipment? When can you order it? If you are trying to carefully time the opening of your business to a busy season, or your severance running out, or an ideal time to begin, please ask the franchisor questions regarding the timeline from signing to opening. Once you have the timeline, create a plan for yourself that backends you into the date when you must be executing your franchise agreement, and then hold yourself accountable to that plan.
BUSINESS ADVICE
GOALS AND TIMELINES To my franchisees, creating goals and timelines is a critical component to the success of their business. November marks the beginning of the business planning season. Who do you want to become in 2022? Do you want to grow or coast? Your future is up to you, especially if you plan for it. If you have the business of your dreams, there is nothing wrong with desiring to repeat 2021. Even if you are going to try and repeat your year, why not pull some reports on average customer ticket, marketing effectiveness, and closing ratios? The more you understand what you did in 2021, the better you can plan to repeat it. Buy a paper calendar and mark it up with your vacations and holidays. Remember, if you plan your life first and then plan your business around your life, you will never have a business that owns you. If 2022 is a growth year, my advice is to start by journaling what you want to achieve. Write a story to yourself of how the year is going to go. From that story, create the revenue goal, then break it down into 12 monthly goals and then weekly goals all the way to the daily goals (The Daly the remaining days and use this number Plan). Pull marketing reports to determine to build your DALY Plan. where your best leads came from. Build your marketing and networking plans DREAM BIG AND SEEK OUT from those reports. Brainstorm your sales INSPIRATIONAL MENTORS process with your team. What were the Highly effective people have effective common objections this year? Can you habits. Anyone can learn to become highly set up your sales process so those objec- effective if they follow this advice. If you tions go away? What was your average are seeking growth, dream big! Achieving closing ratio? If you are working through 60% of a huge goal is better than achievcommon objections and coming up with ing 100% of a small goal. Anyway, if you are creative ways to overcome those objec- achieving 100% of your goals, your goals tions before they even come up, set the are too small. Seek people who can coach, goal to improve the closing ratio because mentor and push you. Do not be the smartthat is what a tighter sales process will do. est person you know. Find people who Plan your vacations and holidays, count up already have what you want; people who PHOTO BY ESB BASIC / SHUTTERSTOCK
CREATING GOALS AND TIMELINES IS A CRITICAL COMPONENT TO SUCCESS IN YOUR FRANCHISE DUE DILIGENCE PROCESS.
inspire you, who you respect and admire. To live your best life, surround yourself with extraordinary people. For more information on creating your Daly Plan, please contact The Daly Coach today. w Kimberley Daly is one of America’s top franchise consultants, a motivational speaker, business coach, and author. With over 22 years of experience as a small business owner and franchisee, she brings energy, wisdom and passion to her candidates as she helps them explore franchises matched to their background, interests and goals. She thrives on helping people achieve their dreams. She lives on the beach in southern New Hampshire and can be reached via kim@thedalycoach.com.
NOV-DEC 2021 | FRANCHISE CONNECT 13
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5 WAYS TO BE A SUCCESS AT FAILURE
By Nancy Friedman
J
ust ask anyone who does sales training. You show a salesperson how to do something the right way, the way you want it, and often they change what you've taught them or don’t do it at all. It's sort of like our kids isn’t it? It’s hard to get them to listen to us.
HERE ARE A FEW WAYS TO FAIL IN SUCCESS.
01
Stay off the phone. Certainly, every salesperson knows it's tough to get through to people. You may only reach one prospect in 10 tries, so if you have made 50 phone calls you might talk to five prospects. Guess what, someone might listen to you and buy something. The phone is your friend; in some cases, it will be your best friend.
02
Avoid contacting existing customers. After all, they bought from you once and that's probably it. They probably
Don’t fall victim to these behaviors. don't need anything more. And certainly they aren’t going to volunteer any referrals. Besides, selling to an existing customer is usually easier than to a new prospect, so where's your sense of sportsmanship? Who wants to shoot fish in a barrel? It's more fun to struggle and find new prospects. Who wants a pushover sale? We connect with existing customers.
03
Tell a prospect what you have; ignore what they need or want. Don't ask questions during your standard presentation monologue. If they're interested, they’ll buy something, right? You’re the detective, and if you're smart, you'll be the CIA. We know that if you talk long enough and listen a little, every once in a while someone will buy something, yes. But it's not the right way.
04
Come to work in a bad mood. You can share your feelings with your coworkers and bring them down too, as well as the calls you make. You'll always make friends that way.
05
Avoid reading sales books or any book that might help you. After all, you know everything. Right? Probably not a lot to learn. Good Lord, you might learn something new or remember something you forgot. Of course attitude (a good one) and a sense of humor (another good one), as well as listening skills, are part of the ways NOT to fail at being a success! w Nancy Friedman is founder and chairman of Telephone Doctor®, an international customer service training company, helping companies communicate with their customers in St. Louis, MO. A speaker at franchise conferences, as well as corporate America, she specializes in sales, customer service, and communication skills. Now offering and specializing in Zoom programs. Fun and fast!
NOV-DEC 2021 | FRANCHISE CONNECT 15
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Contact us today for this big opportunity. Micheline Johnson Advertising Director advertising@franchiseconnectmag.com (703) 665-5507 phone
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FITNESS FRANCHISES
INDUSTRY ER POTR 2021
O
By Elizabeth Adams
ver the last few years, there has been a significant increase in the number of people who’ve become aware of the benefits of staying fit and have started valuing a healthy lifestyle. Fitness is now becoming a trend for millions, resulting in the global fitness industry growing and becoming a lot more popular. Though the world has moved towards inactive lifestyles—particularly due to technology and the pandemic—more and more people are now taking action to make their lifestyles more proactive. By 2019, the total market size for the global fitness industry was above $96 billion, with the majority portion coming from the United States, Germany, and the U.K. At the start of the pandemic, about 17% of the fitness clubs in the U.S. shut down and the revenue for the industry went down, but by the end of 2021, the fitness industry is facing a mini-boom.
PHOTO BY FOTOGESTOEBER
By the end of 2021, the fitness industry is facing a mini-boom.
PHOTO BY DEAN DROBOT
Fitness is now becoming a trend for millions, resulting in the global fitness industry growing, making it an excellent investment opportunity.
NOV-DEC 2021 | FRANCHISE CONNECT 19
FITNE SS FRANCHISES
INDUSTRY REPORT 2021
PHOTO BY BY YULIIA D / SHUTTERSTOCK
20 FRANCHISE CONNECT | NOV-DEC 2021
Related industries, like athleisurewear have also seen a rise in revenues, though this trend has been on an upward trajectory since before the pandemic started.
WHY INVEST IN FITNESS FRANCHISES Like any other industry, franchise markets were affected by Covid, resulting in a significant drop in employment and revenue. Still, despite this impact, franchise businesses still contributed 3% of the total U.S. gross domestic product in 2020, at $670 billion. On top of that, the franchise industry is also expected to grow by about 7% by the end of the year, reaching the same output as it did before the pandemic started. 2022 is also expected to provide excellent opportunities for investing in franchises. Unemployment Rates Expected to Sink Business owners have struggled with staffing for the past year, which has affected companies and franchise operations in hitting their target revenues and achieving their previous successes. However, it is projected that these trends will turn around, and the economy would return to its pre-pandemic conditions by the end of 2022. Unemployment rates are on the rise, which will bring many workers back looking for work, giving franchise operations a selection of skilled workers to hire and a chance at success. Low Interest Rates Franchises often mean borrowing money to start, and with low interest rates, this becomes a lot cheaper and easier. Experts also expect that inflation will rise for a year or two, resulting in flexible pricing, which will bring financial success for new business owners and investors.
PHOTO BY ANDREA PIACQUADIO
COVID’S IMPACT With widespread stay-at-home orders, it was expected that there would be an increase in home-based workouts due to inaccessibility to gyms. But, statistics show that about 50% of people became less active during pandemic-related shut downs. However, now, with vaccinations administered and other safety measures being taken, gyms and fitness clubs have reopened, and many Covid-fatigued consumers are now returning to gyms, having missed the social interaction and the motivation that comes with in-person classes. On top of that, with health and immunity being everyone’s top concern amidst the coronavirus panic, more and more people are now actively returning to or beginning to take steps to improve their health, particularly through fitness clubs.
With fitness being a rising trend in the general population, this also means that business owners can expect a large number of customers to bring in revenues with fewer costs. Change in Locations Covid has changed the way many people do business, and most fitness franchises have adjusted to the changes. Many have moved toward virtual one-on-one training or small groups of people. The pandemic has also resulted in many people preferring small training groups, which makes many fitness programs more effective and improves revenue. While industries that rely on large crowds may take some time to recover from the pandemic’s impact, the fitness industry has the potential to do well with these changes. Revenue Sources Fitness franchises are also showing potential in generating income through other means, such as merchandise and retail sales. With the rise in athleisurewear as a trend, fitness
The gym and fitness franchise industry in the United States has grown by 6.3% to reach $4 billion in annual revenue in 2019. Fitness is one of the fastest growing sectors in the franchising world. So much so that Inc. 5000’s list of fastestgrowing franchises in America all share a common trend with the top three spots belonging to the health and fitness industry.
clubs can benefit by taking advantage of gym-goer’s connection to the gym’s brand, and making additional revenue through merchandise and branded items. These are not limited to just workout clothes, but also extend to equipment needed for their fitness program. By keeping these on site, it becomes easier for fitness franchises to gain additional revenue. Return on Investment The fitness industry runs mainly on turnkey operations—where most of the actions needed to ensure success are already taken care of by franchisors, such as business plans, procedures, etc. There is also a low entry point that reduces overhead and investments, and with the growing returns in the fitness industry, can bring in significant revenue. Low Seasonality With so many people focusing on their health after Covid, fitness is not about passing trends or hobbies. Most people who focus on fitness are doing so as a lifestyle choice,
which means that the fitness industry is not affected by seasonal changes and has a steady income flow during the year. While major events like the pandemic have had an impact on the industry, this has been subverted, and the growth trajectory for the industry is on the rise. With agreement from analysts about the positive trend in the industry—IBISWorld pegs the growth at 1.5% throughout 2022, with fitness brands growing twice as fast—it is clear that a large portion of consumers nowadays are those who are willing to pay more to improve their health and connect with others who share the same experience. The popularity for fitness and health comes mainly from millennials and GenZers, where the average age is low, and thus revenues can be expected for a long time to come. The franchise business model is a good fit for many investors, and the current opportunities in the fitness industry makes this particular sector a good option to explore. Now is as good a time as any to find a fitness franchise to invest in! w
Public initiatives have shed light on the importance of health and fitness with campaigns surrounding diabetes and obesity. The fitness franchise industry has benefitted from this. As a result, fitness has become a lifestyle choice, with many people becoming much more health-conscious. Building a business is hard, creating a brand and running day-to-day operations while remaining profitable and getting enough sleep to function can seem near impossible. This is what makes buying into a fitness franchise so appealing. Buying into a fitness franchise is a great way to get a slice of the fitness industry pie. It comes with the building blocks for success with business training and support. If you’re considering a fitness franchise, there’s a strong demand and plenty of options to choose from. Fitness franchises are thriving, creating communities of likeminded entrepreneurs. NOV-DEC 2021 | FRANCHISE CONNECT 21
PHOTO BY RIDO
Connected Fitness is the Future of the Fitness Industry Franchises are seizing opportunities created by the pandemic.
I
t's no secret that the fitness industry has been among the hardest hit by early Covid-19 shutdowns. But truth be told, a lot has changed for the fitness industry, much of it for the better. Last year, we were amid full-scale shutdowns during the Covid-19 pandemic. Studio operators were uncertain about what the future held for their businesses and the fitness industry. Even the most skilled operators had to get creative and think outside the box to survive. Franchisors were also scrambling for ways to support their franchisees through uncertain times. Technology was a lifesaver in many ways because it allowed studios to connect with members outside of the usual 22 FRANCHISE CONNECT | NOV-DEC 2021
brick-and-mortar setting. Operators could move their services online, create touchless access, track check-ins, conduct temperature checks, limit class sizes, and more. The pandemic served as a catalyst and pushed
franchisors to accelerate their use of technology at a much more rapid pace. The industry saw a rise in digital-only offerings and in-home services, like Peloton's explosive growth. Now, seeing their
PHOTO BY SHYNTARTANYA
By Amy Bickler
EXPERT ADVICE The good news for the fitness industry and operators is that it also brings additional revenue opportunities with reduced overhead costs. stock prices falter and fall might indicate that digital-only fitness may not be the answer for many consumers long term. Cofounder and CEO of Eat The Frog Fitness Joe Culver said they have always embraced technology and are moving forward with a brick and mortar plus strategy that increases the use of technology to create a truly connected experience to the brand. "Connected Fitness is the future," Joe says. "We anticipate that members are looking for a more personal experience where fitness extends beyond the studio. We are using technology to provide a higher-touch experience that reaches members in their daily life. Our 24/7 access has expanded to include in-studio virtual sessions and digital on-the-go workouts, making Eat The Frog accessible in studio or at home whenever the member wants." While many people turned to digital services during the Covid-19 shutdown out of necessity, the question is, will they continue this trend or make their way back into gyms and studios? A recent report by the International Health, Racquet and Sportclub Association says that "people are more confident in their gym's safety protocols than other businesses." It goes on to say that, "for many Americans, home fitness can be a challenge due to the environment, lack of safe spaces to exercise outdoors, room in their homes to be active, or even access to reliable internet." ClubIndustry reports that the omnichannel approach is here to stay. The good news for the fitness industry and operators is that it also brings additional revenue opportunities with reduced overhead costs. For example, Jeff Esswein (vice president of strategic accounts and digital content from
GRAPHIC BY MY LIFE GRAPHIC
A LOT HAS CHANGED FOR THE FITNESS INDUSTRY, MUCH OF IT FOR THE BETTER.
Freemotion/IFit) says, "Brick-and-mortar from the challenges posed by Covid-19, facilities can't expect to have a successful which has strengthened operators and franomnichannel model if they offer a traditional chisors alike, creating new opportunities. gym experience focused on equipment but The brands that seize these opportunities then launch a digital platform offering, say, are the ones that will win. w yoga or a no-equipment functional fitness Amy Bickler joined Eat The Frog Fitservice." Meaning, the opportunity for operaness in 2018 as the director of markettors to sell equipment that supports their ing. She brought with her extensive digital experience is yet another future experience with multi-unit brand management in the health, beauty, and revenue-generating opportunity. wellness industries. Holding positions The future of the fitness industry looks such as director of sales and operabright, with franchisors like Eat the Frog tions and executive director of sales Fitness reporting an upward momentum and marketing, Amy brings a well-rounded perspective to her marketing approach. in new franchise owners coming on board, With a passion for great branding, Amy has been able to strong studio openings, and growth among elevate Eat The Frog's global image through a relentless existing studios. The industry is learning pursuit of the newest and best marketing tactics available. NOV-DEC 2021 | FRANCHISE CONNECT 23
FranchiseConnect
®
TOP 100 FITNESS Franchises FRANCHISOR
FOUNDED FRAN. SINCE
INITIAL INVESTMENT
CONTACT
PHONE
WEB ADDRESS
Goldfish Swim School Franchising
2006
2009
$1,355,283 - $3,266,858
Patty Crowe
(248) 896-1237
www.bit.ly/FC-GoldFishSwim
Eat The Frog Fitness
2014
2017
$557,500 - $791,000
Jesse Curry
(800) 841-8363
www.eatthefrogfitness.com
Pure Physique
2007
2018
$150,000
Mike Lipowski
(914) 302-2022
www.purephysique.com
BODY20
2017
2018
$292,000 - $393,000
Christopher J. Pena
(970) 313-3603
www.body-20.com
Anytime Fitness
2002
2002
$98,430 - $523,824
Franchise Development
(800) 704-5004
www.anytimefitness.com/franchise
The Salt Suite
2011
2016
$199,100 - $425,600
Ryan Dodson
336-624-9524
www.thesaltsuite.com
Core Progression Elite Personal Training
2008
2018
$162,000 - $452,000
Jon Cerf
(254) 744-2661
www.coreprogression.com
GYMGUYZ
2008
2014
$100,000
Josh York
(516) 627-4700
www.gymguyz.com
PickUp USA Fitness
2012
2016
$407,266 - $999,054
Aaron Magno
(626) 315-7225
www.pickupusafitness.com
30 Minute Hit
2005
2006
$120,000 - $200,000
Stacey Firth
(778) 828-7755
www.my30minutehit.com
F45 Training
2011
2013
$220,000 - $299,000
Duncan Cork
(424) 277-1067
www.f45training.com
Gold's Gym
1965
1980
$2,218,250 - $5,000,500
Ken Phipps
(214) 296-5026
www.goldsgym.com
Title Boxing Club
2008
2009
$171,951 - $514,993
James Lloyd
(517) 388-1608
www.titleboxingclub.com
Soccer Shots Franchising
1997
2005
$41,034 - $55,100
Ashley Mitchell
(717) 616-8587
www.soccershotsfranchising.com
DivaDance
2015
2017
$41,1000 - $57,600
Please contact HQ
(254) 307-2781
www.bit.ly/FC-DivaDance
Total Row Fitness
2016
2019
$86,497 - $180,413
Viktoria Healy
(404) 247-9328
www.totalrowfitness.com/franchise
IM=X Pilates and Fitness
1996
2004
$86,000 - $195,745
Lauren
(212) 997-5550
www.imxpilatesstudio.com
Send Me a Trainer
2007
2019
$49,599
Bary El-Yacoubi
(703) 901-8087
www.sendmeatrainerfranchise.com
Retro Fitness
2002
2006
$944,250 - $1,592,500
Eric Casaburi
(845) 920-1998
www.retrofitness.com
Fitness Together
1984
1996
$143,600 - $258,100
Matt Stanton
(303) 663-0880
www.fitnesstogether.com
Crunch Franchise
2010
2010
$255,500 - $2,320,500
John Morrison
(800) 669-7162
www.crunchfranchise.com
Orangetheory Fitness
2010
2010
$563,529 - $999,121
Dean Adelstein
(954) 618-6631
www.orangetheory.com
Jazzercise Inc.
1969
1982
$2,405 - $17,155
Sally Baldridge
(760) 476-6750
www.jazzercise.com
The Bar Method
2001
2003
$218,964 - $427,405
Franchise Development
(800) 704-5004
www.barmethod.com/franchising
TRIB3 International
2015
2016
$90,000
Vaughan Maiden
44 (114) 268-0895
www.trib3.co.uk/franchise
THE8BLOCK Fitness Studio
2016
2019
$150,350 - $307,428
Annette Serrano
(718) 924-4675
www.the8blockfitnessstudio.com
Baby Power Forever Kids / Linda Searles
1980
2014
$110,000 - $135,000
Linda Searles
(800) 365-4847
www.babypower.com
Delta Life Fitness
2010
2015
$330,000 - $425,000
Josh Cherry
(409) 651-0010
www.deltalifefitness.com
UFC GYM
2009
2012
Call
Mike Apple
(949) 838-7024
www.ufcgymfranchise.com
Athletic Republic
1990
2007
$272,000 - $569,000
Lindsay Simpson
(435) 647-9000
www.athleticrepublic.com
SKfit
2011
2018
$50,000 - $80,000
Sly King
(619) 508-0250
www.skfitstudios.com/gym-franchise
CycleBar Franchising
2004
2015
$402,650 - $498,700
Kate Kwon
(949) 245-1828
www.cyclebar.com
Basecamp Fitness
2013
2020
$500,760 - $734,848
Franchise Development
(800) 704-5004
www.basecampfitness.com/franchise
SPENGA
2015
2016
$304,082 - $705,027
Carin Skowronsky
(402) 382-1466
www.spenga.com
fit20 USA Franchising
2019
2019
$98,900 - $183,200
Ben Litalien
(833) 348-4620
www.fit20usafranchise.com
Zooga Yoga
2012
2017
$100,000 - $260,000
Tom Dufore
(770) 628-2828
www.zoogayoga.com
Bodytek Fitness Franchising Inc
2010
2016
$250,000
Michael Verdugo
(954) 770-6929
www.bodytekfitness.com
NinjaKour
2013
2018
$472,000
Dr. Robert Pruni
(404 ) 831-1400
www.NinjaKour.ninja
Red Effect Infrared Fitness
2017 Oct. 2017 Oct.
$150,000 plus
Allie T. Mallad
(954) 559-2117
www.redeffectfitness.com
9Round
2007
2009
$99,675 - $143,075
Shannon Hudson
(480) 621-5740
www.9round.com
Fitwall
2013
2014
$310,600 - $626,200
Michael Webb
(949) 679-0872
www.fitwall.com
Sudore Wellness
2017
2017
$230,000 - $437,500
Jim Belanger
(951) 310-8322
www.sudorewellness.com
Hardcore Fitness Boot Camp
2007
2017
$225,335 - $354,300
Lawrence Nolan
(951) 501-6070
www.hardcorefitnessbootcamp.com
Snap Fitness Inc.
2003
2004
$149,771 - $462,800
Peter Taunton
(952) 474-5422
www.snapfitness.comus
Welcyon, Fitness After 50
2009
2011
$259,100 - $363,000
Suzy Boerboom
(952) 873-7900
www.welcyon.com
Workout Anytime 24/7
1999
2005
$555,500 - $996,400
Randy Trotter
(770) 809-1401
www.workoutanytime.com
Oxygen Yoga & Fitness
2011
2012
$250,000 +
Donna Tack
(604) 916-7625
www.oxygenyogaandfitness.com
Orange Shoe Personal Fitness
2004
2009
$81,500 - $271,000
Martin
(608) 270-9480
www.orangeshoe.com
Pro Martial Arts Franchise Corp.
2000
2008
$142,750 - $199,550
Jon McLeod
(610) 722-5600
www.promartialarts.com
Live 2 B Healthy Senior Fitness LLC
2008
2010
$37,695 - $48,135
Cory Czepa
(612) 702-4256
www.live2bhealthy.com
Last Real Gym
2003
2018
$487,600 - $965,400
Frank Kole
(619) 795-9712
www.lastrealgym.com
24 FRANCHISE CONNECT | NOV-DEC 2021
Fran Con chise nect
TOP 100 FITN
®
InDepenDent guiDe to the best franchises FRANCHISOR
FOUNDED FRAN. SINCE
INITIAL INVESTMENT
CONTACT
PHONE
FRAN ESS CH 20 ISES 21
WEB ADDRES
Fit4Mom
2001
2005
$6,205 - $24,285
Lauren Shaver
(866) 348-4666
www.fit4mom.com
Atlas Fitness
2010
2018
$184,200 - $707,500
Christopher Cupi
(202) 525-5183
www.atlasfitnessdc.com
Iron Tribe Fitness
2010
2012
$300,000 - $433,500
Dr. T Foster Bryant
(205) 226-8669
www.irontribefitness.com
LetsLose Weight Loss Franchising Inc.
2003
2009
$23,400 - $65,700
Anita Gibson
(205) 670-5355
www.letslose.com
Sasquatch Strength
2014
2019
$67,300 - $175,700
Troy Morse
(206) 730-7746
www.sasquatchstrength.com
My Personal Trainer
2004
2010
$49,700 - $122,200
Jeffrey Stone
(440) 838-8400
www.ohiomypersonaltrainer.com
The Joint
1999
2003
$211,400 - $339,900
Peter Holt
(480) 245-5960
www.thejoint.com
RedLine Athletics
2013
2014
$400,000
Steven DeBiase
(480) 788-3506
www.redlineathletics.com
Fitness Together
1984
1996
$143,600 - $258,100
Matt Stanton
(303) 663-0880
www.fitnesstogether.com
Epic Hybrid Training
2012
2015
$64,650 - $142,300
Alexander Nicholas
(646) 450-2405
www.epicintervaltraining.com
Tough Mudder Bootcamp
2009
2018
$280,000
Will Dean
(702) 706-1155
www.tmbootcamp.com
TruFusion
2013
2015
$1,495,930 - $3,640,400
Michael Borden
(702) 982-2930
www.trufusion.com
My House Fitness Franchise Inc.
2009
2011
$115,445 - $213,298
Jen Wherrell
(888) 524-4047
www.myhousefitness.com www.fitbodybootcamp.com
Fit Body Boot Camp
2009
2011
$136,000 - $198,000
Lance Farrell
(888) 638-3222
Charter Fitness
2002
2011
$577,708 - $1,201,802
Dan Collins
(888) 827-9262
www.charterfitness.com
Endurance House
2007
2011
$411,850 - $647,750
Nick Gonino
(904) 374-4725
www.endurancehouse.com
Tiger-Rock Martial Arts
1983
2008
$89,900 - $197,600
Bert Kollars
(913) 725-0777
www.tigerrockmartialarts.com
High Altitude Personal Training
2009
2015
$261,270 - $365,520
Joey McDonald
(928) 225-9707
www.haptonline.com
YogaSix
2012
2018
$283,300 - $452,800
Anthony Geisler
(949) 346-9794
www.yogasix.com
Club Pilates Franchise
2007
2012
$167,967 - $280,446
Anthony Geisler
(949) 346-9794
www.clubpilatesfranchise.com
Total Woman Gym + Spa
1965
2013
$860,500 - $1,483,500
Amanda Green
(858) 217-3920
www.totalwomanspa.com
Kaia FIT
2004
2013
$34,000 - $99,765
Melissa Bruce
(757) 870-4488
www.kaiafit.com
Alkalign Studios
2015
2015
$168,250 to $491,000
Lizzie Hammerman
(415) 952-7882
www.alkalignstudios.com
Row House Franchise
2014
2017
$257,700 - $400,800
Anthony Geisler
(857) 702-2769
www.therowhouse.com/franchise
Planet Fitness
1992
2003
$969,600 - $4,242,500
Sara Grotheer
(603) 750-0001
www.planetfitness.com
Regymen Fitness
2017
2018
$431,000 - $870,500
Donnie Jarreau
(225) 256-4488
www.regymenfitness.com
LaVida Massage
2007
2007
$284,750 - $476,400
Mark Davis
(248) 366-4611
www.lavidamassage.com
The Exercise Coach
2000
2010
$113,149 - $297,749
Brian Cygan
(248) 847-3923
www.exercisecoach.com
Massage Green Spa
2008
2009
$170,000 - $282,000
Allie Mallad
(248) 849-9600
www.massagegreenspa.com
Legacy Fit
2008
2014
$217,650 - $391,450
Denise Diaz
(305) 469-4797
www.legacyfit.com
Fitness 1440
2009
2012
$100,000 - $837,000
Jason Alles
(321) 948-5223
www.fitness1440.com
CKO Kickboxing
1997
2007
$112,997 - $378,447
Joseph Andreula
(347) 335-0995
www.ckokickboxing.com
iLoveKickboxing.com
2009
2012
$214,944 - $559,494
Fredrik Mertens
(516) 882-7182
www.ilovekickboxing.com
Max Muscle Sports Nutrition
1991
2001
$114,600 - $281,300
Jon Meyer
(530) 626-0239
www.maxmuscle.com www.burnbootcamp.com
Burn Boot Camp
2012
2015
$142,330 - $349,150
Diamelen Splain
(704) 763 7533
Self Made Training Facility
2010
2016
$263,982 - $725,737
Corey Jones
(760) 505-4160
www.selfmadetrainingfacility.com
The Camp Transformation Center
2010
2016
$167,000 - $326,500
Erick Salgado
(909) 325-6011
www.thecampfranchise.com www.hardexerciseworks.com
Hard Exercise Works
2008
2011
$136,273 - $466,483
Randall Greer
(772) 529-0108
Shred415
2011
2017
$423,480 - $920,800
Matt Micheli
(773) 360-8228
www.shred415.com
EnVie Fitness
2012
2012
$84,600 - $292,900
Ryan Bernal
(778) 549-4717
www.enviefitness.com
Get In Shape For Women
2006
2007
$71,412 - $172,675
Dave Dembinski
(781) 812-2870
www.getinshapeforwomen.com
Tapout Fitness
2014
2015
$93,800 - $566,500
Marc Tascher
(800) 598-8872
www.tapoutfitness.com
The Max Challenge
2011
2013
$146,868 - $295,592
Scott Ferrari
(800) 670-0263
www.themaxfranchising.com
D1 Sports Franchise
2001
2015
$235,250 - $670,290
Michael Abramson
(615) 224-8242
www.d1training.com www.legendsboxing.com
Legends Boxing
2013
2017
$276,852 - $472,128
Rob Scott
(801) 471-6068
Airtime International Franchise
2012
2014
$1,297,000 - $1,999,000
Samuel Lundy
(248) 671-1700
www.airtimetrampoline.com
Blink Fitness
2011
2015
$606,800 - $2,119,288
Todd Magazine
(646) 941-9248
www.blinkfitness.com
Xtend Barre
2008
2010
$162,785 - $516,870
Andrea Rogers
(212) 240-9800
www.xtendbarre.com
Mayweather Boxing + Fitness
2018
2018
$199,850 - $566,300
James Williams
(833) 629-9328
www.mayweather.fit
DISCLAIMER: Our magazine is not an offer to sell a franchise, and is not directed to any reader to buy any franchises. The companies are not listed by rank. Our team carefully researched the listed information. The company information may change; please make sure to check and contact the company directly.
NOV-DEC 2021 | FRANCHISE CONNECT 25
MEET THE PEOPLE BEHIND THE BRANDS
BECOMING THE BEST VERSION OF YOURSELF. Building from experience, Donnelly created a proactive program for health and wellness.
By Christina Huang
After IgoUgo, I focused on areas that were “cool” to work in and good for the community yper Wellness is a proactive approach where I lived. For example, I developed luxury to improving your body's defense condos for homeowners including Michael system, reducing long-term health Jordan, Cam Newton, and Chris Daughtry, as risks, potentially increasing the lifes- well as salons, spas, and high-end health clubs, pan of your health (healthspan), and feeling including the Charlotte Athletic Club. better so you can do more of what you love. Restore delivers on Hyper Wellness by offer- The accumulation of these experiences ing a range of innovative modalities under one shaped the creation of Restore. roof, helping customers to finally feel their best Tell us about Restore Hyper Wellness history and meet the highest version of themselves. and how many locations you have national We talked about Restore Hyper Wellness with and international. Founder and CEO Jim Donnelly. We started Restore in 2015 when I was training for a triathlon. A friend told me to Can you tell us about yourself? How did you try Cryotherapy. I loved the way Cryo made get started? me feel, but hated everything else about the My father was a consummate entrepreneur. I knew that would be my path. I started my first company when I was in grad school, and I was hooked. But I had a military commitment. After the military, I spent time in corporate America at several blue-chip companies (Coca-Cola, Kraft Foods, Citibank) so I could learn and build some pedigree. Then I jumped back into the entrepreneurial space (for good this time). I cofounded IgoUgo. com, winner of a Webby Award as the top travel website in the U.S. In under five years, IgoUgo became the leader in user generated content for travel websites and was sold to Sabre Holdings/Travelocity.
H
26 FRANCHISE CONNECT | NOV-DEC 2021
experience (i.e., the retail environment wasn’t great, it was overpriced, and it felt like a partial solution). I got my buddy Steve (cofounder) to try it, and he came to the same conclusions. We believed we could create a better experience, so we opened our own cryotherapy clinic in Austin. We quickly realized we were on the right track and started opening as many locations as we could, testing iterations of the concept along the way. We expanded our services beyond cryotherapy (by adding IV, sauna, red light, compression, hyperbaric, and stretch therapies) and termed the integrated experience, Hyper Wellness®. In 2017, we launched our first franchise locations in Texas, Virginia, and Connecticut. Now we have 100+ locations across the country. Going forward, we will open one or two locations a week. Who is your target audience? Restore is a universal brand. At some point, every human has a need for the things that Restore delivers. We address human performance and optimization. Ultimately, Hyper Wellness allows people to do more of what they love to do. Whether you’re an Olympian or someone taking the first step on a long overdue journey to improving your overall health, Restore provides a fun, social, transparent environment to address your needs.
How is Restore Hyper Wellness different than others, and could you tell us about your services/program? What is unique about Restore Hyper Wellness? We’re driven by a deep desire to uplift people— to help them feel better, so they can do more of what they love. We are also experienced entrepreneurs and executives that have built successful companies. This enabled us to create a better, more integrated experience for consumers that is also repeatable and scalable for franchise partners. Restore offers memberships that give clients access to IV drips, cryotherapy, infrared sauna, Red Light Therapy, and compression, while also providing reduced pricing on any additional services they need to optimize their wellness. Do you offer a new program/services after the pandemic days? What were the main challenges? Restore has remained consistent before, during, and soon to be (hopefully) after the pandemic. We were deemed an essential business, and we have provided our services throughout the pandemic. We help people optimize their wellness so that they are better prepared to handle the health and wellness issues they face. Interestingly, the solution for addressing the issues during the pandemic is the same solution for addressing many of the other health and wellness challenges facing society. Ultimately, we believe the Hyper Wellness lifestyle is a proactive approach to health and wellness. We provide the roadmap for our customers and live the lifestyle we espouse. That philosophy has allowed us to accomplish amazing things during the pandemic. From a leadership perspective, we decided early on that if our team members were going to work in the stores, then our corporate team
would work together from our offices. We enhanced our corporate wellness program and made sure our employees were proactively living the Hyper Wellness lifestyle. This created a super motivated, passionate, and committed team that doubled down on our mission. We also introduced several innovations. We produced a proprietary, electric-powered Whole Body Cryotherapy chamber that revolutionizes the experience of whole body cryo. We also introduced new IV drips and intramuscular shots. For example, when vitamin D became difficult to source for IV drips, we released a vitamin D intramuscular shot that is fat soluble and helps the body maintain increased levels of vitamin D. We also released our Tri-Immune shot that includes zinc, vitamin C, and glutathione. These micronutrients can help optimize wellness. It has been challenging to scale the system fast enough to support consumer demand. But I believe we have risen to the challenge and created a potentially society-changing concept. What’s the typical investment to open a Restore Hyper Wellness? The investment is between $750,000 and $800,000 depending on the geography. What are the company’s franchisee selection criteria? Do you offer training to them? We support our franchisees every step of the way. We help with site selection, construction management, training, marketing, and everything in between. The support continues after the opening of a location and never stops. Our model is scalable and repeatable. We have a process, a system that works—and it takes the guesswork out of improving our customers’ lives for the better. We’re incredibly passionate about what we are doing.
What are the brand’s further national growth plans? What are the brand’s expansion plans in the future? Our vision is to change the face of healthcare on a global scale. We believe everyone in the world should have access to real, proactive solutions and the most groundbreaking wellness modalities. We’re prepared to open 500 locations by the end of 2024. We’re here to make Hyper Wellness globally accessible, so the world can do more of what it loves. Is there anything else that you’d like to share with us about Restore Hyper Wellness? What’s your “do more”? Think about it. Think about what your purpose is, and what those moments are that bring you the most joy. It might be making your child laugh, it could be cooking, or scoring goals, or building businesses. Whatever it is, we are here to help you do more of it. We’re here to be the bridge that brings people to the best version of themselves. w
For more information: www.restore.com www.franchise.restore.com lauraanderson@restore.com NOV-DEC 2021 | FRANCHISE CONNECT 27
PA RT 3
What Is in a Franchise S.Y.S.T.E.M.? The franchisor’s experience and know-how will make for a successful start-up. PART 3 OF 6: START-UP By Tiffany Dodson
I
n part one, the first “S” was revealed as “Selection” as well as the motivation behind my becoming a coauthor with Stan Phelps and the unique name of our book, Purple Goldfish: Franchise Edition. In summary, the title and motivation match a passion for customer experience and franchising into one book. During our 20 months of research, we chose the acronym S.Y.S.T.E.M. as franchisees often hear and say the term. Our research uses system to house best-in-class examples that make some of the top franchises stand out in performance and satisfaction. Part 2 covered “Y,” “Yield” to the knowledge of the system 28 FRANCHISE CONNECT | NOV-DEC 2021
EXPERT ADVICE
and comply to produce. Part 3 will explore the second “S” or “Start-Up.” OUT OF THE GOLDFISH BOWL: Phelps uses the goldfish to illustrate what conditions affect a business start-up. How quickly the goldfish grows depends upon three conditions:
PHOTO BY STARTUP STOCK PHOTOS
1. Size of the Environment/Bowl = Market Size 2. Number of Other Fish in Bowl = Competition 3. Quality of the Water = Economy
MARKET SIZE: Franchisors will work with franchisees to select markets and areas that best match their concept. For example, does the concept benefit from being on the side of the street that has the most going home traffic? Franchisors will have traffic counts, demographics, and sometimes psychographics to help determine placement of the next location. Additionally, franchise agreements often offer a protected territory based on geography or household count where another franchisee under the same brand may not operate. This helps protect market size for each franchisee.
COMPETITION: Franchisors spend terrific resources differentiating their brand or offerings from others in the same industry. Ironically, in some models, franchisors will choose to locate near one another. Look around town, are the fast-food restaurants generally in one section, near each other? What about the pharmacies—are there two large concepts almost across the street from each other or within a few blocks? Additionally, franchisors will offer grand opening plans to help the franchisee gain awareness of the new business as it opens. Some concepts, especially membershipbased ones, will pre-sell memberships prior to opening day! ECONOMY: The franchisor wins when the franchisee wins. No doubt, great franchisors nurture start-up locations. Part of this occurs with training. Often franchisors have not only initial training but special teams that work with new franchisees providing guidance during the early days. Other franchisors create an apprenticeship program assigning new franchisees to more experienced higher performing franchisees for a time of learning. Financial or cash flow management remains one area that many new franchisees find important to learn early. Unless the new franchisees comes from a financial or accounting background, even with profit and loss responsibility, they find that they need additional skills to understand the financial complexity of ownership. The well-equipped franchisor offers technology and tools to aid in measurement as well as training to help the new franchisee understand the numbers.
PHOTO BY SHUTTERSTOCK
The franchisor wins when the franchisee wins. No doubt, great franchisors nurture start-up locations. Part of this occurs with training.
While a franchisor does not control the economy, investing in training helps the franchisee start off on the best foundation possible. The start-up phase builds the business foundation. Leveraging the franchisor’s experience in location selection, marketing tools, and initial training, the franchisee creates a stronger foundation from which to build for years to come. w With over 25 years of franchise experience, Tiffany Dodson, CFE, holds deep roots from senior marketing roles at wellknown international franchises to recognition as a top performing franchisee, Master Developer, author, and speaker. Find Tiffany at The Salt Suite, and reach her at Tiffany@TheSaltSuite.com.
NOV-DEC 2021 | FRANCHISE CONNECT 29
WHY TAKING ACTION MATTERS
The time has come to act.
START SMART
By Patrick Laforet
D
o you spend all of your free time reading and gathering information? Are you a self-help junkie that never seems to make any meaningful progress in your life? Are you trying to take your life to the next level by using the power of your mind alone?
HOW IS THAT WORKING FOR YOU? Nothing changes until your behavior changes. Sure, you might feel better about your life after all of your mental gymnastics, but is anything actually happening in your life from all of these intellectual efforts? Take action and watch your life change before your eyes! Are you hoping to find that new job, or just trusting it will come along? You have to apply before there is any possibility you will be considered. CONSIDER THESE IDEAS:
ARTWORK BY VECTOR FRANKENSTEIN
1. You have to do something for something to happen. Nothing happens until you act. You can’t wish or visualize your way to a plate of food, a fancy car, the partner of your dreams, or a successful business. Those things might make it easier for you to act, but you must still take action of some kind. ◗ Unless you’re telekinetic, you can’t even make a paperclip move across your desk without taking action. The more you want to accomplish, the ◗ bigger the action you’ll need to take. 2. It’s not what you can do that matters. It’s what you actually do that counts. Your level of capability only increases the number of options you have available. ◗ Having options isn’t the same as choosing one and taking action. 3. Your beliefs, values, and thoughts influence your behavior. For example, if you believe that you’re smart, capable, and good looking, your behavior will be different than if you believe that you’re simple-minded, incapable, and homely. Here are some more examples:
◗ Do you believe that failure is fine or to
◗ Things start happening when you start
be avoided at all costs? Do you believe that most people are ◗ inherently good or inherently bad? ◗ Do you value safety or adventure? ◗ Do you have positive or negative thoughts about your goals? None of these things has any actual ◗ power in the world, other than their power to alter the choices you make and the actions you take.
moving. Nothing happens while you’re learning, scheming, and planning.
4. The law of averages is ultimately on your side. If your dream is to play the piano, you can certainly do it. You simply have to keep trying. A pro pianist might play a certain piece better than you do, but you’ll most likely be successful eventually. ◗ When you take action, you get a result. You’re bound to get the result you want eventually if you take action long enough. Eventually, the law of averages will pay off. When you do nothing, you always fail. ◗ 5. Action creates potential. When you take action, you can learn from your results. When you take action, things change. New opportunities become available. You might meet a new person that can help you get what you want. When you take the first step, the next step appears.
Things begin to change when your behavior changes. You’ve proven this to yourself thousands of times throughout your life. Your life changed when you started school, changed schools, and made new friends. Your life was different after you made permanent changes to your diet or started a new diet. You can’t just accumulate knowledge, daydream, or make grand plans. You have to DO new things. When your behavior changes, your life changes. How do you want your life to change? What can you DO to make it happen? When will you get started? w Patrick Laforet is a senior recruiter with over 25 years of experience placing sales, marketing and senior management positions all across North America with a particular focus on the franchise industry. He has been described as a trusted advisor by many of his clients. Pat is also the owner of www.911forjobhunters.com, where he delivers online training and coaching. plaforet@stoakley.com Author of Job Search Secrets 2020: www.911forjob hunters.com. Visit our site for more free resources.
NOV-DEC 2021 | FRANCHISE CONNECT 31
POST-PANDEMIC:
FITNESS MODELS MUST ADAPT OR BECOME IRRELEVANT
Just like any other time in any other business. By Michael Peterson FITNESS ON MY MIND It’s hard to believe that something like the fitness industry could be at the crossroads of so many different points of our lives right now. If you are anything like me, thinking about this space makes your mind go several directions at once. I have consulted with two clients over the last four months. I have had to evaluate my own risk tolerance when it came to going to the gym. For me personally, the risk/reward just wasn’t worth it before there was a vaccine, and I opted out even after my local fitness clubs began to re-open at a limited capacity. I also realized about six months ago that I was truly failing myself, not making enough deliberate moves to maintain my fitness. Before March of 2020, I was at a conference about every 30 days, spending 32 FRANCHISE CONNECT | NOV-DEC 2021
two to three 10-hour days on my feet. In between, I’d visit clients in person, get together with friends, or just go to the store. Working out twice a week was plenty. Now, working from home, rarely traveling, and having quickly adapted to the homedelivery model of shopping, I can no longer afford to be intentional about my physical engagement only twice a week; it has to be a daily thought process.
It seems like every industry we evaluate, every decision we make, sometimes even most of our thoughts are in some way colored by Covid. It’s really not surprising; this is the first major pandemic the majority of us have lived through, and in some way, it changed every part of our lives. According to The National Library of Medicine, the last two years have seen a significant uptick in weight gain, with 40% of us increasing our waist size, and 80% of us maintaining the extra pounds even as life begins to return to normal.1 PRE-PANDEMIC MODELS WERE CHANGING Before the Covid pandemic set in, the circuit and high-intensity interval training methods of fitness training had come into their own. The fitness world was coming off of the CrossFit and workout of the day craze
TAKEAWAY “Fast is fine, but accuracy is everything.” — Wyatt Earp
PHOTO BY SHUTTERSTOCK
Outlaw FitCamp’s group classes use the basics of circuit training, but each workstation is set up for 15 minutes’ worth of workouts, so the client only moves stations once. This lets the instructor keep an eye on each individual, because they are not constantly moving from station to station, allowing for that focus on proper execution. It also keeps the trainer/trainee mix at a manageable level.
PHOTO BY SHUTTERSTOCK
of the late aughts and early teens. While realizing the value of the rapid pace and full-body aspects that circuit-based workouts offer, many were simply not willing to maintain the intensity CrossFit demands. Jesse James, who founded Jesse James Fit in 2007 and is the cofounder of a similar franchised concept called Outlaw FitCamp, told me, “I watched circuit-based training go from an unknown to an industry leader. Unfortunately, I also saw another trend follow right behind, massive classes and a concentration on group size over a focus on individuals and movement execution.”
to stay fit turned to virtual reality (that was my method; shout out to Oculus VR and the Supernatural workout game). Peloton, an exercise equipment and media comWHEN THE GYM BECAME GROSS pany came swinging into the home gym The gym has always been the gym. After space. Its shares were trading in May of March of 2020, however, the idea of rotat- 2020 in the $20 range before the company ing into a station right behind someone announced a year over year sales increase that you didn’t know, four to five times of 66% and subscriber base increase of a in 30 minutes, seemed ridiculous. After massive 94%. Over the next six months the social distance became top of mind, most Peloton share price shot up by over 500%, things at a traditional gym—a line of run- trading as high as $160/share. It looked ners on a row of treadmills (each cycling like America’s homes were becoming home about 4 gallons of air per minute through gyms as well as home offices. their lungs), weight trainers using forced exhalation to propel that barbell up (and NEW MODELS AND NEW TAKES ON their germs everywhere), or circuit trainers OLD MODELS trying to maintain their training heart rate Not everyone bought into the doomsday while moving into a space that someone thinking, however. In early 2021, Mark else had just been occupying for the same Cuban said reason—just did not match up to the idea “Once the vaccine is widely distributed, the of reducing the transmission of airborne snapback to gyms will be big.” 2 viruses. During the height of the pandemic, many The billionaire investor went on to say that people thought that the in-person fitness the “biggest beneficiaries will be boutique industry was, frankly, done. People trying workout gyms.”
With Peloton trading in the $40 range in November of 2021, it looks like Mark was (not surprisingly) correct about the bounceback of the fitness industry. Being on the same wavelength as Cuban has rarely proven to be a bad thing in business. Jesse James explained to me not only why he had come to the same conclusion, but also why Outlaw FitCamp was ready for the post-pandemic world before we had even heard of Covid-19, and how he used the down time of 2020 to position his brand, and his franchisees, into an even stronger market position. “Will Smith once said, ‘Failure actually helps you to recognize the areas where you need to evolve.’ After a couple of substantial losses, you still keep your eyes on the road forward, but your peripheral is always scanning the horizon; you never get lazy in success. I set out to make Outlaw modular and adaptive, without knowing what it would need to adapt to. That’s why we were able to quickly make small adjustments, like increasing the distance between our customers during class time, NOV-DEC 2021 | FRANCHISE CONNECT 33
TAKEAWAY
PHOTO BY LI SUN FROM PEXELS
be effective, but there are other options. In their analysis of the future of the fitness industry, L.E.K. notes that boutique studios like Outlaw are likely to rebound the fastest while mid-tier gyms will likely be the last segment of the fitness industry to recover. They also note other areas of opportunity and adaption include integrating wearable tech into the coaching routine and investing in the community feel of your fitness business.3
add in some extra cushion between classes for sanitization, and we were ready for the slow re-opening of businesses in this country. We also already offered one-onone training, which I believed at the time would be a larger market share post-Covid (and our numbers are now reflecting that). Of course, the rest of the country wasn’t quite ready to reopen when we were. I know some business owners had the ‘waitit-out’ mentality, and I am not saying there is anything wrong with that. But for me and 1. www.pubmed.ncbi.nlm.nih.gov/33669622 2. www.menshealth.com/fitness/a35686797/ gyms-after-covid-19-pandemic 3. www.lek.com/insights/ei/ future-fitness-looking-past-covid-19
34 FRANCHISE CONNECT | NOV-DEC 2021
my partner (Outlaw’s CEO Tiffany Leyva), just waiting isn’t in our DNA. We worked as many hours as we had pre-pandemic. Rather than working in the business, however, we worked on it. We looked at each workout, each piece of equipment, all of our back-office practices, and fine-tuned every segment of our business. We are coming out of the Covid pandemic even more resilient, more customer-centric, and with a stronger offering for both customers and franchisees. According to global management consulting firm L.E.K. Consulting, Outlaw’s approach to navigating the remainder of the Covid-19 pandemic, as well as the post-pandemic environment, is likely to
SOME CHANGES ARE HERE TO STAY – SOME ARE NOT In the early 1900s, tuberculosis was ravaging the developed world; it had already killed close to one quarter of the adult population in Europe. As people began to understand the disease was contagious, all sorts of norms were challenged. Handshakes became verboten, mothers were encouraged not to kiss their young for fear of transmitting the disease, and spitting, once commonplace, quickly became gauche. Of all of these (thankfully), the taboo against spitting stuck, but the rest went the way that temporal temperature checks did in 2020. As Covid-19 case counts are beginning to rise again in parts of the Western world, we are reminded that this pandemic is not yet behind us. We most certainly haven’t put it far enough in our rear-view mirror to predict what behavior and societal changes will be permanent, and which are fleeting. One thing is certain, however, fitnessoriented businesses are facing a generational opportunity or ruination, depending on their ability to be both reactionary and forward-thinking. w Michael Peterson is the president of Franchise Beacon, a premier franchise consulting and outsource development firm. Michael is the author of the bestselling How and Why to Franchise Your Business, contributes widely to franchise publications, and speaks frequently on franchise sales and compliance.
Ready to talk about your ad program and our special huge Covid-19 discount? Quotes are customized based on your budget, goals, and preferences. Contact us! ADVERTISING DEPARTMENT (703) 665-5507 advertising@franchiseconnectmag.com
PHOTO BY FAUXELS FROM PEXELS
SBA FUNDING FOR FRANCHISES:
What to Expect
What you need to know about securing a loan from the Small Business Administration. By Justin Lee and Lynne D. Shelton, Esq.
T
he Small Business Administration (SBA) offers financial support for franchises. This loan can be used by franchisors and franchisees for the initial startup expenses, such as real estate and equipment purchases. The two most common loans for franchise owners are the SBA 7(a) loans and the SBA 504 loans. The SBA 7(a) loan can go up to $5 million, and franchisors and franchisees can use the loan for all expenses involved in starting a franchise. The SBA 504 loan is a fixed loan that is specific to large assets such as machinery and real estate. Along with other strict requirements, such as a higher credit score, the franchisor/franchisee must be listed in the SBA Franchise Directory to qualify for SBA loans. 36 FRANCHISE CONNECT | NOV-DEC 2021
The SBA Franchise Team requires applicants to submit a brand application to be listed on the SBA Franchise Directory. Shelton Law & Associates, LLC, helps franchisors get listed on the SBA Franchise Directory by assisting in compiling the necessary documents and submitting the proper forms to be reviewed to be eligible to apply for an SBA loan. Shelton Law & Associates also assists franchisees in applying for an SBA loan. This process ensures that the franchisor is listed on the
THE SBA FRANCHISE TEAM REQUIRES APPLICANTS TO SUBMIT A BRAND APPLICATION TO BE LISTED ON THE SBA FRANCHISE DIRECTORY.
SBA Franchise Directory, assists with using a franchisee’s 401(k) and IRA in connection with the SBA fund, and assists with the down payment required for SBA loans. Over the last year, more than 3.7 million business have found relief through SBA loans to help save their businesses. More specifically, the SBA Economic Injury Disaster Loans have helped many business owners pay off debt on their businesses and have helped to rebuild as the world opens its doors again. As of October 8, 2021, the SBA began approving loans greater than $500,000 with a loan term of up to 30 years. GETTING THAT SBA LOAN Although this may sound appealing to many small business owners, there are a handful of hurdles to jump through before applying
LEGAL ADVICE
KNOW THE RISKS There are several important factors that must be considered by the borrower before taking out an SBA loan. First, borrowers may be personally liable if the business flops. That means the debt may be paid out of pocket. This could lead to extremely unstable financial hardships or bankruptcy. Take the steps to navigate the business’ growth to ensure that loan payments will continuously be made. Look to the franchise disclosure document to see the outlined estimated costs involved in operating a franchise. Second, look to see if the business is relying heavily on loans to be functional. Multiple loans may negatively affect the borrower’s credit score
PHOTO BY ARTEM PODREZ
for the SBA loan. All business owners must fill out a personal financial statement, borrower information form, and be willing to provide tax transcripts. They may also need to include tax returns, balance sheets, and revenue/expenses for the business. Based on the franchisor’s assets, they may secure collateral with the loan. In most cases, borrowers put up their homes as collateral. According to Forbes, applying for an SBA loan is not only a long process, but there is a very low approval rate. Large banks approve roughly 25% of their applicants. Smaller banks approve about 49% of their applicants. The SBA has been criticized for having an SBA loan monitoring system that does not function as intended. The SBA continues to guarantee loans to high-risk franchises and does very little, if anything, to mitigate the risks involved. A study by the Wall Street Journal indicates that large franchises, such as Quiznos and Cold Stone Creamery, have defaulted on about thirty percent of the loans provided by the SBA. and put the business in an unfortunate, financial situation. The business should be sufficiently capitalized to avoid the possibility of defaulting on the loan. Detailed research into the franchisor’s business is crucial before applying for any type of loan. THE GOOD NEWS On the bright side, the International Franchise Association (IFA) has insisted that independent small businesses have a much higher failure rate than franchised small firms. A study by the IFA indicates that franchise businesses contributed to $670 billion of economic output in 2020 and represents 3% of the total nominal gross domestic product. FRANdata predicts that the economic damages from Covid could
be erased, and franchises are projected to open more than 26,000 locations and add nearly 800,000 new jobs. The overall franchising industry has maintained a high contribution throughout Covid and will continue to grow as the economy revives from pandemic damages. w Justin Lee is a 3L at the McGeorge School of Law. He is currently an extern at Shelton Law & Associates, LLC (“SLA”). He is learning the world of franchising and intellectual property as part of the SLA team, and he plans to pursue a career in entertainment law. SLA additionally works with entrepreneurs buying franchises by assisting with business creation, industry evaluations, franchise disclosure document review, fairness factors, opinion letters, and negotiations. Further, SLA assists in navigating the SBA loans for franchisors and franchisees. For more information or to schedule a customized consultation for your business, you can write to franchising@SLA.Law or call (866) 99-FRANCHISE.
NOV-DEC 2021 | FRANCHISE CONNECT 37
PHOTO BY SYDA PRODUCTIONS
THE POWER OF
Personalized marketing can boost sales and keep customers coming back.
Personalized Marketing By Mary McHugh
P
ersonalized marketing is one of the most crucial tactics that can result in increased brand loyalty and a great reputation. When we talk about the personal touch, we don’t just mean calling customers by their name. These days people want to do businesses only with brands that: • Can immediately identify them based on their buying preferences, • Have instant access to information about every interaction on every buying channel, and • Understand their customers’ issues and know how to solve them.
Better Customer Experience
A Salesforce report shows that the bombardment of advertisements does not work well on customers these days. Instead, 58% of customers say that personalization is an important factor in deciding whether to buy from a company and determining a company’s reputation. Customers are now willing to share 38 FRANCHISE CONNECT | NOV-DEC 2021
their personal data so that businesses can understand what they truly want. This oneon-one interaction between a client and the business can help them reconnect and will create a better experience for the customer as well as respect for the business.
that taps into their emotions, brings them nostalgia, or is about a cause they care about. This can spark positive memories or a sense of purpose in customers that can guide their buying behavior.
Boost in Revenue
A custom-tailored newsletter with personalized recommendations can help you retain customers by re-engaging them to your brand and showing them the business has a lot to offer them. You should also reward your frequent customers by offering them free deliveries, sending them a giveaway, or giving them coupon codes related to products that interest them. Personalized marketing can improve customer retention by 5%, which can boost revenue by 95%. Businesses need to see things from their customers’ perspectives to increase brand loyalty. Personalization can help your customers discover things they were unaware of and lead to unplanned buying decisions. When implemented correctly, personalized marketing can have a wonderful effect on your company’s sales. w
A survey conducted by Accenture shows that at least 50% of customers will shop at a store if the staff knows them by their name, and two-thirds will do so if the retailer knows their purchase history. Businesses can create a hyper-personalized experience for their customers by segmenting them according to age, location, gender, revenue, etc., and offering them loyalty programs, sales promotions, and discounted deals based on the gathered data.
Increased Emotional Buying
When you have customers’ data, it becomes easy for businesses to know what touches their hearts. Customers buy items like clothing, shampoos, and even water bottles if they see an advertising campaign
Improved Customer Retention
TRANSFORMING VETERANS
into Franchise Owners
By Candra Jackson and Lynne D. Shelton, Esq.
V
eterans sacrifice their lives, precious time with loved ones, and sometimes their dreams to serve this country. There are programs across the county dedicated to helping veterans and their spouses select which franchise to own, in addition to training on how to successfully run and operate a business. Many franchise systems and suppliers offer veteran discounts, creating financial
incentives to own a franchise. Providing own and manage a franchise. access to programs dedicated to transitionIn support of veterans in their franchising ing honorable veterans and military spouses endeavors, the attorneys at Shelton Law back to civilian life through franchise owner- & Associates offer discounts to veterans ship is an impactful way to utilize the skills interested in franchising and assists franchiveterans acquire while serving the nation. sors with developing veteran-run franchise According to the International Franchise systems. Association, veterans make up 14% of the Several programs and resources are availoverall franchising network. After complet- able to veterans, but one program in paring service, veterans apply the same skills ticular puts their money where their mouth used in service to lead, delegate orders, and is. The Veteran Franchise Initiative offered meet goals to their role as franchise owners, through Veteran 2 Employment (V2E) helps thus making veterans ideal candidates to veterans own franchise businesses at no cost. V2E aims to integrate military personnel with base transition programs. A first of its kind, the Veteran Franchise Initiative bridges the gap between military personnel who do not have available funds to purchase a franchise with investors passionate about helping veterans start a franchise business. Joel Stewart, CEO of the Veteran Franchise Initiative, shares how his program impacts lives of transitioning veterans and their families. What is the Veteran Franchise Initiative? The Veteran Franchise Initiative is a certified apprenticeship program that helps veterans purchase 51% or more controlling interest
40 FRANCHISE CONNECT | NOV-DEC 2021
LEGAL ADVICE
Creating access to franchise ownership through veteran assistance programs. in a franchise as the designated manager. The program is more than just a catalyst to entrepreneurship; it also requires veterans to complete an extensive two- or threeyear management apprenticeship with a partnered franchise. After veterans complete the apprenticeship, a portion of the profits earned during the program is redistributed into a grant fund used to purchase the franchise’s majority ownership stake at no cost to the veteran. What are the franchise selection and pairing processes for interested veterans? First, interested veterans go through a vetting period to qualify for the program. Once qualified, applicants undergo a franchise navigator assessment to better understand their skills and areas of opportunity. After the assessment is complete, applicants receive an individualized consultation to identify their background, goals, and interest to assist program administrators in pairing applicants with the right franchise. Applicants are then paired with a partnered franchise that is aligned with their career goals and passions. The Veteran Franchise Initiative has established several relationships with franchisors that are willing to participate in the program. This approach allows franchisees to focus on opening new locations, not new franchises. The program offers a diverse selection of franchises across several industries like sandwiches, senior care, axe throwing, government contracting, bio-hazard removal, and automotive—with many of these partnerships ready for business.
So, what is the big takeaway of the Veteran Franchise Initiative? Joel made it clear that “helping veterans own a franchise makes perfect sense because veterans thrive in an environment where they are expected to use their skills and strategies to manage business operations and daily processes successfully.” Franchisors need people who can do all of that efficiently. How do veteran franchise programs impact lives of veterans? Statistics show veterans are much happier owning their own businesses than working in the service sector. In a study reported by Military.com, veterans are five times more dissatisfied with their work and experience
SUPPORT A VETERAN AND CHANGE A LIFE You can give a one-time or recurring donation by visiting, www.donorbox.org/v2e-scholarships or www.phantomsupport.org/donate For more information about the Veterans 2 Employment program, visit online at www.veterans2employment.com For more information about the many services provided by Operation Phantom Support visit, www.phantomsupport.org To locate the franchise directory available to veterans, visit www.vetfran.org
dissatisfaction with their job at an accelerating rate of 11%. Creating an avenue to franchise ownership could reduce the proportion of unhappy and dissatisfied veterans, increasing their quality of life on several fronts. Pun intended. When done correctly, franchise ownership results in generational wealth and access to resources. Veteran franchise programs offered across the United States gives veterans the tools to successfully transition to franchise owners while also helping them earn a satisfying and rewarding career. w Candra Jackson is a third-year law student at the McGeorge School of Law and current extern at Shelton Law & Associates. She is proud to be part of the Shelton Law & Associates Franchise Team. As part of the team. She works alongside attorneys who offer guidance and support to franchisors and franchisees as they achieve their franchise goals. Shelton Law & Associates (“SLA”) attorneys have 50+ years of business consulting, franchise and trademark experience. Their knowledge facilitates an understanding of a large variety of businesses, services, and technologies. They help businesses protect their brands through trademark, copyright, and business contractual transactions. These services allow SLA to “Expand their Brand®” through franchising. For franchisors, SLA provides full outsourced in-house counsel. SLA additionally works with entrepreneurs buying franchises by assisting with business creation, industry evaluations, franchise disclosure document review, fairness factors, opinion letters, and negotiations. For more information or to schedule a customized consultation for your business you can write to franchising@SLA.Law or call (866) 99-FRANCHISE.
Among the many fitness options, these are particularly enticing. By Brian LaCour
A
fter generating a record revenue of $35 billion in 2019, the U.S. fitness industry generated just $15 billion in 2020, a loss of about $20.4 billion or 58% due to temporary club closures and restricted capacities mandated by local and state governments to prevent the spread of Covid-19. So why are entrepreneurs diving into the industry? Very much like the S&P 500 index, the greatest opportunities are created within the downturn of the market. The fitness industry is geared up for a strong comeback. There are multiple reasons for optimism: U.S. clubs saw 79% to 85% of members returning in the first few months of 2021, health is more of priority for Americans, individuals have a desire to get back into gyms and experience community after being in lockdown, displaced members from closed clubs are looking for new workout
42 FRANCHISE CONNECT | NOV-DEC 2021
options, consumers do not view online workout as a replacement but rather an add-on to gym memberships. So, you may wonder, with so many fitness boutiques and CrossFit gyms, which are the better ones? Let me share what I have uncovered. ◗ High intensity interval training (HIIT) classes incorporate boxing, kickboxing, and other martial arts for both kids and adults. Programs that uniquely combine
the martial arts philosophy of discipline, determination, respect, energy of cardio, weight, and HIIT training give participants amazing results. This fusion fully integrates the mind and body, delivering a transformative fitness experience. These types of concepts offer owner operator and semi-absentee models. The studios range in size from 2,400 to 5,000 rentable square feet, depending on the concept
PHOTO BY PHOTOGRAPHEE.EU
CHECK OUT THESE GROWING FITNESS BOUTIQUE FRANCHISES
model. The average total investment is $139,650 to $695,614; investment will vary with size and location. ◗ The global yoga market is forecast to reach $66.2 billion by 2027 and is expected to have a compound annual growth rate of 9.6% from 2021 to 2027. Hot Yoga Fitness Boutique’s approach to yoga makes it less foreign and more accessible to more people. Clients learn to stay present and grounded in their practice. Many find their confidence, sense of peace, gratitude, and empowerment as a result of the practice. A simple boutique studio that holds about 25 students with a small retail and lounge area would be about 1,100 square feet. The average total investment is $150,000 to $225,000; investment will vary with size and location. ◗ Concepts that combine sports with fun and offer thrills with nonstop entertainment for families and friends are gaining popularity. They have challenges in a range of physical and mental activities for visitors of all ages. Each location becomes the family’s top choice in entertainment. Having active entertainment as a shared experience helps both children and adults remain healthy and have fun. Some brands are flexible with their models, i.e., a small location is 17,000 to 18,000 square feet with a total investment range of $627,097 to $755,739, a medium location around 20,000 square feet with a total investment range of $825,088 to 1,295,723, and a large location around 25,000 square feet and a total investment range of $1,257,093 to $1,947,981. w Brian LaCour is a certified franchise consultant. He has more than 20 years of business leadership experience in driving fiscal results, strategic planning, saving costs, increasing revenue, streamlining processes, and developing top performing teams. LaCour’s passion for helping people led him to the role of president of the International Franchise Group. Call LaCour at (561) 502-7283 or email him at blacour @internationalfranchisegroup.com.
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info@franchiseconnectmag.com NOV-DEC 2021 | FRANCHISE CONNECT 43
Health and Fitness Franchises Are Racing Back from the Pandemic In spite of the pandemic, fitness franchises are booming. By Rick Grossmann
F
ranchising has changed over the last couple of years with the fallout from the Covid-19 pandemic. It has reached everyone and countless businesses around the world. Unfortunately, many businesses didn’t survive. The ones that did make it had to pivot and, in some cases, completely change the way they were doing business. The successful health and fitness industry leaders did just that. I am seeing everything from online fitness training to telemedicine. I wanted to explore these trends and share them with my readers to keep in mind as we move forward in the new world of franchising. More people than ever are now comfortable with online video meetings. I often
44 FRANCHISE CONNECT | NOV-DEC 2021
joke and say “Your grandmother didn’t even “Brick-and-mortar gyms are back, and bouknow how to turn the computer on before tique fitness customers are excited to return the pandemic, but now she has five Zoom to in-person fitness across our growing francalls per day.” This chised studio base.” Here are their actual reality has created statistics for third quarter of this year: a whole new way to ◗ Opened 68 new studios, increasing total implement marketstudio count to 1,907 at the end of the ing, sales, training, third quarter of 2021. and coaching; meet ◗ Sold 248 franchise licenses, compared to and plan; and even 50 in the third quarter of 2020. have virtual events. ◗ Reported fifth consecutive quarter of Many businesses cresequential North American system-wide ated online alternasales improvement, representing consistent tives for customers system recovery since the second quarter to continue to use of 2020. their products and services. ◗ Nearly 90% North American run-rate averXponential Fitness CEO Anthony Geisler age unit volume recovery compared to Janusaid as his third quarter report announcement, ary 31, 2020.
NEW OPPORTUNITIES REPRESENT THE CHANGING MARKET AND THE CONSUMER NEEDS AND WANTS.
EXPERT ADVICE
The health and fitness category is a strong contender to consider for those seeking franchise ownership in the new year. Cole Arranaga, vice president of sales and operations at D1 Training, stated, “Despite all that happened due to the pandemic, D1 has been posting record-breaking revenue every month since June of 2020. Specifically, same-store total revenue is up nearly 70% year-over year (2020 vs. 2021), with our top performing programs being Scholastic (up 80% year-over-year) and Personal Training (up 106% year-over-year). We have also signed 15 franchise agreements comprising 29 units year-to-date, with an additional 165+ in various stages of development.” When I asked him what leadership and operational strategies they implemented to survive the pandemic, he said, “During this uncertain time, D1 Training established its mission to find ways to connect with its members to keep our community intact and provide ways for franchisees to maintain and further grow their business. As a response, we launched our D1toU program to help unite members outside of the gym and keep individuals accountable for working toward and achieving their fitness goals.” I have seen other new innovative brands building momentum to launch their franchise opportunities in early 2022 that will create or round out newer franchise categories. Mobile Doctors offer mobile medical services together with video medicine to take the services to their patients. Gameday Men’s Health is a testosterone replacement clinic that offers a variety of health solutions for men, and Cosmic Veggies is a plant-based and gluten-free fast-casual food bar that is addressing the growing interest in healthier alternatives to other traditional options. These new opportunities represent the changing market and the consumer needs and wants. This is why it is important for both franchisors and franchisees to factor in the “new post-pandemic" marketplace. Many of these trends will remain after things move toward normalizing due to the convenience factor and the fact that most people are now comfortable with mobile apps and online meetings, for instance.
We are all tired of the restrictions that the Covid-19 pandemic have caused in our lives. People around the world are anxious to return to normal life. The franchise brands that were able to pivot and innovate in the health and fitness industry are coming back strong. Everyone has been isolated and now seek to get out and get healthy once again. The health and fitness category is a strong contender to consider for those seeking franchise ownership in the new year. A new business for your New Year’s resolution could be just what the doctor ordered. The franchise market is already starting to rebound, and more people are thinking about business ownership due to lay-offs, business closures, furloughs, and a host of
other reasons. We are seeing buyers with equity in their homes, good credit, and money in the bank to invest, which gives them more options. The health and fitness category is definitely one to keep an eye on. w Rick Grossmann is the author of Entrepreneur magazine's Franchise Bible series and his 9th edition was released worldwide in April of 2021. He also is a contributing author to Entrepreneur magazine and other industry publications on the subject of franchising and business. He currently heads up the Entrepreneur Franchise Advisors program, serves as an executive coach and strategist for multiple franchise clients, and is the co-host of the Franchise Bible Coach Radio Podcast with Rick and Rob. www.franchisebiblecoach.com
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COMPANY PROFILE
The Most Personalized Group Training in the world!
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Combining the best of personal training with group fitness
ur co-founder, Olympic Gold Medalist Bryan Clay, readily admits that the biggest difference between him and everyone else was his team. Trainers, nutritionists, coaches, and sports psychologists all influenced his training over his almost 20year professional career. To reach new heights in your fitness and performance, you also need expert guidance. Eat The Frog Fitness is the only personalized group training program that combines athletic-inspired training and the science of your body to achieve incredible results. Live Coached & Virtual In-Studio Training Eat The Frog Fitness is known for our live-coached and virtual in-studio sessions - offered 24 hours a day, 7 days a week. Most recently, we launched Frog On-The-Go for members to workout from the comfort of their homes. Minimal Staffing In-studio virtual sessions eliminate coach-led sessions up to 50% per day, reducing your overall payroll expenses since the studio can remain open with no staff needed all while you are fully operational during non-peak hours.
Our Equipment Our world-class equipment consists of Concept 2 rowers, Kaiser spin bikes, TRX bands, Trigger Point Foam Rollers, Alpha Sand Bags, and the Nubell weight system, all of which are low impact, biomechanically sound, and powered by your body - reducing your initial investment and long term maintenance costs. Position In The Market – Net Promoter Score Our membership experience is reflected in our world-class Net Promoter Score®, or NPS®, which measures customer experience and predicts business growth. We are very proud of our 90+ average and believe it is a positive indicator of Eat The Frog Fitness's future growth. Industry trends favor boutique Fitness. Over the last five years, consumers who reported being members of boutique studios grew by 121%, significantly more than the 18% growth experienced by commercial fitness facilities over the same period (IHRSA).
Technology Driven Company With custom heart rate technology (no one-size-fits all algorithm here), 24/7 access, best in class security, global delivery of workouts, a proprietary algorithm to deliver personalized workout training plans, and the Eat The Fitness app - we use technology to deliver the most personalized workout experience available. Immersive Experience With oversized IMax style screens, it is easy to follow along with the session instruction. Plus, lights and music change to match suggested heart rate training zones for a fully immersive experience unlike anywhere else.
EAT THE FROG FITNESS 22619 SE 64th PL Issaquah, WA 98027
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1 (800) 841-8363 franchise@etffitness.com www.frogfranchise.com
COMPANY PROFILE
In the Global Pandemic, One Fitness Franchise Concept is Taking Advantage of Its Unique Position in the Market. BODY20, the leading Electro-Muscle Stimulation (EMS) Fitness Concept in the United States is enjoying record growth due to its Pandemic Proof Business Model
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here are very few significant technological breakthroughs in fitness, especially one as fundamental as how the human body builds strength and muscle. BODY20 is disrupting the $90 billion dollar fitness industry and is going to change the way people workout letting EVERY.BODY.UNLEASH their full potential. Using the proprietary BODY20 electro-muscle stimulation (EMS) training method BODY20 can give its clients the benefit of a 2 hour full body workout in just 20 minutes with no needs for weights or added resistance. Even more importantly, in a time when so many gym-goers and group fitnesss buffs are shunning their crowded gyms and classes for at home workouts, BODY20 is thriving due to its one-on-one private EMS training model. A business model, that through its revolutionary technology, allows its members to build strength and muscle without even touching a single piece of gym equipment and while maintaining a safe distance between trainer and client. While BODY20 and EMS workouts are new to the United States, they are wildly popular across Europe with over 1,700 EMS Fitness studios in Germany alone. So why aren't there thousands of EMS studios in the United States? With recent FDA Clearance of the BODY20 devices, the company believes it is only a matter of time before EMS will be as common place in the United States as Pilates, Barre, and HIIT workouts. Considering opening a BODY20 Studio and want to know if it’s right for you? Are you obsessed with fitness? Are you driven, motivated and a self-starter who wants to jump on board with the future of fitness technology? Are you a leader or entrepreneur looking for something more? Well, you’ve come to the right place. BODY20 is looking for high performance minded and motivated individuals with a passion for fitness and the requisite business experience. While not required we focus on management experience, sales experience and a strong
understanding of service businesses. Prospective franchisees must have liquid capital in excess of $100,000 and be ready to make a full time commitment. So while Humans have built muscle the same way for thousands of years…….. lifting heavy objects. BODY20 has a better way. With no strain on tendons, ligaments, or joints, BODY20 allows its customers to get 36,000 muscle contractions in just 20 minutes while building muscle, burning fat and toning up. If you want to be part of the fitness future and love the idea of working for yourself while also helping people look and feel great, BODY20 would love to talk to you about joining their growing team of Independent Franchisees.
BODY20 101 Plaza Real South North Unit 210 Boca Raton, FL 33432
(970) 313-3603 info@bodytwenty.com www.bodytwenty.com
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COMPANY PROFILE
ITEK Construction & Consulting
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Full-Service Construction
TEK Construction is a full service construction company, located in Herndon Virginia. Established in 1994 with a clear strategy of continuing growth, as a general contractor, ITEK Construction, Inc. has built a solid reputation of stability and exceptional client services. Our quality and satisfactory services are the reason why a large percentage of our business is with repeat clients who place their trust in us. We are committed to providing the necessary resources to complete the project on time and within budget despite the many challenges that are encountered. We manage all aspects of the commercial construction process. Our talented and loyal staff is the core of our success. Our team has broad skills and experience in construction estimating, management, and project development. ITEK believes that every client should enjoy a finished project with their expectations surpassed. The owners are integrated in the construction process. We continue to be recognized for our top-notch construction workmanship, superior commercial construction services to our clients, highest level of safety standards and contributions to our community. ITEK has been exceeding the established goals in almost every instance. Pursuing satisfaction of our clients in the construction industry, we tackle each challenge with safe, reliable and innovative solutions.
We believe that the highest quality work and customer satisfaction result from adherence to these values. SKILLS & KNOWLEDGE We approach every project with one goal in mind; to exceed client’s expectations. We are able to achieve this goal because we hire the finest talent, manage every detail, imagine the unknown and articulate it for others, translate the new ideas into concrete forms and set one of the highest quality standards in the commercial construction industry. APPROACH Organizations demand fast and efficient projects that do not interrupt their business operations. At ITEK, project success is determined early on, sometimes even before actual work begins. We continually seek alternatives that will reduce the cost and duration of each project, while maintaining clean, safe and unobtrusive construction sites. We seek to understand the foundations of our clients’ criteria for decision making.
CORE VALUES We believe that fostering relationships, constant pursuit of excellence, community responsibility and ethical behavior yield the highest quality of work. Project success is determined by understanding our clients needs, business objectives, and even their competitive markets, in order to accurately define their real project needs and constraints.
ITEK CONSTRUCTION INC. 627 Carlisle Drive Herndon, VA 20170
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(703) 261-6663 oyazgan@itekconstruction.com www.itekconstruction.com
COMPANY PROFILE
Your Passion. Your Patients. Your Profits. Why ApexNetwork Franchise is the best choice in the industry.
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pexNetwork Physical Therapy specializes in outpatient physical therapy and industrial rehabilitation. With more than 20 years of experience and 90+ locations in 13 states, they are one of the leading sources for owning and operating therapy clinics. Their growing brand strength and recognition are synonymous with exceptional rehabilitation services. At ApexNetwork, the operations team guides you in site selection, lease consultation, strategic operational efficiencies, patient compliance, and ongoing practical review of KPIs and data analytics. Billing and collection services will be handled by experienced professionals to maximize reimbursement and improve collections. Other billing services include insurance credentialing, guidance with Medicare and HIPAA compliance, and insurance regulation updates. ApexNetwork provides state and federal compliance policies, as well as procedure manuals, web-based human resource support and management systems. Their marketing team provides training in effective marketing techniques and work with you to develop a customized and strategic marketing plan enabling you to grow your referral base and patient volume. They provide website maintenance, social media and SEO management, and patient review tracking. In the ever-changing media world, the ApexNetwork advertising and design team stays on top of trends assisting with development of distinctive branded materials.
ApexNetwork Physical Therapy offers unique business models that are designed to maximize profitability by providing you with the tools and resources to optimize your practice as a Franchisee. Models include 100% Ownership, Partnerships, and Conversions. So, whether you own your practice, or would like to open up your own, we invite you to explore teaming up with ApexNetwork Physical Therapy.
“The franchise route was the best route because I didn’t have to make expensive mistakes. Apex’s support with billing, credentialing, human resources, marketing and advertising allows me to build a network in my region as big or as small as the region can sustain. It is completely scalable. Once I was committed to the process, everything unfolded as expected, as it should. ApexNetwork allows me to the opportunity to bring high quality services to an underserved region with a system and a model with a demonstrated track record. It then becomes my choice how far I want to take it.” – Tim C. APEXNETWORK PHYSICAL THERAPY 15 Apex Drive Highland, Illinois 62249 apexnetworkfranchise.com
(314) 312-0129 franchise@apexnetworkpt.com jhettenhausen@apexnetworkpt.com
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COMPANY PROFILE
DivaDance
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Dance choreography classes for adults.
he mission of DivaDance is to change lives while inspiring confidence and building community through dance choreography classes for adults! Now in 20 cities across the country (and a robust online class offering), DivaDance makes dance class accessible, inclusive, stress-free, and FUN. The DivaDance franchise is a unique model with no required facility build out or long term lease, as DivaDance franchise owners identify local partnerships and facilities where they can consistently hold classes such as rec centers, children’s dance studios, community centers, and even Jazzercise facilities! This makes the initial investment even more accessible and the model recessionresilient. Founded by former music executive, Jami Stigliano, DivaDance was created after she left a dance class at a famous New York City studio - feeling frustrated by the stressful and competitive environment. Determined to redefine the dance class experience for those who aren’t Broadway or Beyonce-backup bound, she began curating her own classes for Manhattanites looking for a fun way to do what they love
and to find community. While weight loss and health/fitness goals are a benefit of dance cardio classes, DivaDance focuses more on body positivity, inclusivity, and the self-care benefits of committing to dance as a lifetime hobby. And franchisees are loving what this does for the ladies in their area. Says Rashaida Melvin, owner of DivaDance Washington, DC, “I wanted to be a part of an inclusive dance community, one that is completely free of competition and welcomes everyone. I have danced since the age of 3 and I love being able to provide community for people with varying ranges of dance experience. As an adult, especially in DC, it is easy to get lost in professional (and personal) goals. At every class, we are able to offer ourselves and our clients a break from reality and an opportunity to invest in themselves.” DivaDance Franchising is headquartered in Austin, Texas and actively looking to expand to even more cities nationwide! The total investment necessary to begin operation of a DivaDance Franchise is between $41,100 and $57,600. This includes $28,000 that must be paid to the franchisor.
DIVADANCE HQ 3823 Airport Blvd, Ste D Austin, TX 78722
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(254) 307-2781 HQ@divadancecompany.com www.divadancecompany.com
COMPANY PROFILE
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Total Row Fitness Join the Rowing Revolution!
otal Row is a rowing centric group boutique fitness studio. Headquartered in Atlanta, Georgia husband and wife owners, Elliott and Lauren Smith, built Total Row on 3 founding principles: (1) Provide a scalable workout that someone of any age or ability can enjoy, (2) Broaden the target market of those looking to join group fitness classes, and (3) Give back to their local community. There is a reason rowing is making waves in the fitness industry! “We had worked out for years before, and most places are really intimidating unless you fit a very specific demographic. We decided to change this and created Total Row. By putting rowing front and center, we took advantage of the exercise’s total body, low-impact motion that almost anyone can do. Our studio is warm and welcoming, and it is a nice reprise from the celebrity instructors and head-banging music,” said Elliott. Because Total Row classes always have rowers
as the central cardio component, classes are total body, low-impact, and calorie-torchers (participants can burn up to 900 calories per class)! With the addition of suspension bands, kettle bells, slam balls, yoga, and more, each class is unique and fun! Classes are scalable to any age or ability, and we have members that range from Olympic gold medalists to grandparents! The Total Row Franchise is committed to supporting the communities that help it thrive. Each year, the company donates to 10 different charities through its “Give Me 10 Big Ones” program. Total Row franchises are unique, scalable, flexible and are built to thrive in both small and large markets. If you have a passion for helping people live better, healthier lives, we want you on our Crew! Total Row Studios have a low fixed cost structure, which opens the reality of owning an exciting, impactful business to a wide range of investment levels!
TOTAL ROW FITNESS
3655 Roswell Road Suite 204 Atlanta, Ga 30342
(404) 247-9328 studio@totalrowfitness.com www.totalrowfitness.com
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BY THE NUMBERS
THE GLOBAL HEALTH CLUB MARKET IS WORTH APPROXIMATELY
$96.7 BILLION, WITH 210,000 CLUBS AND OVER 184 MILLION
MEMBERS WORLDWIDE. IN TERMS OF FITNESS MARKET GROWTH, THIS IS AN INCREASE OF 1 MILLION MEMBERS SINCE 2019 (A SLOWER GROWTH RATE THAN PREVIOUS YEARS).
1.1%
3.1% GYM & FITNESS FRANCHISES IN THE US BUSINESS GROWTH IN 2021.
GYM & FITNESS FRANCHISES IN THE U.S. ANNUALIZED BUSINESS GROWTH 2016–2021. IBISWORLD
IBISWORLD
WEARABLE TECHNOLOGY IS THE NUMBER ONE TREND FOR 2021. MODERN GENTLEMEN
NORTH AMERICA CURRENTLY HAS THE GREATEST MARKET SHARE BUT ASIA PACIFIC IS EXPECTED TO SEE THE LARGEST GROWTH IN THE FUTURE.
PRIOR TO THE PANDEMIC, THE ONLINE FITNESS MARKET WAS VALUED AT
$6BN.
THE GYM INDUSTRY HAS A REPUTATION FOR A HIGH TURNOVER OF MEMBERS. THE AVERAGE RETENTION RATE IS
72.4%.
THE U.S. IS THE WORLD’S LARGEST HEALTH AND WELLNESS MARKET, WITH
41,370 CLUBS, AND AN ANNUAL GROWTH RATE OF
4.5%
(PRE-COVID). INDUSTRY REVENUE IS GROWING AT A SLIGHTLY HIGHER RATE OF
8.4%
AND IS CURRENTLY ESTIMATED AT $35 BILLION.
230 MILLION BY 2030.
ACCORDING TO REVENUE, LA FITNESS IS THE TOP-RANKING U.S. COMPANY. MODERN GENTLEMEN
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504
GYM & FITNESS FRANCHISE BUSINESSES IN THE U.S. IN 2021. IBISWORLD
© FRANCHISE CONNECT MAGAZINE
THE NUMBER OF GYM MEMBERS IS EXPECTED TO REACH
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