These clubs typically attract married folks, aged 35 to 55, with kids. "Running these gyms is a breeze," Taunton tells prospective franchisees in a weekly conference call. They can view live footage of their clubs remotely. Franchisees have online access to revenue reports and visit counts. Some franchisees run the gyms as a side business 60% of them are absentee owners with other full-time jobs. "We pull up with our 18-wheeler that's basically a store ready to be unpacked," says Taunton, 46. Once a lease is signed, a club can be outfitted and opened in ten days. Snap, the parent, also collects a one-time $5 fee for each security card issued it gets another $5 for "billing setup." (Curves, the women's chain, charges a $30,000 license fee and a monthly royalty fee of up to $800.)įranchisees can break even on 275 members in as little as three months. After that franchisees pay Snap a royalty fee of $400 a month plus 50 cents for each membership. The capital outlay includes $120,000 for equipment, tvs, a card key system, a surveillance camera and a one-time $15,000 license fee. Most of the 820 owners paid $175,000 to open a Snap Fitness club, and many are in rented space. "We offer a fitness product that screams value," says Snap Fitness Chief Executive Peter Taunton. Most clubs are staffed only 25 to 40 hours a week. Missing from its outlets: classes, spa rooms, on-site child care and a juice bar. There are typically five treadmills, two stationary bikes, five elliptical machines and weight equipment. Snap Fitness gyms are small-only 2,500 square feet-and frills free. Membership fees for the 910 clubs-60 opened in December-with 400,000 members in 46 states are only $35 per month and are easily canceled or put on hold without penalty. But 24-hour Snap Fitness clubs are cheap and convenient. Bally's Total Fitness recently filed for Chapter 11 bankruptcy protection for the second time in 17 months. Snap Fitness may be a rarity: a gym chain that can thrive during a recession.
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