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Muscle power

Sarah Stowe

We all know that exercise is good for us. It can improve physical and emotional health, manage stress — and, let’s face it, who wouldn’t rather hit the beach or pool with a slim, toned body than a flabby one? So what could be more satisfying than helping people to change their lives for the better?

The benefits of owning a fitness franchise don’t stop there. The sector encompasses many different models so you can match the type of business to your interests and goals. There’s also an opportunity to extend the business by increasing the range of services you offer. For instance, Fernwood can provide nutritional advice and weight loss solutions and Anytime Fitness offers tailored corporate wellness programs, while Contours has developed a successful clothing and merchandise range. Others, like Jetts, pare the experience down to the basic ‘nuts and bolts’ in order to keep costs to a minimum.

 

Contours

A complete work out in just 29 minutes, including warm up and stretching…it’s a tempting proposition, especially for women who don’t have the time or inclination to spend hours in the gym.

“The system keeps everyone moving, so there’s no waiting around for equipment,” says Justin Wilshaw, Contours CEO. “And because each session combines weight bearing equipment with a cardio workout, our members get real results. Women of all fitness levels also appreciate the fun, friendly and relaxed atmosphere where they can feel comfortable and confident working out.”

Since 2005, the Contours network has grown to over 150 studios. Franchisees come from many different backgrounds but all have one thing in common — a passion for helping women improve their health and fitness.

“Passion is important; love your work and it turns into play,” say Alison Cooper who, with husband Chris, owns a Contours franchise in Bowral. “Running a studio does need hard work, but it’s worth it when you’re taking members to a new level of health and fitness, literally giving them back lives they had forgotten about.”

A new studio costs about $150,000 and, for that, Contours provides proven and tested business systems, ongoing training, an annual marketing and promotions calendar and a tailored computer system to help with day-to-day business. As well as receiving help with national and local area marketing, each franchisee has a studio page on the Contours website.

“On average, the Contours website receives over 15,000 hits per month and generates an average of 1,000 leads direct to our studios,” says Wilshaw.

Franchisees are also encouraged to become involved in community events. “Working with the media was part of Contours HQ training and, as a result, we have made the front page of our local newspaper on two occasions in the two years we have been open,” says Cooper. “We’ve also had numerous stories published as editorial. That’s incredibly effective advertising — and it’s free!”

Fernwood

It’s been more than 20 years since Diana Williams recognised a need for women to have their own space to work out and enjoy regular exercise. Fernwood was born when, in 1989, she opened Australia’s first women’s health club in central Victoria. Today, with 68,000 members, over 2,000 employees and 60 franchised units around the country, it is the largest organisation of its kind.

“Our success is built on the quality of our franchisees,” Williams says. “We look for business acumen, people skills and a passion for improving the quality of women’s lives.”

Ben Cook’s passion developed from the inside. When he took on the role of Fernwood’s financial controller/CFO in 2003, the thought of owning a franchise hadn’t crossed his mind. Then, as he saw first hand how the model operated, he grew more and more attracted to the prospect of running his own club.

“Being a conservative person by nature, I loved the safety net that comes from being a part of a franchise model,” he says. “I love all the advantages that franchising brings, like economies of scale, a strong brand and a great support network. When I had a chance to buy my local Bendigo club, I jumped at it.”

It costs about $800,000 to get a greenfield club up and running, less for one which is already established. This includes a franchise fee of $55,000 plus GST, a week of intensive training in the club, followed by ongoing support from the field support team. Cook says that help with marketing and advertising is key.

“The central advertising fund is used to develop and enhance the brand and develop national marketing initiatives as well as things like social media strategies and search engine optimisation — things you might not have the resources or the know-how to do on your own.”

As with any service-based franchise, local area marketing is crucial.

“With Fernwood, you have people all over the country coming up with ideas and everyone is happy to share information,” says Cook. “If you see someone is doing well you can just pick up the phone and ask what they’ve been up to, then either try the strategy yourself or adapt it to suit your own environment.”

Anytime fitness

In the US, a new Anytime Fitness club opens every business day and a new member joins every three minutes. Justin McDonell and his sister Jacinta McDonell Jiminez were impressed; so impressed that they brought the concept to Australia. In just over two years, they have opened 41 clubs in Australia and four in New Zealand.

“We have around 100 more in development,” says McDonell. “We’re opening a new club every week.”

Originally developed as an alternative to larger and more expensive health clubs, Anytime Fitness offers far greater flexibility. Members receive a card which opens the door of every Anytime Fitness club in the world, any time of the day or night. Once inside, they can use a variety of cardio, strength and free weight equipment as well as private changing and shower facilities.

“While the majority of members use the club between 4.45am and 11pm, people like shift workers really appreciate being able to work out outside these hours,” says McDonell.

The ideal location for a club has easy parking and is close to where people live. Most people don’t enjoy the gym — it’s more like a chore they want to get out of the way. We try to make it easy for them to park at the door, walk in, train and go home.”

Anytime Fitness is as convenient for franchisees as it is for members.

“The clubs are staffed for around 50 hours a week by just one person so they’re extremely easy to manage,” continues McDonell. “They all have a very sophisticated camera-based security system and, as long as you’ve got an internet connection, you can see what’s happening. For instance, I can be sitting in my Lane Cove office, dial in and have a look around the club I own in New Zealand. We also have all of our sales and systems online so you can check the figures at any time.”

This also makes it easy to own more than one club; already, two franchisees have five clubs each and around half are considering a second or third.

The initial investment is about $200,000 depending on location.

“We keep our monthly franchise fees low and fixed to help franchisees benefit from their own business’ growth,” says McDonell. “Our top-performing owners have a total passion for the product and just love the sales and marketing too. They also have great people skills — above all, this is a people business.”