Licensees First
The Fitness For 10 licensing company puts its licensees first and believes this is the key to success. Fitness For 10 will not license a location if it is not confident of that locations success.
Successful Locations
Many licensors only concern is selling locations. It is common to hear statements like, “we have another group looking at that area so we need a quick decision”. Very little guidance and support is offered by most licensors and the business models are often designed to sell locations as opposed to creating successful locations.
When a potential Fitness For 10 licensee obtains a location, that is when they become most important to the Fitness For 10 corporate office and they stay that way. Becoming a Fitness For 10 is like hiring multiple consultants with many years of success in the fitness industry.
Sales Driven Models Are Vulnerable
The Fitness For 10 model is a simple business for operators to be successful in. Health clubs are a neighborhood business and have traditionally been as good as the operator in each location. In the past the operator has had to have a strong sales background and have significant expertise in a sales driven health club model in order to maintain any level of success. Good sales driven models not only require a skilled and experienced operator but also an operator willing to work at least 60 to 70 hours per week. Sales driven models usually require approximately 50 employees per location which leaves many broad areas exposed to failure.
Our Low Priced Service Model Does Work
Fitness For 10 is a low priced service oriented model. The only requirements of an operator using this model is that he or she be people oriented and have basic business and people sense. The operator will work about 50 hours per week and have significant support from the Fitness For 10 licensor. If an operator chooses a location wisely, follows the directions and utilizes the online support of the franchisor, success will follow. The Fitness For 10 model can be operated with as few as 5 to 10 employees allowing for higher quality staff members and much less room for error.
Why Small Express Models Don’t Work!
Small health club models are usually 4,000 square feet or less. These facilities are too small to create value for potential members. Small health clubs have minimal space and equipment. Parking is usually limited making it impossible to generate volume.
The problem is the price point and the volume a small club can generate. Large full service, fully equipped health clubs sell memberships as low as $29 per month. The question for a small express club is what should the monthly dues rate be? The problem is obvious. The price must match the value of the club. Small express clubs must get a higher dues payment per member because they can service very few members. This causes the small express club to price itself out of the market. If the club sets dues rates under $20, which is where the value matches the club, it can’t do the needed volume to turn a profit because the club is too small.
Fitness For 10 Provides Extreme Value
Fitness For 10 locations are large enough and very well equipped. With memberships as low as $10 per month, the value far surpasses the small express model and the larger traditional health club model. The value offered by Fitness For 10 locations generates significant volume. The traditional full service health club is unable to match the low cost memberships offered by Fitness For 10 because the traditional model’s overhead is much higher.
Fitness For 10 believes successful health clubs in the future will be either high priced or low priced. Clubs competing in the middle ground will eventually be eliminated just like in all industries.
Request more information about licensing a Fitness For 10 location.
