Snap Fitness has been named one of the top 500 franchises in the United States, ranking #51 in Entrepreneur Magazine's Franchise 500®. A fast-growing franchisor of state-of-the-art 24/7 express fitness centers, Snap Fitness was also ranked as the 20th Fastest Growing Franchise and 44th Top Global Franchise.
The rankings for all 500 companies are determined using an exclusive formula that takes into account objective and quantifiable factors. The most important factors include financial strength and stability, growth rate and size of the system. The franchises that grew the most were the ones who serve a budget-minded consumer, didn't cost as much to set up, or both.
According to company Founder and CEO Peter Taunton, Snap Fitness’ success is attributed to a business model that is set up to thrive in a fitness industry that has averaged an 8% annual growth rate since the early 1990s. “Snap Fitness continues to grow as we have proven to be the right business concept for those who wish to secure financial freedom and allows for franchise owners to follow a turnkey operational system that sets them up for success,” he added.
Snap Fitness makes its compact, state-of-the-art clubs easy to own, manage and market. Start-up costs range from $77,000 to $272,000, putting it well below the price tag of well-known franchisors in other categories. The ability to manage operations via web-based tools with little need for on-site staffing makes it attractive for entrepreneurs and others seeking opportunities that accommodate semi-absentee ownership. Snap Fitness also offers its more than half a million members a convenient, low-price alternative to traditional big-box health clubs.
Consistently opening 300-400 new clubs each year, Snap Fitness has nearly 2,000 locations open or under development worldwide. Company plans call for a total of 3,500-4,000 centers within the next several years.
Tuesday, December 29, 2009
Friday, December 18, 2009
Fitness Franchise | Ranked No. 1 in Growth Category by the AllBusiness AllStar Franchise Rankings
Burgeoning Snap Fitness Brand Ranks in Top 25 List of Nation’s Top 300 Franchise Companies
Snap Fitness continues to “flex” its muscle as one of the top franchise companies. The fastest growing franchise system featuring compact, state-of-the-art fitness centers recently ranked No. 1 in the growth rank category for the second consecutive year and No. 23 overall in a comprehensive listing of the nations top 300 franchise companies by AllBusiness.com.
AllBusiness.com’s team of editors researched, compiled, and analyzed more than 800 franchise systems to compile the AllStar Franchises list. The rankings assessed the strengths of franchising companies based upon criteria such as Web visibility and the latest financial strength scores from Dun & Bradstreet.
“Our overall ranking further validates why our business has grown at such a rapid pace,” said Peter Taunton, CEO and Founder of Snap Fitness, noting that the company has just opened its 1,000 location. “We are truly honored to be recognized as a fitness concept that offers what consumers increasingly want – a fast, convenient and affordable workout solution – and offer an appealing franchise opportunity to potential investors and club owners.”
Economically, the fitness industry has proven to be recession-proof, averaging an 8% annual growth rate since the early 1990s. Snap Fitness is the right business concept for those who wish to secure financial freedom, as it allows for franchise owners to follow a turnkey operational system that sets them up for success. Franchisees receive one-stop financing assistance, ongoing operational and marketing support and the flexibility of running their gyms as a side business. In fact, 60% of them are absentee owners with other full-time jobs.
After spending more than 20 years in the fitness industry owning and operating various big-box clubs, Taunton realized that many of the costly amenities offered in his facilities such as swimming pools, racquetball courts and childcare sat idle most of the day. Knowing most people are on the go, constantly seeking balance between work and family, he designed a model that incorporated the most readily used health club equipment into a smaller, more efficient, passcard-secure facility. By doing this, he was able to deliver 24/7 access, affordable membership pricing and top-quality exercise equipment worldwide.
Today, Snap Fitness has nearly 2,000 locations open or under development worldwide. Company plans call for a total of 3,500-4,000 centers within the next five years.
For more information or to learn how to open a Snap Fitness Franchise, please visit www.snapfitness.com.
Friday, December 11, 2009
Survival of the Franchise Fittest | Snap Fitness Opens 1,000th Club
Less than six years after opening its first club, Snap Fitness, the fast growing franchise system featuring compact, state-of-the-art fitness centers, announces the opening of its 1,000th club in Saint Paul, Minnesota.
Having opened its first franchise in 2004, Snap Fitness is the fastest franchise system to reach 1,000 club openings in such a short period of time. Today, the burgeoning brand operates clubs in 48 states, Canada, Mexico and India – serving more than half a million members – with additional clubs currently being developed in Australia and New Zealand.
“Snap Fitness has grown at such a rapid pace because we offer what consumers increasingly want – a fast, convenient and affordable workout solution – and offer an appealing franchise opportunity to potential investors and club owners,“ said Peter Taunton, CEO and Founder of Snap Fitness. “This is a tremendous milestone for us, as we launched our franchise in Minnesota and are now opening our 1,000th club where it all began.”
Economically, the fitness industry has proven to be recession-proof, averaging an 8% annual growth rate since the early 1990s. Snap Fitness is the right business concept for those who wish to secure financial freedom, as it allows for franchise owners to follow a turnkey operational system that sets them up for success. Franchisees receive one-stop financing assistance, ongoing operational and marketing support and the flexibility of running their gyms as a side business. In fact, 60% of them are absentee owners with other full-time jobs.
After spending more than 20 years in the fitness industry owning and operating various big-box clubs, Taunton realized that many of the costly amenities offered in his facilities such as swimming pools, racquetball courts and childcare sat idle most of the day. Knowing most people are on the go, constantly seeking balance between work and family, he designed a model that incorporated the most readily used health club equipment into a smaller, more efficient, passcard-secure facility. By doing this, he was able to deliver 24/7 access, affordable membership pricing and top-quality exercise equipment worldwide.
“As more people see health and fitness as a necessity versus a luxury, we’ve honed in on what consumers want and expect from their fitness program,” Taunton added, emphasizing the company’s more than half a million members. “Snap Fitness looks forward to continuing to offer health enthusiasts worldwide with a no-frills workout option.”
Today, Snap Fitness has nearly 2,000 locations open or under development worldwide. Company plans call for a total of 3,500-4,000 centers within the next five years.
On December 14, the 1,000th fitness club, located at 1557 West Larpenteur Avenue in Falcon Heights, MN, will celebrate its opening by hosting a ribbon cutting ceremony with the local Chamber of Commerce at 12:00 PM CST.
Franchise veteran Ben Cowan, owner of the new location, as well as four others in the Minneapolis/St. Paul marketplace, has played an instrumental role in opening new clubs and reenergizing existing locations throughout the past three years. In addition, he has served as an ambassador to the brand, lobbying local government to accept the idea of 24/7 fitness clubs in the region, creating jobs and bringing new business opportunities to the local economy.
“I was looking for a franchise business that wasn’t too complicated and that would allow me to help people,” Cowan said, who also owns a 1-800-Got-Junk franchise serving the Minneapolis/St. Paul market. “I found what I was looking for in Snap Fitness and am proud to be the owner of the concept’s 1,000th club.”
Wednesday, December 2, 2009
Fitness Franchise Partners with Popular Blog, SweetiesSwag.com to Combat Holiday Excesses!
Fitness Franchise Partners with Popular Blog, SweetiesSwag.com to Combat Holiday Excesses!
Social Media the New Weapon in the Fight Against Obesity!
Snap Fitness, the fastest growing fitness franchise featuring compact, state-of-the-art fitness centers, announces a FREE holiday give-away, especially for SweetiesSwag readers.
SweetiesSwag readers are always on the look-out for a bargain, wanting to get something for free, or finding out about fabulous events they can attend inexpensively or for free. During the month of December, Snap Fitness will offer SweetiesSwag readers who are looking for free holiday gifts or stocking stuffers, a one week trial gym membership to any Snap Fitness location nationwide. This is a great gift to give a family member or friend to jump start their New Year’s Resolution – at no cost to you!
With most holiday events focused on eating elaborate meals and sweet treats, the holidays are a hard time to keep off the weight. It’s estimated that most people gain four to ten pounds between Thanksgiving and New Year's Day. If that weight gain adds up over the years it creates a big concern for people. That is why Snap Fitness is offering a free holiday give-away in December.
All participants must register online by zip code to find the nearest Snap Fitness location. Registrants will receive a FREE coupon by email and a follow-up call from their local Snap Fitness representative in order to redeem their one week trial membership and security key card to the nearest 24/7 fitness center.
“Snap Fitness is excited to offer SweetiesSwag readers this unique online opportunity during the holidays,” said Peter Taunton, Founder and CEO of Snap Fitness. “What better gift to give than fitness, which is fast, convenient and affordable at any of our 1,000 clubs located nationwide.”
For more information or to view the promotional offer details, visit http://tinyurl.com/yhyqd2w
Social Media the New Weapon in the Fight Against Obesity!
Snap Fitness, the fastest growing fitness franchise featuring compact, state-of-the-art fitness centers, announces a FREE holiday give-away, especially for SweetiesSwag readers.
SweetiesSwag readers are always on the look-out for a bargain, wanting to get something for free, or finding out about fabulous events they can attend inexpensively or for free. During the month of December, Snap Fitness will offer SweetiesSwag readers who are looking for free holiday gifts or stocking stuffers, a one week trial gym membership to any Snap Fitness location nationwide. This is a great gift to give a family member or friend to jump start their New Year’s Resolution – at no cost to you!
With most holiday events focused on eating elaborate meals and sweet treats, the holidays are a hard time to keep off the weight. It’s estimated that most people gain four to ten pounds between Thanksgiving and New Year's Day. If that weight gain adds up over the years it creates a big concern for people. That is why Snap Fitness is offering a free holiday give-away in December.
All participants must register online by zip code to find the nearest Snap Fitness location. Registrants will receive a FREE coupon by email and a follow-up call from their local Snap Fitness representative in order to redeem their one week trial membership and security key card to the nearest 24/7 fitness center.
“Snap Fitness is excited to offer SweetiesSwag readers this unique online opportunity during the holidays,” said Peter Taunton, Founder and CEO of Snap Fitness. “What better gift to give than fitness, which is fast, convenient and affordable at any of our 1,000 clubs located nationwide.”
For more information or to view the promotional offer details, visit http://tinyurl.com/yhyqd2w
Monday, November 23, 2009
Growing Fitness Franchise | Snap Fitness: An exercise in growth
The Oakland PressTough times force people to get creative and Snap Fitness proves the point.
Snap Fitness, a franchise business that started in
By the end of the year, it hopes to have as many as a dozen locations open around
“
“We never strive to be the cheapest show in the town but we do strive to offer the best value,” says Strait. “We also created a model that’s easy to use,” said Strait, noting that more and more gym enthusiasts have traded in their memberships at large clubs to join Snap Fitness.
“Our founder, Peter Taunton, used to manage ‘big box’ fitness clubs,” said Strait. “He concluded people wanted to be healthy, but they didn’t need rock-climbing walls or swimming pools. What people needed was fitness. What we offer is the same fitness equipment as the big box clubs but at a fraction of the prices,” he said. Seventy-five percent of the visitors used the cardio-vascular equipment, he said.
Launched in only 2003, Snap Fitness opened its first site in 2004 and now has more than 2,000 locations and more than 400,000 members around the world. The basic concept is to open small fitness centers with state-of- the -art equipment that are open 24 hours a day, seven days a week, Taunton said.
Stephen Collias, the owner of the Birmingham Snap Fitness location, said he had opted for a Snap Fitness franchise more than a year ago and he has been pleased with the results.
“I had owned a mortgage company,” he said. “But when that started getting soft, I decided to start a new venture. I’ve been very interested in athletics all my life and I live in
“We’re staffed from 8 a.m. to 8 p.m. (weekdays) and from 10 a.m. to 1 p.m. weekends. We have six personal trainers, who will set up personal appointments,” he said. “Otherwise members are free to come and go as they want,” he said.
“We’ve heard nothing but good things. It’s easier to keep 3,000 square feet clean than a big box store. It’s an energetic environment,” said Collias, adding he already has 700 members. “With the 24 hour access, it alleviates the stress. It’s convenient to own and in some ways it’s like having your own personal gym boutique with the very best equipment.
Collias also said the surge of new Snap Fitness sites in
“As more people see health and fitness as a necessity versus a luxury, they’re seeking convenient and affordable ways to look and feel better. While people are trading in their big SUV gas guzzlers, they are currently doing the same thing with their fitness memberships,” said
Fitness Industry Trends | Consumers Go Crazy for No-Frills Fitness Franchise Concept
CNNiReports
As millions of consumers continue to swap over-priced SUV’s for wallet-friendly compact cars, the same trend is taking shape in the fitness industry. No-frills concepts like Snap Fitness are rapidly dominating the $16 billion fitness category, as workout enthusiasts trade in their memberships at big-box facilities for the convenience and affordability offered by 24/7 compact fitness clubs.
The world’s fastest growing franchise featuring compact, state-of-the-art fitness centers, Snap Fitness has defied recession conservatism and continued to expand its “no frills” concept worldwide, having already opened approximately 300 clubs in 2009. Today, Snap Fitness has nearly 1,000 locations open and operating throughout the United States, Canada, Mexico and India, with more planned in Australia and New Zealand.
The burgeoning brand consistently opens 300-400 new clubs each year and plans to have a total of 2,500-3,000 centers worldwide in the next few years.
After spending more than 20 years in the fitness industry owning and operating various big-box clubs, Snap Fitness Founder and CEO Peter Taunton realized that many of the costly amenities offered in his facilities such as swimming pools, racquetball courts and childcare sat idle most of the day. Knowing most people are on the go, constantly seeking balance between work and family, he designed a model that incorporated the most readily used health club equipment into a smaller, more efficient, passcard-secure facility.
Snap Fitness gyms are small – only 2,500 square feet – and frills free. There are typically five treadmills, two stationary bikes, five eliptical machines and weight equipment. The gyms typically attract married folks, aged 35 to 55, with kids. Most don’t have the time to linger over a cappuccino or leer at the young man or woman on the next bike. Many live within two miles of the gym.
“Our more than 400,000 satisfied members, combined with our triple-digit revenue growth, proves we've honed in to what consumers want and expect from their fitness program,” said Taunton.
Thursday, November 19, 2009
Shop wise for a gym membership
Given the tough economy, you are probably still looking for ways to trim unnecessary expenses and save money wherever possible. The real challenge is finding ways to cut costs without cutting quality of life.
Take your health, for example. A recent survey by Money magazine shows that about half of all consumers are unwilling to part with their gym membership despite the uncertain economy. But even if fitness is a staple in your life, there are ways to save or get more value without compromising the quality of the workout experience.
Here are some tips to consider, according to Snap Fitness
Ask about freeze and cancellation policies
“Some gyms advertise a great enrollment offer but don’t tell you about the long-term contract that goes with it,” said Peter Taunton, Snap Fitness Founder. “Ask the salesperson if you can pay month-to-month, if you are able to freeze your membership and how much notice you need to give in order to cancel your membership. Otherwise, you might find yourself paying a lot more money over a long period of time.” Snap Fitness offers the option of paying as you go, allows you to freeze up to three months per calendar year and requires 30 days’ cancellation notice.
Inquire how the club will help you reach your fitness goals
“Anyone can open a gym, buy some equipment and sell you a membership, but that doesn’t mean you’re getting your money’s worth or able to achieve noticeable improvement in your health,” said Taunton. “At our club, we offer new members a free $100 Fitness Assessment with a personal trainer to test your strength, endurance and flexibility, and give you a sense of the types of workouts you should do to improve. We also include a free session to show how to use the equipment and put you on a workout plan. It’s just another way we give our members more for their money.”
Ask about convenient, value-added services that may come free with the membership
Snap Fitness recommends looking for add-ons that “coach” you towards better results. Snap Fitness, for example, offers members a host of online tools for little to no cost, including meal planning, workout tracking and health and wellness coaching.
“We know times are tough but that doesn’t mean you should have to sacrifice your health,” continued Taunton. “Avoid paying for amenities you don’t need. Make a list of what’s really important for you in a health club and let that list be your guide. Look for the club that can give you everything you need and nothing you don’t.”
Snap Fitness opens its first Oklahoma club
The Oklahoma City Journal Record
Snap Fitness has opened its first health club in Oklahoma and has hit the ground running with its member-friendly policies and equipment.
The club fills 3,600 square feet of the old Luby's restaurant at 3800 N. MacArthur in Warr Acres. Local franchise owners Isaac and Candy Williams said they were drawn to this venture because of Oklahoma City Mayor Mick Cornett's campaign to put the city on a diet. But they wanted to operate a fitness center that made working out easier for everyday people.
"It's a small, neighborhood type of gym as opposed to a large, extravagant gym that you can almost get lost in," Isaac Williams said. "We get to know our members on a first-name basis, and they get to know us."
Snap Fitness, based in the Minneapolis suburb Chanhassen, has quickly grown its company since the first club was sold in 2004. Through 2008, the company has opened 1,672 health clubs in five countries and plans to top 2,000 by next year. Revenue for 2008 was $34 million, up from $150,000 in 2004.
Oklahoma's Snap Fitness offers Cybex equipment. Cardio equipment includes treadmills and Arc trainers, and both weight machines and free weights are available, Williams said. A separate area is available for personal trainers to work with groups of up to five people.
But Snap wanted to go beyond the traditional 24-hour fitness center, he said. Each member, upon joining, receives orientation on equipment use, as well as a free consultation with a personal trainer. The member is given a "fit score" and can talk to the trainer about goals and workouts. Three months later, they are re- evaluated and given a second fit score.
"It may not be just about losing weight," Williams said. "It may be about strengthening and toning your muscles so that as you get older, you won't have atrophy."
Members also can create their own Snap Web pages to track their workouts, make a nutrition plan and gain access to an animated online personal trainer.
Williams said diets and fitness plans work best when people track what they're eating and how they're exercising.
"It's such a nice tool," he said. "You can see and track your progress, which most people don't do. People tend to get discouraged until they realize they are making a difference.
"Our process also helps to knock down the intimidation factor by helping people develop a plan and showing them how to use the machines," he said. "That's what holds people back - they don't want to look like they don't know what they're doing."
Membership packages vary but average $1 a day, Williams said. People pay month to month and can cancel any time or freeze their membership for up to three months if they're not planning to use it. An access card gives members 24-hour entry to the facility, and also any Snap Fitness centers around the world.
At Oklahoma's Snap Fitness, a personal trainer serves on the staff full time, and members can pay for training beyond the initial consultation, Williams said.
Snap Fitness has opened its first health club in Oklahoma and has hit the ground running with its member-friendly policies and equipment.
The club fills 3,600 square feet of the old Luby's restaurant at 3800 N. MacArthur in Warr Acres. Local franchise owners Isaac and Candy Williams said they were drawn to this venture because of Oklahoma City Mayor Mick Cornett's campaign to put the city on a diet. But they wanted to operate a fitness center that made working out easier for everyday people.
"It's a small, neighborhood type of gym as opposed to a large, extravagant gym that you can almost get lost in," Isaac Williams said. "We get to know our members on a first-name basis, and they get to know us."
Snap Fitness, based in the Minneapolis suburb Chanhassen, has quickly grown its company since the first club was sold in 2004. Through 2008, the company has opened 1,672 health clubs in five countries and plans to top 2,000 by next year. Revenue for 2008 was $34 million, up from $150,000 in 2004.
Oklahoma's Snap Fitness offers Cybex equipment. Cardio equipment includes treadmills and Arc trainers, and both weight machines and free weights are available, Williams said. A separate area is available for personal trainers to work with groups of up to five people.
But Snap wanted to go beyond the traditional 24-hour fitness center, he said. Each member, upon joining, receives orientation on equipment use, as well as a free consultation with a personal trainer. The member is given a "fit score" and can talk to the trainer about goals and workouts. Three months later, they are re- evaluated and given a second fit score.
"It may not be just about losing weight," Williams said. "It may be about strengthening and toning your muscles so that as you get older, you won't have atrophy."
Members also can create their own Snap Web pages to track their workouts, make a nutrition plan and gain access to an animated online personal trainer.
Williams said diets and fitness plans work best when people track what they're eating and how they're exercising.
"It's such a nice tool," he said. "You can see and track your progress, which most people don't do. People tend to get discouraged until they realize they are making a difference.
"Our process also helps to knock down the intimidation factor by helping people develop a plan and showing them how to use the machines," he said. "That's what holds people back - they don't want to look like they don't know what they're doing."
Membership packages vary but average $1 a day, Williams said. People pay month to month and can cancel any time or freeze their membership for up to three months if they're not planning to use it. An access card gives members 24-hour entry to the facility, and also any Snap Fitness centers around the world.
At Oklahoma's Snap Fitness, a personal trainer serves on the staff full time, and members can pay for training beyond the initial consultation, Williams said.
Wednesday, November 11, 2009
Survival of the Fittest | Forbes Magazine Feature
Lean times may help Peter Taunton bulk up his bare-bones Snap Fitness club chain.
At 11 p.m. on a recent Wednesday a dozen men in their 30s and 40s bobbed on stationary bikes and pumped iron in a Snap Fitness club on a busy freeway in Pine Brook, N.J. Members, already in their workout togs, pulled up, parked within feet of the club and headed for the cardio equipment or the weights. After spending 50 minutes, on average, working out, they left--without showering. "There are no lines, it's cheap," says Richard Prochov, one of the members. "I'm in and out."
Snap Fitness may be a rarity: a gym chain that can thrive during a recession. Bally's Total Fitness recently filed for Chapter 11 bankruptcy protection for the second time in 17 months. But 24-hour Snap Fitness clubs are cheap and convenient. 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.
Snap Fitness gyms are small--only 2,500 square feet--and frills free. There are typically five treadmills, two stationary bikes, five elliptical machines and weight equipment. Missing from its outlets: classes, spa rooms, on-site child care and a juice bar. Few clubs have showers. Most clubs are staffed only 25 to 40 hours a week. "We offer a fitness product that screams value," says Snap Fitness Chief Executive Peter Taunton.
It's a franchise operation. Most of the 820 owners paid $175,000 to open a Snap Fitness club, and many are in rented space. The capital outlay includes $120,000 for equipment, tvs, a card key system, a surveillance camera and a one-time $15,000 license fee. After that franchisees pay Snap a royalty fee of $400 a month plus 50 cents for each membership. 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.)
Franchisees can break even on 275 members in as little as three months. Once a lease is signed, a club can be outfitted and opened in ten days. "We pull up with our 18-wheeler that's basically a store ready to be unpacked," says Taunton, 46.
Some franchisees run the gyms as a side business; 60% of them are absentee owners with other full-time jobs. Franchisees have online access to revenue reports and visit counts. They can view live footage of their clubs remotely. "Running these gyms is a breeze," Taunton tells prospective franchisees in a weekly conference call. "All you need is an Internet browser."
These clubs typically attract married folks, aged 35 to 55, with kids. Most don't have time to linger over a cappuccino or leer at the young man or woman on the next bike. Many live within 2 miles of the gym. Often, admits Taunton, women and prospective franchisees want to know if the gyms are safe. Taunton insists they are. Members enter gyms with access cards. Two gym walls have panic buttons. Security necklaces are available at the gym entrance, which members can use to alert police. To date, Taunton says, the only trouble has come from a teenager who broke into a Minneapolis Snap to steal tvs. Franchisees must pay Snap $255 a month for insurance.
The club concept, hatched in 2003, seems to be working for Taunton. Snap in 2008 had operating income (Ebitda) of $10 million, almost double what it did the year before, on $30 million in revenue, up 67%. The company sold 483 franchises in the first 11 months of the year. Taunton owns 60% of the company.
There are already clubs in Canada, Mexico and India. More are planned in Australia and New Zealand. To help fund the $5 million-plus cost of expanding overseas, last May Taunton sold an undisclosed minority stake in Snap to Summit Partners, a private equity group in Boston. Taunton hopes to have 6,000 Snap gyms around the world in five years.
Taunton isn't a pioneer in the bare-bones 24-hour-gym world. A privately held company called 24 Hour Fitness, with $1.3 billion in sales in 2007 (a forbes estimate) has been around for 25 years, but the San Ramon, Calif. company's gyms are 25 times the size of Snap's. Across town from Snap's offices in Minneapolis, rivals Chuck L. Runyon and Jeff A. Klinger have been running Anytime Fitness since 2001. Runyon gripes that Taunton "has done a good job copying us." Taunton is adding a few features his rivals don't offer. Snap now allows members to track their gym visits, get health assessments and build fitness and meal plans online.
Taunton dropped out of college when he was 20 to play professional racquetball along with his twin brother. A short time later Taunton was back home and out of work in Willmar, Minn. The owners of his hometown gym offered him $16,000 a year to manage the moneylosing club, then named Kandi Kourts. The first year he ran it, Taunton says, the club lost $40,000 on revenue of $340,000. The club's six owners agreed to give him a stake in the club every year it was profitable. "I rolled up my sleeves and worked that club from ding to dong," he recalls. Six years later, in 1982, Taunton bought out the other owners for $450,000. In 1990 he renamed the club America's Fitness, borrowed against it and opened several more big health clubs (one was in a space with 40,000 square feet) around Minneapolis.
He ran America's Fitness for 20 years, but he says he was ultimately overwhelmed by the responsibilities and overhead expenses, which totaled more than $1.5 million. He pocketed $3 million when he sold the five gyms in 2002. In plotting a follow-up, Taunton made a list of essentials for a more basic gym, the beginning of Snap Fitness.
Taunton believes Snap will attract more franchisees with so many people looking for work. He's also betting Snap will attract 300,000 new members this year as fitness buffs ditch costlier gyms. "Let's just say the dogs are eating the dog food," Taunton says. "The people keep coming."
At 11 p.m. on a recent Wednesday a dozen men in their 30s and 40s bobbed on stationary bikes and pumped iron in a Snap Fitness club on a busy freeway in Pine Brook, N.J. Members, already in their workout togs, pulled up, parked within feet of the club and headed for the cardio equipment or the weights. After spending 50 minutes, on average, working out, they left--without showering. "There are no lines, it's cheap," says Richard Prochov, one of the members. "I'm in and out."
Snap Fitness may be a rarity: a gym chain that can thrive during a recession. Bally's Total Fitness recently filed for Chapter 11 bankruptcy protection for the second time in 17 months. But 24-hour Snap Fitness clubs are cheap and convenient. 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.
Snap Fitness gyms are small--only 2,500 square feet--and frills free. There are typically five treadmills, two stationary bikes, five elliptical machines and weight equipment. Missing from its outlets: classes, spa rooms, on-site child care and a juice bar. Few clubs have showers. Most clubs are staffed only 25 to 40 hours a week. "We offer a fitness product that screams value," says Snap Fitness Chief Executive Peter Taunton.
It's a franchise operation. Most of the 820 owners paid $175,000 to open a Snap Fitness club, and many are in rented space. The capital outlay includes $120,000 for equipment, tvs, a card key system, a surveillance camera and a one-time $15,000 license fee. After that franchisees pay Snap a royalty fee of $400 a month plus 50 cents for each membership. 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.)
Franchisees can break even on 275 members in as little as three months. Once a lease is signed, a club can be outfitted and opened in ten days. "We pull up with our 18-wheeler that's basically a store ready to be unpacked," says Taunton, 46.
Some franchisees run the gyms as a side business; 60% of them are absentee owners with other full-time jobs. Franchisees have online access to revenue reports and visit counts. They can view live footage of their clubs remotely. "Running these gyms is a breeze," Taunton tells prospective franchisees in a weekly conference call. "All you need is an Internet browser."
These clubs typically attract married folks, aged 35 to 55, with kids. Most don't have time to linger over a cappuccino or leer at the young man or woman on the next bike. Many live within 2 miles of the gym. Often, admits Taunton, women and prospective franchisees want to know if the gyms are safe. Taunton insists they are. Members enter gyms with access cards. Two gym walls have panic buttons. Security necklaces are available at the gym entrance, which members can use to alert police. To date, Taunton says, the only trouble has come from a teenager who broke into a Minneapolis Snap to steal tvs. Franchisees must pay Snap $255 a month for insurance.
The club concept, hatched in 2003, seems to be working for Taunton. Snap in 2008 had operating income (Ebitda) of $10 million, almost double what it did the year before, on $30 million in revenue, up 67%. The company sold 483 franchises in the first 11 months of the year. Taunton owns 60% of the company.
There are already clubs in Canada, Mexico and India. More are planned in Australia and New Zealand. To help fund the $5 million-plus cost of expanding overseas, last May Taunton sold an undisclosed minority stake in Snap to Summit Partners, a private equity group in Boston. Taunton hopes to have 6,000 Snap gyms around the world in five years.
Taunton isn't a pioneer in the bare-bones 24-hour-gym world. A privately held company called 24 Hour Fitness, with $1.3 billion in sales in 2007 (a forbes estimate) has been around for 25 years, but the San Ramon, Calif. company's gyms are 25 times the size of Snap's. Across town from Snap's offices in Minneapolis, rivals Chuck L. Runyon and Jeff A. Klinger have been running Anytime Fitness since 2001. Runyon gripes that Taunton "has done a good job copying us." Taunton is adding a few features his rivals don't offer. Snap now allows members to track their gym visits, get health assessments and build fitness and meal plans online.
Taunton dropped out of college when he was 20 to play professional racquetball along with his twin brother. A short time later Taunton was back home and out of work in Willmar, Minn. The owners of his hometown gym offered him $16,000 a year to manage the moneylosing club, then named Kandi Kourts. The first year he ran it, Taunton says, the club lost $40,000 on revenue of $340,000. The club's six owners agreed to give him a stake in the club every year it was profitable. "I rolled up my sleeves and worked that club from ding to dong," he recalls. Six years later, in 1982, Taunton bought out the other owners for $450,000. In 1990 he renamed the club America's Fitness, borrowed against it and opened several more big health clubs (one was in a space with 40,000 square feet) around Minneapolis.
He ran America's Fitness for 20 years, but he says he was ultimately overwhelmed by the responsibilities and overhead expenses, which totaled more than $1.5 million. He pocketed $3 million when he sold the five gyms in 2002. In plotting a follow-up, Taunton made a list of essentials for a more basic gym, the beginning of Snap Fitness.
Taunton believes Snap will attract more franchisees with so many people looking for work. He's also betting Snap will attract 300,000 new members this year as fitness buffs ditch costlier gyms. "Let's just say the dogs are eating the dog food," Taunton says. "The people keep coming."
Snap Fitness Brings Affordable, Compact, Member-Friendly Fitness Centers to Mexico
In just five short years, Snap Fitness, the world’s fastest growing franchisor of compact, state-of-the-art fitness centers, has expanded its business model through the United States, Canada, India and Australia. Now they’re preparing to add Mexico to the list.
To aid in this expansion, the company recently formed a partnership with Grupo ACIR, a business development group and leading radio broadcaster in Mexico, whose programming reaches more than 63 cities and upwards of 10 million people each day.
“With our ability to keep a pulse on what the consumers in Mexico are looking for, Grupo ACIR saw a huge opportunity to bring Snap Fitness and its industry-leading 24/7 fitness options to the Mexican population,” said Carlos Ibarra, Manager Snap Fitness Mexico. “Mexico’s consumers are putting an increasing emphasis on health and fitness, and we wanted to offer these burgeoning health enthusiasts state-of-the-art fitness equipment, affordability and convenience. In essence, Snap Fitness.”
The first Snap Fitness location in Mexico opened in Metepec June 2009, with a second center slated to open in August 2009 in Queretaro. The company has its eye on continued growth for the remainder of 2009 and beyond, and is currently seeking qualified candidates that are interested in owning their own Snap Fitness franchise in Mexico.
“Snap Fitness is well on its way to becoming a global leader and expansion into Mexico was a top priority for our franchise,” said Snap Fitness Founder and CEO Peter Taunton. “Snap Fitness has flourished by partnering with our North American neighbors, and we are honored to bring our affordable fitness and member-friendly policies to Mexican consumers.”
As Taunton mentioned, an emphasis on member-friendly policies and value-added services has promoted Snap Fitness over its competitors. Snap Fitness offers month-to-month memberships as opposed to long-term contracts, and allows memberships to be frozen for up to three months a year with no penalty. In addition, the company provides members with a host of products and services, such as an Online Health Assessment and customized supplement suggestions, designed to give members better results and more value for their money.
Launched in 2003, Snap Fitness has approximately 1,000 locations in operation worldwide and projects to have more than 2,000 locations under development by the end of 2009. Consistently opening 300 – 400 new clubs each year, Snap Fitness operates in the United States, Canada, Mexico and India, and has locations under development in Australia and New Zealand.
For more information, visit www.snapfitness.com
To aid in this expansion, the company recently formed a partnership with Grupo ACIR, a business development group and leading radio broadcaster in Mexico, whose programming reaches more than 63 cities and upwards of 10 million people each day.
“With our ability to keep a pulse on what the consumers in Mexico are looking for, Grupo ACIR saw a huge opportunity to bring Snap Fitness and its industry-leading 24/7 fitness options to the Mexican population,” said Carlos Ibarra, Manager Snap Fitness Mexico. “Mexico’s consumers are putting an increasing emphasis on health and fitness, and we wanted to offer these burgeoning health enthusiasts state-of-the-art fitness equipment, affordability and convenience. In essence, Snap Fitness.”
The first Snap Fitness location in Mexico opened in Metepec June 2009, with a second center slated to open in August 2009 in Queretaro. The company has its eye on continued growth for the remainder of 2009 and beyond, and is currently seeking qualified candidates that are interested in owning their own Snap Fitness franchise in Mexico.
“Snap Fitness is well on its way to becoming a global leader and expansion into Mexico was a top priority for our franchise,” said Snap Fitness Founder and CEO Peter Taunton. “Snap Fitness has flourished by partnering with our North American neighbors, and we are honored to bring our affordable fitness and member-friendly policies to Mexican consumers.”
As Taunton mentioned, an emphasis on member-friendly policies and value-added services has promoted Snap Fitness over its competitors. Snap Fitness offers month-to-month memberships as opposed to long-term contracts, and allows memberships to be frozen for up to three months a year with no penalty. In addition, the company provides members with a host of products and services, such as an Online Health Assessment and customized supplement suggestions, designed to give members better results and more value for their money.
Launched in 2003, Snap Fitness has approximately 1,000 locations in operation worldwide and projects to have more than 2,000 locations under development by the end of 2009. Consistently opening 300 – 400 new clubs each year, Snap Fitness operates in the United States, Canada, Mexico and India, and has locations under development in Australia and New Zealand.
For more information, visit www.snapfitness.com
Thursday, November 5, 2009
Snap Fitness Recognized as One of Twin Cities' Fastest Growing Companies By Minneapolis/St. Paul Business Journal
Snap Fitness, the fast growing franchise system featuring compact, state-of-the-art fitness centers has ‘muscled’ its way to the top of the Minneapolis/St.Paul Business Journal’s “Fast 50”.
Unveiled on October 22, Snap Fitness leads the list fastest-growing private companies in Minnesota with a growth rate of 638 percent since 2006 and 2008 revenue of nearly $32 million.
“We are truly honored to be recognized as the fastest growing company in our home state,” said Peter Taunton, Founder and CEO of Snap Fitness. “We look forward to building on our continued success and growing worldwide in 2010.”
Launched in 2003, Snap Fitness offers members a fast and convenient workout alternative to traditional “big box” health clubs, including access 24 hours a day, seven days a week and the industry’s best equipment, allowing members to get the same quality workout experience at a lower cost and with no contracts.
“Our more than 400,000 satisfied members, combined with our triple-digit revenue growth, proves we're honed in to what consumers want and expect from their fitness program,” Taunton added.
Today, Snap Fitness has nearly 2,000 locations open or under development worldwide and consistently opens 300-400 new clubs each year. Company plans call for a total of 2,500-3,000 centers within the next five years. In addition to being in nearly every state, Snap Fitness also operates clubs in Canada, India and Mexico, and recently launched its expansion into Australia and New Zealand.
Thursday, October 22, 2009
Snap Fitness continues to expand in Milwaukee area
BizWeek Milwaukee
Chanhassen, Minn.-based Snap Fitness Inc. continues to expand in the Milwaukee area. Since it entered the Milwaukee area market in 2005, Snap Fitness franchisees have opened 43 locations in the area. An additional 9 are in various stages of development.
Snap Fitness health clubs typically occupy 2,500 to 3,500 square feet of space, often in strip malls.
The company believes that the Milwaukee area could eventually support 70 to 80 Snap Fitness locations, said Patrick Strait, marketing communications manager. The company will keep adding more locations in the area as long as good franchisees are interested, and as long as they are not cannibalizing existing locations, Strait said.
“Milwaukee is probably one of the most successful areas we have right now,” he said.
Snap Fitness has a total of 1,900 locations in the U.S., Canada, India and Mexico, and plans to expand soon to Australia and New Zealand.
The chain specializes in providing affordable memberships with quality exercise equipment, available to members 24 hours a day, in a small setting without major amenities such as a swimming pool, racquet ball courts, or day care.
Our members are looking to get in, get their workout done and get out,” Strait said.
Chanhassen, Minn.-based Snap Fitness Inc. continues to expand in the Milwaukee area. Since it entered the Milwaukee area market in 2005, Snap Fitness franchisees have opened 43 locations in the area. An additional 9 are in various stages of development.
Snap Fitness health clubs typically occupy 2,500 to 3,500 square feet of space, often in strip malls.
The company believes that the Milwaukee area could eventually support 70 to 80 Snap Fitness locations, said Patrick Strait, marketing communications manager. The company will keep adding more locations in the area as long as good franchisees are interested, and as long as they are not cannibalizing existing locations, Strait said.
“Milwaukee is probably one of the most successful areas we have right now,” he said.
Snap Fitness has a total of 1,900 locations in the U.S., Canada, India and Mexico, and plans to expand soon to Australia and New Zealand.
The chain specializes in providing affordable memberships with quality exercise equipment, available to members 24 hours a day, in a small setting without major amenities such as a swimming pool, racquet ball courts, or day care.
Our members are looking to get in, get their workout done and get out,” Strait said.
Wednesday, October 21, 2009
American exercise chain to flex muscles in Brampton fitness market
The Brampton Guardian
BRAMPTON - An American-based fitness chain is looking to flex its muscles on this side of the border. The plan for success: the company hopes its "no frills" approach to working out will appeal to Brampton's more discerning exercise enthusiasts.
"We recognized that these days people don't view fitness as a luxury, so much as it is a necessity. But in today's economy, they are looking to cut costs without compromising on quality," said Peter Taunton, Snap Fitness founder and CEO. "Our concept is right for the times, as we give Canadians a fast, convenient and affordable workout solution that is close to home and offers the same quality workout equipment as larger fitness clubs, only at a more affordable rate and with no contracts."
Founded by Taunton in Chanhassen, Minn., in 2003, Snap Fitness is a fast expanding brand. The fitness chain currently has more than 1,700 locations worldwide with plans to open some 300 locations throughout Canada within the next five years.
Two Brampton locations (one at Torbram Road and Bovaird Drive and the other at Mayfield Road and Hurontario Street) are already scheduled to be up and running in the near future.
While Snap Fitness offers the same quality equipment as traditional health clubs, Taunton said the brand is designed to give members more value for their money.
By scaling down in size and eliminating unnecessary amenities such as swimming pools and racquetball courts, Snap Fitness is able to offer customers affordability without compromising quality.
The whole idea behind Snap Fitness is to offer a compact, state-of-the-art, facility that is available to patrons 24 hours a day, seven days a week, Taunton said.
Customers are able to join without making a long-term commitment, and are able to "pay as they go."
Facilities provide staffed hours and certified personal trainers and allow patrons access 24 hours a day, 365 days a year via secure electronic card-key.
"The great thing about Snap Fitness is that while you get the same great workout experience that you get from the larger health clubs, our model is compact enough where it can be opened in smaller locations making it more accessible in communities of all sizes. The Brampton area is perfect for Snap Fitness, as it allows us to serve the local community and allow them to get in, work out and get on with their day." Taunton said he started Snap Fitness after 20 years of managing larger, full-service health clubs.
From his experience, he was able to separate what amenities were important to members from those that were not.
It was that ability to trim the fat so to speak that has made Taunton's business successful.
Now, he hopes the company's no-frills business model will take root here.
Snap Fitness has its sights on opening eight to ten locations in Brampton in the next 18 months and 150 throughout Ontario in the next five years.
The company is actively seeking single- and multi-unit franchise owners to open new fitness centers.
"As more people see health and fitness as a necessity versus a luxury, they're seeking convenient and affordable ways to look and feel better," said Darko Vasic, a Brampton native who serves as Canadian sales manager for Snap Fitness. "Snap Fitness looks forward to continuing to offer local health enthusiasts with a no-frills workout option."
For more information on Snap Fitness visit online at http://www.snapfitness.com/.
BRAMPTON - An American-based fitness chain is looking to flex its muscles on this side of the border. The plan for success: the company hopes its "no frills" approach to working out will appeal to Brampton's more discerning exercise enthusiasts.
"We recognized that these days people don't view fitness as a luxury, so much as it is a necessity. But in today's economy, they are looking to cut costs without compromising on quality," said Peter Taunton, Snap Fitness founder and CEO. "Our concept is right for the times, as we give Canadians a fast, convenient and affordable workout solution that is close to home and offers the same quality workout equipment as larger fitness clubs, only at a more affordable rate and with no contracts."
Founded by Taunton in Chanhassen, Minn., in 2003, Snap Fitness is a fast expanding brand. The fitness chain currently has more than 1,700 locations worldwide with plans to open some 300 locations throughout Canada within the next five years.
Two Brampton locations (one at Torbram Road and Bovaird Drive and the other at Mayfield Road and Hurontario Street) are already scheduled to be up and running in the near future.
While Snap Fitness offers the same quality equipment as traditional health clubs, Taunton said the brand is designed to give members more value for their money.
By scaling down in size and eliminating unnecessary amenities such as swimming pools and racquetball courts, Snap Fitness is able to offer customers affordability without compromising quality.
The whole idea behind Snap Fitness is to offer a compact, state-of-the-art, facility that is available to patrons 24 hours a day, seven days a week, Taunton said.
Customers are able to join without making a long-term commitment, and are able to "pay as they go."
Facilities provide staffed hours and certified personal trainers and allow patrons access 24 hours a day, 365 days a year via secure electronic card-key.
"The great thing about Snap Fitness is that while you get the same great workout experience that you get from the larger health clubs, our model is compact enough where it can be opened in smaller locations making it more accessible in communities of all sizes. The Brampton area is perfect for Snap Fitness, as it allows us to serve the local community and allow them to get in, work out and get on with their day." Taunton said he started Snap Fitness after 20 years of managing larger, full-service health clubs.
From his experience, he was able to separate what amenities were important to members from those that were not.
It was that ability to trim the fat so to speak that has made Taunton's business successful.
Now, he hopes the company's no-frills business model will take root here.
Snap Fitness has its sights on opening eight to ten locations in Brampton in the next 18 months and 150 throughout Ontario in the next five years.
The company is actively seeking single- and multi-unit franchise owners to open new fitness centers.
"As more people see health and fitness as a necessity versus a luxury, they're seeking convenient and affordable ways to look and feel better," said Darko Vasic, a Brampton native who serves as Canadian sales manager for Snap Fitness. "Snap Fitness looks forward to continuing to offer local health enthusiasts with a no-frills workout option."
For more information on Snap Fitness visit online at http://www.snapfitness.com/.
Wednesday, October 7, 2009
Fitness Franchise | Snap Fitness Ranks in Top 20 of Inc. 500
Snap Fitness has ‘muscled’ its way among the Top 20 of Inc. Magazine’s annual ranking of the country’s 500 fastest-growing private companies.
The world’s fastest growing franchise featuring compact, state-of-the-art fitness centers, Snap Fitness is ranked No.16, based on revenue growth from 2005 to 2008. The company grew by more than 5,900 percent, with 2008 revenues of $31.7 million.
“We couldn’t be more excited about this incredible recognition,” said Peter Taunton, Founder and CEO of Snap Fitness, noting that the company was the second-highest ranked concept in the health category. “We look forward to continued success and breaking into the Top 10 next year, as both investors and consumers continue to recognize the value we provide.”
Launched in 2003, Snap Fitness operates small fitness centers open 24 hours a day, seven days a week and is particularly geared toward people on the go with hectic lifestyles. The concept offers fast and convenient workout solutions that is close to home and offers the same quality workout equipment as traditional “big box” health clubs, only at a more affordable rate and with no contracts.
“Our more than 400,000 satisfied members, combined with our triple-digit revenue growth, proves we're honed in to what consumers want and expect from their fitness program,” Taunton added.
Today, Snap Fitness has nearly 2,000 locations open or under development worldwide and consistently opens 300-400 new clubs each year. Company plans call for a total of 2,500-3,000 centers within the next five years. In addition to being in nearly every state, Snap Fitness also operates clubs in Canada, India and Mexico, and recently More are planned in Australia and New Zealand.
The world’s fastest growing franchise featuring compact, state-of-the-art fitness centers, Snap Fitness is ranked No.16, based on revenue growth from 2005 to 2008. The company grew by more than 5,900 percent, with 2008 revenues of $31.7 million.
“We couldn’t be more excited about this incredible recognition,” said Peter Taunton, Founder and CEO of Snap Fitness, noting that the company was the second-highest ranked concept in the health category. “We look forward to continued success and breaking into the Top 10 next year, as both investors and consumers continue to recognize the value we provide.”
Launched in 2003, Snap Fitness operates small fitness centers open 24 hours a day, seven days a week and is particularly geared toward people on the go with hectic lifestyles. The concept offers fast and convenient workout solutions that is close to home and offers the same quality workout equipment as traditional “big box” health clubs, only at a more affordable rate and with no contracts.
“Our more than 400,000 satisfied members, combined with our triple-digit revenue growth, proves we're honed in to what consumers want and expect from their fitness program,” Taunton added.
Today, Snap Fitness has nearly 2,000 locations open or under development worldwide and consistently opens 300-400 new clubs each year. Company plans call for a total of 2,500-3,000 centers within the next five years. In addition to being in nearly every state, Snap Fitness also operates clubs in Canada, India and Mexico, and recently More are planned in Australia and New Zealand.
Snap Fitness takes neighborly approach to workout sites
NEW MEXICO BUSINESS WEEKLY
Lynn Nannemann was looking for a franchise business that wasn’t too complicated and that would allow him to help people.
He and his partners looked at fast food and other franchises, and none of them fit.
Then, in 2008, Nannemann, a supervisor at Intel Corp.’s Rio Rancho plant, found what he was looking for: Snap Fitness, a company that franchises small, no-frills gyms.
Now Nannemann has three gyms in Albuquerque, and the rapidly-growing, Minneapolis-based
Snap Fitness is looking to open 17 more locations in the Albuquerque area in the next three years.
“This is a business that helps people,” Nannemann says at his 2,500-square-foot gym at 12251 Academy NE. “It’s what we were looking for.”
Snap Fitness’ no-frills gyms and low-cost memberships appear to be what a lot of consumers are looking for. The company started in 2004 and now has more than 1,800 locations open or sold worldwide. It boasts 500,000 members, many of whom have migrated over from the more expensive, full-service health clubs.
The company is opening 10 to 20 new stores a month, and is slated to open 22 in August. Before the recession, it was averaging 25 to 40 new stores a month.
Snap’s concept is simple. Its stores average 2,500 to 3,500 square feet. They have state-of-the-art exercise equipment, but no swimming pools, saunas, racquetball courts, running tracks or showers; they never close, and they offer basic, no-contract memberships that cost $34.95 a month.
“Ninety percent of our members live within two miles of our stores,” says Snap founder and CEO Peter Taunton. “That tells you that our members love the convenience.”
Snap Fitness brought the 47-year-old Taunton out of an early retirement. He had owned and operated full-service health clubs in the Minneapolis area for more than 20 years when he retired to spend more time with his wife and young children. It didn’t take long, though, for him to come out of retirement.
“Being at home and semi-retired, I started thinking about all of the things that weren’t being used in the clubs I ran – the swimming pools, the climbing walls, the spas,” Taunton says. “It seemed that most people wanted to get in and out, and most of the things they used were the strength and cardio equipment.
“So I took the best components of my big-box facilities and put them into my smaller facilities. Growth has been explosive.”
One reason for that sudden growth could be that buying and opening a Snap Fitness franchise is relatively easy and inexpensive. The franchise fee is $15,000, and equipment and build-out averages $160,000 to $190,000. Most Snap Fitness gyms are located in strip malls and serve as a sort of neighborhood gym, Taunton says.
“Walk into a Snap Fitness club and it feels like you are taking a step forward in the quality of their workouts. We’re delivering the best equipment in the market, with a nice, bright color scheme and a nice, relaxed atmosphere, and at an affordable price.
“We’ve made the product very consumer friendly. There are no contracts. We have to earn your trust and your business every month.”
Although Snap Fitness centers are open 24 hours a day, they aren’t staffed all those hours. Nannemann’s three stores have two employees each, a trainer and a part-time sales manager. Customers get into the locked facilities by swiping security cards. The gyms have security necklaces and emergency buttons that will alert police to any emergency.
Nannemann, who has spent 25 years at Intel, opened his first gym in March 2008. The second opened in June, 2008, and the third in March of this year. The three clubs have a combined membership of 965, which Nannemann hopes to build to 1,500 by the year’s end.
His advertising and marketing plan is very simple; it consists of door hangers and mailings to residents within a two-mile radius of each store.
“It’s really kind of word of mouth. We rely on people to tell their friends about is. We want them to think that this is their neighborhood gym,” Nannemann says, adding that his facilities offer members help with their workout routines and goals. Members can track their gym visits at Snap’s Web site. Their card swipes are automatically tracked by computer.
“We offer a trainer consultation every three months, which we pay for,” Nannemann says. “For us, if the members are not successful in meeting their goals, they are not going to stay members. We have to earn their business every month.”
Taunton says he sees continued growth for the company.
“I see no reason why we can’t have 4,000 to 6,000 stores worldwide,” he says.
Lynn Nannemann was looking for a franchise business that wasn’t too complicated and that would allow him to help people.
He and his partners looked at fast food and other franchises, and none of them fit.
Then, in 2008, Nannemann, a supervisor at Intel Corp.’s Rio Rancho plant, found what he was looking for: Snap Fitness, a company that franchises small, no-frills gyms.
Now Nannemann has three gyms in Albuquerque, and the rapidly-growing, Minneapolis-based
Snap Fitness is looking to open 17 more locations in the Albuquerque area in the next three years.
“This is a business that helps people,” Nannemann says at his 2,500-square-foot gym at 12251 Academy NE. “It’s what we were looking for.”
Snap Fitness’ no-frills gyms and low-cost memberships appear to be what a lot of consumers are looking for. The company started in 2004 and now has more than 1,800 locations open or sold worldwide. It boasts 500,000 members, many of whom have migrated over from the more expensive, full-service health clubs.
The company is opening 10 to 20 new stores a month, and is slated to open 22 in August. Before the recession, it was averaging 25 to 40 new stores a month.
Snap’s concept is simple. Its stores average 2,500 to 3,500 square feet. They have state-of-the-art exercise equipment, but no swimming pools, saunas, racquetball courts, running tracks or showers; they never close, and they offer basic, no-contract memberships that cost $34.95 a month.
“Ninety percent of our members live within two miles of our stores,” says Snap founder and CEO Peter Taunton. “That tells you that our members love the convenience.”
Snap Fitness brought the 47-year-old Taunton out of an early retirement. He had owned and operated full-service health clubs in the Minneapolis area for more than 20 years when he retired to spend more time with his wife and young children. It didn’t take long, though, for him to come out of retirement.
“Being at home and semi-retired, I started thinking about all of the things that weren’t being used in the clubs I ran – the swimming pools, the climbing walls, the spas,” Taunton says. “It seemed that most people wanted to get in and out, and most of the things they used were the strength and cardio equipment.
“So I took the best components of my big-box facilities and put them into my smaller facilities. Growth has been explosive.”
One reason for that sudden growth could be that buying and opening a Snap Fitness franchise is relatively easy and inexpensive. The franchise fee is $15,000, and equipment and build-out averages $160,000 to $190,000. Most Snap Fitness gyms are located in strip malls and serve as a sort of neighborhood gym, Taunton says.
“Walk into a Snap Fitness club and it feels like you are taking a step forward in the quality of their workouts. We’re delivering the best equipment in the market, with a nice, bright color scheme and a nice, relaxed atmosphere, and at an affordable price.
“We’ve made the product very consumer friendly. There are no contracts. We have to earn your trust and your business every month.”
Although Snap Fitness centers are open 24 hours a day, they aren’t staffed all those hours. Nannemann’s three stores have two employees each, a trainer and a part-time sales manager. Customers get into the locked facilities by swiping security cards. The gyms have security necklaces and emergency buttons that will alert police to any emergency.
Nannemann, who has spent 25 years at Intel, opened his first gym in March 2008. The second opened in June, 2008, and the third in March of this year. The three clubs have a combined membership of 965, which Nannemann hopes to build to 1,500 by the year’s end.
His advertising and marketing plan is very simple; it consists of door hangers and mailings to residents within a two-mile radius of each store.
“It’s really kind of word of mouth. We rely on people to tell their friends about is. We want them to think that this is their neighborhood gym,” Nannemann says, adding that his facilities offer members help with their workout routines and goals. Members can track their gym visits at Snap’s Web site. Their card swipes are automatically tracked by computer.
“We offer a trainer consultation every three months, which we pay for,” Nannemann says. “For us, if the members are not successful in meeting their goals, they are not going to stay members. We have to earn their business every month.”
Taunton says he sees continued growth for the company.
“I see no reason why we can’t have 4,000 to 6,000 stores worldwide,” he says.
Snap Fitness Names Alison McElroy As General Counsel
Snap Fitness, the world’s largest and fastest growing franchise featuring compact, state-of-the-art fitness centers, announces the appointment of Alison (Ali) McElroy as general counsel of the company, effective June 2009.
McElroy, who most recently served as an attorney in the corporate group at Faegre & Benson LLP in Minneapolis, will be responsible for various strategic initiatives with Snap Fitness, including the company’s international expansion and general legal needs.
"With Snap Fitness’s shift into a new phase of profitable growth, Ali brings a wealth of experience as general counsel,” said Peter Taunton, Founder and CEO of Snap Fitness. “Her deep legal experience and sound business judgment make her an excellent choice which complements our senior team at this critical moment in Snap Fitness’s mission to become the world’s largest and fastest growing franchise in the multi-billion dollar fitness category.”
McElroy joined Faegre & Benson in 2005, where she advised clients on a variety of matters, including franchise and distribution law, international business transactions, mergers and acquisitions, and international corporate counseling. Prior to joining Faegre & Benson, she served as a judicial clerk for retired Chief Justice Kathleen Blatz of the Minnesota Supreme Court.
“Snap Fitness’s rapid growth, the quality of its leadership and the talent of its people have the company poised for continued success," McElroy said. “I couldn’t be more excited about joining such a dynamic brand and my new role in enhancing a franchise network that is poised for unparalleled growth.”
McElroy is a 2001 graduate of the University of Notre Dame and a 2004 graduate of the University of Minnesota Law School.
About Snap Fitness, Inc.Fresh off its No.16 ranking on Inc. Magazine’s annual ranking of the country’s 500 fastest-growing private companies, Snap Fitness is experiencing phenomenal growth with more than 1,800 locations sold nationwide and some 30-40 new stores added monthly. Founded in 2003 by CEO Peter Taunton, the Chanhassen, Minn.-based franchisor offers compact, state-of-the-art, 24/7 express fitness clubs that emphasize fast, convenient and affordable workouts in neighborhoods across America and world wide.
McElroy, who most recently served as an attorney in the corporate group at Faegre & Benson LLP in Minneapolis, will be responsible for various strategic initiatives with Snap Fitness, including the company’s international expansion and general legal needs.
"With Snap Fitness’s shift into a new phase of profitable growth, Ali brings a wealth of experience as general counsel,” said Peter Taunton, Founder and CEO of Snap Fitness. “Her deep legal experience and sound business judgment make her an excellent choice which complements our senior team at this critical moment in Snap Fitness’s mission to become the world’s largest and fastest growing franchise in the multi-billion dollar fitness category.”
McElroy joined Faegre & Benson in 2005, where she advised clients on a variety of matters, including franchise and distribution law, international business transactions, mergers and acquisitions, and international corporate counseling. Prior to joining Faegre & Benson, she served as a judicial clerk for retired Chief Justice Kathleen Blatz of the Minnesota Supreme Court.
“Snap Fitness’s rapid growth, the quality of its leadership and the talent of its people have the company poised for continued success," McElroy said. “I couldn’t be more excited about joining such a dynamic brand and my new role in enhancing a franchise network that is poised for unparalleled growth.”
McElroy is a 2001 graduate of the University of Notre Dame and a 2004 graduate of the University of Minnesota Law School.
About Snap Fitness, Inc.Fresh off its No.16 ranking on Inc. Magazine’s annual ranking of the country’s 500 fastest-growing private companies, Snap Fitness is experiencing phenomenal growth with more than 1,800 locations sold nationwide and some 30-40 new stores added monthly. Founded in 2003 by CEO Peter Taunton, the Chanhassen, Minn.-based franchisor offers compact, state-of-the-art, 24/7 express fitness clubs that emphasize fast, convenient and affordable workouts in neighborhoods across America and world wide.
Houston Fitness Deals - One Month Free Coupon at Snap Fitness
Houston on the Cheap
A NEW FITNESS CONCEPT in Houston is offering a deal for Houstonians… Folks who sign up for membership at Snap Fitness — no contracts and no risk — will get one extra month free, valued at more than $30. Snap Fitness, open 24/7, offers fast workouts and free instruction. Grab your coupon here to take advantage of this offer before it expires October 31, 2009. Snap Fitness, 9002 Chimney Rock, 713.721.7627.
A NEW FITNESS CONCEPT in Houston is offering a deal for Houstonians… Folks who sign up for membership at Snap Fitness — no contracts and no risk — will get one extra month free, valued at more than $30. Snap Fitness, open 24/7, offers fast workouts and free instruction. Grab your coupon here to take advantage of this offer before it expires October 31, 2009. Snap Fitness, 9002 Chimney Rock, 713.721.7627.
Deal of the Week: Exercise Near Home is A Snap
HOUSTON CHRONICLE
Snap Fitness is gaining strength in the Houston market as franchise owners lease small spaces in shopping centers close to their customers.
Since opening in Kingwood in March 2008, the Minneapolis area based chain has grown to six locations in the Houston area with several more on the drawing board.
The chain is banking on its business model of offering 24-hour centers with no contracts to sign and relatively low monthly fees as people cut back on spending but not on working out in a troubled economy.
“You can't really plan for the future as much as you have in the past,” said Patrick Straight, the firms's marketing communications manager. “Fitness overall is on the rise. It's not a luxury item. It's more of a necessity now.”
The idea is to offer the most popular, state-of-the art equipment in neighborhood retail centers rather than big box locations with extras such as swimming pools and racquetball courts. Most members live within a two- to three-mile radius.
After success at the Seabrook club, franchise owners Dianna Rhodes and Dawn Thompson are getting ready to open a second location at FM 518 and Dixie Farm Road in Pearland.
“It's not a big club. People will recognize you and know your name,” said Rhodes. Since opening in June of 2008, memberships at the Seabrook club have grown to 425. More than one person can be on a membership.
Richard Buxbaum of Baker Katz helped with the site selection and negotiated the 3,324-square-foot lease with Plaka Pearland, which was represented by Jim Bayne at Investar. Some neighbors in the shopping center across from a Wal-Mart and Home Depot are Subway, Allstate, Sports Clips and CiCi's Pizza. Opening is slated for Oct. 15.
Snap Fitness believes that the Houston market could support 30 to 40 stores or more in the greater Houston area, Buxbaum said. The expansion will depend on franchisee interest in the concept and how quickly their models allow them to expand.
Snap Fitness also has locations in Meyerland, Conroe, Cinco Ranch and El Campo. Other clubs are planned south of The Woodlands and near Tomball. Locations range in size from 2,500 square feet to 3,500 square feet. Membership plans cost $34.95 or $59.95 a month and offer unlimited access to any center. There are 927 Snap Fitness clubs open in the U.S. and 963 locations worldwide.
Snap Fitness is gaining strength in the Houston market as franchise owners lease small spaces in shopping centers close to their customers.
Since opening in Kingwood in March 2008, the Minneapolis area based chain has grown to six locations in the Houston area with several more on the drawing board.
The chain is banking on its business model of offering 24-hour centers with no contracts to sign and relatively low monthly fees as people cut back on spending but not on working out in a troubled economy.
“You can't really plan for the future as much as you have in the past,” said Patrick Straight, the firms's marketing communications manager. “Fitness overall is on the rise. It's not a luxury item. It's more of a necessity now.”
The idea is to offer the most popular, state-of-the art equipment in neighborhood retail centers rather than big box locations with extras such as swimming pools and racquetball courts. Most members live within a two- to three-mile radius.
After success at the Seabrook club, franchise owners Dianna Rhodes and Dawn Thompson are getting ready to open a second location at FM 518 and Dixie Farm Road in Pearland.
“It's not a big club. People will recognize you and know your name,” said Rhodes. Since opening in June of 2008, memberships at the Seabrook club have grown to 425. More than one person can be on a membership.
Richard Buxbaum of Baker Katz helped with the site selection and negotiated the 3,324-square-foot lease with Plaka Pearland, which was represented by Jim Bayne at Investar. Some neighbors in the shopping center across from a Wal-Mart and Home Depot are Subway, Allstate, Sports Clips and CiCi's Pizza. Opening is slated for Oct. 15.
Snap Fitness believes that the Houston market could support 30 to 40 stores or more in the greater Houston area, Buxbaum said. The expansion will depend on franchisee interest in the concept and how quickly their models allow them to expand.
Snap Fitness also has locations in Meyerland, Conroe, Cinco Ranch and El Campo. Other clubs are planned south of The Woodlands and near Tomball. Locations range in size from 2,500 square feet to 3,500 square feet. Membership plans cost $34.95 or $59.95 a month and offer unlimited access to any center. There are 927 Snap Fitness clubs open in the U.S. and 963 locations worldwide.
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