Wednesday, October 7, 2009

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.

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