Growing Fitness Franchise | Snap Fitness: An exercise in growth

The Oakland Press

Tough times force people to get creative and Snap Fitness proves the point.

Snap Fitness, a franchise business that started in Minneapolis in 2003, is moving into the Detroit area in a big way.

By the end of the year, it hopes to have as many as a dozen locations open around Oakland County, counting the new sites in Oakland Township and Berkley that are expected to open before the end of the year.

“Michigan is becoming one of our fastest growth areas,” said Patrick Strait, marketing communications manager for Snap Fitness. “We have had a lot of people say ‘Hey, I see the potential for this.’ It’s the franchisees that are driving the growth,” said Strait, noting that over the past year or so Snap Fitness has opened sites in Ferndale, Birmingham, Commerce Township, Troy, Farmington Hills, Oxford, Highland Township, Novi and South Lyon.

“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.

Taunton concluded many of the costly amenities offered by the large clubs facilities such as racquetball courts and childcare sat idle most of the day. He designed a model for a club 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 affordable membership pricing and quality exercise equipment to neighborhoods across America. Snap Fitness was the second-highest ranked concept in the health category in Inc. Magazine’s annual survey of fast growing companies. Overall, it was one of the top 20 fastest growing privately held companies in the U.S., according to Inc., Taunton said. “We look forward to continuing success and to breaking into the Top 10 next year, as both investors and consumers continue to recognize the value we provide,” 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 Birmingham, it was tough getting started and getting it open. But it’s been great,” said Collias, whose Snap Fitness gym on Willits in the Center of Birmingham has been open since August 2008. “We’ve grown steadily every month,” he said.

“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 Oakland County hasn’t disturbed him. “That’s actually better for the brand,” he said.

“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 Taunton.