Building Vanguard Key Clubs With 30 Years of Fitness Industry Expertise

Craig Annis’ journey into franchising was entirely unplanned. After his college graduation in 1992, he aspired to enter the ski industry; however, facing the reality of limited job opportunities, he found himself working at a small gym. Over time, he learned the business, eventually managing a gym and later acquiring it. As he built his career in fitness, his daughter — intrigued by the flexibility and work-life balance he enjoyed — expressed a desire to follow in his footsteps.

In response to her interest, Annis realized the potential for others to benefit from similar opportunities. He decided to expand his model into franchising, aiming to help others achieve a work-life balance while managing their fitness facilities. After two years of preparation, he launched the franchise, Vanguard Key Clubs, in the spring of 2024. Annis’ personal connection to the business, shaped by family values and the desire for financial independence, drives his vision for creating a franchise that prioritizes both family time and financial growth.

His climb to success wasn’t without hurdles. In the early stages, he faced numerous challenges, including living in his gym's office to make ends meet. His success grew through consistent pivots rather than a grand plan as he learned to adapt to obstacles along the way. His franchise model now emphasizes low labor costs and community-building as key aspects. He personally supports franchisees and avoids the common franchisor pitfall of focusing solely on sales, aiming instead to help others achieve success without the hardships he experienced early on.

Annis recently appeared on an episode of “Meet the Zor,” where he spoke to 1851 Franchise Founder and Publisher Nick Powills about his journey as a franchisor. The transcript of the interview, provided below, has been edited for clarity, brevity and style.

Nick Powills: How did you fall into franchising?

Annis: Honestly, none of this was ever planned. Back in 1992, I graduated from college with a business degree and wanted to go into the ski industry. But in the Northeast, that’s very part-time and it wasn’t going to make me a living, so I ended up working the front desk at a small gym. Over time, I learned the business, became the general manager of another gym and eventually bought it out. Over the next 30 years, I built up more gyms.

The biggest turning point came when my daughter graduated from business school and said, “Dad, I want to do what you do.” I asked why, and she said, “Because you come to our games, you get us on the bus, you go to our banquets and plays — you don’t have a nine-to-five job.” The facilities we run are 24-hour key clubs with no staff, like vending machines for health clubs. She wanted the same kind of work-life balance I had, but there wasn’t enough work for both of us, so she suggested we see if others wanted to open similar gyms. That’s how the franchise idea evolved. I wasn’t ready to retire, so I thought, “Why not show people how they can run their own facilities and have a good work-life balance?”

Powills: How many franchises do you have now?

Annis: Zero. We just launched this past spring. We spent the last two years getting everything ready. We have six corporate locations and launched at the international trade show in New York in June.

Powills: What should people know about franchising, and what’s missing from most franchise websites?

Annis: A big gap is that many franchisors jump straight to selling without explaining what franchising is. Most people don’t know the details — you say “McDonald’s” or “FDD,” and they’re lost. You spend money getting them to your website and they leave because they still don’t know what franchising really is.

The second thing I want to highlight is the work-life balance that drew my daughter to this business. It’s not just about owning a gym; it’s about having time for your family while building wealth. That’s the message we should be sharing front and center.

Powills: Speaking of messaging, what should you be showing on your website to communicate that work-life balance?

Annis: That’s a good question. I’m not sure how to visually demonstrate work-life balance. Maybe it’s me on the phone while coaching third base at my son’s baseball game, letting someone into the gym remotely. We’ve engineered the business so you don’t have to be in the facility all the time. You could be at home, on vacation, or anywhere with an internet connection.

Powills: You’ve been in this industry for a long time — through September 11th, the 2008 financial crisis and COVID. What were the most stressful times for you, and how did you overcome them?

Annis: Great question. September 11th didn’t affect us much. The 2008-2009 financial crisis was more concerning. At the time, I had three locations and I also owned a service company that maintained gym equipment. When things got tight, I fired the cleaning crew and did the cleaning myself to cut costs. I realized that people who are serious about fitness will sacrifice other things — like movies or dining out — before they give up their gym membership.

COVID was another challenge. When everything shut down, we put all memberships on freeze for $5 a month, which is standard. Then, my kids came up with a brilliant idea: renting the gyms to members for $20 per hour for individual use or $30 for household members. They organized it all, scheduled times and collected the payments. People loved it, and it kept the gyms busy in a safe way.

When we reopened in June 2020, we tripled the business. Because we don’t have staff to train or plexiglass to install, we just turned everything back on when it was allowed. Our members flocked back in, while other gyms in the area were still preparing to reopen. Our quick response and ongoing communication with members really helped us during that time.

Powills: How did your experiences with those crises prepare you for the future?

Annis: I’ve learned that fitness is really important to the people who commit to it. They won’t give it up, even during hard times. Our communication with members during COVID showed me that people rely on exercise for their health, both physical and mental. We’ve built our business to be flexible and responsive to what members need, and I think that’s what’s going to keep us resilient through any future challenges.

Powills: What is the significance of having three decades of fitness experience in a franchise business?

Annis: Having three decades of fitness experience allows you to draw on past challenges, like the 2008 financial crisis, and put current challenges, such as COVID, into perspective. When you’ve been through tough times before, you have the tools to fight through new obstacles. This experience is an asset that, as a franchise buyer, you’re tapping into.

Powills: What were your expectations when you launched your franchise in June at the Expo in New York and how have they been met so far?

Annis: I try not to have high expectations to avoid disappointment, but that doesn’t stop me from working hard. This has been my approach throughout my career. Initially, I just wanted one facility. I was 23, struggling, and even had to sleep in my office for six months. It’s been a series of pivots over 30 years. No grand master plan — just adjusting when obstacles arise. That’s what I bring to franchisees: encouraging them to pause, assess their options and pivot when necessary. This career is about helping others build their gyms and avoid the struggles I went through.

Powills: How hands-on are you in helping franchisees get started?

Annis: I’m very involved. I’m not passing things off to anyone else. If someone wants to open a gym, I’ll go to their site and walk through it with them. I enjoy the process of building gyms. We've constructed six locations and relocated two or three of them. Now, my daughter is also helping, which is great. She’s gaining experience and is ready to help franchisees with day-to-day questions and challenges.

Powills: Have you sold your first franchise yet?

Annis: Not yet. I’ve been told that the first one or two are always the hardest. No one wants to jump in until someone else tests the waters. I can show people how successful our six corporate locations are, but they need to see it themselves before they take the leap. I’m learning as I go since I’ve never sold franchises before. However, once we get that first one, I believe things will start to roll.

Powills: What’s your strategy for franchisees in a competitive 24/7 fitness market where investments can exceed a million dollars?

Annis: Our approach is to keep it simple. A lot of brands try to keep up with all the bells and whistles, but we’re not doing that. We’re focusing on running gyms efficiently, with low labor overhead and fewer complexities. The margins are 40%, and the biggest expense is rent. Payroll isn't a significant factor. This model offers potential franchisees an opportunity to operate multiple locations and still maintain a healthy work-life balance.

Powills: What sets your franchise model apart from others in the fitness industry?

Annis: We’re not just signing deals for the sake of it. We’re developing franchisees who genuinely want to be part of our system. Many franchisors focus on selling franchises, but we’re focused on building relationships and helping franchisees succeed. It’s about qualifying candidates who align with our vision and ensuring they have the tools and guidance they need to thrive.

Powills: Can you share any insights into multi-unit franchise operations?

Annis: Yes, multi-unit operations are possible within our model. My daughter, who’s been helping with operations for over a year, believes she could manage up to 12 locations by herself. We’ve successfully operated six units, and we provide guidance on everything from lease negotiations to day-to-day management. We want to show potential franchisees that this is a scalable model.

Powills: How do you handle low labor overhead in your gyms, and what happens if there’s an incident where someone needs help?

Annis: All of our cleaning and maintenance services are handled by contractors. We have a facilities maintenance guy who takes care of our six locations. In terms of incidents, our gyms are fully surveilled 24/7 and there’s a courtesy phone at every location. Members also have the operations manager’s cell number. Members are great about helping each other. In emergencies, they usually step in and call 911 if needed. We’ve found that members often handle situations better than having employees, as it avoids liability issues.

Powills: Can you share an example of the community spirit within your gyms?

Annis: Absolutely! At one of our locations, a group of members came together to buy a new powered trike for a fellow gym-goer with a disability. They all pitched in, and one member even volunteered to service the trike. It’s that sense of community that sets us apart from the big box gyms. Members feel like they’re part of something bigger, and that fosters a supportive environment.

Powills: Any final thoughts for potential franchise buyers?

Annis: If you're looking for a business that doesn’t require constant hard work but still provides a good living, this could be a great fit. Once the facility is built, it essentially runs itself. There are also opportunities for property developers to use empty retail spaces for our gyms. It’s a low-maintenance operation that can enhance the value of their properties without the hassle of managing staff. I encourage anyone interested to visit us and see for themselves.

Watch the full interview here.

Every great franchisee had help buying a franchise. Want to learn more about how 1851 helps franchisees find the right franchise opportunity? Visit www.1851growthclub.com and start your journey.