Franchisor Stories
Due to the pandemic, people are more focused on health and wellness but have less money to spend. By keeping overhead costs low, fitWAVE and Fitness Premier 24/7 Clubs give franchisees the opportunity to invest in a low-cost solution to bigger gyms, while making memberships affordable.
Jason Markowicz, CEO of both the 13-unit fitness brand Fitness Premier 24/7 Clubs and emerging group-fitness franchise fitWAVE, knows it’s not cheap to open a gym. The average startup costs for big-box fitness concepts come in between $250,000 and $1 million. These high costs end up impacting the consumer — gym owners need to charge expensive membership fees to make a profit. That’s why Fitness Premier 24/7 Clubs and fitWAVE were designed to position fitness enthusiasts and first-time entrepreneurs for success through low overhead costs, flexible real estate and a proven membership model that can scale to fit markets other competitors can’t reach.
Now, as the country emerges from the COVID-19 pandemic and people remain hesitant about spending, both Fitness Premier 24/7 Clubs and fitWAVE offer franchisee prospects an exciting and uniquely well-positioned opportunity in the fitness industry.
fitWAVE is a low-cost group-fitness franchise that is starting out in the Midwest. The brand features a smaller-than-average footprint of 1,500 to 3,000 square feet, which means the concept can fit almost any retail space. This not only makes it easier to find affordable real estate, but also allows fitWAVE to operate in more lucrative markets. While most fitness concepts rely on large, densely populated urban markets to turn a profit, fitWAVE can succeed in towns as small as just 15,000, which brings an array of benefits.
“Most boutique fitness concepts are very expansive and large, which means you can only choose markets with a larger population to ensure you see returns,” said Josh Chrestman, a former Division 1 football player and high school wrestling champ who founded fitWAVE. “With the size of our footprint being so small, it opens the opportunity up to more markets and ensures franchisees can avoid the expensive real estate and demanding regulations that come with larger markets. There are also a lot of smaller, isolated markets available across the country with an untapped consumer demand, and this model fits perfectly in those areas. We are a small-town operator in Illinois ourselves, so we are really focused on providing a quality service to those smaller local communities.”
In addition to increased market availability, that small footprint allows fitWAVE to require dramatically lower startup costs than its competitors. The initial investment for a fitWAVE location comes in between $75,000 and $180,000, depending on real estate and additional amenities.
“The fitWAVE franchise opportunity was designed to help franchisees keep overhead costs very low,” said Chrestman. “For example, other competitors require expensive fitness equipment, but our equipment costs are significantly lower thanks to our smaller footprint and streamlined operational model.”
Fitness Premier 24/7 Clubs is a fast-growing, group-workout and gym concept that has also seen major success in smaller markets, including the suburbs of Illinois and Indiana. The brand strategically targets these more affordable rural markets to keep costs low for franchisees and emphasize a community-oriented approach to fitness, which fuels membership.
“The towns where Fitness Premier 24/7 Clubs are located have a population of roughly 6,000 to 12,000 people. I think the biggest thing with the brand is that it becomes a part of the communities,” said franchisee Joshua Schunke. “I think it’s a great business model. They have 13 locations right now, and I am looking to maybe someday own 13 locations myself. Fitness Premier started with a focus on really owning your 24/7 club and building community. You either interact with people face-to-face, or it’s all faceless. That’s the whole reason why I bought in. I wanted to feel like I had that connection to my business.”
While Fitness Premier 24/7 Clubs’ startup costs are significantly lower than those of its competitors, they still come with many of the same benefits. The initial investment of only $39,999 comes with a start-up guide, initial training, marketing assistance, a proven system, equipment package, site selection and build-out assistance, distinctive image and interior design, operations manual and employee hiring/management quality controls.
“Jason and our corporate team have worked with many other franchisees in the past, and we know how to create an affordable franchise opportunity,” said Kathy Mecklenburg, director of operations and HR for Fitness Premier 24/7 Clubs and multi-unit owner herself. “Yes, there are franchise fees and start-up fees, but we’ve designed our model to be financially attainable and less expensive than the competition. We are also there to help prospects find financing, and we have people who can help guide them to make sure it is the right investment for them.”
By keeping overhead costs so low, Fitness Premier 24/7 Clubs and fitWAVE owners are able to offer more affordable and flexible gym membership prices to their customers. fitWAVE and Fitness Premier 24/7 Clubs also both offer a wide array of services, which means franchisees can tap into multiple revenue streams, bring in more customers and generate faster ROI.
Fitness Premier 24/7 Clubs, for example, utilizes a hybrid model that drives both membership and service revenue, since members are able to create a fitness plan based on their specific budget, goals and progress. fitWAVE’s cyclical workout program also stands out in the industry and appeals to both athletes and casual exercisers alike due to its high-value proposition and ability to generate impressive results. These affordable, innovative fitness programs ensure franchisees can create a dedicated fan base in the community and increase member retention exponentially.
Today, Chrestman notes people have never valued their health and wellness more coming out of the COVID-19 pandemic, but they are in need of affordable options. With fitWAVE and Fitness Premier 24/7 Clubs, franchisees have the exciting opportunity to satisfy this growing demand with the help of a low-cost build-out, innovative programming and lucrative business model.
“Our team did a great job of coming through the pandemic, and a lot of valuable new ideas were birthed from the crisis,” Markowicz said. “I’ve been on both sides of the franchisee/franchisor relationship. I have been in every situation that franchisees have been in. We were proud to create solutions for our franchisees during the pandemic, and we are excited to continue offering new solutions and opportunities for franchisees as we continue to grow.”
Now, fitWAVE and Fitness Premier 24/7 Clubs are both looking to add 10 new franchisees in 2021, and have identified Illinois, Indiana, and other parts of the Midwest as areas primed for growth.
ABOUT FRANCHISE FIT FOR YOU
Franchise Fit For You is a franchisee-first franchisor and franchisee consultancy. It is the franchisor behind low-cost group-fitness franchise fitWAVE as well as Fitness Premier 24/7 Clubs, a larger-box fitness brand. As a franchisee consultancy, Fit For You offers guidance for future franchisees on finding the best fit for their personal and financial goals. Fit For You is run by Jason Markowicz, a former multi-unit franchise owner of Massage Envy and current developer of Prose Nails, a membership-based nail salon. For more information, visit https://1851franchise.com/fitforyoufranchising.
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