Retro Fitness wants to revolutionize the way franchised gym businesses are designed and run. Targeting the three top issues found in gym franchises, Retro Fitness offers franchisees access to a new way of doing things.
First, Retro Fitness franchisees offer their customers a high-end gym experience for a low monthly cost of $20, which is the basis of Retro Fitness’s business. A gym has a lot of costs that don’t change when there are more or fewer customers, so volume is the key to success. If your gym isn’t filled with paying customers, you have a lot of underused money sitting around in the form of equipment, lights, heating and cooling, and real estate. The founder of Retro Fitness, Eric Casaburi, analyzed different systems available in the fitness industry and found that all of them had empty space that was being underutilized.
Instead of going with the status quo, Casaburi and his team decided to right-size their gyms to keep costs low. The lower the cost of doing business, the lower memberships can be. Lower membership costs mean it’s more accessible to the general public and the gyms are full instead of mostly empty. This means more business and more revenue, instead of letting your capital languish on the gym floor.
The efficiencies of the model mean that Retro Fitness is able to offer more than other gyms offering memberships at the low price point. Every Retro Fitness facility has 60-75 cardio stations with personal LCD TV screens, circuit training equipment of three different kinds, free weights, and a “Cardio Movie Theater.” With child care, trendy fitness classes, and a stylish look, Retro Fitness delivers a high quality experience at a very competitive price.
The third issue, after right-sizing and right-pricing services, is that it takes time and expertise to oversee construction of a gym designed to the right specifications for the location. Retro Fitness helps franchisees with construction referral and project management services that take the burden off of franchisees. Instead of having to spend all day managing different aspects of getting up and running, franchisees can focus on other tasks, including other business endeavors.
The assistance in getting your franchise up and running doesn’t stop there, however, as Retro Fitness also hires the management staff and trains them instead of putting that burden on the franchisees. A Retro Fitness franchisee starts out with a big advantage.
Retro Fitness’ goal is also to provide multiple streams of revenue without overburdening franchisees for capital. They developed strong relationships at the beginning of their business with large industry brands including Under Armor and Life Fitness. Over the years these relationships have led to lower prices for franchisees when opening locations. Along with these retail opportunities, franchisees can expect multiple streams of revenue through other means, including a juice bar, personal training, tanning, child care, chiropractic and massage services.
Retro Fitness requires a significant investment, but the way they approach the business opportunity increases the franchisee’s chances of success.
