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Anytime Fitness or Snap Fitness
I have always wanted to own my own business and I have a fitness background and have been considering Anytime Fitness and Snap Fitness. Neither one are in my area so I can compare them by visiting them in person, only what I gather from my research. Does anyone know anything about either that would help me in the decision making process? Thanks!
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Women with large muscles
Women with large muscles look masculine and unnatural to me. muscle is masculine and will remain so. Most, with a few exceptions, women aren't able to build the same amount of lean muscle that men can due to the low levels of testosterone in a woman's body.
And this has to do with
And this has to do with owning an Anytime or Snap Fitness because ??????????
club shutting doors
http://www.snapfitness.com/cottagegrovewi/home/article/8022#ClubNews
McDonalds Shuts it doors
A McDonalds shuts its doors. it happens.
http://www.i4u.com/2013/02/mcdonalds/arches-doors-mcdonalds-closed-city-tahoe-shuts
Not that shocking
The McD F'see was reported to have said the lease could not be economically renewed. The mall changed owners not long ago. Not much of a shock to close a site when the lease runs out and the Landlord's renewal terms are onerous.. The store was there 30+ years and (per the article) the franchise had had several franchise owners.
BTW, let this (lease renewal) be a lesson to those who advocate getting the shortest possible lease for their franchised business. They are thinking of ease of bailing out if they fail. But what if the business succeeds? When that short lease comes up for renewal with a Landlord who sees you are doing well, he has you over a barrel.
A friend of mine was glad to close his food court McD when his FA was up (at the same time the lease was). It was not a money maker (low volume secondary mall) and no other McD F'see wanted the site either. Corp let it go even though the mall wanted them to stay. The same friend has a low volume conventional store he is also waiting to close at the end of the FA. But he'll still have 20+ stores left.
A McD FA is usually 20 years so what is a little odd is that the Tahoe store is out after 30. In the US, typically McD Corp handles the lease with the Landlord and then leases the site to the F'see. Typically the lease and the FA term would coincide.
another closing down
in Texas.
http://www.sos.state.tx.us/statdoc/healthspas/012413closing.shtml
Equipment Lease
What can one expect for the Snap equipment lease with united at the end of the term? Any experiecnce?
Sorry to hear that Snaps are
Sorry to hear that Snaps are horrible to own. I belong to one, and love it - especially the 24 hour part. I'm kind of a gym rat, and don't have one near my house. Snap moved in, and while it may be a glorified hotel gym at 4 am it is MY glorified hotel gym. I own it, I am the only one there. I bring my DVD player and an HDMI cable, hook into one of the 42" LCD's, pop in P90X or BodyBeast or whatever I am doing and I have everything I need right there. Yeah, I spend 10 minutes picking up the weight area from the chuckleheads last night but I count it as "stretch". Even at $54/mo I can't think of a better alternative that works for me.
They aren't horrible to own if you know the fitness industry
Problem is many people who have never worked in the industry sink their life savings into an investment they know nothing about. Identifying viable markets and locations are important, but owning a fitness center is more often a lifestyle and not the best investment vehicle. Enjoying helping others and a healthy lifestyle is a part of that success formula, but there are many variables with can lead to failure if not properly vetted. zajegi
Yup.
Guest notes: "Problem is many people who have never worked in the industry sink their life savings into an investment they know nothing about. "
Yup. Have said that in general about pretty much ANY franchised business (or any business at all). But because it is a franchise, people think knowledge & experience is not needed. Worse for these particular businesses (card key gyms) some people bought in expecting a hands off cash cow, keep their day job and just watch the money pour in. Yeah right.
The gym we belong to, the Owner is there 6 days a week and was the manager of someone else's gym before she opened her own.
owner' story
found this down on the thread, thought it was good.
For potential franchisees: Consider carefully your available resources in terms of time and money.
Don't believe the sales pitch that you can run a successful snap while also working full time somewhere else. This would only work if you are able to pay a full time, sales oriented manager.
Also, you most likely will NOT breakeven within the first 6 months. It could take 12-18 months or more. Make sure you have the financial resources to subsidize your business for the long haul.
These were my two biggest mistakes. I didn't have the time, energy or finances to keep my business going. I don't know if I failed or not because I was never able to give it my full, undivided attention. I was torn between my commitments to my family, full time employer and my snap, never fully engaged in any of the three. We took out a home equity line of credit to subsidize our business each month. After 18 months I saw the writing on the wall and decided to sell. The new owners are making a go of it as far as I can tell so I'm glad about that for our members.
I don't have a huge problem with corporate. I signed the FDD so don't really have any right to complain about any of the terms. They are in business to make money so let them to the extent that the law, the market and their conscience will allow. My biggest complaint is the way the business was pitched to me. The time and money required were vastly understated in my opinion.
Bottom line is that for some, this is a good business opportunity, for others (like me) it is not right
In my opinion:
-You cannot run a successful Snap franchise while working full time at another job
-Your breakeven will be substantially higher than 250 members
-Do not plan on turning a profit in your first 12-18 months.
-Make sure you have enough in personal savings or liquid capital to subsidize your business until you turn a profit (if you ever do)
-Franchising is extremely risky at best. You must be 100% committed in terms of all of your time, energy, and financial resources
-Take EVERYTHING the corporate sales team tells you with a grain of salt. If it sounds too good to be true IT IS!!
Here is my story
It was a couple years ago and I've tried to forget most of my experience but as best I can remember, based on an average membership of $40 (might be a little high), our break even was probably around 320 memberships (475-500 members).
We also never got personal training off the ground. #1 I couldn't find a good trainer in our area and #2 our members just weren't interested it seems. Of course if I could have found a good trainer, maybe my members WOULD have been more interested. However, it seems like the area I live in (Midwest) just doesn't see the demand for personal trainers. After all, they are joining snap for the low fees and convenience, why should they pay more and have someone hound them with training sales pitches while they are working out?
I tried the best I could to provide a clean club and friendly competent staff since I couldn't be there myself due to my regular job. When I opened I had a gung ho, energetic manager hired, who was also a personal trainer (newly certified). He was paid $10 per hour, plus incentives for signing up new members. He worked about 20-25 hours per week (all of our staffed hours except for about 5 which I covered myself, one night per week and some weekends). After a few months I bumped his pay to $11 per hour then $11.50. He was not able to get the PT going and quickly became disenchanted with the marketing, sales, and cleaning duties he was required to do. He quit after about 6 months and then it became an endless string of part time staff, usually 2 or 3 at a time who each worked 5-10 hours per week. No one stayed more than a few months so I was always recruiting, interviewing and training new staff.
I would stop in at the store in the morning on my way to work 2-3 times each week to check on the club. After a heavy thunderstorm, the satellite and TVs would go out so I was on the phone with DishNetwork. I had to meet the Pepsi guy to restock the vending machine, or the water guy for the water delivery, or the equipment repair guy. It was never ending. I could monitor the club via the cameras from my work computer (I cheated my boss out of many hours by working on Snap stuff). When my employees didn't show up I was leaving work early, using up my vacation to staff the club. I was maintaining our club website and monitoring our club email account and responding to inquiries about memberships. I was on the phone with members regarding club questions, issues, dues payments etc. On the phone with Corporate over Checkfree, door access, membership issues. all on company time. I spent my lunch hours and company time on the mostly useless to me marketing and sales webinars. All the programs sounded great, but I didn't have the time or the money to implement them.
At night I would try to keep up with the accounting, pay the bills and do the payroll. Luckily my good friend is a CPA and helped me out a lot. There were quarterly payroll taxes, quarterly income taxes etc. One of my staff had a child support order against him so that was more work for me.
Meanwhile my wife and kids suffered because I was always gone or busy.
You can either do all this yourself, or pay someone to do it for you. I couldn't afford to pay someone so I was doing it all myself.
Make sure you can afford either the time or the money necessary.
Eventually I couldn't (refused to) keep up. My wife suggested we seek a buyer and I agreed, two months later my club was sold. We lost about 65K in the deal but I was glad to only lose that much. The weight of the world was off my shoulders and I felt FANTASTIC!
I'm sure this sounds like whining and it probably is. I'm just mad at myself for falling for the sales pitch, overestimating my capabilities and putting my family finances at risk.
Franchise Headaches
Wow! Terrific rundown of what it's like to run a gym. Sounds like a big headache to me. I wondered why more women didn't run these places; now I know! It's too much for one person. I'm having just as much trouble finding a club to replace the one I had been going to to work out for over 15 years. A new owner took over and the place went downhill until it closed. I haven't been able to find happiness elsewhere. Misinformed and tactless new owners of gyms I've tried, misguided staff (if dirty looks were worth money, I'd be rich), members and staff who have harassed me when all I'm interested in is going in, working out, and getting out. What a bad deal all around. Maybe I should just stick to working out at home! I'd save on gas money. My insurance pays for the membership. Maybe it's time to switch health insurance too.
So woman are to smart for these?
Guest says: "I wondered why more women didn't run these places; now I know! It's too much for one person."
The owner of the gym we belong to is a woman. She runs the place, along with a female manager. Some of the other staff are male though.
PF invasion
Just saw the first Planet Fitness open up in our area..stiff competition for A-F and Snap.
sell and sell quickly
If they are within 5-6 miles. no way to compete against PF. Your business Year over year will be down 25%. Sell and sell quickly even at a discount and take the loss now!
data point
Around here, Retro Fitness ("Over 120 Locations Operating or Coming Soon") is advertising $10/mo. for "Basic Membership". The Planet Fitness was, IIRC, at $20/mo. The PF and the Retro are across the street from each other and opened at about the same time. I wonder if each knew there was another club about to open, LOL?!?
Insurance
Does anyone have an idea of insurance costs for a gym?
New FDD
Anyone make it past the 5year mark & deal with the new Snap FDD?
I sold my club with six
I sold my club with six months left on my original agreement. I did not want to sign the new one because it has become far too restrictive. The term is now ten years, all the fees have increased and even a resale can only be done through Snap's "resale department." For a large commission, of course.
FDD
Agree, I will take a beating on the sale like others, but need to get away from it.
good luck
Even though I found my buyer and negotiated all terms of the sale I paid a $5,000 ransom to their re-sale department to get out from underneath this turkey of a business. All they did was send me a few forms to fill out to transfer the franchise. Good Luck.
when they hold you hostage to using their ripoff
"Brokerage" services that speaks volumes. It really is tantamount to ransom. Gary Findley is behind this. If they can't make money selling units, they will put the screws to whoever is left.
Did it to Curves why not Snap
Gary is a bunch of exec hired in the past 2-4 years that used to work with Curves has caused this franchise the heartburn. Mike Carver and his team is another group of Curves vultures picking the bones of the dead or dying.
Ransom
So when in the first 5 years should we expect the renewal request begin.
snap fitness franchise renewal
Approx 7-8 months prior to the day that you signed your initial franchise agreement (not when you opened and when the equipment lease started). This is important because of the disconnect in timing between franchise agreement, lease and equipment lease commitments. The fees of course go up and for what reason? We are in the same boat as some of the others who want out and that I may have to take a loss if the landlord wount let me terminate 10 month early due to teh disconnect and then there is the approx $35K on the equipment lease. Of course Gary and Peter in their kind ways (sacrasm) can make an offer on the equipment (probably below market and what I owe) and then turn around and resell.
snap fitness franchise renewal
Approx 7-8 months prior to the day that you signed your initial franchise agreement (not when you opened and when the equipment lease started). This is important because of the disconnect in timing between franchise agreement, lease and equipment lease commitments. The fees of course go up and for what reason? We are in the same boat as some of the others who want out and that I may have to take a loss if the landlord wount let me terminate 10 month early due to teh disconnect and then there is the approx $35K on the equipment lease. Of course Gary and Peter in their kind ways (sacrasm) can make an offer on the equipment (probably below market and what I owe) and then turn around and resell.
equipment auction
Sadly the fate of many Snap fitness owners.
http://www.hamilton-grp.com/auction_detail.php?id=183496
How Many Snaps left
Anyone have numbers on how many Snaps left in the US.
Snap numbers
In May 2010 there were 1,329 locations in the U.S.
In Aug 2012 there are 1,196
Thats 10% closing in a little over two years. I don't know if that is a high percentage or not, but it doesn't look too good to me.
doesnt count those that sold
doesnt count those that sold at a huge loss
That number is not accurate
There were never 1300 units open in 2010. There has to be duplicates in that, but I am certain that there were not that many open at that time.
1300 units
Check out this link archived from May 12, 2010. There were 1,329 locations in the U.S.
http://web.archive.org/web/20100512180241/http://www.snapfitness.com/locations
link
after pasting the URL in your browser make sure to delete the . [period] at the end, after locations
http://web.archive.org/web/20100512180241/http://www.snapfitness.com/locations
I don't care what that list says
I am here to tell you that not all of these locations were open. Some were coming soon. Forget this list. Go get an FDD and look there. You are basing your assessment on inaccurate numbers. These are marketing numbers. I am not trying to nullify your arguement, just that it isn't that accurate.
The Fitness Industry suffered in 2009 and 2010. There is no doubt about that, as did many other industries, but your assesment is based on fluffy numbers.
Fluffy numbers
Snap inflated numbers based on licenses sold to make them selves look good. Even if they never opened the sale of new licenses is down, as well as new locations. You are right it's marketing, just like the original sale of 3 packs. There has been enough said about that topic.
Unit Count Down 10% in 2 yrs.
If it's not growing, it's dying. Down 10% may not be awful like Quiznos, but it's not a good thing either.
Mature systems in a saturated industry (like major QSR brands in the U.S.) may have fairly static systems but I don't think this fitness franchise is in that category.
Snap net numbers
I'm sure there are couple openings in that number too. The folks on this site called the snap failure long ago.
two more closings
http://qctimes.com/business/some-q-c-snap-fitness-locations-closed-while-owners-negotiate/article_87cbac02-dc4d-11e1-a6eb-0019bb2963f4.html
Snap Closings
Looks like the 2008 locations can't get to the 5 year renewal point. What a POS.
More Snaps closing
More Snaps continue to close
Starbucks Closing
There are Starbucks closing too. McDonalds as well.
Mc Ds closing
That's to bad, how long were they open? They are well established franchises with solid consumer recognition. Strategy is also solid in both franchises. I can't imagine corporate treats them the same way Snap does. I wonder if they were sold a pile from the same sales reps that sold Snaps. The Snap closings are from locations that have been open less than the 1st agreement. The next FDD will certainly put MANY more under. I'm sure the folks that closed the doors would love your response.
SBUX, MCD
Starbucks are not franchised.
McDonald's doesn't use brokers or sales reps.
Go try to buy yourself a Starbucks. Or a McDonald's. Get back to us how it went. People CAN buy a McDonald's, but not just by walking in off the sreet with a check.
Good point
You made a great point G-Bean. Snap will take money from any fool with the idea they can make money with this POS.
Anytime fitness is the best!
Smart people buy Anytime. We have 24/7 support. Our franchisees love us.
Anytime Fitness is worse than Snap
You guys are a complete and utter ripoff! Monies going back to Anytime are higher than Snap. Plus there is less consistency among your locations than Snap. One Anytime my be great, another may be garbage. At least with Snap there is consistency withing the brand. Isn't that what branding should reflect?
Consistency of Snaps
They all s#ck!
Anytime is a POS as well.
Go spew your crap elsewhere.
snap closing
And another one gone...
http://snap-fitness.pissedconsumer.com/snap-fitness-barrie-ontario-canada-ferndale-drive-20120403309660.html
Snap sale
Another location bites the dust. get your equipment cheap!
http://www.mccurdyauction.com/listing.php?id=10004&action=personal
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