Anytime Fitness or Snap Fitness

I am looking to buy an already started Snap or Anytime...

What are some things I should look for and watch for? The previous owners are motivated and want out for family reasons. I would like some feedback about questions to ask and what to know before going any further.

Thanks

Working Capital

I would be happy to discuss with any SNAP or Anytime Fitness how we may be able to provide working capital and/or expansion capital. Feel free to contact me at 212-838-4840 x316 or tsherer@egcap.com.

Snap vs Anytime

If I were you I would request a sheet of Snap Franchisee 's and a list of Anytime Franchisee's. I would call each contact randomly, and at least five of them, and ask them a series of questions. I would also try to find a franchisee who has a similar geographic territory as yours. You will not find better information than from the owners themselves. Consultants, Frachisors, etc... cannot answer financial questions that you will be able to get from unit operators. As with any business, always work it before letting anybody else run it. You are always your best ally.

THE VALIDATION PROCESS FOR POTENTIAL FRANCHISEES

1. How long have you been open for business?
2. What was the total (not simply the downpayment) investment required by the franchisor?
3. Were there hidden or unexpected costs? If yes, what were they!
4. Has the merchandise, machinery and other equipment, which the franchisor supplied, been of good quality?
5. Is the franchisor prompt with his delivery?
6. How long was it before you hit the break-even point?
7. How long before the franchise was able to support you?
8. Were you trained? Was the training adequate?
9. Were the projected sales of the franchise, which the franchisor supplied, accurate?
10. Was the general profit projection accurate?
11. Do you have a guaranteed (not right to) buy-back agreement in your contract on inventory and equipment?
12. Have you ever had a serious disagreement with the franchisor? What about? Was it settled amicably?
13. Do you know whether the franchisor has ever had to settle any problem through arbitration?
14. Do you have to send a periodic report to the company? What does it include?
15. Does the franchisor actively respond to the reports?
16. Are you satisfied with the marketing, promotional and advertising assistance that you receive from the company?
17. If you could change your contract, what would you change?
18. Do you know of any franchisee’s that are having a difficult time?
19. Would you advise anyone to start a franchise with this particular franchisor?

Thinking of Opening a Anytime or Snap or Independent

Hi Everyone,

I would appreciate any comments, advice, thoughts on opening a Snap Vs Anytime Vs Independent. I have a long history of starting businesses from scratch (non franchise) and building them up and selling them. I like the idea of a snap or anytime, but find that alot of money could be saved by negotiating directly with suppliers for security, tv/audio/camera etc, equipment (possibly using a mix of manufacturered refurbished equipment and new - instead of purchasing it all form a "approved vendor", using a better less expensive billing system. I have alot of marketing and sales experience and neither brand is recognized here in canada so my thought is to try and reduce the upfront costs by 35% and go it alone? Any thoughts from experienced snap or anytime owners... Would you open another Snap or Anytime now you know what you are doing? Would you buy all new equipment, even though there are tons of recently purchased barely used gym equip available in this economy?

Any thoughts would be very helpful

thanks

Snap Fitness, a true story

All of these comments about being a good operator mean nothing if you don't have a good location. The fact is, Snap will work in a rural location or a location that has NO competition within 4+ miles with no plans of any big boxes coming. If you're the first new gym in a community with state of the art Cybex equipment, people will join in droves and you will break even quickly.(3-6 months) That is the ONLY model that has really worked. Don't listen to them about what works and what doesn't. There are a limited number of people in any 4 mile radius that will join a health club...If there's YMCA, a Big Box, or other well used community gyms within 4 miles of your location, don't go there. Too much competition, especially if you're month to month and people can quit anytime, and especially in this economy. Also, another factor is rent. Do no pay more than $2500 a month in rent no matter what. $2000 is even better. Owning Snaps and paying too much rent will get you in trouble when you have attrition. Which can be as much as 20% of your memberships (contracts) a year. And do not believe a word about not needing employees. That is BS. Unless you are in some rural area where you are the only game in town and there are no other choices except some macho gym up the road...you will need to develop relationships with your members...keep the gym sparkling clean (daily cleaning) and have a SALES person who can really sell and one you can trust to input contracts (not a dyslexic part-time birdbrain who can't type a credit card number correctly). Think about how hare it is to find a part time employee who has all of these skill sets: Can really sell, will clean toilets, can think on their feet, can represent your business philosopy and give a shit about your investment and will show up on time. This is not easy to find. You also need to handle bad pay, and follow up monthly. This is not a part time job and don't listen to Snap if they tell you that. BS. Also, don't think that Snap cares about you because all they care about is their bottom line: franchise fees and the kickbacks they get from a twin brother who owns their Business Impact company, their cousins who install the flooring, their other relatives who supply the security systems with cheap equipment that Peter Taunton takes a cut from all of the above. Ever hear of the Travelers?

This guy is sharp in that he has found a formula and has his family all on the take with him. You buy the franchise and they "assist" you, but they are not really smart. Just street savvy in that they make the money coming and going. So was Madoff. There are so few owners with multiple locations who are successful. Most have just one.
And if you're not successful, you will never get help from the Franchise. They surely do not care about you. You are on your own.
Don't spend more than $9000 a month in expenses before taxes.
And don't forget your equipment will need maintenance. It can cost $300-600 to fix a dead treadmill...even under warranty. This equipment won't last forever. And the rubber flooring wears out too. Also don't forget personal training. Gotta have that. And it costs more to keep a gym cool so electricity is higher. Be sure you do not have any responsibility for the HVAC unit on your building. If the compressor goes, you could be out thousands. The key is you need a lot of capital to keep this running if you don't break even within 3-6 months. And if you don't break even in the first 3-6 months. Bail Out...The Snaps that thrive, make it in the first six months. If not, you never will...you will keep trying and keep spending in blind faith that "this month" will make the difference. And it won't. The right location makes it in 3-6 months. The failures don't.

Also, the kiss of death is that small retailers have to sign Personal Guarantees in Shopping Centers. So if you fail, you fail big...go for a two year lease with a right to renew. Do not sign a five year lease. Big mistake. If your location sucks, you are stuck. And you are personally liable. How do I know all of this? Just filed personal bankruptcy due to personal guarantees on leases and equipment loans after pouring over $450,000 into three locations. Never failed at anything before. Never filed bankruptcy before.
Our mistake was location...that Snap approved. They said the model was different enough to make it...WRONG. You need to be the oasis in the desert. No other gyms within 4 miles.

PS. Gary Findley was hired to expand Snap into markets outside the US. He's the guy who built Curves into a huge company. But, have you asked a Curves lately how they're doing? Under his leadership Curves overbuilt...and there was a Curves within 2 miles of each other...too many...Now, they're going under one by one. And the good thing about Curves is you didn't spend as much to get in....Snap is easily $200,000 plus per store. The proforma in the UFOC is not comprehensive. A lot is missing. Be aware. It's too late for us...but if we can help someone else, we'd like to pay it forward.

Re: Anytime Fitness or Snap Fitness

We own 2 snap locations. Better than anytime because of support, equip, no contracts, Corp contract support is greatvia michael Wickman. Most important decision is loacation and low monthly rent

SNAP FITNESS KILLS ANYTIME ON EVERYTHING

I AM A CURRENT SNAP FITNESS FRANCHISE OWNER IN A VERY SUCCESSFUL LOCATION IN WHICH A COPYCAT COMPANY ANYTIME FITNESS TRIED TO OPEN THERE DOORS DIRECTLY ACROSS THE STREET. THEY HAVE STRUGGLED TO COMPETE WITH US SINCE THEY OPENED WE HAVE ABOUT 3 MEMBERS PER THERE 1 YOU CAN DRIVE BY THE PARKING LOT AT ANYTIME IF YOU WANT PROOF. I STAY IN PRETTY CLOSE TOUCH WITH THE OWNER AND THE STAFF TO GET INFO. THERE EQUIPMENT IS NONE MATCHING,NOT IN THE SAME LEAGUE AND THE COLORS ON THE WALL MAKE YOU WANT TO PUKE WHILE WORKING OUT. SNAP FITNESS HAS ALL MATCHING EQUIPMENT AND THE COLORS ARE VERY INVITING, I ONLY SAY THIS BECAUSE DAILY SOMEONE TELLS ME THEY HAVE TOURED BOTH AND THAT IS HOW THE FEEL.

I AM NOT A HATER IN ANYWAY BUT I SAW SOME COMMENTS THAT WERE FALSE ABOUT THE COMPARISON OF ANYTIME BEING BETTER.SNAP CLUB SUPPORT IS AMAZING! IF YOU DON'T BELIEVE ME THE PROOF IS IN THE 2009 VERSION OF ENTREPRENEUR MAGAZINE. SNAP FITNESS NUMBER 24 IN THE NATION AND THE NUMBER ONE FITNESS FRANCHISE IN THE NATION,ANYTIME NOT EVEN TOP 50. IT FEELS GOOD TO BE NUMBER ONE ITS NEVER FUN BEING NUMBER TWO....... AWE SNAP

Anytime Fitness has the edge over SNAP

I've been an AF franchisee for several years and have multiple locations. Overall, I am VERY pleased with the franchise and am impressed by how much they are comitted to continuing to improve the franchise. Success is still very much tied to your effort and skills, but doing either franchise is MUCH better than trying to go it alone.

As for SNAP, the best thing I can say about them is that they knew a great idea when they saw what Anytime was doing and copied it. Although I don't like the color scheme or equipment selections SNAP has, the uniformity among gyms is nice IF you travel a lot. On the other hand, their insistence on "no long term contracts!" does much more to hurt them than it does to help. Long term memberships might take a bit more effort to sell, but over the long term it is much more profitable.

As and Anytime owner, I personally find the SNAP locations that are trying to compete with me annoying. Effectively, they are going after the price sensitive, low commitment customers that we don't get, but in the process they are devaluing the product we are both selling. They would be better off to drop that business practice and sell normal memberships, but ether way I'm fine. My locations tend to pull in the more stable, better paying members so we make a nice profit year round rather than sucking wind every summer and whenever the economy has a hickup. On the other hand, if they recant on that, then I'll probably get more the good paying members they do catch because our facilities are nicer.

Oh, one thing for potential gym owners looking at BOTH francisees, do everyone a favor and find your own territory rather than trying to split the market. If a similar club is already there, GO ELSEWHERE! Why make it harder on both you and your competitor!?! Find a place at least 4-5 miles away and service those people. If you care about making money, going in too close to another competitor (or a fellow franchisee) is stupid!