Middle East Franchise Review 2013 - page 10

8
MIDDLE EAST FRANCHISE REVIEW
Services
B2C
CountryofOrigin
USA
TargetMarkets
Worldwide
RetroFitness
TheGymConceptwithMonetaryMuscle
Featuredon thehitCBS reality series
‘UndercoverBoss’,RetroFitness is an investor-
friendly franchisewith strong-unit economics and
streamlinedbusinessoperations that ison track to
grow to300 locationsby2016.Combiningan
affordablemembershippricepoint of just
US$19.99permonthwithahighqualitygym
experienceand stateof theart equipment
normallyassociatedwithbig-boxclubs,Retro
Fitness attractsnewandexperiencedexercisersof
all ageswhileancillaryofferings like theRetro
BlendsSmoothieand JuiceBar, personal training
andgroup fitness classes alongwithchildcare
services and tanningcreateadditional revenue
centers thatmaximizebottom line returns for
franchiseowners.
“When I startedRetroFitness in2004,my
philosophywassimple,delivermore fitness for less
money,”saysEricCasaburi,FounderandCEO.
“Todayandwithmore than100 locations in
operation,RetroFitnesshassuccessfullyestablished
anexcitingand invitingenvironment forexercise
whichaccommodatesany fitnessenthusiast’s
budget.We’veestablisheda rapidlygrowing
franchisemodelwithin the largeandevolving
fitnesscategory thatprovidesnotonlyahighvalue,
lowcost experience formembersbutalsoboasts
sustainable residualprofit toour franchisees thanks
tostrongunit economicsandoperations.”
Strongunit economicsbeginswithabusiness
model built onpredicableandmembershipdues.
With theaverageRetroFitness clubhavingnearly
4,000memberswith topclubsmaintainingmore
than6,000 theaveragegross salesper location is
betweenUS$1,122,960andUS$1,958,981.
Inaddition, each location isdesigned tomaximize
the square footage so that franchisepartners are
not paying for space, heat andHVAC that goes
unused in larger clubsmost of the timewhich
allow franchisees tomaintainmarginsbetween
30%and48%.
RetroFitness retainsmembersnot just through its
stateof theart gym facilities that feature60-75
piecesof cardioequipmentwithpersonal LCD
television screens, threedifferent typesof circuit
trainingequipment and theRetroMovieTheater
but also throughvalueaddofferings that provide
franchisees additional streamsof revenue.
“Oneof themain reasonsour returnon
investment hasbeen so strongandprofitable is
themultiple revenuecenters that exist inour club
aboveandbeyondourmonthlymembershipbase
income,” says franchiseownerPrakashDatwani.
“It’sgreat toknow thatwehave revenuecoming
in fromother areasof theclub likeRetroBlends,
Investor-Friendly
ModelYieldsStrong
ReturnsonMultiple
RevenueStreams
1,2,3,4,5,6,7,8,9 11,12,13,14,15,16,17,18,19,20,...102
Powered by FlippingBook