Monday, March 24, 2008

Final thoughts

Now that nearly a full financial quarter is nearing an end, I'd like to express my honest opinion about my conversion to a World Gym 1440 All Axcess operation. I'd like to start by stating that my club was not performing to my expectations. Although the club was only a year and a half old, I had underestimated the level of competition in the area where I located the club right from the start. For this reason, I had to make some major changes, whether that meant converting to a franchise or not.

With that being said, I felt like we needed to do something that really made a splash. Since we hadn't moved into the space all that long ago, the old standard remodeling, adding new equipment, and having a grand reopening was not a viable option. For those reasons alone, I felt like it was marketing and branding that we were lacking.

Enter World Gym. In this industry, who hasn't heard of World Gym? I knew that if I did decide to go with a franchise operator, I wanted it to be one that was quickly recognized as a real fitness center chain, and not here today gone tomorrow operator. After talking with Ben and Chris at World Gym, I realized that they were taking this 24/7 club concept very seriously. I feel strongly that these guys are going to be making some very big waves in this category, especially with the backing of parent company and industry phenom Planet Fitness.

In the next 5-10 years, the two companies are going to be making huge inroads into this industry, and I don't think I'm alone in my thinking that they are going to be putting the squeeze on the independently owned clubs. I may be wrong, but if I'm right, then I want to be in on the ground floor.

In summary, depending on the circumstances of your club, I think converting to a World Gym All Axcess may make very good sense for you. I would especially consider something like this if your club isn't performing to your expectations. Chances are, if your numbers aren't good, you probably need to make some changes anyways, and the branding that comes from affiliating with a franchise could be just the shot in the arm your club needs - I know it was for me.

On a side note, if you are thinking about opening a new club, I highly recommend a franchise. Opening a business (any business) is difficult. There are so many places that mistakes can be made, and so many decisions to be made, that having the marketing programs, operational guidelines, and purchasing power that a franchise offers can make the process immensely easier.

Good luck and please feel free to post your comments.