FRANCHISING USA HEALTH AND FITNESS MAY 2020

HEALTH AND WELLNESS HOW FITNESS STUDIOS CAN

SUSTAIN OPERATIONS DURING COVID-19

ROWING INTO ACTION

THE TOTAL ROW FITNESS APPROACH TO COVID-19

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what’s new! skinBe Med Spa Launches skinBassador Program skinBe Med Spa, an emerging medical spa brand based in St. Louis known for their unique spin in the industry focusing on beauty is more than skin deep and encourages all to ‘Be you.’ is launching their skinBassador program.

They will be seeking passionate individuals who align with their core values and have a strong desire to empower others to live their best lives.

“We are launching the skinBassador program in an effort to touch the lives of more people through this unique program of influential leaders, mentors and role models; who inspire others to become the

best versions of themselves,” states skinBe Med Spa Founder + CEO, Beth Donaldson.

“We have thoughtfully and intentionally hand selected our Founding skinBassador Leader, Elizabeth Tucker. Mrs. Tucker embodies the skinBe vision, mission, and core values with her unique and expressive style, compassion, and genuine fun-loving heart.”

“When Beth Donaldson asked me to be a part of skinBe Med Spa’s skinBassador program, I was elated. I have a burning passion to help others in all areas of life; fitness, health, and skincare particularly. I have experienced skinBe firsthand and not

only has it completely changed the health

and skincare game for me personally, but it

made me realize how much I was missing,” said Elizabeth Tucker.

The requirements to apply for the

skinBassador program will be announced soon and the application process will

begin shortly thereafter. Individuals will be able to apply and submit assignments throughout the multi-step process.

Contact skinBe Med Spa to learn more about how you can apply to become a skinBassador at 636.778.7200 or info@skinbemedspa.com

Doing the ‘Right Thing’ by Your Customers Has Never Been More Important Coronavirus will change the world as we know it – but “how” it changes the future of business, is up to us.

Today, businesses must stand for something to create consumer loyalty, trust, and be successful. The future of business – postCOVID-19 when the need for brand trust will be at an all-time high – lies with consumers. However, brands often overlook the importance of ‘doing the right thing’ to cut costs. The flaw in profit-only thinking is that customers come second, and in turn, trust is lost.

Andrew Alfano, CEO of Retro Fitness

Franchising USA

At Retro Fitness our brand position revolves around our customer, both in and out of the gym. In each market we serve, Retro Fitness is franchised by small business owners; an owner who is proud of the community they serve.

COVID-19 provides businesses the opportunity to create a culture rooted in care and trust. Putting people before profits is a practice I introduced my first day at Retro Fitness, and one we maintain today.

Retro Fitness froze memberships due to mandated club closures, acknowledging that for our members every dollar matters.

To meet the needs of our franchisees, we waived club royalty fees. These weren’t easy financial decisions, but undoubtedly the right decisions for our customers.

Despite these trying times, I invite CEOs to “do the right thing” – because while people should always come before profits, what businesses do/don’t do, will define brands for years to come. https://retrofitness.com/

SOLA SALON STUDIOS SIGNS MULTI-UNIT FRANCHISE AGREEMENT WITH SEASONED FOODSERVICE OPERATOR MITCH COHEN Planet Fitness and iFit Bring New Streaming Workouts to Your Home Planet Fitness, Inc., one of the largest and fastest-growing global franchisors and operators of fitness centers with more members than any other fitness brand, has announced a partnership with iFit, the leader in streaming home workouts, and the pioneer in interactive connected fitness technology with more than 275 patents.

As leaders in both the in-club and at-home connected fitness industries, Planet Fitness and iFit have united to create new inhome workouts for people of all fitness levels and interests that are fun, motivating and judgement free. The collaboration launches with a series of new streaming workouts to help keep everyone moving while they’re at home, available exclusively on the Planet Fitness app, to be used with minimal or no equipment. The workouts are available for free – to both Planet Fitness members and non-members – and span a broad range of fitness and wellness categories, including at home cardio, at home strength-training, stretching and more.

“Times are uncertain and people’s daily routines have changed, but prioritizing your health is more important now than ever before,” said Chris Rondeau, Chief Executive Officer at Planet Fitness. “We want everyone to know that we’re here for them, as their long-term partner in wellness, and we’re bringing our Judgement Free Zone to them..”

“As the leader in streaming fitness technology, iFit is thrilled to partner with Planet Fitness, the industry leader in the in club fitness space. We commend them for championing health and wellness, and introducing so many people across the country to fitness for the first time by making it affordable and accessible for all,” said Scott Watterson, iFit’s Chairman and CEO. Download the free Planet Fitness app for iOS or Android at https://www.planetfitness.com/mobileapp.

Sola Salon Studios, the world’s largest and fastest growing salon studios franchise, announced the signing of a multi-unit franchise agreement with distinguished foodservice operator and franchising industry veteran, Mitch Cohen.

As part of the agreement, Cohen, along with business partners Marvin Goldfarb, Al Goldstein and Seth Goldstein of SAMM Property MGMT, will develop six units over the next five years across Nassau and Queens counties in New York, with the first projected to open before the end of this year.

Mitch Cohen is the newest foodservice franchisee to diversify with Sola, joining 15 other franchisee groups that also currently operate leading restaurant brands such as Panera Bread, Tim Hortons, McDonald’s, Taco Bell, Pizza Hut and more. As a longstanding pillar in the franchising community, Mitch Cohen has more than 37 years of experience operating foodservice concepts.

“The trend of restaurant operators investing in Sola is a relatively recent development within our brand and has been completely organic. We’ve found that restaurant operators are attracted to the simplicity of Sola’s model when compared to the complexities of today’s foodservice landscape,” said Christina Russell, CEO of Sola Salon Studios. “When you consider factors like the ease of Sola’s day-to-day operations, turnkey real estate model and low labor cost, it’s a no-brainer.”

Sola Salon Studios currently has more than 500 locations open in the US, Canada and Brazil. To learn more about franchise opportunities, please visit www.solafranchising.com.

Franchising USA

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what’s new!

McDonald’s is rolling out wellness checks

Kona Poké DeliveryOnly Miami Location Coming Soon Kona Poké, Central Florida’s popular, fast-casual, fresh food concept is coming to South Florida. Opening soon at 155 SW 3rd Street, Miami, FL 32130 in the Brickell neighborhood of Downtown Miami, Kona Poké Brickell is the brand’s first delivery-only store.

Famed chef and recent James Beard Foundation Award nominee for Rising Star Chef of the Year Henry Moso created Kona Poké’s delicious signature bowls and sauces, which will be available for delivery, in addition to Build Your Own Bowls, Soup, Salads and more.

Kona Poké’s customers will enjoy their healthy and delicious Hawaiian-style poké bowls made with fresh sushi-grade fish, house sauces and over 40 fresh toppings to choose from, plus vegan, gluten-free and cooked options are also available. Delivery is provided directly by Kona Poké and third-party delivery services.

Kona Poké has a 100% no-contact food prep guarantee.

“Even in these difficult times, we are opening new locations, focused on delivery-only,” says Kona Poké Owners Matthew Ting and Ernie Falco III. “It’s our way to continue excelling.

We opened our first two locations in Central Florida in just one year, and we are excited to keep the momentum going while also adapting to the changing circumstances bringing our first deliveryonly store to Brickell. We can’t wait to feed the Miami community our insanely delicious bowls and continue making many more fans statewide.”

For more information on Kona Poké and to place an order for delivery or pickup, visit https://konapokebowls.com

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McDonald’s is rolling out new safety policies for workers as the fast-food giant attempts to rapidly adjust its response to the coronavirus outbreak.

McDonald’s has announced plans to roll out wellness checks at company- and franchisee-owned locations, requiring more than 800,000 workers to answer a series of questions regarding possible COVID-19 symptoms and exposure after they clock in to start each shift. If they answer “yes” to any question, workers will be sent home and will not return to work until authorised by a medical professional.

McDonald’s has also added new social distancing measures in locations and is working to roll out temperature checks in stores.

“We have secured thermometers and we’re in the process now of quickly making them available to all of our restaurants,” said David Tovar, the vice president of US communications at McDonald’s, told Business Insider.

Tovar explained that workers at company-owned stores who are sent home or need to take sick leave for reasons related to COVID19 will be able to access 14 days of paid sick leave, as part of the chain’s new policy. https://www.mcdonalds.com/

Leading Fitness Studio Agency Pivots Business Model to Keep Fitness Franchises Open During COVID-19 The 94 billion dollar fitness industry was completely flipped upside down and headed for the worst when the COVID-19 pandemic hit.

Mike Arce, CEO of Loud Rumor, a leading fitness studio agency, recognized this and quickly pivoted his business model to help fitness franchises across the country go completely virtual. Within 24 hours, Mike and his team had developed and launched an online course that walked fitness studios step-by-step through how to deal with the crisis and how to continue adding value to their customers to ensure the monthly recurring revenue still came in.

Loud Rumor’s course gave specific instruction on converting physical fitness to virtual fitness so members could live-stream and participate in their usual fitness classes in their own homes. Fitness studio owners and

franchisees were taught which tools to purchase and subscribe to, how to set up the tools and integrate them, email scripts, marketing templates and more.

The company also created more than 50 different digital ad campaigns selling these new virtual fitness classes. In addition to the course, Arce launched a COVID-19 specific podcast for fitness studio owners and franchisees. In three weeks he produced 80 episodes of pure educational content on not only surviving but thriving. During this unprecedented time, Arce has also made himself available at all hours to help fitness studios who need it.

Arce has helped over 800 fitness studios, including the likes of mega fitness franchises Orangetheory Fitness, Spenga, Soldierfit, and Jabz go completely virtual during the COVID19 pandemic. https://www.loudrumor.com/

FirstLight Home Care announces expansion to Canada FirstLight® Home Care, an awardwinning provider of non-medical home care, is pleased to announce it is expanding its caregiving services to Canada. Sam Riad, CEO of Comfort of Senior Living, has signed on as a master franchise and will operate as FirstLight Home Care of Canada.

“We are thrilled to bring our FirstLight

Riad currently operates 10 Comfort of Senior Living retirement communities across the Province of Ontario. The master franchise agreement will allow Riad to introduce the FirstLight Home Care brand and deliver the company’s non-medical home care services to a brand-new market.

established relationships in the market and

brand to Canada,” said Jeff Bevis, CEO

and Co-Founder of FirstLight Home Care.

“International expansion has always been part of our strategy, and we believe we

have found a solid master franchise partner in Sam Riad. He has extensive experience and a deep understanding of the industry,

the infrastructure for rapid growth. And we share a similar mission, culture and calling

to care for aging seniors and other adults in need of extra support.”

www.firstlighthomecare.com

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health & wellness Health and wellness is a unique category of economic industry, while it continues to change with fads and demands; some things remain consistent.

Exercise and a balanced diet have been the underlying part of health and wellness, but

there are also diet trends, aerobic workouts and self-care crazes that have come and

gone. While portions of the industry have

come in with a blaze and disappeared, one thing remains consistent – Americans are interested and willing to invest in their health and wellness.

While some industries may focus on a fleeting moment of health opportunities, franchises remain dedicated to all aspects of a field to keep consumers interested and franchisees profiting. The benefit of a franchise in any field, especially one that can be fickle, is the ability to track trends and market according to current demands. While also providing staple products and services that keep costumers coming through the door. Franchises have the knowledge, expertise and experience to incorporate short term fads into the business, along with side guaranteed services that will never fade.

Health and wellness have a variety of options to choose from, and it also has a substantial fiscal impact across the world.

“While portions of the industry have come in with a blaze and disappeared, one thing remains consistent – Americans are interested and willing to invest in their health and wellness.”

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The global industry is currently worth $4.2 trillion and is expected to continue rising.

No matter what your interest or passion in the field, there are diverse opportunities with excellent profit potential.

This is the best time to consider a health and wellness franchise because more people are interested in self-care. People are using their spare change to reenergize and take time for themselves, and care for themselves and willing to invest in such treatments. The global industry grew by 6.4 per cent between 2015-2017 as consumers started investing in their personal wellness.

A new trend that is supporting the industry is wellness tourism. Owning approximately 14.6 percent of tourism expenditures at $494 billion in the US, wellness tourism is travel to promote a tourist’s health and quality of life in numerous different ways.

This includes physical exercise retreats, relaxation and spiritual journey, including meditation and yoga, and beauty treatment, to name a few. With an increase in such specified tourism, franchises are now responding to international customers, as well as domestic ones.

Spa What used to be considered a rare luxury is now a part of a lot of American’s lives.

People are taking advantage of their free time to treat themselves and really indulge in time spent relaxing and resting. Spas were once connected to hair salons and mainly offered a few services – while that is still a franchising option, there are many choices within this industry alone. Some

“What used to be considered a rare luxury is now a part of a lot of American’s lives. People are taking advantage of their free time to treat themselves and really indulge in time spent relaxing and resting. ”

spas are connected to hotels, provided an even higher profit margin. While other spas are huge retreats with pools, baths, hot tubs, saunas and food services, it depends on the breadth of services a franchisee would like to take on or the size of the franchise they would like to run. There are also small spa options with a few services. Either way, there is potential in all opportunities to run a great profit: the global spa economy is worth nearly $119 billion. A spa would have to follow specific health codes and provide employees trained professionally in some areas. A franchisor can help support a franchisee with all the criteria and ensure all the proper boxes are checked.

On a personal level, a spa business would be an excellent investment for someone who would like to take advantage of all the services offered. It is an investment that guarantees to mix business with pleasure.

Traditional and Complementary Medicine Aside from spas, there are treatments people seek for relaxation, as well as a means of medical treatment. Massages, physiotherapy and acupuncture are a few of the complementary therapies used for rehabilitation, as well as a way to simply relax. While there would be some competition with small businesses, franchises have excellent reputations and marketing that gives investors a leg up.

Franchising USA

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“Seventy-six percent of people using meditation are doing so with the purpose of general wellness as it helps with anxiety, as well as physical ailments.”

While these forms of treatment have been around for a while, they have gained more popularity over the years. Clients are interested in a natural and drug-free way to heal in a low-risk approach. The demand for acupuncturist has increased over the last few years (up 50 percent in the previous five years in 2007)and expected to continue to rise because it is low impact, safe and low cost – as well as relaxing and beneficial.

The risk with a franchise focused on complementary medical treatments is relied somewhat on health trends to keep the profits rising. While it has been an interest of Americans over the last decade, clients could find other forms of treatment or prefer invasive medicine with quick results in the future. If that is the case, a franchise can roll with the punches and response to the client’s demands.

If you have a background in the field, a franchise might be worth the investment.

Instead of working for someone else, you could work for yourself and create a healthy work-life balance, and enjoy a healthy profit.

Fitness of the Mind and Body While gyms are an obvious franchising industry, there has been increasing interest in mindfulness, yoga and meditation. As the understanding around mental health is being expanded, people are increasingly aware of the need to take care of themselves on many different levels.

Seventy-six percent of people using meditation are doing so with the purpose of general wellness as it helps with anxiety, as well as physical ailments. There are many other health benefits to meditation, and the practice has been increasing over the last few years.

Franchises have tapped into this market, offering yoga and wellness studios for

Franchising USA

“If spirituality and mental health are a passion of yours, the industry is a great way to help others gain calmness and take care of themselves safely and healthily.”

people of all ages, and levels of ability.

If spirituality and mental health are a passion of yours, the industry is a great way to help others gain calmness and take care of themselves safely and healthily.

Again, it risks being a short term fad, but its an ever-evolving industry with many different approaches. Do some research in competing businesses, as well as services and products being offered by franchises that increase the profit. Also, ask franchisees the long term plan of the business and trending figures for the future of the industry.

The Health and wellness industry is one of the most profitable franchise options available, but it’s hard to keep up with what is in and what can easily die out. Since there is such a huge variety, it’s best to do a lot of research before jumping into such a significant investment. While a huge spa resort might turn a considerable profit, it might not be easily accessible to a lot of Americans. Will people be willing to pay for spiritual services once they are more comfortable with their wellness? Will the continued open discussion about mental health help these businesses boom or die out?

Well, self-care should remain a continuous form of treatment, and an option for great business opportunities, it would be beneficial to look into long term numbers or even request that a franchisor provide plans future trends or change in demand.

While it’s evident that the health and wellness industry is booming financially, it’s also one of the most fulfilling industries to invest in. It allows you to provide a service that offers treatment, healing and relaxation to the hard workers in the country and a calm escape to those who are visiting.

Look out for our next special feature: on the road ABOUT THE AUTHOR: After receiving an English Degree, followed by a Journalism Diploma, Gina Gill became a freelance journalist in 2008. She has worked as a reporter and in communications, focusing on social media. She currently works as a community information officer with Epilepsy Society, while pursuing her writing career at the same time.

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Expert Advice: Kevin MacCauley | CEO and Founder | Upper Hand

How Fitnes Opera

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ss Studios Can Sustain ations during COVID-19 With the stay-at-home mandate extending to the month of May, franchise studios everywhere are finding themselves navigating unknown territory caused by the current pandemic.

While COVID-19 has forced nearly all fitness studios and gyms across the U.S. to close their doors in an effort to “flatten the curve,” it doesn’t mean the businesses have to close - it just means you have to adapt.

Therefore, in the midst of this crisis, franchise studios have a tremendous opportunity to work together with the greater health club industry to help the public—and other businesses—cope with this unprecedented disruption. While members cannot physically go into the studio, it is still important to support them on a physical level, as sedentary behavior and low levels of physical activity can have negative effects on the health, well-being and quality of life of individuals.

Thankfully, in a world increasingly influenced by technology, franchise studios can leverage alternative roads to support the community while building revenue outside their traditional memberships and classes.

Maximize your social presence First and foremost, franchises can look into strengthening their online community and building consumable social media content like healthy lifestyle tips, recipes, techniques and much more. Leverage the LIVE segments to speak directly to the

community, potentially hosting Q&As with members, or representatives who can share additional insight into a specific topic.

With so many quarantined at home, now is an excellent time to present fun, engaging at-home challenges. These help keep clients motivated when they need it most.

Perhaps there are other small businesses, or local media outlets, willing to partner with the studio and share ideas that may benefit the entire community, while promoting the studios’ social channels.

Offer virtual classes Hundreds of businesses have scheduled streaming workouts, on-demand classes, and free online memberships that will not only keep customers in their workout routine, but also serve as a great opportunity to attract new customers.

Additionally, there are various platforms readily available for franchise businesses that make establishing a virtual presence easy. Within a few weeks a fitness studio could be running Peloton-quality virtual classes with the technology, even with a limited budget.

Kevin MacCauley

close their doors for the time being. It’s essential for franchise owners to take this time to explore ways they can prepare for cancellations and closures in the future, while exploring new revenue streams and ways to virtually connect with members and their local community.

While your doors may be closed, your expenses have not stopped. Instead of letting equipment collect dust, now is the perfect opportunity to rent out equipment to members who may not have access to it at home. Rent out weights, kettlebells, yoga straps, or other transportable equipment for a fee, or position it as an exclusive perk for maintaining a membership. This will serve as an excellent incentive to members, and will allow them to effectively workout in the safety of their own home.

Kevin MacCauley is the CEO and founder of Upper Hand, an innovative sports and fitness software that helps businesses escape the administrative vortex and focus more on helping clients achieve their goals. As a former Little League coach, Kevin’s leadership stems from his undeniable love for sports and fitness, coaching, and technology, which he has leveraged to transform Upper Hand into an industry trailblazer. Its award-winning software has undergone tremendous growth as it continues to reinvent the sports and fitness industry and drive world class customer experiences.

The coronavirus has put an unexpected strain on fitness facilities, many having to

For more information, please visit getupperhand.com

Rent out equipment

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Expert Advice: Keith Gerson, CFE | President of Franchise Operations | FranConnect

65 percent of Franchisors Continue Proactive Franchise Sales Efforts Amid COVID-19 Crisis When COVID-19 forced thousands of franchise businesses nationwide to close in mid-March, sales plummeted within days — and widespread layoffs and furloughs began.

But many franchisors kept the franchise sales engine running in anticipation of an influx of potential buyers looking for business opportunities as unemployment soared.

In a March 2020 survey of 233 executives of franchise brands, FranConnect, the leading provider of franchise management platform solutions, found that 65 percent

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of franchisors were actively moving forward with franchise sales efforts despite the paralyzing impact of the COVID-19 crisis. The survey showed how franchise businesses of different sizes and industry sectors were reacting through changes to their strategy and operations.

Among the key findings: • FranConnect found nearly all brands surveyed in business services (86%) and commercial and residential services (89%) were continuing their sales efforts; • However, 75% of full-service restaurants — one of the hardest-hit segments over the last month — reported halting franchise sales.

• Over half of micro-emerging brands (under 25 locations) stated they’d

stopped their franchise sales efforts, compared to only 16% of those with between 100 and 500 units.

It wasn’t surprising to see franchisors scaling back or ceasing their franchise sales programs. At the time of the survey, 67 percent of franchisors expected system sales to return to pre-pandemic levels within six months, so a conservative approach to new growth made sense.

However, other segments that hadn’t seen nearly the same degree of revenue declines were continuing their recruitment efforts.

Many franchisors have seen increased interest in their franchise opportunity as millions of unemployed Americans seek the security of being in business for themselves, but not by themselves.

The good news is that franchise

600 franchise brands from FranConnect’s Franchise Sales Application. The data is segmented by franchise industry and the number of franchise locations, while other reports are derived from survey data and mystery shops, which can be less reliable.

Key findings included: • Out of 7,390 sales that were accomplished in the FranConnect CRM in 2019, 85.2% of the deals that were achieved were those that were contacted within four hours or less.

• Though most franchisors would agree that a 30-minute response time is ideal, only 12.5% were able to achieve that result, and in total only 16.5% were able to respond to leads in four hours or less.

• 74.2% of leads in franchisor databases never received a call and 56.9% didn’t receive any communication at all.

• Referrals have the greatest conversion rate (6.6%).

Franchisors should be setting themselves up to handle what could very well be significant demand in their franchise opportunity. Any lack of or delay in communication could cause a lead to drop out and go to another brand or competitor.

development is still open for business — even if physical locations aren’t. Brands that can keep franchise sales going should, keeping in mind the typical lead-to-deal timeline may take longer given the current state of getting loans approved and the general climate of uncertainty.

However, as franchisors prepare for the increased number of leads, now is the time to rectify any issues in the sales process.

FranConnect’s Franchise Sales Index Report, released in April, puts a spotlight on some of the biggest challenges’ brands face in closing deals.

The sixth annual report is highly differentiated from other franchise development reports, as it’s the only comprehensive study of actual data (anonymized and aggregated) from nearly

During a webinar FranConnect hosted in early April titled “Franchise Sales in the Age of COVID-19,” franchise experts shared best practices for marketing franchise opportunities. One important topic covered was how brands should communicate their franchise opportunity during this very sensitive time.

“Franchisors should review their recruitment messaging to make sure it doesn’t appear tone deaf. You can talk about your franchise opportunity, but it shouldn’t be as overt as you’ve done in the past,” said Lorne Fisher, CFE, CEO and Managing Partner at Fish Consulting, a PR agency specializing in the franchise industry. “Prospects want to see how you’ve supported franchisees to help them weather the storm, including how you modified operations to help them continue to generate revenue. They also will look positively upon those brands that stepped up to help their communities in their time of need.”

Keith Gerson, CFE

Catherine Monson, Chair of the International Franchise Association and CEO of FASTSIGNS International, Inc., is hopeful the franchise industry will rebound quickly.

“Through recessions, natural disasters, and other widespread crises, we’ve continued to see the resiliency of the franchise business model and the benefits of being in business for yourself, but not by yourself. Franchisors and franchisees have benefitted greatly from sharing best practices with each other, enabling them to endure the crisis,” said Monson “Although our community has never seen anything like COVID-19, I have no doubt we will come out stronger having been through this together.”

To download FranConnect’s latest 2020 COVID-19 report, visit https://go.franconnect.com/covid-19resource-center.

A Certified Franchise Executive, Keith has more than 40 years of executive level expertise creating and building leading franchise systems. A highly respected thought leader, Keith works closely with many of FranConnect’s Customers Executive Teams. His books, webinars, and keynote addresses have created a large following. His latest book, “The Franchise Book of Mentors” was released in September, 2019 and his all new 2020 Franchise Sales Index Report will be released early this month.

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HAVE YOUR SAY: Total Row

Rowing into Action The Total Row Fitness Franchise Approach to COVID-19

We built Total Row from the ground up when rowing-centric workouts were relatively unknown.

Today, we still maintain direct ownership of the flagship location in Buckhead (Atlanta, GA) and are intimately involved with our franchisees and their expansion locations.

As owners, we pride ourselves on staying current on everything related to both fitness and larger scale franchise aspects of our business. This helps us stay ahead of the curve when the tide shifts. And boy, did the tides shift…or were rather turned upside down. The COVID-19 outbreak put our core business and franchise principles to the test. Spoiler Alert – Total Row is Passing the Test!

When the COVID-19 outbreak closed businesses starting in March 2020, Total Row, along with every other business, was thrown into a whole new world overnight.

The change came fast and the immediate question was: how can we maintain our high-quality fitness offering and continue to reach our local community without a physical studio? This concern was coupled with the overriding concern for maintaining the long-term value of the franchise and brand we worked so hard to build.

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We knew we needed to act fast, but without sacrificing the quality we had established as a cornerstone of the brand. The answer ultimately came in waves and we literally built the first operational platform overnight. We started at about 5pm when we heard the order that our city was shutting down all fitness studios. We were ready to roll for morning classes the next day, so we capitalized on that opportunity to create something new. The initial platform was aimed at replicating live, instudio classes as much as possible, without being burdened by excessive technology requirements and planning. We used what we had on-hand. This consisted of our standard classes, a decent camera, our studio mic, Zoom, our scheduling software, and our fantastic coaches. We were shooting a full schedule of live classes on that first day of quarantine.

Once this initial, live distribution model was established, we began building on that momentum. We learned that our members cared more about class availability and quality, rather than being live, especially in this time of uncertainty for everyone when “normal” schedules became a thing of the past. This is when we started offering on-demand classes. We upgraded our ondemand platform with less cumbersome software requirements for the end-user, which provided a more polished product.

Members and guests alike can log on any time they want, take classes that consist of yoga, rowing, bodyweight, TRX, recovery, and more. Between 1-3 classes are currently being added each day.

As for our franchise model, we’ve learned some lessons but were impressed with how our model reacted. Our Buckhead location is approximately one month into this

crisis, and while it is certainly feeling the financial stressors that all small businesses are facing, the unique and intentional structure of Total Row has allowed it to weather the storm much better than some competitors. Our community of members have overwhelmingly been supportive and continued to maintain their memberships, or where they couldn’t, have donated to our coach’s fund. Additionally, Total Row is designed to run on a lean operating model from staffing to overhead. The emphasis has always been on quality over “flash,” so flexing down to a lower revenue model is more doable than it is for some other competitors who rely more on significantly larger, more expensive spaces with large staffs.

Today, we are offering a comprehensive virtual platform on the Total Row website that includes daily live classes, on-demand classes, and virtual personal training.

The programs are very high quality, but affordable and accessible for anyone. It’s everything that’s great about Total Row. The programs can be easily accessed from

“While Total Row is eager to get back into the studio to workout with members again, our new virtual capabilities will be beneficial to both members and franchisees in the long term. We are excited about this new value-add for future franchisees.”

Total Row’s website at totalrowfitness.com/ virtual.

Looking to the future, we expect some of the recent changes to become permanent and are adjusting to that. However, what we’ve experienced is that our franchise model will not be ultimately affected in the long-term financials. At Total Row, community and small classes have always been the foundation of our business model. When working out, people love to push their physical limits in the presence of others. They want to hear the person next to them breathing heavy and watch the coach sweat. Technology just can’t replicate that intimate feeling you get.

While Total Row is eager to get back into the studio to workout with members again, our new virtual capabilities will be

beneficial to both members and franchisees in the long term. We are excited about this new value-add for future franchisees.

These new tools allow franchisees to introduce their territories to the Total Row brand weeks before they have a studio space ready to host classes, and at zero cost to them. We are choosing to embrace the change, rather than run from it. Stay Strong and Stay Safe!

Total Row Fitness is a new, rowingcentric fitness franchise with 7 locations currently open or in development.

Owned by husband and wife team Elliott and Lauren Smith, Total Row prides itself on dynamically staying at the forefront of fitness trends, while keeping true to its founding principles of quality, community, and affordability.

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Expert Advice: Rick Bisio | Franchise Coach | FranChoice

How Fitness Center Franchisees Can Adapt During COVID-19 As the COVID-19 virus spread across the country in the last few months, nearly every state and local government issued social distancing guidelines and stay-at-home orders. This resulted in closures of all nonessential businesses, including health and fitness centers.

All of us are trying to navigate through this uncertain time, from our personal schedules and interactions to our financial stability. While owners and employees in any industry deal with the harsh reality of having their business closed, they also face the troubling unknown of how long this period will continue.

This is a time that requires strong leadership from franchise owners of health and fitness centers. Employees, customers and vendors are all looking to them for answers. There is no manual for how to deal with a business closure due to a worldwide pandemic. Owners need to make difficult decisions very quickly during an unknown time.

Here are some key factors they should consider in guiding their business during this challenging period.

Communication The very first thing a franchise owner should do is develop a plan and communicate it with everyone. This needs to be done early and with clarity.

Uncertainty leads people to be fearful of the worst-case scenarios. It is important to quickly establish a plan, communicate with

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others how it will take place and let them know how you will be there for them.

Employees will want to know if and how they will be financially supported. If they are not able to continue working, they will need to know about some of the current programs that can provide them with an opportunity to make nearly as much money through unemployment benefits. Customers need to know the plan for the fitness center and how it effects their membership. Franchisees need to communicate with the franchisor that the business is closed and what their plan will be in the interim.

A good franchisor will stay in constant contact with their franchisees and help support them during this time. The best thing a franchisor can do is to work closely with their franchisees, share experiences and help with the government initiatives such as the Paycheck Protection Program and the Economic Injury Disaster Loan program. They can also set up conference

“Although social distancing guidelines require gyms to close their doors, it doesn’t mean the business needs to stop. There have been some innovative ideas in the fitness industry that continue to engage customers.”

calls and virtual meetings to provide guidance on how to retain employees and customers.

Stop the Bleeding It is obviously a jarring experience to go from normal operations to being shut down and making no money in a matter of days. Some of the first steps require contacting legal counsel, banks, insurance providers and landlords about business interruption claims and rent payments.

Money will surely be lost during this time, but they should take the necessary steps to minimize the damage as much as possible.

The number one goal in the fitness industry is to retain customers and that rule still applies. Stay connected with the most loyal customers and give them the option to continue to pay their monthly fee if they

would like. I am a member of two clubs and will continue my membership because I know it is going to help them. Some people will feel the same way while others will want to stop.

Fitness center owners may want to consider other temporary options such as discounted membership costs, incentive plans or deferred rent payments. Even if it is for a short period of time, whatever can be done to reduce carrying cost for the business to the smallest amount possible will give franchise owners the best chance to come out on the other end with some financial strength and stability.

Be Creative Although social distancing guidelines require gyms to close their doors, it doesn’t mean the business needs to stop. There

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Expert Advice: Rick Bisio | Franchise Coach | FranChoice

“Some fitness concepts have instructors conduct training sessions outside or in a public park by spacing people apart.

It gives customers a continued routine and ability to connect with others (at a safe distance).�

Another popular trend recently offered by fitness centers are virtual group workouts and personal training through video calls via Zoom, Skype or Facetime. Some franchises are doing this for free or reduced prices or are offering proprietary access to their website or app free of charge.

Technology is one thing we have on our side during this current crisis and it is in the best interest of fitness center owners to take advantage of it. This can be a great opportunity, albeit in an unconventional circumstance, to further engage current members and reach a new audience.

Looking Ahead Rick Bisio

have been some innovative ideas in the

fitness industry that continue to engage

customers. Some fitness concepts have instructors conduct training sessions

outside or in a public park by spacing people apart. It gives customers a

continued routine and ability to connect with others (at a safe distance).

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The re-opening of fitness centers may be slow even as the curve flattens, precautions are lifted a sense of normalcy returns.

Although many facilities take proper safety measures for hygiene and cleanliness by disinfecting equipment, people may still initially resist going back to the gym.

There is no escaping the fact these centers have many high-touch surfaces shared by others in an environment with sweat, germs and moisture.

Once this period passes, however, I believe there will be a desire among many people to return to their routine of exercising at a facility with the best resources. Whether it be to access premium equipment or the ability to work out with others, people will prefer to go to a fitness center over exercising in their living room.

This current period gives fitness center franchisees the opportunity to be creative and try new innovations to expand their customer base. They should also use this time to develop a strong marketing game plan for when their business opens again. It will give them an advantage over their competitors and be able to attract customers as soon as possible.

Rick Bisio is a leading franchise coach with FranChoice, the creator of the FDD Exchange and the Franchise Glossary and the co-host of Rick Bisio’s Franchise Focus. Since becoming a franchise coach in 2002, Bisio has assisted thousands of aspiring entrepreneurs nationwide explore the dream of business ownership. www.afranchisecoach.com/the-coach

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