Sport and Fitness June FRANCHISING USA 6#8 2

FranchisingFeature spo r ts & fitn e ss

The Boutique Gym Boom What to Know

about Operating a Fitness Franchise Digital Marketing Tips for Generating

New Fitness Customers & Gym Memberships

june 2018

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what’s new!

Sky Zone Presents Awards To Top Franchisees At 2018 National Convention Partners from across the Globe Join to Celebrate Worldwide Growth Stunt Zone (the first of its kind in the US) and a six-lane, serpentine Warrior Course.

Sky Zone honored Franchise Partners and key team members for their contributions to the brand’s continued growth and success worldwide.

Sky Zone, the original home of wallto-wall aerial action, celebrated milestones, commemorated achievements and welcomed new franchise partners at the 2018 National Franchise Convention.

This year’s conference, themed “SZGX,”

was held in Chicago, IL at the Hyatt Regency McCormick Place from May 1-4. The conference featured content-rich workshops, presentations, and a tour of Sky Zone’s new park in Vernon Hills, IL which features many of Sky Zone’s latest attractions, including Augmented Climbing, Fusion Dodgeball courts, a new

“We are extremely proud of all the recipients of Sky Zone’s annual Franchise Partner awards. Their commitment to the brand, company values and the communities we serve is remarkable, and we are honored to recognize their accomplishments,” said Jeff Platt, CEO of Sky Zone. “Each and every franchise partner plays a tremendous part in shaping and growing Sky Zone, and we congratulate and thank each of them for their hard work and dedication.”

For more Sky Zone information, franchising or to find a trampoline park near you, please visit www.skyzone.com.

Oggi’s Sports Bar Continues Southern California Expansion Bajwa has an extensive franchise portfolio, which is comprised of fast food, fast

casuals, fine dining, gas stations, and

convenience stores. “Oggi’s is a perfect

fit for a family-friendly area like Fontana because it is inviting to every age group and provides an exceptional experience

for guests,” said Bajwa. “The Oggi’s brand Oggi’s Sports | Brewhouse | Pizza, the award-winning restaurant that has defined pizza and brewing in Southern California for over 26 years, will continue its expansion throughout Southern California with new franchisee Jerry Bajwa.

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Oggi’s and Bajwa signed a multi-unit

franchise deal, with the first location to

open in Fontana, CA (located in Southern California’s Inland Empire) in early 2019.

Following the Fontana location opening, Bajwa will expand with two additional locations.

has made a name for itself throughout Southern California and I have full

confidence that Oggi’s high-quality food, award-winning craft beer, and family atmosphere will be welcomed by the community of the Inland Empire.” www.oggis.com

“Spreading Love and Health Throughout Africa”

The youngest (and the only female) Anytime Fitness master franchisee has big plans for Morocco.

Zakieia Rouah’s fascination with other people began when she was a young child. She wanted to know what they thought, what interested them, their life stories. Her parents encouraged Zakieia to be independent and ambitious, to advocate for justice and to “love those who need it most.”

Now, after earning a master’s degree in marketing psychology, working for multi-national companies in Europe and operating three franchised businesses, the 36-year-old mother of four is determined

to “spread love and health throughout Africa,” as the youngest and only female master franchisee for Anytime Fitness.

positive for others and provide them with the tools to do something good for hundreds of other people.”

“Anytime Fitness is about the people, about who you are, what your story is, where you come from, but most of all about feeling accepted no matter your shape, age, gender or fitness goals,” said Zakieia. “This is a fantastic franchise concept with the right elements, class and style, and it is accessible to everyone, as it approaches people with respect and kindness. My dream is to do something

Zakieia hopes to open her first Anytime Fitness gym in July and a second gym in September, both of which will be situated in Casablanca and corporately owned. Over the next several years, she anticipates opening as many as 50 gyms throughout Morocco, most of which will be franchises. www.anytimefitness.com

Beeline Bikes Expands to New Territories Beeline Bikes, the country’s largest mobile bike shop franchise has expanded to several new territories around the U.S. including San Diego, Los Angeles, Sacramento, Detroit and Chicago.

Beeline Bikes offers expert bike service and repairs to bicyclists of all ages and levels of cycling experience with a fully stocked mobile bike repair van that travels to the customer at the location, day and time of their choosing. Through an exclusive partnership with Raleigh and Diamondback Bikes, Beeline also offers bike sales, assembly, and delivery, as well as parts, service, and accessories.

Recently acquired by Accell North America, Beeline Bikes has serviced thousands of customers at their home, office or other

convenient location. Beeline has developed a technology platform to streamline customer interaction, enhance operator efficiency and automate the supply chain, enabling owners and operators to profitably and efficiently run their own Beeline business. Beeline Bikes is currently expanding its network of mobile bike shops and offering franchise opportunities throughout the U.S. to qualified entrepreneurs to help grow the brand.

For more information, visit beelinebikes.com.

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what’s new!

New President Named, 25th Anniversary Celebrated at Sport Clips Haircuts National Huddle

Coach of the Year award winner, Stacia Kelley, Kansas City, MO

“Championship Experiences” headlined Sport Clips Haircuts National Huddle, an annual event that drew more than 3,200 team members this week to celebrate the leading haircare franchise dedicated to men and boys in its 25th anniversary year.

Founder and CEO Gordon Logan announced the franchise’s board of directors has elected Edward Logan, his son, as Sport Clips’ new president.

“Edward has grown up in the business and is playing a key role in the company’s growth, setting new standards for excellence in store operations. It’s been rewarding during the meeting to share this news while looking back at Sport Clips’ humble beginnings to where we are today as one of the top haircare providers in the U.S. and Canada,” says Gordon Logan.

Top award winners recognized at the Sport Clips National Huddle include: Area Developers of the Year – Phil & Laurie Brown, Bellevue, W Area Manager of the Year – Barbara Montes, Lake Forest, CA Team Leader of the Year – Arif Taj, Los Angeles, CA Coach of the Year – Stacia Kelley, Kansas City, MO Logan Trophy –Kyle, TX Sport Clips, a company-owned and operated location

Blink Fitness Promotes Two Key Players; Names Todd Magazine CEO Blink Fitness has announced the promotion of former president Todd Magazine to Chief Executive Officer and former Vice President of Operations David Collignon to Senior Vice President of Operations.

“Todd’s vision and tenacity have propelled Blink Fitness into a thriving bi-coastal, multi-state brand,” said Harvey Spevak, executive chairman and managing partner of Equinox Holdings, Inc., Blink’s parent company. “He has simultaneously established the brand as a highly differentiated player and transformed Blink into an autonomous, profitable business. Under his leadership, we look forward to a future of sustained, strong performance and continued growth.”

“The last six years have been the most fun and rewarding of my career. And the best part is that we are only getting warmed up.

The runway for this business is as far as the eyes can see,” said Magazine. “We have an awesome brand, an incredible business model, and the most dedicated and passionate people I have ever worked with.”

Sport Clips Haircuts, the sports-themed haircutting franchise that specializes in haircuts for men and boys, is ranked by Entrepreneur Magazine as one of the “Fastest-Growing Franchises” and in the top 10 in its “Franchise 500.”

Since joining Blink in 2016 as Vice President of Operations, Collignon has transformed the Operations team, enabling the business to continue to grow at a rapid pace and to seamlessly expand geographically. With this promotion, David’s responsibilities will be expanded to include Franchise Operations.

To learn more about Sport Clips, visit sportclips.com.

For more information, please visit blinkfranchising.com.

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Recently, Shoney’s held their 10th Annual Shoney’s 5K Family Fun Run! The Shoney’s® 5K Family Fun Run & Festival was a fun, family-friendly outdoor summer event featuring a 5K run /walk, kids’ activities, familyfriendly food and beverages, and a Free Kids’ Zone play area.

The event took place on Saturday, May 5, 2018 and began at Nissan Stadium in Downtown Nashville. The run provided a unique opportunity for the community to take a break from their busy schedule, exercise as a family, meet new friends, renew health and fitness goals, and have fun!

For the ten nine years, Shoney’s has supported the men and women in blue by donating 100% of the proceeds raised to the Metropolitan Nashville Police Support Fund of the Community Foundation of Middle Tennessee. To date, Shoney’s had donated over $200,000.

The route was challenging yet rewarding.

This 5K loop started and finished on the Shelby Street Pedestrian Bridge with

stunning views of downtown Nashville, Nissan Stadium and the Cumberland

River. On the way, participants passed by the all-new Nashville Convention Center, Bridgestone Arena, the Gulch, and the Musica statues on Music Row. www.shoneys.com

Interest for Basketball-Focused Gym Franchise Spikes Early Results From PickUp USA’s Franchise Program Shows Strong Demand PickUp USA Fitness, based in Irwindale, CA, launched its longawaited franchise program about six weeks ago, and the initial indications are that this gym concept could really take off.

“We have always been confident with our business model, and definitely believed there would be solid interest in our franchise program,” says PickUp USA President & Founder, Jordan Meinster. “The initial results have really exceeded our projections though. We have had countless inquiries for franchise opportunities throughout California,

and all across the country – New York, Pennsylvania, Texas, Nevada. It’s really exciting!”

games and training, and also outfit our gyms with traditional amenities, like weight rooms and cardio equipment.”

The gym industry is a continuously growing portion of the US economy. Data from IHRSA shows that over 55 million people nationwide belong to a fitness club.

Basketball is also a tremendously popular sport, with over 23 million participants nationwide each year, according to Statista. PickUp USA has found a strong niche catering to the large market of gym users that play basketball. “We’re really a one-stop shop,” says Meinster, “We provide a great environment for basketball

PickUp USA has territories available for franchise development throughout the country, and is looking to award their first franchises this Summer. “We’ve received a ton of inquiries, and are in the process of selecting our first group of franchisees to help us grow our brand,” says Meinster, “We’re very excited to see our clubs popping up across the country in the months ahead.”

For more information, please visit www.pickupusafitness.com/franchise.

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Shoney’s Restaurant Hosts 10th Annual Shoney’s 5K Family Fun Run

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Sports & Fitness

FRANCHISING FEATURE

One would say that sports is the ultimate American pastime.

The business savvy person might ask themselves, how can I take my passion for sports and turn it into a business plan?

Franchising: it provides people with the opportunity to turn their interests into profit.

Sports and fitness are now business opportunities that can be easily pursued and the guidance of a franchisor can guarantee a successful outcome while being a part of something you love.

Fitness crosses a wide range of opportunity.

There are gyms, boot camps, classes, equipment, medical exercise; the list is ongoing. Every form of fitness has the ability to be turned into a business.

Dependent on your interest, experience and expectations, a franchisee can choose the most suitable option from a variety of successful and safe franchises.

Gym Ownership A common business that can be seen on every street corner is a gym. In 2016, there were 36,450 fitness clubs across the U.S. In 2015, the fitness and club industry brought in over 25 billion U.S. dollars into this country alone.

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“Engaging in sports costs money, therefore Americans are spending money on equipment, start up fees, registration and the list goes on. It’s something consumers are willing to invest in and it’s a great opportunity to generate profit.”

It can be big or small, high end or basic. It can have a retail section, a pool, classes, a restaurant. The fitness center is no longer used for the typical gym rat, but rather everyone. It caters to the everyday person, with child-minding places, trainers, easy access, lots of equipment and much more.

A franchisee who enjoys working out and engages in fitness would truly enjoy owning a gym, but it could be run by anyone. Franchisor’s provide training and ongoing support that makes it easy, while a management team can cover the day to day expectations of the business.

Research into the gyms within a location would be helpful to determine what best suits your needs. Most places offer a pass that could give a potential franchisee an on the ground experience and help them determine, from a personal level, whether or not the aspects of a certain club would be of interest.

Sports According franchise gator website, nearly 20% of Americans took part in sports, exercise or recreational activities every day in 2015 and Americans spend an average of 5.2 hours on sports and leisure activities everyday.

So what does that mean from a franchising perspective?

Profit: Engaging in sports costs money, therefore Americans are spending money on equipment, start up fees, registration and the list goes on. It’s something consumers are willing to invest in and it’s a great opportunity to generate profit.

Of course Sports franchising is usually considered a big team investment and that is one of the means of franchising.

However, a big sports team is a very limited option with a huge price tag. For those with a lot of start up investments, a great interest in sports ownership and some experience regarding high end management, it would be worth the consideration.

For now we will remain focused on the more reasonable franchise sporting options.

Sporting goods stores A lot of sporting goods stores used to be smaller business owners with a usual inventory of selection but it now reaches well beyond those means.

These retail businesses offer a huge variety of products that covers all aspects of fitness and sports. Equipment for a lot of sports is extremely expensive.

Contacting the franchisors and managers of local gyms to get an understanding of a franchisee’s expectations and work life balance before an investment would be recommended.

A survey of the area for competition, including small businesses and other franchises, would help determine location.

For example, a huge campus gym that is free to students may be a hindrance for success in that area.

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Hockey comes with a never ending list of

necessary equipment that one player must purchase and re-purchase for every year they are dedicated to the sport.

The franchise opportunities are pushing the boundaries beyond sports and fitness and looking at hiking, camping and outdoor living goods.

These stores not only focus on sporting

All these options mean one great outcome: profit.

fitness equipment- including machines,

Sporting Good industry generates 45 billion US dollars annually and that

goods, but also has a great inventory of technology and clothing.

“The franchise opportunities are pushing the boundaries beyond sports and fitness and looking at hiking, camping and outdoor living goods.”

does not even include outdoor recreation vehicles.

There is no experience needed to be a sports retail franchisee – a staff and management team would run the place from the floor and an investor would receive the proper training from the franchisor. A review of certain stores would be helpful and a chat with other local franchisors would give insight to the work life balance and expectation.

Choosing a franchise with more would result in a higher profit and more likely success. People enjoy shopping at a one stop shop and usually spend more money than they intended. Review the service options of each location. Sometimes there are classes, skate sharpening, yoga lessons, fitness training; some services make take up more time but generate more customers.

Recreation Centres Though recreation centres have been around for sometime, there has been a new brand of services that has taken flight: recreation centres with high entertainment for children.

This type of business is essentially an indoor playground, with much more to offer then a swing set and slide. There are trampolines, video games, wall climbing, food and catering – it’s like a downsized

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theme park held within a building.

Some options focus on one service, including a whole franchise with wall to wall trampolines, while others keep the place open to a plethora of options. It’s like an arcade for millennials.

These places usually offer birthday parties and retail options, generating even more money.

Over the last couple of years, these places have become more and

more popular. Parents are willing to invest in an experiences with their kids and they don’t want to travel to Florida to get it once a year. With two working parents, family time is limited and people want to make the most out of it and an overpriced, high end, constant entertainment centre is the place to do it on a rainy day.

Experience is unnecessary, but being a family oriented person or someone who enjoys working with kids would be useful.

Though it’s a high paced industry, it would usually be run by staff and management, allowing decent work life balance.

The Sports and Fitness franchising industry is a great consideration for the business orientated person who loves the field. It can take your passion to the next step and generate a reasonable profit. Though a lot of the franchises have a high end start up investment, it’s an ongoing interest for most Americans that will continuously remain successful.

“This type of business is essentially an indoor playground, with much more to offer then a swing set and slide.

There are trampolines, video games, wall climbing, food and catering – it’s like a downsized theme park held within a building.”

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.

Look out for our next special feature:

MOBILe FRANCHISING Franchising USA

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Expert Advice: Adam Sedlack, President, UFC GYM

The Boutique Gym Bo Boutique gym concepts represent a growing segment of the club fitness industry. They’ve exploded in popularity over the last few years, demonstrating more than 80 percent growth between 2012 and 2016, with no signs of slowing down.

The specialized group fitness classes offered by boutique facilities draw

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members who are willing to pay a premium price for the experience created by a community of people working toward their goals together. This drives increasing demand for boutique facilities, and the industry — including many franchised fitness brands — is stepping in to take advantage of the opportunity.

Today’s consumers, including a large millennial audience, prioritize health and fitness when setting their budget.

This same audience looks for more than treadmills and dumbbells when deciding where they want to get their workout. They want to be part of a community that fosters a sense of connectivity among its members and drives participation. In addition to getting a killer workout, these classes help

gym members create friends and build a shared sense of accountability that keeps them motivated to come back consistently and work toward their fitness goals. The simplified concepts offered by boutique gyms give them a unique, dedicated purpose, which is less intimidating and lowers a major barrier for entry among new members. And with a broad variety of options to choose from, this boom in boutique fitness concepts offers something for just about everyone who wants to get in shape and stay that way.

The benefits of boutique fitness concepts extend far beyond the consumer. For entrepreneurs looking to buy into a franchised fitness concept, building out a 3,000 square-foot facility presents

“The specialized group fitness classes offered by boutique facilities draw members who are willing to pay a premium price for the experience created by a community of people working toward their goals together.” equipment to maintain and replace from daily wear and tear.

On top of those financial incentives for invsting the boutique fitness spaces, these simplified concepts are easier to market to consumers. People come into the facility looking for a specific kind of exercise, making the brand positioning very direct and clear and its audience easier to identify and target. Investing in a business always comes with risks, but the lower risks involved in opening a boutiquesized facility are attractive to the savvy franchisee looking to make a smart bet with their hard-earned money.

oom a significantly lower financial barrier for entry than the one offered by the 40,000 square-foot behemoths that have dominated the club fitness landscape in years past. The focus on a handful of specialized classes pares down the amount of equipment a gym needs, drastically reducing overhead in comparison to larger, all-purpose gyms. Beyond the initial investment, a boutique facility also comes with lower operating costs.

A big gym might have as many as 70 employees who are needed to maintain and operate the business. At a boutique gym, an owner only needs to someone to check members in, someone teaching each class and a small handful of employees to maintain the facility throughout the day.

The smaller overhead also means less

The lower financial requirements and the reduced risks that accompany them make innovation in the space easier. Franchisors are more willing to experiment with new types of classes and incorporate new technologies to create a unique experience that sets their brand apart. A gym in Los Angeles can incorporate wearable technology that tracks fitness results in real time and allows a class to compete simultaneously against another class on the other side of the country or even the other side of the world. Franchisors can refine their concept and try new things that best fit the needs of their members, all while keeping costs under control.

Another factor that plays into the massive growth in the boutique fitness space is the quantity and variety of real estate options made available by the receding brick and mortar retail industry. These spaces previously occupied by retail businesses come in many different sizes, meaning the variety of concepts flourishing during the boutique fitness boom have plenty of options to fit their unique needs. It’s not just smaller, 3,000 square-foot spaces that fitness brands can take advantage of; as 100,000-square-foot department store-style retailers reduce their number

Adam Sedlack

of locations, the massive spaces they leave behind are being remodeled and divided up to fit the needs of a wide array of boutique concepts, ranging from gyms to salons and smaller, highly specialized retail concepts.

Combined, these factors not only explain the surge in boutique fitness facilities, but also demonstrate why these concepts are here to stay and why growth in this sector of the club fitness industry is expected to persist. Rising demand from an increasing number of fitness consumers will continue to drive this growth. The reduced risks available in smaller, specialized fitness concepts create an attractive opportunity for new, fitness-minded investors looking to get into the industry or experienced entrepreneur looking to grow their portfolio of franchises, even if they’ve never considered the fitness industry before.

In 10 years as the president of UFC GYM, Adam Sedlack has helped to grow the brand from a startup to the 12th-largest club fitness business in the U.S. The company was recently named one of Club Industry’s Top 100 Health Clubs of 2017. He currently oversees the company’s U.S.-based franchise operations and its international division, which recently announced a major international expansions, including the addition of 100 locations each in India and the U.K. over the next 10 years and 35 locations in Mexico over the next nine years. ufcgymfranchise.com

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Expert Advice: Josh Allen, Director of Marketing, Location3

Digital Marketing Tips for Generating New Fitness Customers & Gym Memberships

In September of 2017, data pulled from a research study on the Health & Fitness category highlighted that usage of health and fitness apps among consumers had increased by 330% over the past three years.

These findings indicate that ensuring a high level of physical fitness and overall good health is still a daily goal of millions of people worldwide. As fitness enthusiasts manage their own personal routines, workout schedules and dietary considerations, digital technology continues to be incredibly

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important in helping people both track their performance and discover new ways to improve their overall health and wellbeing. For franchise brands in the Health & Fitness category with a brick-andmortar presence, effectively connecting online consumers with your gym or fitness club locations can have a significant, positive impact on your overall revenue.

Understand How Your Audience Researches Online Digital marketing and advertising programs offer an incredible amount of data that can be mined for key insights and trends as they relate to your target audience. For example, with more and more consumers increasingly on the go, industry data continues to show that capturing the attention of consumers when they’re active on mobile can provide a lift in awareness for both your brand

and fitness club locations. Recent data released by Google indicates an 85% increase in mobile searches that include the term “where to buy” since 2015. The rise of digital assistants is also impacting how users find businesses, services and products online. Per comScore, 50% of all online searches will be voice searches by 2020. Voice searches tend to be more conversational and longer than traditional, typed searches. So how are you planning to connect with a customer that asks their digital assistant “where can I buy a gym membership for spin classes near me”?

No matter what your overall marketing strategy looks like, it’s important to ensure that strategy is supported by data from both the Health & Fitness vertical as well as larger data sets from your core digital marketing channels.

Ensure Your Gyms & Fitness Clubs Can Be Found Online As we’ve covered previously here in Franchising USA Magazine, arguably the most critical element of your digital marketing strategy involves management of your local online footprint for every one of your gyms and fitness clubs. Many single-owner gyms and multi-location fitness clubs suffer from having inaccurate location data published in places like Google, Facebook, Yelp, Bing and other online directories. The ramifications of bad location data can range from a potential customer calling a gym that has an incorrect phone number or even potentially arriving at a center on time for a favorite fitness class only to find that the business has moved, closed or simply had an incorrect address published online.

“Before you begin marketing your gym or fitness franchise online, it’s important to leverage local online data for your market to better inform your overall strategy.”

To make sure this doesn’t happen to your business, it’s important to manage your online listings and routinely audit them for data inaccuracies related to things like business name, address, phone number, hours of operation and key contextual information such as varying fitness classes offered at each location. Having a location page for each franchise business location with similar information can also create a better user experience for consumers.

Combining both into a cohesive digital strategy only improves your chances of ranking well for those key user searches like “gym near me” and “best yoga class in Charlotte”.

peak times. By aligning budgets to spend more during seasonal peaks when users are most active, and either scaling them back or shifting tactics during lowervolume periods, you can reach more of your target audience and convert more customers for your gym. Channels like Google and Facebook allow you to set specific campaign parameters so that your ads only show during certain days of the week, or during certain time periods each day, to help maximize your budget when users are most likely to engage. From there, you can further optimize campaigns for increased conversions using actual data and insights from your own campaigns.

Capitalize on Seasonality

In Summary

We’ve all done it before – we’ve all made that big resolution to get healthy at the start of the New Year, after the birth of a child or following our most recent visit to the nutritionist. Health & Fitness franchises often see significant, seasonal shifts when it comes to customer acquisition and growth because of these key life decisions. Yet, digital marketing campaigns often remain static throughout the year causing budget to run out during

Before you begin marketing your gym or fitness franchise online, it’s important to leverage local online data for your market to better inform your overall strategy.

Making sure your franchise is also discoverable by online consumers through accurate, optimized location data will help set the foundation. From there, you can begin developing advertising campaigns that are more highly targeted and less general in nature, and ultimately send

Josh Allen

more customers through your gym’s front doors every day of the week.

As Director of Marketing, Josh Allen is responsible for planning, developing and managing Location3 and LOCALACT brand strategies, with a focus on establishing new business partnerships among franchise systems and multilocation brands. He also works with Location3 client partners to establish key initiatives for increased franchise engagement and growth. He is an active member of the International Franchise Association and has previously been featured by the American Marketing Association, Franchise Update Media, MediaPost and more discussing franchise digital marketing strategy. www.location3.com/franchise-digitalmarketing

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Expert Advice: Kristen Pechacek, Senior Manager of Digital Strategy, Anytime Fitness

Three Ways Franchise Better Target and En Customers at the Loca It’s one of the biggest challenges franchisees face every day – how do you balance marketing efforts from corporate, with the nuances of the local market for each individual franchisee?

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What may work well at the corporate or at the brand level doesn’t necessarily translate to an effective strategy at the local level. Not only that, but how do you empower franchisees to tailor their marketing and social media efforts while staying true – and consistent – to the master brand?

Like any other franchise, Anytime Fitness has faced these challenges and solved for them by finding the right systems and

partners to work with to be successful on both levels. It doesn’t have to be a tug-

of-war, it’s an opportunity – franchisees

have the local insights into what works for customers in their city or town and they

can marry this with the direction from the franchise itself. It’s a win-win.

But how? Where do you start? Here are three things I recommend you keep in mind when beginning your journey:

“Each franchise location needs to be able to engage with customers directly while still being true to the corporate brand and ensuring a consistent voice as well as overall positioning.” one corporate post per day, it’s up to the owners and managers to tailor their social accounts to their local audiences (with a few guidelines to keep things consistent).

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Provide the Needed Tools for Localized Engagement

ees Can ngage al Level 1

Leverage a Model that Blends Oversight and Ownership Each franchise location needs to be

able to engage with customers directly while still being true to the corporate

brand and ensuring a consistent voice

as well as overall positioning. Anytime Fitness is unique in the latitude it gives its franchisees. With the exception of

There’s only so much time in the day with all that franchisees have on their plate, so corporate brands need to quickly and easily provide each franchise with content, oversight/management of reviews on social media (e.g. Facebook, Yelp, etc.), and the ability to create tailored, relevant ads. We partnered with MomentFeed – a leader in mobile customer experience management for multi-location brands – to empower our franchisees with an easy to use platform to engage with their community and make mobile marketing simple. We offer a curated content library of pre-vetted images and text that can be used on any social media platform so each social feed has content to make it unique. We also allow managers to oversee reviews on social media and respond to each one in real-time.

3

Analyze your Data to Demonstrate Successful Strategies and ROI It’s one thing to think you’re doing a great job at managing your franchise’s marketing and social media, but it’s another to quantify it and see the actual increase in traffic to social media platforms, website traffic and positive reviews. Through MomentFeed’s reporting and insights, we found that in just nine months our social organic reach increased by 210% due to franchisees being more active and posting more engaging,

Kristen Pechacek

community-driven content. We’ve also seen a 297% increase in traffic to the website originating from Facebook.

At the end of the day, this model of franchise independence empowers each of our fitness center owners to deliver standout-marketing results while saving time and reallocating resources to other projects and initiatives. And from a corporate point of view, we’re able to maintain a consistent, unified brand voice while allowing each franchisee to cater their outreach and marketing to their unique, local community. The MomentFeed platform provides Anytime Fitness with all that our franchisees need to be successful marketers—and have more time to run a profitable fitness center (and maybe, just maybe, get in a longer workout).

Kristen Pechacek is the Senior Digital Marketing Manager at Self Esteem Brands, home of Entrepreneur’s Top Global Franchise, Anytime Fitness, and promising newcomer Waxing the City. By day, she focuses on customer acquisition through digital mediums and by night she raises a vivacious threeyear-old on a beef cattle hobby farm in rural Wisconsin. She has worked with over 90 clients on their social and digital presence and prior to her time at SEB, worked with the Minnesota Vikings.

She is dedicated to digital marketing tools and technologies and serves as an adjunct professor at the University of Wisconsin, River Falls. www.anytimefitness.com

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Expert Advice: Trever Ackerman, Chief Marketing Officer of WellBiz Brands, Inc. (FIT36 ®, Fitness Together ®, and E

Ditch Brand Standards:

5 Tips in Creating Powerful Customer Journeys Creating long-term loyalty and customer engagement is vitally important in today’s market and there is no better way to do this than to provide relevant customer experiences. I sat down with two successful franchisees -- Stacy Adams of Fitness Together and Simon Foster of Elements Massage to get their perspective on this topic. Here’s what I uncovered…

1

Lay the foundation, listen and learn

Trever Ackerman

While company style guides and brand standards are essential for creating a consistent brand identity, they can sometimes lead to tonedeaf marketing when it relates to customer experience.

This is because many brands make the mistake of mapping the customer journey from their internal perspective based on business processes, profitability or other internal initiatives. When it comes to cultivating a meaningful connection, marketers should ditch this point of view and shift their perspective to the eyes of the consumer.

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Just like the beginning of any relationship, when laying the foundation for an effective customer journey, it is important to do your research and get to know the other person. Do your homework on your customers and provide outlets for them to easily provide feedback on their experiences.

Sometimes, the simplest tip is to take a step back, quiet your brand voice and listen when customers are talking.

“Elements Massage is a membershipbased business. Our foundation is built on building long-term loyalty,” said Elements Massage owner, Simon Foster. “The more you can listen to customers and create an impactful brand relationship, the more likely they will repeat their business and refer their friends.”

2

Take the time to understand customer behavior

This is so important – not only with your business or product, but overall. What are the competing or substitute products

and services that your best consumer or client prefers? How does their customer experience with those brands compare to yours?

Furthermore, it’s easy to feel overwhelmed because every customer doesn’t follow the same “path” or demonstrate the same behaviors. Don’t let this distract you – focus on the most typical or common customer journey and work on getting that right. Then you can shift your focus to a different path later.

“Baby steps are key for adapting the customer journey, but it is also important to stay focused on what you do and why you do it; this means your business might not be a good fit for every person who walks in the door, and that’s okay!” said Stacy Adams, Fitness Together owner.

3

Measure customer engagement

Develop a foundation that allows you to measure customer interactions across touch points – both online and offline.

This will provide you with the necessary inputs to create data-driven insights to improve your future customer journey.

Digital touch points are often the easiest to measure, but remember to focus on nondigital touch points too. These are more challenging to quantify, but will give you a more complete picture of your customer engagement.

4

Continually seek feedback Seek out feedback from both implicit

“Time and time again, we hear how much clients appreciate the steps we take that guide them along their path to achieving results.”

“Don’t underestimate the value of a smile and friendly welcome. The little things can go a long way to driving loyalty. Plus, smiles are free.”

and explicit sources. Explicit feedback – or what your customer tells you – is what you most commonly think of – survey results, customer comment cards, online reviews, etc. Implicit feedback is what can be learned through their behavior – this might include things like the number of referrals they generated, the frequency of their visits or re-purchase, the monetary/ transaction value trend over time, etc.

“There is true value that comes from customer feedback, both negative and positive,” said Adams. “Time and time again, we hear how much clients appreciate the steps we take that guide them along their path to achieving results.”

5

Give customers what they want

Through my experience implementing strategic customer journey programs for national brands including 24 Hour Fitness, Les Mills, FIT36, Elements Massage and Fitness Together, I have learned there are five aspects of loyalty that customers seek out from brands: • Value – Save customers money and provide added benefits as they spend more.

• Time – Reduce the friction or effort required to interact with the brand.

Make it easy to do business with you.

• Access – Make customers feel like they are ‘in the know,’ give them first and/or exclusive access.

• Learning – Give customers relevant content that enhances their life and reenforces their connection to your brand.

• Know Them – Get to know customers and remember what they like so you can anticipate their wants/needs.

“From my experience, customers care about the quality of the product, the relationship they feel with the brand and the value of the service,” added Foster.

The Takeaway: The customer journey you establish doesn’t have to be perfect before you implement it. In fact, it won’t be, so don’t set that as a goal. Make changes early and often to improve the customer journey.

Learn from your mistakes – you’ll surely make them – and iterate often. Your customers will recognize this effort and reward it with higher brand engagement.

And don’t underestimate the value of a smile and friendly welcome. The little things can go a long way to driving loyalty.

Plus, smiles are free. Working with a savvy consultant or franchise to help provide a high-quality turnkey customer experience is always an option too!

Ackerman is the CMO of WellBizBrands Inc., including Elements Massage®, Fitness Together® and FIT36®.

Previously, Ackerman served as head of marketing for Les Mills U.S., overseeing marketing and communications for over 3,300 fitness facilities in 50 states. He held leadership positions in business development, HR and marketing at 24Hour Fitness. www.wellbizbrands.com

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lements Massage ® )

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Expert Advice: Rick Bisio, Franchise Coach, FranChoice

What to Know Abou Operating a Fitness Fra If you are someone who is currently in the process of evaluating franchise ownership options and are considering a fitness center concept, this is a good time to be in the market.

There are several basic factors about this field that are working in your favor as you weigh your franchise opportunities.

According to the most recent report by the International Health, Racquet & Sportsclub Association (IHRSA), the trade association for health clubs, 57.3 million

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people were members of a health club in 2016. The study also found there are more than 36,000 health clubs around the country and the industry generated $27.6 billion in revenue in 2016.

Fitness centers have traditionally been a fairly popular segment. As the numbers indicate, the market is there for people who want to go to a place and exercise.

Although there has been some growth in that area in recent years, the demand for such a service has been very consistent for decades. Regardless of what the economy is at that time, people will continue to seek establishments to improve their health and fitness. That is great news for business owners in this market.

Furthermore, there has been a recent trend of private-equity firms purchasing

franchises, and that has certainly been the case with fitness concepts. Last year, the private-equity firm TPG Growth purchased Club Pilates, one of the largest chains of Pilates studios in the country, while Bain Capital Double Impact made an investment in Planet Fitness. TPG already owns a stake in Life Time Fitness, which it took private with Leonard Green & Partners in an estimated deal of more than $4 million in 2015. In recent years, several other private-equity companies have targeted various fitness franchises as attractive investment opportunities.

In general, private-equity firms view franchises and their proven operating systems quite favorably. Franchises have a fairly high level of consistency and predictability with their revenue streams,

fitness centers specializing in one type of a workout may start at $100,000. On the high-end, “big-box gyms” such as Planet Fitness or Youfit may cost over $1 million due to the space, infrastructure and expense of running the business. The range of investments in the fitness space still remains considerably less than other franchise options, and because of that, they seem to be in high demand.

When run properly, a quality fitness franchise has a good chance to be profitable. There has always been quite a bit of consumer interest in fitness facilities, and people today are more comfortable in storefront-type franchises. There is a good operating system and it draws from a market in which there is a strong demand for the service.

ut a anchise which is an important feature for these companies. Many private-equity firms also operate other franchise brands. As a result, they are able to take the success they have achieved with one brand and apply it to another. This is generally a positive for franchise owners, as there is often little change in structure that takes place after an acquisition, while the private-equity firm can provide the capital to grow and add value to the system.

Regardless if a fitness center is owned by a private-equity company or a traditional franchisor, it can be a popular and attractive option for entrepreneur. To start with, most health and fitness brands are less expensive than some other franchises concepts such as a restaurant or hotel. Investment in small, boutique

As a franchise coach, I have worked with many people who want to become owners of fitness centers and I have given them the same advice I have shared with people in other fields. Don’t fall in love with the product. In this case, don’t become a business owner because there is a cool new way of working out. That’s not why you should purchase a fitness franchise.

Instead, you get into a fitness concept because it has good operational systems, good marketing systems, and that it has the predictably get you from Point A to Point B in regard to running a business.

Instead of being captivated by the product, you need to understand what it takes to be successful in the fitness concept and the type of work required to make it successful.

To that end, one does not need to be experienced in health and fitness to run a successful business in that field. Fitness center owners will need to understand marketing systems and be able to drive sales. They will have to be detailoriented when it comes to things such as overseeing payroll and managing monthly membership dues. The ironic part about owning a fitness center is that if you like to exercise, you will most likely not do so at that facility. An owner’s time there will be spent answering phones, interacting with the customers and managing the business operations.

Another aspect about ownership of a

Rick Bisio

fitness center concept is that many are run with a semi-absentee business model.

In this setup, the owner is not required to put in the typical 40-hour work week, but instead dedicate 10 to 15 hours per week in running the business. This model is particularly appealing to people who already have existing jobs and are looking to add to their professional responsibilities and income streams.

The key to this structure, which is in place in many other service industries, is being able to oversee others and place a great deal of trust and confidence in them managing the business. Although the semi-absentee model requires fewer hours spent on-site than other professions, it does require an owner to be very meticulous in monitoring the business and be very skilled in managing others.

Health and fitness clubs exist in a popular and crowded space, with more than 36,000 currently operating throughout the United States. If you believe you have the necessary skills to run the business and market the product to a given customer base, owning a fitness franchise can be a very appealing opportunity.

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. www.afranchisecoach.com

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