How much experience in the fitness industry does your company have?

Muscle Beach® founder and Vice President of Multinational Development, Danny Lucien "The Solution" Tschirret, the person credited with breaking down the walls for many of today’s athletes when in 1969 he first introduced strength training into the world of individual sport athletics, has more than 40 of experience in the fitness industry.

As a native of Poland, can I open locations over there as well?

Absolutely. As a globally protected brand, Muscle Beach® can assure your safe operation in markets around the world, including Poland.

What’s the overall condition of the fitness industry?

There’s no question that the fitness franchise industry continues to be on the rise. It’s been growing at a steady, consistent rate since the fitness boom first hit back in the 70’s.

One reason for the continued growth of the workout franchise industry is that exercise, despite what some people would say, actually serves a basic human need; a physiological need. Just like with food, water, and sleep, it’s something everyone needs. Without it people become sluggish, unhealthy, and slowly deteriorate. Industries that help satisfy basic physiological needs have always grown, and have been recession proof, successful, and extremely profitable.

Do you live in a community without a grocery or convenience store? Are you willing to pay for a bottle of water in the absence of a water cooler? Regardless, retail food distributors and bottled water companies operate in billion dollar industries that serve our physiological needs and there’s no evidence that they’re going away anytime soon. Because fitness is a business that satisfies a basic human need, it’s a smart choice because it’s recession proof and allows you to capitalize on the fact that the market will NEVER dry up…as one generation goes, the next one comes!

Another factor attributing to the growth is that people are vain creatures by nature. Today, more than ever, they want to look and be their very best, and they’re not afraid to spend to get what they want. They continue to splurge at health clubs, coed fitness centers, gyms, spas, tattoo and piercing parlors, and cosmetic surgery clinics to get the same look they see in the media.

Yet another reason for the escalating growth of the workout franchise industry is the fact that no one wants to grow old or show that they are aging. Thus, millions upon millions of baby boomers are now flooding fitness related establishments from coast to coast. They’re patronizing fitness clubs in an attempt to slow the aging process down and cosmetic surgery clinics to reverse the process. When the boomers die off, the generation x’ers will be right behind for you to serve.

Still another reason for the steady growth of the workout franchise industry, is the continuous rise in the population. Today, with population levels at an all time high, there’s never been more of a market for workout franchises to serve. Given the poor overall condition of men, women, seniors, and kids, it’s truly a pathetically unhealthy and unconditioned market. Their obesity levels are at an all time high. Their heart disease rates are going through the roof. This is all due to decade-descending changes in our lifestyle that are caused by poor nutrition, eating on-the-run, fast-food habits, and a lack of exercise. As the population continues to grow, guess what? The unconditioned market continues to grow!

Unfortunately, there’s no end in sight because despite both educational and awareness programs, and despite the need for improved and better health, these problems will seemingly never go away from modern society. In a way, it’s rather sad to be able to capitalize on such an unfortunate situation. Yet, on the other hand, it can also be a happy, satisfying, and gratifying one. You’ll be rewarded with that never-ending, good feeling of knowing you’re part of an industry that not only cares about the situation and is trying to rectify it, but also wants to prevent any further deterioration.

Don’t simply choose a workout franchise based on growth or because the financial prospects appear to be better than something else. Choose it because you want to be a part of it. Choose it because you know you’ll love doing it. Choose it because you’re passionate about it. Choose a workout franchise because you feel it’s an important way to help people.

But before you make your decision, here’s another good reason why you should choose a workout franchise. As a franchise owner, you are providing a service, not a physical product. Often, when a product is involved, you can be at the mercy of technology. Take, for example, a franchise movie rental store. Today, because of technological advances, one in every neighborhood is no longer necessary. This has forced virtually every franchise, including Blockbuster®, to begin closing stores left and right. Why? Because people now have better choices and more convenient options, like ordering their movies over the internet, or choosing them on-demand from their cable or satellite service provider, or getting them anytime they want out of a vending machine.

However, when it comes to a workout franchise, technology will NEVER be able to put it out-of-business! That’s because no one will ever be able to use exercise equipment over the internet. No one will ever be able to download a workout to their computer, then directly into their body. No one will ever be able to rent exercise machines through a vending machine. No one will ever be able to have exercise equipment transmitted through their television, directly into their living room. And no one will ever be able to have a gym full of equipment beamed into their home! But even if some day they can, rest assured that Muscle Beach, Inc. will be at the forefront of any technological breakthrough that would enable this concept to become a viable business opportunity for you.

Our business model is not only a prudent approach to starting-up a workout franchise, but a far LESS COSTLY one, compared to the traditional franchise business model. Nevertheless, you can’t begin until you discover, for yourself, what it is you love to do most. Because a workout franchise or not, what you love most is what you should be doing. Whether it’s food, sweets, a fitness center, or something else, many excellent opportunities are out there. But the fact remains, that no matter what you end up choosing, make sure you never forget these words of wisdom, words similar to another warning you’ve heard many times before…“Please, don’t try this alone!”

How much investment is required?

This is totally dependent upon the type of fitness business you choose. Some fitness businesses are highly capital intensive, while others are less capital intensive. As an example, let’s take a look at a fitness club franchise.

Unless you’re planning to purchase an existing fitness club franchise, in order to get one up-and-running, you’ll have to convert open air or raw space into a finished location. Open air involves constructing a fitness club franchise from the ground up, while raw space involves building it from existing, unfinished space.

Because there are so many variables involved, it’s virtually impossible to quote exact numbers when it comes to the construction of a finished fitness club franchise. A variety of factors including, but not limited to: the country, the geographic region within the country, the specific area within the region, the exact location of the real estate, the square footage involved, the market conditions, the population density, the cost of living, the differences in estimated construction costs, the extent of leasehold improvements, the landlord’s willingness to participate in construction / renovation, the format, and the amount and type of equipment, are just some of the issues that will make one fitness club franchise completely different from another.

However, for the sake of argument, depending on the format of the fitness club franchise and all of the various factors that influence it, expect ballpark, start-up costs ranging between a minimum of $100,000 upward to $5,000,000.

We’re looking for dedicated, financially secure individuals and investment groups, who not only have a fearless business approach and attitude, but who aren’t intimidated by the competition and aren’t afraid to open a fitness club franchise right on top of them! If you fit this description and are willing to commit to the guidelines set forth in our business model, we invite you to contact us today either by phone or e-mail.

Is financing provided?

Regardless of whether you’re starting an exercise club franchise from scratch or whether yours is already up-and-running, we can assist you in securing venture capital to either get it off the ground or help you expand or grow. Through our third party financing your club will receive extremely competitive rates or you can simply use its own source.

The same holds true as it pertains to equipment leasing. Either we can hook you up with the most reputable leasing companies or you can find them on your own. Either way, you’re ensured that on paper, you own your exercise club franchise, and NOT us. Thus, you can rest comfortably knowing that you’re in complete control of all your managerial and financial functions, including revenue, both membership and profit center.

There are two reasons why we DO NOT provide, nor do we endorse the direct financing of an exercise club franchise. This is where corporate is either the source or acts as the source of your loan.

The first reason is because this method forces an exercise club franchise to relinquish its ownership and financial control. Corporate, to ensure loan repayment, will strip revenue collection away from you, taking control of it by forcing the membership revenue to bypass you and be directly funneled into corporate’s bank account. So in essence, until the loan is repaid, corporate owns your club, with all of the benefits and your hard work going to them.

The second reason is that when corporate directly provides the financing of an exercise club franchise, you become locked into their system for an incredibly long period of time. Thus, if the term of the loan is 20 years, that’s how long you’re locked in for. An escape clause might not even be enough to free you. If for any reason, you decide that you want to part ways, your only hope would depend upon corporate’s good graces of granting your exercise center franchise an unconditional release from its contract. If you’re lucky enough to get that, you won’t be so lucky, when in consideration for it, corporate forces you to sell your club back to them for pennies on the dollar. Thus, you’ll LOSE and LOSE BIG, when all of the hard work you put into your club, along with all of the equity, goes right back into corporate’s pocket!

What fees are assessed?

LICENSE FEE – is the annual fee for the right to use our brand name, slogans, and business model.

ADVERTISING FEE – a fairly common and widely used monthly fee, a fitness franchise can theoretically institute it either on a flat or percentage basis, and in most cases they will charge either 2 or 3 percent of monthly revenue. However, our advertising fee DOES NOT reoccur on a monthly basis. Our fitness franchise only implements it from time to time, as necessary to fund the cost of promoting our brand and building more awareness of its availability through occasional, corporate-based, advertising campaigns. All dealers participate in and subsidize these programs. Everyone kicks in the same amount, which is a flat fee and is determined by dividing the cost of the campaign by the total number of dealers under the umbrella of the brand.

PROJECT FEE – this flat fee may occur from time to time to fund the cost of special projects. Just like the advertising fee, it’s determined by dividing the cost by the total number of dealers.

COMPLIANCE FEE – this flat fee may periodically occur to fund the cost of ensuring that our dealers remain in compliance. It’s determined by the cost involved to perform an on-site compliance check.

TERRITORIAL PROTECTION FEE – this flat fee, available to senior dealers, is used to protect their future growth and expansion by preventing anyone else from entering their market. It’s determined by a number of different factors and variables.

CANCELLATION FEE – when your contract comes up for renewal, if you do not renew it, many fitness franchises will levy an exit fee; in essence, a penalty based on your decision to leave. We DO NOT assess this fee.

RENEWAL FEE – likewise, when your contract comes up for renewal, if you renew it, many fitness franchises will levy a continuance fee; in essence, a penalty based on your decision to stay. We DO NOT assess this fee.

Will I get a protected territory?

If you’re located in a town, your area of operation is protected to the extent of whatever fitness franchise you operate as it relates to the boundaries of that particular town. For example, if you operate our fitness center model, your protection will cover that particular format, but will not necessarily extend to any other format. If someone wanted to open our personal training studio model within your town, they could be allowed to do so.

If you’re located in a city, your area of operation is protected to the extent of whatever fitness franchise you operate as it relates to that particular section of your city. For example, if you operate our 24 hour compact fitness center model in Douglaston, the borough of Queens, New York City, New York, your protection will cover that particular format, but will not necessarily extend to any other format. If someone wanted to open our $10 fitness center model in Douglaston, they could be allowed to do so. Likewise, if someone wanted to open our 24 hour compact fitness center model in the Howard Beach section of Queens, they could, under certain circumstances, be allowed to do so.