Snap Fitness is a 24-hour fitness center franchise that is based on the “fast, convenient and affordable” workout.

When Dr. Glen Zewe first pondered joining a fitness center in early 2007, the mere thought of working out at a health club left him a bit intimidated. Zewe, a resident of North East, Pa., had never belonged to a club, preferring instead to exercise in the confines of his own home with a limited amount of equipment.

When he first entered a Snap Fitness near his home, he says, the picture was nothing like what he had painted in his head-where elite athletes and bodybuilders raced along on treadmills and pumped iron, leaving little room for the average Joe.

“I had never worked out before – I had the home gym equipment – but that’s why I was intimidated,” he says. “As soon as I walked in the door, somebody was there to walk me through how every piece of equipment worked and how to be safe and the number of repetitions to do.”
Not only did the “homey atmosphere” meet Zewe’s expectations, but so did its 24/7 hours. He has used the facility as early as 5 a.m. and as late as 1:30 a.m. The price fits Zewe’s budget, too. At $35 per month, and without being locked into the lengthy contracts that most big-box fitness chains require, Zewe notes he can afford to work out when he chooses.

Taking a New Approach
Created by CEO Peter Taunton in 2004, Snap Fitness is a 24-hour fitness center-turned-franchise that is based on the “fast, convenient and affordable” workout concept. It is delivered in a compact gym in large metropolitan, mid-sized urban and small-town and rural settings. Taunton says about 90 percent of its customers live within a two-mile radius of its clubs and that the “facilities are not geared for any one gender or age, but our product really lends itself well to anyone who is interested in improving their health.”

Tired of the taxing work of running five America’s Fitness Centers in Minnesota, which prevented him from spending time with his family, Taunton launched two test stores within three months of each other in 2004 – a 4,500-square-foot club in Alexandria, Minn., and a 3,000-square-foot location in Litchfield, Minn. Realizing that the concept had major potential if duplicated, Taunton started franchising that same year. In the first year of business, Snap Fitness opened 18 stores and garnered $180,000 in revenues. Today, Taunton oversees a network of 830 stores in 45 states and projects the company will reach $17 million in revenues with 1,250 stores by the end of the year.

Taunton started “by taking a club and pulling out the components that made the most sense. I asked myself the question of what items did people really use,” he recalls. “Today, we have over 180,000 members, and when surveyed, the No. 1 reason why they joined the club was convenience, the second is the quality of equipment and the third was a dead heat between price and cleanliness,” Taunton explains.

Each location offers state-of-the-art cardio and weight-training equipment in compact layouts that range between 1,500 square feet with one unisex bathroom and 3,500 square feet with two bathrooms and showers. Monthly memberships cost $34.99 for an individual and $49.95 for a family and are valid at all locations. Also, there are no long-term contracts binding members to the facility. About 90 percent of its members live within two miles of the clubs.

“The public is tired of being shackled to health club contracts,” Taunton explains. “We feel good about the product we offer our customers, we’re also comfortable with the premise of earning our customers loyalty each month. Simply put, membership contracts shouldn’t be used as member retention tools in our industry. The public is qualified to make the decision as to which health club provides them best value.”

The franchise process starts with Snap Fitness’ corporate real estate professionals assisting potential owners in locating space. Once the site is established, the company’s implementation team loads every piece of administrative office and exercise equipment onto one of nine company-owned semi-trailers for delivery and set-up.  

Franchisees benefit from the absentee ownership model, Taunton says, which allows one manager to man the location between 15 and 20 hours per week. Revenue is generated by membership fees collected electronically.

The corporate location manages the billing process and each month deposits 100 percent of the collected balance directly into the franchisee’s checking account.

Catering to Customer Needs
Franchisee Rob Miller launched his first location in October 2006 in North East, Pa., and second and third locations in Edinboro, Pa., and Conneaut, Ohio, in early 2007.

Miller says the concept works because it “focuses more on the customers and catering to each individual’s needs. About 70 percent of people who join health clubs use only what Snap Fitness offers.

“Our customers are people that are on the go, trying to find a balance between family, work and fitness. They enjoy the quality and convenience,” Taunton adds.

Although Snap Fitness experienced 325 percent growth in 2006, Taunton worries little about over-saturation. “We’ve found the more successful you become, the bigger the bullseye gets on your back," he says.

Health and Fitness Industry Pumps Up
With the new year approaching, many people have exercise high on their resolution lists. In the United States, people have many options to choose from when finding a club. Here’s how the industry stacks up:

• 26,830 – Number of health clubs, including YMCAs and community centers
• 41.3 million – Number of health club members
• $14.8 billion – Total industry revenues
• $6.3 billion – Total industry payroll and benefits

Here’s what new members want to do at the club:

• Cardio – 68%
• Alternative therapy such as yoga or massage – 38.4%
• Weight training – 36%
• Weight management – 29%
• Group exercise – 26.4%
  

Source: International Health, Racquet & Sportsclub Association

Work It Out
Once all the rage, big-box health clubs are feeling the burn from a surge in niche fitness club concepts. "I think [fitness centers] are going towards the concept in niche marketing, and we're already seeing a catering to a specific population," International Health, Racquet & Sportsclub Association (IHRSA) Spokesper-son Rosemary Lavery says.

From gender-specific clubs to 24-hour centers, catering to a specific demographic can be an effective way for owners to stand out in the sea of health club options. According to research conducted by the IHRSA, lack of time, cost and intimidation are all reasons why people don't join gyms. By creating a club culture that tailors its services to address these concerns, clubs are finding they can break down these barriers.  "The 24-hour clubs have been something that within the last five years has sprung up across the United States," Lavery says, noting that it plays to the fact that customers like convenience and options.

Chicago-NBC Channel 5 Fitness Contributor Andrea Metcalf says the "no frills" approach to fitness of 24-hour clubs is ideal for people ages 24 to 54 looking for quick workouts and specific equipment for a cardio and weight training workout.

For Snap Fitness CEO Peter Taunton, the 24-hour "fast, convenient and affordable" model is here to stay. “Minimally staffed fitness centers have been around in the hotel and resort communities for years [and] Snap Fitness has helped bring it into the mainstream,” he says.