Why Ff 10 Existing Club Revised1Document Transcript
The Fitness for $10 Story
The Fitness For $10 story began a complete change in philosophy about the way
that a health club should be run. Most people get into the health club business
with the idea of running a business that will allow them to combine their passion
for fitness and the chance to make money doing it. Unfortunately for many club
owners they quickly realize that it’s not that simple, and that there are elements
of the fitness industry that they did not foresee. As the owners of Fitness For
$10we were no different. For over 15 years we owned and operate highly
successful sales driven health clubs. Yet for those same 15 years we struggled to
find honest dependable Managers and Sales people, struggled to find reliable
group fitness instructors and struggled to maintain a child care program. The cost
of running our business kept going up yet our profit was going down. It was at
that point that we decided there had to be a better way. There had to be a way to
make our clubs more profitable and still give our members a well equipped, super
clean and friendly club that was the best fitness value in the area.
Fitness For $10 was born.
We eliminated all of our sales people, eliminated our aerobics program,
eliminated kids care and dropped our rates ridiculously low. We made it easy to
sign up, no sales pressure, no haggling over price, no “promotions” no gimmicks,
just a great value for the dollar. Boy did people respond! The first 6 months we
spent most of our time convincing people that there was no “catch”. Once the
word got out that we were for real and our pricing was not a gimmick our
business exploded! Along the way we noticed another interesting phenomenon,
running a health club became fun again! So many of the headaches that we had
experienced over the years were gone. This was the type of business we
envisioned when we got into the health club industry in the first place, and guess
what….we have accomplished what we had set out to do, combine fitness and
Why Fitness For $10?
Fitness For $10 has a different and refreshing approach to operating health
clubs. Our mission statement says it all!
Fitness For $10 believes fitness does not have to be expensive.
Fitness For $10 believes it can make fitness affordable for everyone.
Fitness For $10 believes the price of a membership does not
determine the quality of a health club.
Fitness For $10 believes health clubs should be friendly and clean.
Fitness For $10 believes a health club should provide members with a
positive and helpful environment.
Fitness For $10 believes people have the power and determination to
attain their fitness goals.
Fitness For $10 believes its members’ fitness experiences should be
exactly what they want them to be.
Fitness For $10 believes in its members!
Licensee vs Franchisee
There are many options when deciding which direction to take your health
club, Licensee or Franchisee, rest assured that there are success story in
either direction. When making such an important decision we think it’s
important to ask yourself why you got into the health club business. Most
health club operators have a definite vision of how a club should be run and
their own ideas on how to complete that vision. In other words, we health
club owners are an independent group and want to run a business
according to our own rules. This is why Fitness For $10 decided to take the
path of Licensee as opposed to Franchisee. Most franchises will usually
dictate to you the most important directions your club will take; what type
of memberships you sell, what type of equipment you buy, what billing
company you use, what type of advertising you do and how your club
should be decorated. We feel that such important decisions should be
made by the folks who are footing the bill, you!
Why My Club?
In these uncertain economic times it is important to plan for the future of
your club. If you are like a lot of club owners you have seen the dramatic
effect on your business due to the struggling economy. Many clubs that at
one time were quite profitable are now barely breaking even and in some
cases have already gone under. There are several questions you can ask
yourself that might help you make the decision to make a change.
• Is my business showing growth?
• Could I withstand a New, larger and better equipped health club
moving into my area?
• Could I withstand a low priced model health club moving into my
• Do I have the type of club that can attract people that would not
normally join a health club?
If you answered no to any of these then it may be time to at least consider
moving in a different direction and Fitness For $10 may be an option worth
exploring. We have a proven track record of withstanding all of the above
scenarios. Let us show you how you can dominate your competitors and
withstand future competition in your area.
What makes Fitness For $10 different from other health clubs?
If you have ever been to a traditional health club before or signed up for a
gym membership before you have no doubt experienced the overriding
“sales” mentality that permeates these establishments. Many clubs use
“hard” sales tactics very similar to what you find in a car dealership. They
want you to sign up “right now”, they want you to give them the names of
your friends and family so they can call them about memberships. they try
to get you to buy personal training or add someone to your membership.
The entire buying process is one of pressure, negotiation and frankly in
many cases intimidation. What you end up with is a member who
experiences buyer’s remorse, who is afraid to ask questions about the club
for fear that they will have to deal with a sales person. Worst of all you will
have a member who will never refer someone they know to the club
because they don’t want to expose a friend, family member or co-worker to
the “buying experience”. To make matters even worse, the sales person in
most cases could care less about the new member once the sale is
Another element of the “traditional” health club that is vastly different
from Fitness For $10 is the value that members receive for their fitness
dollar. In most health clubs the memberships start with a processing fee
that can be as high $200 or more! Then you throw in the monthly dues
which will start at a minimum of $29 and go up dramatically. If you decide
to go the route of paying for a year in full you are looking at paying a
minimum of $300, usually higher! As you can see, with our rates, our lack of
sales pressure and the overall value of our memberships it’s easy to see
why we do the high volume that we do.
What does it cost?
FF10 just may be the most affordable health club license on the market
today. Licensed territories can be purchased for $4,000, which guarantees
a 7 mile radius around your club. You can also purchase larger areas for
multiple clubs at a lower negotiated rate. After your initial investment of
$4,000 your monthly license fees are a low $500 a month. These fees do
not escalate with your dues base as many licensed operations do, Fitness
For $10 wants you to succeed and more importantly keep a bigger share of
the money you deserve.
What do I get for my investment?
T he entire Fitness For $10 philosophy is based on value, value for our
members and value for our licensees. Here are the highlights of your
relationship with Fitness For $10.
• Fitness For $10 licensees will have the benefit of a combined 50 years
experience in the health club industry.
• Custom Website designed around your club with full online
membership purchasing capability.
• Custom Back Office Managerial software designed to manage every
facet of your operation. This software gives an owner the power and
organization to operate one or multiple locations.
• A proven and successful business model that will allow you to
compete with any type of club in your area.
• The support of a knowledgeable and helpful staff that has run health
clubs and succeeded with the low priced model.
Why can’t I just do it myself?
Many people ask us “what do I need you guys for? Why can’t I just start
selling low priced memberships on my own”? It’s true, you could start
selling low priced memberships on your own but ask yourself the following
• What pricing would be right for my club?
• How do I convert my current members?
• How do I make the transition from my current sales model?
• Do I want to spend thousands on redesigning my web site, or
creating a new one?
• Do I know what type of changes to my club would help me sell low
• Do I know how to attract members who would not normally join a
The fact of the matter is that becoming a Fitness For $10 is far less
expensive than if you were to re-invent your own club. Your club as it
stands right now has a brand, in other words your club is known for doing
business a certain way. It is very difficult to re-brand yourself as a low
priced model when you are known as something else. Look to the car
industry for a good example. When Honda wanted to sell luxury cars they
knew that people would not pay top dollar for a Honda, they already had a
brand and that brand was economy and value. Then Honda rolled out its
luxury line and called it Acura. Acura started as a luxury line and therefore
people were willing to pay more money for it. This is the same reason that
Nissan produced Infinity and Toyota introduced Lexus. They had to change
to change the brand and the way people viewed their product. Health clubs
are the same way, you need to reinvent your image and product in order
for the buying public to embrace you. A Fitness For $10 conversion can
accomplish your brand and image change with minimal costs when
compared to doing it yourself.
Although it may seem easy to sell low priced memberships believe it or not
there are techniques and nuances that can make your club far more
appealing than simply low price. The important thing is making your club
more attractive to the section of the population that would normally not
join a health club while maintaining the members you already have. Fitness
For $10 can show you how to do that.
Do I need to buy all new equipment?
Unlike many health club licenses Fitness For $10 does not require existing
health clubs to purchase all new equipment. In most cases clubs current
equipment will suffice as long as it is in although we do expect that the
equipment clubs equipment be in good repair we do not expect our
licensees to spend hundreds of thousands of dollars on new equipment.
However be prepared for your club to handle more members than it has
ever seen before so you may want to consider adding more equipment,
What is expected of me as a Licensee?
Fitness For $10wants to give you the best possible solution for success
while allowing our licensed partners the autonomy that made them want to
get in the business in the first place. There are many licenses out there that
will dictate everything to you from your advertising to the color of your
uniform shirts to the billing company you can use. Changes can sometimes
be forced upon your business regardless of the extra expense to you.
Compliance is not an option or your license rights will put in jeopardy.
Fitness For $10welcomes the creativity and independence of our licensees,
we do ask that the following guidelines be followed.
• Our signage/branding be followed accurately
• Our color scheme be prominent throughout the club
• Every club has at least a $10 and $20 a month membership.
• Every club uses our custom website for online membership purchasing.
• Every club uses our back office software which enables us to track your
As a Licensee what restrictions are placed on me and my club?
Fitness For $10 does not impose many of the restrictions on its licensees that
are common with franchised operations. It seems as though some franchisors
throughout the country are more concerned with growing their name brand
than they are health of the franchised clubs they already have. Fitness For $10
believes that it is possible to grow the company name as well as keep our
licensees happy and profitable. In contrast to the many restrictions other
franchisors demand here is a short list of the options you do have as a Fitness
• You may own other health clubs under a different name while you own a
FF10 as long as it is outside of a 7 mile radius of your existing Fitness For
• You can purchase a single club or the rights to an entire area.
• You will not have unreasonable expansion rates placed upon you if you
decide to purchase an area.
Finally, Fitness For $10 has built its reputation on the idea that Health Clubs
should be free of sales pressure, without gimmicks and without some of the
attitude that is commom in other health clubs. We would hope that our
licensees would adopt that same attitude that has made our clubs so
Is there any other information for me to look at?
Listed below are some links to various news articles and stories done about
Fitness For $10 that will give you an idea of what we are all about.
What’s the next step?
If you feel that Fitness For $10 is the business opportunity you have been
looking for, or if you simply want to get more information we would
welcome the opportunity to speak with you. We can be reached at
775-884-3152 (Steve Main) or 775-352-8663 (John Gutierrez) during the
hours of 8am-5pm PST Monday through Friday. You can also contact us via
email at email@example.com or firstname.lastname@example.org. Thank you
for showing interest in Fitness For $10, we look forward to hearing from