FDD Talk: Revenue, Expense and Profit Assumptions for Anytime Fitness Clubs — Looking Behind the Numbers (2012 FDD)

Revenue, Expense, and Profit Assumptions for Anytime Fitness Clubs (2012 FDD)

• Enrollment fee revenues/cost of proximity cards:  Anytime Fitness assumes that 45% of members will be replaced through attrition (which is in line with the industry average).  The average enrollment fee is $49.

• Membership revenues: Based on the report from Anytime Fitness’ designated processor, the average monthly membership fee paid under each membership agreement was $41.45, and each franchisee had 75% as many membership agreements in effect as members. In other words, if you have 500 members, on average, you could expect to have 375 memberships, with approximately 75% of those memberships being individual memberships, and 25% of those memberships being couples (or family or multiple) memberships.

• Vending revenues:  This is based on the per membership revenues that Anytime Fitness’ corporate-owned clubs receive from vending.

• Personal training revenues:  Members pay the trainers, and franchisees typically collect a percentage of what the trainers receive. Anytime Fitness projects training revenues to be $80 per member per year.  The average training fee is $40 an hour. The training revenues assume that you have between 2 and 4 members per day, 5 days per week, taking training.

Tagged as: Anytime Fitness