Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

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FDD Talk: Revenues, Expenses, and Projected Income of Snap Fitness Clubs with 400, 600, and 800 Members (2012 FDD)

by Franchise Chatter on May 27, 2012

in Fitness Franchises, Franchise Earnings



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Average Number of Members for Snap Fitness Clubs

  • The following section shows the average number of members for the 866 Snap Fitness clubs that operated for a full 24 months as of December 31, 2011, including 24 corporate and 842 franchised locations. The average is based on the average number of members per month from January to December 2011.
  • Top Third (289 Clubs):  781 members
  • Middle Third (229 Clubs):  488 members
  • Bottom Third (288 clubs):  313 members
  • Of the 866 clubs, 117 (14%) exceeded the average of 781 members for the top third, 432 (50%) exceeded the average of 488 members for the middle third, and 734 (85%) exceeded the average of 313 members for the bottom third.

Projected Annual Cash Flows

  • The following section reflects a club’s projected revenues based on 400 members, 600 members, and 800 members. Snap Fitness based its revenue and expense projections on its experience with affiliate and corporate-owned clubs and the information obtained from its designated billing provider.
  • In preparing these estimates, the company assumed that market conditions will stabilize or improve, and that unemployment rates will remain stable or decrease

400 Member Club

Revenue:

  • Annual Membership Operating Revenue:  $153,600
  • Enrollment Cards/Access Fees Collected:  $9,800
  • Miscellaneous Revenue (Vending Machine Sales):  $600
  • Personal Training Revenue:  $23,000


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