Highlights of Gold’s Gym’s Item 19 Financial Performance Representations (2012 FDD) – Part 1
- The franchise offered is to operate a full amenity Gold’s Gym Facility.
- The total investment necessary to begin operation under the Development Rights Agreement is $15,000 to $35,000. This includes $10,000 to $30,000 that must be paid to the franchisor or an affiliate.
- Gold’s Gym provides 2 financial performance representations in Item 19. The first reflects information on revenue during 2011 for certain Gold’s Gym Facilities that its affiliates and franchisees own. The second reflects information on both revenue and expenses during 2011 for certain Gold’s Gym Facilities that its affiliates own.
- All of the Gold’s Gym Facilities whose results are reflected in Item 19 are full amenity Gold’s Gym Facilities and none are Gold’s Gym Express Facilities.
Gross Revenue Financial Performance Representations
- 451 Gold’s Gym Facilities operated in the United States as of December 31, 2011, of which franchisees owned 388 and GHC subsidiaries owned 63 (GHC, the company’s affiliate, operates the company-owned Gold’s Gym Facilities through subsidiaries.).
- However, some of these Gold’s Gym Facilities were not open for 2 full years as of December 31, 2011, and based on the company’s experience, it often takes a Gold’s Gym Facility about 2 years to get through its initial ramp-up period and eliminate the non-recurring distortions which sometimes result from the facility’s grand opening and which can impact revenue.
- This financial performance representation excludes results from Gold’s Gym Facilities that did not operate for the entire 2 year period from January 1, 2010 until December 31, 2011 and for franchised Gold’s Gym Facilities for which the franchisor did not receive detailed 2011 revenue data.
- This financial performance representation lists the average Gross Revenue for 294 Gold’s Gym Facilities (the “Reporting Facilities”). Franchisees own 234 Reporting Facilities (the “Franchised Reporting Facilities”) and GHC’s subsidiaries own the other 60 Reporting Facilities (the “GHC-Owned Reporting Facilities”).