Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

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Top Fitness Franchises 2013: Acquisition by Snap Fitness Brings New Muscle to Kosama Complete Body Transformation

by Brian Bixler on May 15, 2013

in Best of List, Fitness Franchises, Top Franchise Lists

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Franchise Review:  Why Kosama Complete Body Transformation is One of the Best Fitness Franchises for 2013

With growing demand for group fitness programs at health clubs, top franchise Snap Fitness made a tactical move last year to capitalize on the trend by acquiring Kosama Complete Body Transformation.

Kosama Complete Body Transformation PhotoSnap Fitness executives have said they will develop the brands separately; allowing Kosama, an emerging competitor in the fitness sector, to expand its footprint by offering a total wellness solution to members.

Kosama differentiates itself from competitors with an eight-week program for members who pay $299 to work out in classes of six different disciplines: active-yoga, kettlebells, cardio-kickboxing, plyometrics, upper-body strength, and lower-body strength. Probably the most unique aspect of the model is a money-back results guarantee for the program that focuses on member accountability, nutrition education, and improved physical performance.

Kosama opened its first location in January of 2010 and has since grown to some 30 locations operating in 10 states. The company estimates that the total investment to start a Kosama location is $125,000 to $175,000. It also reports that more than 90 percent of its franchise owners are absentee or semi-absentee, running their units as secondary income sources.

Because it emphasizes nutrition as well as exercise, franchisees generate profit as purveyors of vitamins and supplements in addition to memberships. Additional revenue streams include branded workout apparel and accessories sales, plus income from a heart zone training program that includes sales of watches, straps, and monitors.

The company touts the fact that Kosama franchises on average enjoy stronger member retention rates than the health and fitness industry average and the regimen is designed to appeal to members at every fitness level.

The cross-promotional opportunities between Kosama and Snap Fitness, which has more than 2,400 franchise agreements worldwide, could give the company a competitive edge. Company executives have said they will move forward with developing several joint Snap Fitness/Kosama facilities, allowing members the opportunity to take advantage of both concepts for one price. The first one opened last year in Shakopee, Minn. Company heads have also indicated plans to offer Snap Fitness members a joint membership to both clubs in the future.

To read about the next franchise on our list of Top Fitness Franchises for 2013, please click here.

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