In this FDD Talk 2015 post, you’ll learn the following:
- Section I – Background information on the Anytime Fitness franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for an Anytime Fitness franchise, based on Item 7 of the company’s 2015 FDD
- Section III – Presentation and analysis of Anytime Fitness’s financial performance representations, based on Item 19 of the company’s 2015 FDD, including information on the:
- average number of members for Anytime Fitness clubs that were open for at least 12 months as of February 28, 2015
- projected enrollment fees; membership fees; vending revenues; personal training revenues; rent; equipment lease; personal training expenses; royalties; processing/credit card fees; bad debts; utilities; insurance; proximity card costs; advertising funds; local advertising; Anytime Health fees; vending product costs; maintenance; software/web hosting; Healthy Contribution fees; member management and personal training software fees; virtual fitness program costs; miscellaneous expenses; manager salary and payroll costs; and earnings before depreciation, interest, taxes, and debt expense for Anytime Fitness Centers with 500 members, 1,150 members, and the average number of members
Section I – Background Information
After nine years at its Hastings, Minn. headquarters, Anytime Fitness is moving. Self Esteem Brands, Anytime Fitness’s parent company, broke ground on the company’s new headquarters in Woodbury, Minn. in October 2014. Anytime Fitness, which said it has outgrown its current headquarters, expects to relocate in the spring of 2016.
The 150 employees at the Hastings HQ will relocate to the new site, a 38-acre parcel that will hold the new building, which covers 80,000 square feet. For a company whose last name is Fitness, it makes sense that the headquarters will feature climbing walls, zip lines and an obstacle course.
Anytime Fitness was founded in 2002 by Chuck Runyon, Dave Mortensen and Jeff Klinger, in an effort to offer smaller gyms with a neighborhood feel and personable service. The first facility was in Cambridge, Minn.
Runyon is currently CEO of the company, and Mortensen is president. Klinger, the former CEO, left Anytime Fitness in 2010 and sold his interest in the company to pursue other entrepreneurial interests.
Anytime Fitness operates small neighborhood gyms that are open 24 hours a day, serving nearly 2 million members who access the facilities through keycards. The company has nearly 3,000 gyms in all 50 states and more than 20 countries, and is projected to surpass 3,500 units in 2015. It has averaged 300 new gyms each year over the past eight years.
Tops in Franchise 500
Anytime Fitness was named the No. 1 franchise in Entrepreneur magazine’s Franchise 500 for 2014, and was named No. 2, under Hampton Hotel, for 2015 (#1 in its category of Fitness Center). Factors in the award are financial strength and stability, growth rate and size of the system.
The company was listed as the fifth-best franchise on Forbes’ inaugural list of America’s Best and Worst Franchises in July 2014.
In June 2014, Minnesota Business Magazine listed Anytime Fitness as one of the 2014 Best Companies to Work For.
International Health, Racquet, & Sport Association, a trade group whose members are athletic clubs, announced in July 2014 that Anytime Fitness added more gyms than any other club in the world in 2013 and ranked second among the world’s athletic clubs in revenue growth.
Focus on Veterans
In March 2015, Anytime Fitness joined Tee It Up for the Troops for an initiative, Operation Heartfirst, designed to help veterans open gyms and provide more employment opportunities for fellow veterans. Operation Heartfirst will provide $250,000 – a grant of $125,000 and a loan of $125,000 – to select numbers of honorably discharged veterans. The funds will help with the initial start-up of an Anytime Fitness franchise.
In June 2014, World Franchising placed Anytime Fitness on its fifth annual top 50 list of companies that recruit and hire veterans.
Dayton, Business Execs Promote Worksite Wellness
Anytime Fitness CEO Chuck Runyon was among several business leaders who joined Minnesota Gov. Mark Dayton in February 2014 to promote “Worksite Wellness” in an initiative designed to improve employee health and productivity and lower health care costs and absenteeism among workers.
Her ‘Anytime Story’
Anytime Fitness launched its “My Anytime Story” contest in May 2014. In the contest, entrants shared stories of their personal fitness journey, and the most shared story won the grand prize – $10,000 for the winner to keep and $10,00 for him or her to donate to a favorite personal cause.
The winner was Tammy Landeen, who lost the ability to use her legs in 2005 while she was serving on active duty in the U.S. Army. Landeen worked with her Anytime Fitness facility’s manager, Carissa Stowell, and Justin Randolph, a personal trailer at the facility, who met Landeen when she visited the club to see if they could accommodate her special needs. Her $10,000 donation will go to the Paralyzed Veterans Racing team, a hand-cycling group in which she is a member.
Half His Size
Anytime Fitness member Mark Bryant of Star, Idaho, drew media and social media attention when he lost 264 pounds in three years at his gym, going from 442 pounds to 178. He was featured in People’s annual “Half Their Size” issue and appeared on “Entertainment Tonight” and “Good Morning America.”
Pindred Named CFO
John Pindred was appointed chief financial officer of Anytime Fitness LLC. Pindred previously was CFO and chief administrative officer for Family Christian, a national specialty retail chain.
‘Regular People’ Campaign
In October 2014, Anytime Fitness launched its “Get to a Healthier Place” campaign, which highlighted “real people” in a bid to appeal to people who would like to exercise more but are alienated by the hard-body promotions typically seen in gym campaigns.
2,500th Gym Opens in Spain; UK gets 100th
Anytime Fitness opened its 2,500th club in May 2014 in Madrid, Spain. Runyon was present for the ribbon-cutting ceremony to introduce the new gym.
Also in May, Anytime Fitness opened its 100th UK franchise. The company announced that it planned to double that number in the next two years.
Section II – Estimated Costs
- Please click here for detailed estimates of Anytime Fitness franchise costs, based on Item 7 of the company’s 2015 FDD (updated).