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FDD Talk 2015: The Farrell’s eXtreme Bodyshaping Franchise Opportunity (Financial Performance Analysis, Estimated Costs, and Other Important Stuff You Need to Know)

by Franchise Chatter on December 21, 2015

in FDD Talk 2017: Fitness Franchises, Fitness Franchises, Franchise Earnings



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Farrell's Extreme Bodyshaping Photo

In this FDD Talk 2015 post, you’ll learn the following:

  • Section I – Background information on the Farrell’s eXtreme Bodyshaping franchise opportunity, including relevant news updates
  • Section II – Estimated initial investment for a Farrell’s eXtreme Bodyshaping franchise, based on Item 7 of the company’s 2015 FDD
  • Section III – Presentation and analysis of Farrell’s eXtreme Bodyshaping’s financial performance representations, based on Item 19 of the company’s 2015 FDD, including information on the:
  • 2014 average service gross sales for the top third, middle third, bottom third, and all 43 Farrell’s Center franchises that offered and ran 4 full 10-week Course sessions during the 2014 calendar year
  • 2014 average first-time student enrollment in initial 10-week Courses for the top third, middle third, bottom third, and all 43 Farrell’s Center franchises that offered and ran 4 full 10-week Course sessions during the 2014 calendar year
  • 2014 average conversion rate of first-time students to ongoing Course enrollment for the top third, middle third, bottom third, and all 43 Farrell’s Center franchises that offered and ran 4 full 10-week Course sessions during the 2014 calendar year

Section I – Background Information

Kickboxing isn’t for everyone. In fact, it’s not for very many people. But kickboxing for fitness is a different story, and Farrell’s eXtreme Bodyshaping helps people utilize this and other fitness activities in a member-centered program designed for swift results.

The fundamental elements of Farrell’s eXtreme Bodyshaping are derived from taekwondo: discipline, self-control and respect. The company stresses instruction featuring positive influence to encourage members to achieve strong results.

The program is designed for male and female participants of any age, lifestyle or athletic ability and helps to fight obesity while developing habits for a healthy lifestyle. Members can also develop a more positive outlook on life through the inspiration and motivation they gain through the program.



Founder Combined Fitness Activity with Martial Arts

Farrell’s began in 1989 with one location after founder Lance Farrell moved to Des Moines, Iowa, after competing in the U.S. Olympic Sports Festival in Taekwondo. The facility enabled Farrell to combine fitness activity and martial arts in one location. He paired his kickboxing-based fitness program with strength training classes and a nutrition program in 2001 to create Farrell’s eXtreme Bodyshaping, a 10-week program to achieve a high level of fitness more quickly than with other programs.

Farrell expanded beyond the Des Moines market in 2005, and the company grew to 11 locations in 2007 and began franchising. Today, the company has more than 60 locations in 10 states, primarily in the Midwest. Locations are in Iowa, Minnesota, Wisconsin, Illinois, Indiana, South Dakota, Nebraska, Colorado, Texas and North Carolina. Nineteen locations are in Iowa. Minnesota has 13 locations, most of them in the Minneapolis-St. Paul area.

The Farrell’s program includes strength training, aerobic exercise, nutrition education and guidance, fitness evaluations and teams and/or individual coaching. Contests with cash prizes are also held. Typical results are based on consistent participation 45 minutes a day, six days a week.

Person-Focused Fitness

What makes the program work for a wide variety of people is the approach to the person as an individual. The club focuses on the abilities and fitness levels of members, as well as their fitness goals, in order to be relevant to just about anyone.

A Nebraska woman used the fitness program to lose enough weight to qualify to donate a kidney to her husband after she had lost 25 pounds but couldn’t shed the additional 25 she needed to lose.

Kurtis Berg of White Bear Lake, Minnesota, lost 180 pounds, nearly half his body weight, and won $10,000 in the fitness chain’s annual contest to find the challenge participant with the greatest physical transformation in 62 weeks. Berg, a former couch potato who weighed more than 370 pounds, also became a coach and instructor in his Farrell’s eXtreme Bodyshaping club.

Fun and Fitness Combined in Mexico Trip

Farrell’s also offers a Farrell’s by the Sea program. The fitness trip for April 15-19, 2016, is to Barcelo Maya Palace Resort in Mexico, where participants will take part in fitness activities while also socializing and enjoying luxurious surroundings. Accommodations are flexible, starting at $1,050 per person for the trip for a single, and additional nights can be added. Participants can also book private excursions for additional cost.

Members will have two morning fitness programs on the beach each day and reserved pool time every afternoon. The resort has a gym, three swimming pools, six restaurants, four bars, a shopping center, clubs for teens and children, dancing and live shows, and facilities for tennis, paddle tennis, basketball, kayaking, scuba diving and wind surfing.

Bringing Back Fitness to Abandoned Gym

One Farrell’s franchise group in Minnesota found a way to bring fitness opportunities back to members of a gym that had closed. Jillian Faber, Randy Sampson and Justin Gordon, who already had a location in White Bear Township, opened their second location in Woodbury in August 2014, first giving samples of the kickboxing and strength training to previous members before opening to the public in October.

Section II – Estimated Costs

  • Please click here for detailed estimates of Farrell’s eXtreme Bodyshaping franchise costs, based on Item 7 of the company’s 2015 FDD (updated).

Section III – Financial Performance Representations (Item 19, 2015 FDD) and Analysis



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