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FDD Talk: The Little Gym Franchise Opportunity (Financial Performance Analysis, Estimated Costs, and Other Important Stuff You Need to Know)

by Franchise Chatter on April 14, 2016

in Child-Related Franchises, FDD Talk 2017: Children's Franchises, Franchise Earnings

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The Little Gym

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

  • Section I – Background information on The Little Gym franchise opportunity, including relevant news updates
  • Section II – Estimated initial investment for a The Little Gym franchise, based on Item 7 of the company’s 2015 FDD
  • Section III – Presentation and analysis of The Little Gym’s financial performance representations, based on Item 19 of the company’s 2015 FDD, including information on the:
  • 2014 average gross revenues for The Little Gym franchised locations that opened in 2013, 2012, 2011, 2010, and before 2010, respectively
  • 2014 average gross revenues for all The Little Gym franchised locations that opened before January 1, 2014

Section I – Background Information

Robin Wes has degrees in physical education, psychology, and motor development. He was already an accomplished primary public school teacher, gymnast, kinesiologist, and musician when he decided to combine all of his different skill sets into a unique concept to help children build not only their motor skills and love of fitness, but also boost their social, emotional, and intellectual development in a fun, magical, non-competitive environment.

That concept was put into practice when he opened the first Little Gym in 1976 in Bellevue, Washington. Kids and their parents loved it. In 1992 he felt the concept was worthy of franchising.

Headquartered in Scottsdale, Arizona, today there are over 300 locations scattered across 38 states and 21 countries. In the U.S. the number of locations reached its peak in 2008 at 265. From there the number of locations declined through 2012 to right around 200 locations, where the chain has hovered ever since.

However, while the number of domestic locations has declined or stagnated, the number of international locations has grown significantly. In 2012 there were 62 international locations, and now there are more than 104.

Here’s how The Little Gym keeps the young ones moving in the children’s fitness and development segment:

More Than Fitness

Although the original concept was focused on physical education, The Little Gym’s offerings have expanded to include intellectual and social development as well. The chain offers programs for various age levels, including developmental gymnastics, karate, and sports skills development.

Most locations also host birthday parties, summer camps, and creative crafting adventures.

Serious Fun

Although the environment at a Little Gym is both fun and magical, there is a serious purpose behind it. The chain’s proprietary philosophy is called Three-Dimensional Learning, which means physical activity is viewed as a conduit for nurturing the whole child.

This Three-Dimensional Learning framework for skill development means every activity offered nurtures growth in three holistic domains: Brain Boost, Get Moving, and Citizen Kid. The idea is to give every child a solid head start on becoming a well-rounded, well-adjusted super kid.

Great Partners

The Little Gym has developed long-lasting relationships with companies kids love: Lego, Duplo, and Lego Juniors. These partners play special roles in some of The Little Gym’s program offerings, including “Let’s Build, Let’s Play” Parent/Child events, WonderKids Club, Awesome Birthday Bash parties, Camps, and Parents’ Survival Nights.

Giving Back

The Little Gym’s Big Hearts charity arm partners with the SeriousFun Children’s Network, a global network of camps and programs focused on serving children coping with serious illnesses to support them and their families.

A Noble Mission

With the tag line Helping children soar at every stage of life, The Little Gym’s mission is simple: To help children develop the physical, social, and intellectual skills that build confidence in each child leading to a lifetime of success.

Section II – Estimated Costs

  • Please click here for detailed estimates of The Little Gym franchise costs, based on Item 7 of the company’s 2015 FDD.

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

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