In this FDD Talk 2016 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 2016 FDD
- Section III – Presentation and analysis of Anytime Fitness’s financial performance representations, based on Item 19 of the company’s 2016 FDD, including information on the:
- average number of members for Anytime Fitness centers that were open for at least 12 months as of February 29, 2016
- 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; Global Access fee; 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
Anytime Fitness Surpasses 3,000, Named Top Global Franchise
Small gyms continue to do big business for Anytime Fitness, which surpassed 3,000 locations in 2015.
The 24-hour fitness chain opened its 3,000th gym in November in Stroud, England. Currently, more than 3,300 Anytime Fitness gyms operate worldwide, serving more than 3 million members in all 50 U.S. states and in 30 countries.
CEO and founder Chuck Runyon told Forbes in December 2015 that he projects Anytime will have 5,000 locations by 2021.
The chain’s worldwide success led to a No. 1 ranking in June 2016 on Entrepreneur’s Top Global Franchises list for the second year in a row. Rankings are based on system size, growth rate, and financial strength and stability, adjusted to focus on international size and growth rate.
No. 10 on Franchise 500
Anytime Fitness was No. 10 in Entrepreneur’s Franchise 500 for 2016, a drop from the No. 2 spot the year before and the top position in 2014. The chain dropped to No. 353 in 2007, but catapulted to No. 75 in 2008 and continued to rise in the ranks, breaking into the top 10 in 2013 at No. 6.
Anytime Fitness also was at the top of Franchise Times’ 20 to Watch list in January 2016.
The fitness chain added a net 307 units in 2015 for a one-year unit growth rate of 10.1 percent; the three-year rate is 21 percent with 639 units. Anytime Fitness ended 2015 with 2,139 U.S. locations, 958 locations outside the U.S. and 36 corporate locations.
Pump One Acquisition Adds Digital Power
Anytime Fitness acquired Pump One, a fitness app developer, in December 2015 to increase connections to customers, even outside the gym. Recognizing the importance of digital devices, including fitness wearables, to fitness enthusiasts, Anytime Fitness chose to merge its mobile software with the wider range of offerings from Pump One.
Pump One’s 10 full-time employees joined Anytime’s IT department, but continued to be based in New York, according to the Star Tribune of Minnesota.
Company Growth Leads to New, Larger Headquarters
Anytime Fitness moved to its new headquarters in Woodbury, Minnesota, in 2016 after spending nine years in Hastings, Minnesota. The company moved into its new open, glassy building in April 2016, situated on 38 acres of wetland and wooded areas.
Employees can take advantage of the zip line, run along the running trail, and get the chain’s running man logo on their skin at an onsite tattoo parlor. Many of the features of the facility are designed to provide training space for company events. The chain planned to expand its workforce from nearly 200 to more than 300.
Fitness Chain Led by Co-Founders
Anytime Fitness got its start in 2001 with a gym in Cambridge, Minnesota, with franchising beginning in 2002. The chain is led by CEO Chuck Runyon and President Dave Mortensen, co-founders of the company. Jeff Klinger, also a co-founder, sold his interest in the company in 2010.
Anytime’s small neighborhood gyms are open 24 hours a day, seven days a week. Members access the facilities using keycards and have access to cardio and weight-training equipment. They can work with personal trainers as well.
Anytime Fitness also offers members its Anytime Health wellness suite, which includes online tracking tools, exercise videos, and community connections.
Section II – Estimated Costs
- Please click here for detailed estimates of Anytime Fitness franchise costs, based on Item 7 of the company’s 2016 FDD (updated).