In this FDD Talk 2016 post, you’ll learn the following:
- Section I – Background information on the GymGuyz franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for a GymGuyz franchise, based on Item 7 of the company’s 2016 FDD
- Section III – Presentation and analysis of GymGuyz’s financial performance representations, based on Item 19 of the company’s 2016 FDD, including information on the:
- 2015 gross sales, advertising and marketing, auto and truck, computer and Internet, equipment purchases, insurance, merchant processing fees, office expense, payroll wages, payroll taxes, payroll processing, professional fees, rent, repairs and maintenance, telephone, utilities, other expenses, total expenses, and EBITDA for one affiliate-owned GymGuyz business that has been in continuous operation since 2008, servicing a core area in Nassau County, New York with a population of approximately 75,000 people, and with two vans and two trainers in operation
Section I – Background Information
Helping Clients Get Fit by Bringing the Gym Directly to Their Homes
GymGuyz was founded in 2008 by Josh York in Long Island, New York. While earning his bachelor’s degree, York, who has had a life long passion for fitness, worked as a personal trainer. After graduating, he had the idea to start a mobile gym business so that he could make gym clients feel more comfortable, which in turn would help them commit to getting healthier.
York initially started with one van. Not only was York running the business side of things by himself, he was also personally training clients on his own. To advertise GymGuyz, York drove the van everywhere he could during his free time. The advertising worked and by the end of 2010, York added another van to the fleet and hired additional trainers and staff.
Over the next few years, GymGuyz continued to grow. Franchising officially began in 2013. That same year, York opened an official headquarters in Plainview, New York.
Today, GymGuyz has over 90 locations across the United States.
Record Growth in 2016
2016 was a record year for GymGuyz. The company went from having 45 total locations in 2015 to 94 locations by the end of 2016. Franchisees saw an average year-over-year sales increase of 30 percent, and new customer recruitment was up 70% with a current total of more than 6,000 clients nationwide.
GymGuyz also expanded into new territories and signed several new franchise agreements. During the second quarter, GymGuyz added new franchises in five new markets including St. Louis, Missouri; Boca Raton, Florida; Fort Lauderdale, Florida; Hartford, Connecticut; McLean, Virginia; and Powell, Ohio.
By the end of the third quarter, GymGuyz opened its first West Coast location in Marin County, California. Also, around this same time, the company signed 20 new franchise agreements.
To celebrate GymGuyz’s recent success, the company held its first national conference in September. The conference provided opportunities for education and team building between franchisees, vendors, and GymGuyz’s leaders. Top franchisees were also honored for their hard work.
Future Expansion Plans
With GymGuyz’s recent growth spurt, the company has set its sights on further expanding the brand. GymGuyz plans to open its 100th location sometime during the first quarter of 2017. Additional plans for 2017 include opening the first international location in Canada by the summer and reaching 220 territories by the end of the year.
By 2018, York plans to have GymGuyz vans serving the United Kingdom, Australia, Asia, Central America, and South America. The company’s long term goal is to open 500 franchises within the next five years.
Helping Children Be Confident
During GymGuyz’s first conference in September 2016, the company’s leaders announced the brand’s partnership with the Think Kindness organization. The mission of Think Kindness is to inspire measurable acts of kindness in schools and communities around the world. Think Kindness holds motivational assemblies at elementary, middle, and high schools that serve as a call to action for students to change the world in 15 days.
Through the partnership, local franchisees will help Think Kindness make an impact on area schools. Franchisees will stop by classrooms and hold discussions with students to reinforce the importance of displaying kindness on a daily basis.
In November, GymGuyz announced that it would be launching its own youth program called the Confidence Campaign. The Confidence Campaign was launched at the end of National Bullying Prevention Month and aims to provide a year-round support system for children ages 5-18 who are victims of bullying.
As part of the campaign, teachers, parents, and friends will be able to nominate a deserving child in need of confidence. The local franchise will then select one child to win three months of personal training (once a week). The other nominated children who do not win the free training will be eligible for a discounted group fitness class once per week.
Not Yet Ranked on Entrepreneur’s Franchise 500
Since GymGuyz has only been franchising for a few years and initial growth was slow, the brand has not yet earned a spot on Entrepreneur’s Franchise 500. However, the brand’s growth picked up significantly in 2016 and GymGuyz’s chances of earning a spot on future Franchise 500 lists have increased.
Section II – Estimated Costs
- Please click here for detailed estimates of GymGuyz franchise costs, based on Item 7 of the company’s 2016 FDD (updated).
Section III – Financial Performance Representations (Item 19, 2016 FDD) and Analysis
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