• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Menu
  • Home
  • About
    • About Franchise Chatter
    • Contact
    • Privacy Policy
    • Terms of Service
    • Affiliate Disclosures
  • Subscribers Only
    • Login
    • New to Franchise Chatter? Start Here
    • America’s Most Lucrative Franchises
    • Franchises Ranked by Average Revenues
    • Franchises Ranked by Average Profits
    • Franchise Winners, Survivors and Losers Last Year
    • FDD Talk
    • Search by Name
  • Top Franchises
  • Franchise Earnings
  • Costs
  • Fees
  • Quiz
  • Search

FDD Talk 2017: What You Need to Know About the Gold’s Gym Franchise Opportunity (Financial Performance Analysis, Costs and Fees)

Published on November 1, 2017 by Franchise Chatter Leave a Comment
in FDD Talk: Fitness Franchises, Fitness Franchises, Franchise Earnings

Gold's Gym Photo



Learn Which Franchises Can Make You Rich

In this FDD Talk 2017 post, you’ll learn the following:

  • Section I – Background information on the Gold’s Gym franchise opportunity, including relevant news updates
  • Section II – Estimated initial investment for a Gold’s Gym franchise, based on Item 7 of the company’s 2017 FDD
  • Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Gold’s Gym franchise, based on Items 5 and 6 of the company’s 2017 FDD
  • Section IV – Presentation and analysis of Gold’s Gym’s financial performance representations, based on Item 19 of the company’s 2017 FDD, including information on the:
  • 2016, 2015, 2014, and 2013 average, high, and low gross revenue for the company units, franchised units, and all Gold’s Gym units that had operated for at least two full years as of December 31 of the given year
  • 2016 average gross revenue for the top quartile, 2nd quartile, 3rd quartile, and 4th quartile of company units, franchised units, and all Gold’s Gym units that had operated for at least two full years as of December 31, 2016
  • 2016 average gross revenue, payroll costs, occupancy costs, other costs, and EBITDA for the 115 Gold’s Gym company units that had operated for at least two full years as of December 31, 2016

Section I – Background Information

13 Things You Need to Know About the Gold’s Gym Franchise

Strong First Quarter Domestic and International Growth


💵America's Most Lucrative Franchises of the Year (Subscribe Now to Unlock)



🎯Find GOOD Franchises in Your Target Industries That Are STILL Available in Your Area (Free Tool)


1.  During Q1 of 2017, Gold’s Gym signed nine new franchise agreements for the U.S., with 23 additional locations currently under development in 12 countries. The new agreements will expand the brand’s presence in new and existing markets across the world, including Tennessee, New York, California, Egypt, and Australia.

2.  Also during Q1, Gold’s Gym opened 17 new locations both domestically and internationally, bringing its total number of gyms up to 737.

3.  Brandon Bean, CEO of Gold’s Gym, said, “2017 is off to a strong start as we continue to focus on expansion, innovation and delivering a one-of-a-kind member experience across the globe. Franchisees continue to be attracted to our state-of-the art facilities, experienced support team and strong brand recognition around the world as the best fitness experience in the business.”

4.  Gold’s Gym says that these new deals and openings are part of its aggressive growth plans – there are plans to open 45 new gyms by the end of 2017. The gym franchise recently opened its first location in Rabat, Morocco and debuted a flagship location in Amman, Jordan, which is the largest Gold’s Gym in the world at 140,000 square feet.

Launches Branded Training Sneaker


🥇Franchises Ranked by Average Revenues & Profits (Subscribe Now to Unlock)



🎯Find GOOD Franchises in Your Target Industries That Are STILL Available in Your Area (Free Tool)


5.  In early June, shoe company Vibram released a limited edition of its FiveFingers V-Train cross training sneaker featuring the iconic branding of Gold’s Gym. The shoe launched on Vibram’s website for $115 and comes in both men’s and women’s sizing.

6.  According to Vibram, the shoe is built to withstand the most rigorous of indoor and outdoor workouts and features Vibram’s V-Train sole, which is built to provide the flexibility of a barefoot shoe and increased support for high-impact training, as well as the brand’s XS Trek technology, which helps provide traction and durability.

7.  Craig Sherwood, SVP of franchise and licensing for Gold’s Gym, said, “The launch of a Gold’s Gym FiveFingers cross training shoe with Vibram offers another meaningful way for fitness enthusiasts to connect with us beyond the walls of our gyms.”

Signs Multi-Unit Agreement to Expand Presence in Nashville, Tennessee Area

8.  In early April, Gold’s Gym announced that it had signed a multi-unit franchise agreement with Tennessee Fitness LLC, which is owned by Robert Dennis and brothers Andrew Davis and John Davis, to bring five additional Gold’s Gym locations to Middle Tennessee. The new locations will be opening throughout five counties in the Middle Tennessee region, including Wilson, Davidson, and Williamson counties.


🏆Franchise Winners, Survivors and Losers Last Year (Subscribe Now to Unlock)



🎯Find GOOD Franchises in Your Target Industries That Are STILL Available in Your Area (Free Tool)


9.  Tennessee Fitness LLC already owns and operates seven Gold’s Gym locations throughout the Tennessee market. Brandon Bean, CEO of Gold’s Gym, said that the company is proud to have “partners like Tennessee Fitness LLC who have a genuine passion for the fitness industry and the Gold’s Gym brand.”

Company History

10.  Gold’s Gym was opened in 1965 by Joe Gold in Venice Beach, California. Gold was a fitness legend who took the knowledge and expertise he gained from training at the famous “Muscle Beach” to open his gym, which was eventually dubbed “the Mecca of bodybuilding.” The gym gained international fame when the documentary Pumping Iron – a bodybuilding documentary starring Arnold Schwarzenegger and Lou Ferrigno – was released in 1977.

11.  Prior to this surge in the gym’s popularity, Gold sold the at-the-time failing gym to Bud Danits and Dave Saxe in 1970. Danits and Saxe ran the gym unsuccessfully for nearly two years and eventually sold it to gym member Ken Sprague in late 1971. Sprague managed to save Gold’s Gym and was the first owner to sponsor and hold bodybuilding competitions. His promotional skills and film industry contacts helped build the establishment’s profile.

12.  Gold’s Gym was once again sold in 1979, this time to Peter Grymkowski (a Mr. World body building champion). In 1980, Grymkowski and his brother, who eventually became the company’s licensing director, began franchising Gold’s Gym. Grymkowski owned Gold’s Gym until 1999. It is currently owned by TRT Holdings and there are now over 700 locations around the world.

Entrepreneur’s Franchise 500

13.  Gold’s Gym has ranked on Entrepreneur’s annual Franchise 500 list almost every year in the past decade except in 2017. The company’s highest rank was No. 63 in 2008, while its lowest rank was No. 210 in 2014.

Section II – Estimated Costs

  • Please click here for detailed estimates of Gold’s Gym franchise costs, based on Item 7 of the company’s 2017 FDD.

Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees

  • Please click here for detailed information on Gold’s Gym’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2017 FDD.

Section IV – Financial Performance Representations (Item 19, 2017 FDD) and Analysis

  • The franchisor provides two types of financial performance representations in this Item 19. The first reflects information on Gross Revenue (defined below) for the 2013, 2014, 2015, and 2016 calendar years, and the second reflects more detailed revenue and expense information for 2016 for certain of the franchisor’s affiliates’ Gold’s Gym Facilities.
  • All of the Gold’s Gym Facilities whose results are reflected in this Item 19 are full amenity Gold’s Gym Facilities and none are Gold’s Gym Express Facilities.
  • The franchisor derived the figures for Company Units based on their internal unaudited financial statements. It derived the figures for Franchised Units based solely on the information that the franchisees gave to it.

Part 1 – Statement of Average Gross Revenue for the 12-Month Periods Ended December 31 of 2016, 2015, 2014, and 2013 ($ in thousands)

  • For purposes of the Gross Revenue disclosures in this section, for each year in the charts below, the franchisor looked at the total number of Gold’s Gym Facilities operating as of December 31, then excluded those Facilities that had not operated for at least two full years as of December 31 (to eliminate start-up volatility).

December 31, 2016

Company Units



To Access the Rest of This Article and Other Premium, Income-Enhancing Content, Subscribe Now or Log In.

Gain the Insider Information (and Actual Earnings Data) You Need to Make a Safe and Smart Franchise Investment. Click Here to Learn More.



Gain the Insider Information (and Actual Earnings Data) You Need to Make a Safe and Smart Franchise Investment - See more at: https://www.franchisechatter.com/register/#sthash.le7wKJKM.dpuf

💰How Much Franchise Can You Afford? Use Our Free Financial Calculator



🎯Find GOOD Franchises in Your Target Industries That Are STILL Available in Your Area (Free Tool)



Tagged as: Gold's Gym

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Previous post: FDD Talk 2017: What You Need to Know About the UBREAKIFIX Franchise Opportunity (Financial Performance Analysis, Costs and Fees)

Next post: Considering a Sylvan Learning Franchise? Don’t Overlook These 14 Important Franchise Fees

Primary Sidebar

https://youtu.be/-pkxCF6_QOs

🤷‍♀️Why Work with a Franchise Broker?

A good franchise broker can help you to find the right franchise. They provide:

✅ Recommendations based on their assessment of historical financial performance (Item 19, FDD) instead of just franchise marketing materials.

✅ Franchise matches based on your goals, strengths, and passions.

✅ Demographic analysis to find franchises that could work in your area.

✅ A portfolio of franchises to meet almost any budget, interest, or goals.

✅ Referrals to other specialists, like franchise lawyers.

✅ Information on financing sources.

✅ Coaching in the due diligence process, based on experience with dozens of candidates.

✅ Help presenting yourself in the best light, to increase your chances of success.

✅ No fees for their services: franchisors pay them a success fee if an agreement is signed.

To get started, fill out this form, and a specialist from the Franchise Brokers Association will reach out to you.

Login

Remember Me
Register | Lost your Password?
Reminder: Your username and password are case-sensitive.

Need help? Email franchisechatterblog@gmail.com

🎯Find GOOD Franchises in Your Target Industries That Are STILL Available in Your Area (Free Tool)

💰How Much Franchise Can You Afford? Use Our Free Financial Calculator

As seen in:  New York Times, Bloomberg Businessweek, and CNBC

🚀 Daily FDD Talk Posts

Screenmobile Franchise

Papa Murphy’s Franchise

Pure Barre Franchise

Schlotzsky’s Franchise

Assisting Hands Home Care Franchise

Wireless Zone Franchise

All Dry Services Franchise

ZIPS Dry Cleaners Franchise

Domino’s Pizza Franchise

Property Management Inc. Franchise

Synergy HomeCare Franchise

Fastest Labs Franchise

Units Moving and Portable Storage Franchise

Checkers & Rally’s Franchise

ShelfGenie Franchise

Freddy’s Frozen Custard & Steakburgers Franchise

Mr. Electric Franchise

KFC Franchise

Real Property Management Franchise

Dunkin’ Franchise

RockBox Fitness Franchise

Jimmy John’s Franchise

Five Star Painting Franchise

Noodles & Company Franchise

Relax the Back Franchise

MOOYAH Franchise

Senior Helpers Franchise

Slim Chickens Franchise

Salons by JC Franchise

Teriyaki Madness Franchise

Storm Guard Roofing and Construction Franchise

Baskin-Robbins Franchise

Anytime Fitness Franchise

Blaze Pizza Franchise

Jiffy Lube Franchise

🏆 Best Franchises by Industry

Best Franchises by Industry (All Lists)

Best Barbershop Franchises

Best Laundromat Franchises

Best Storage Unit Franchises

Best Car Wash Service Franchises

Best Gym and Fitness Franchises

Best Pizza Franchises

Best Sandwich Franchises

Best Childcare Franchises

Best Ice Cream Franchises

Best Coffee Franchises

Best Hamburger Franchises

Best Salon and Beauty Franchises

Best Chicken Franchises

Best Smoothie and Juice Franchises

Best Maid Service Franchises

Best Mexican Restaurant Franchises

Best Massage Service Franchises

Best Tutoring Franchises

Best Auto Repair Franchises

Best Auto Oil Change Franchises

Best Asian Restaurant Franchises

Best Pet Franchises

Best Commercial Cleaning Franchises

Best Sports Bar Franchises

Best Baked Goods Franchises

Best Moving/Junk Removal Franchises

Best Mailbox Franchises

Best Apparel Retail Franchises

Best Senior Care Franchises

Best Restoration Franchises

Best Tech Franchises

Best Travel Agency Franchises

Best Trampoline Park Franchises

Best Tools Distribution Franchises

Best Salon Suites Franchises

Best Property Management Franchises

Best Laboratory Services Franchises

Best Staffing/Recruiting Franchises

Best Real Estate Franchises

Most Profitable Franchises

Top Low Cost Franchises

Starting a Business During a Recession

Franchise Chatter uses affiliate links for Franchise Help and the Franchise Brokers Association.

Franchise Chatter © 2022