In this FDD Talk 2017 post, you’ll learn the following:
- Section I – Background information on the Workout Anytime franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for a Workout Anytime 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 Workout Anytime franchise, based on Items 5 and 6 of the company’s 2017 FDD
- Section IV – Presentation and analysis of Workout Anytime’s financial performance representations, based on Item 19 of the company’s 2017 FDD, including information on the:
- 2016 average, high, and low gross revenue for the 86 franchised Workout Anytime clubs that were in operation for the entire 12-month period ending on December 31, 2016
- 2016 actual gross revenue, cost of goods sold, rent, labor, advertising, insurance, personal training expense, utilities, supplies, other expenses, and net profit for the 3 affiliate-owned Workout Anytime clubs that were in operation for the entire 12-month period ending on December 31, 2016
Section I – Background Information
12 Things You Need to Know About the Workout Anytime Franchise
On Pace Toward Reaching 2017 Goal
1. At the end of the summer, Workout Anytime announced that it was on track to meet its 2017 goal of signing 50 new deals and opening 50 new locations by the end of the year. The brand closed the first half of 2017 with 30 percent more clubs in operation than the same period in 2016. During the first two quarters of the year, Workout Anytime sold 25 franchises, also outpacing its performance in the first half of 2016.
2. According to Randy Trotter, Workout Anytime’s Senior Vice President of Development, the company is on its way to reaching the 200-unit milestone. Workout Anytime said that its recent growth has been “powered by its passionate system of franchisees who are looking to introduce the high quality, low cost concept to their local communities.”
3. Mark de Gorter, COO of Workout Anytime, said that the company has been growing at over 30 percent annually for the past three years and that the brand is “confident that [it will] exceed [its] development goals in 2017,” allowing the company to “experience another record breaking year.”
Plans to Expand Into Orlando, Florida Area
4. In early February, Workout Anytime revealed plans to open several locations in the Greater Orlando area and said that it was seeking local contractors to build out existing spaces that have roughly 6,000 square feet in strip centers. Senior Vice President of Development Randy Trotter said that the brand will open four locations in the area by the end of 2017, but would double that number next year. He also said that the Orlando market could hold about 25 locations total.
5. Trotter added that the company felt Orlando was “underserved in the price range for a 24-hour gym concept.” Workout Anytime is looking to add stores in the following Orlando areas: Lake Mary, Winter Haven, Windermere, Heathrow, Altamonte Springs, Winter Park, Disney area, and Downtown Orlando.
Targeting Kentucky for Future Expansion
6. As Workout Anytime continues to grow, the brand plans to expand into new and existing markets including Kentucky. In early September, Workout Anytime said that Kentucky was a “priority market for development.” Greg Parker, area developer for Workout Anytime, said that the brand “offers a great opportunity for people looking to pursue their passion of local business ownership at a low front-end investment in a field that naturally helps people live healthier lives.”
7. To highlight why Kentucky is a key area for the brand’s continued development, Workout Anytime used Kentucky area franchisees Caroline Hendy and Doug Ladd as an example of success. Their new location in Corbin, Kentucky, which opened in July, set a record for new membership signups in the first day of business with 276 signups.
8. Workout Anytime already has more than a dozen locations in Kentucky, but is looking for new franchisees to grow the brand across Western Kentucky specifically.
9. Workout Anytime was founded in 1999 by Steven Strickland and John Quattrocchi in Atlanta, Georgia. Both Strickland and Quattrocchi started their careers in the fitness industry in the 1970s. They both wanted Workout Anytime to be a “low overhead, low headache health club” with a “keep it simple” philosophy.
10. After opening the first location, Quattrocchi and Strickland spent the next five years developing the franchise model and began franchising in 2004 through Workout Anytime Franchising Systems, LLC. Today, Strickland still serves as the company’s Chief Executive Officer while Quattrocchi serves as Workout Anytime’s President.
11. Since the company started franchising, growth has been moderate, but has picked up in recent years. There are currently over 130 Workout Anytime locations around the U.S.
Entrepreneur’s Franchise 500
12. Since it started franchising in 2005, Workout Anytime has appeared only once on Entrepreneur’s annual Franchise 500 list. The company debuted on the 2017 list at No. 294.
Section II – Estimated Costs
- Please click here for detailed estimates of Workout Anytime 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 Workout Anytime’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
Part 1 – Total Gross Revenue of Workout Anytime Franchised Units
- As of December 31, 2016, there were 115 Workout Anytime franchised units in operation. Of those 115 units, a total of 86 were in operation for the entire 12-month period ending on December 31, 2016.
- The following is a historical financial performance representation of the gross revenues derived by those Clubs.
Total Gross Revenue