In this FDD Talk 2017 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 2017 FDD
- Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a GymGuyz franchise, based on Items 5 and 6 of the company’s 2017 FDD
- Section IV – Presentation and analysis of GymGuyz’ financial performance representations, based on Item 19 of the company’s 2017 FDD, including information on the:
- actual 2016 gross sales, advertising and marketing, auto and truck, equipment purchases, insurance, merchant processing fees, payroll wages, payroll taxes, payroll processing, subcontractors, telephone, all 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
14 Things You Need to Know About the GymGuyz Franchise
Launches International Expansion
1. In August, GymGuyz marked a company milestone by signing its first international franchise agreements in Canada. The company awarded six franchise licenses and launched its Canadian operations in the third quarter of 2017. Franchisees David Michael McIvor, 54, and KaraLee Craig, 21, will be two of the operators of GymGuyz in Ontario, Canada.
2. GymGuyz CEO Josh York said that the company’s “mobile model has allowed [it] to scale faster than others” and that he is looking forward to the brand’s international success as it launches in the Canadian market. He also said that he is “look[ing] forward to meeting more passionate prospective candidates in Canada in the near future.”
3. GymGuyz has the goal of reaching 220 territories in development before the end of the year.
Announces Upgraded Technology and New Marketing Campaign
4. At the GymGuyz annual conference held in September, CEO and founder Josh York announced a number of strategic innovations aimed at continuing the company’s forward momentum to close out 2017 and enter 2018 strong. The company has had a successful year so far, signing 24 owners to operate 61 new territories and signing its first international agreements in Canada.
5. GymGuyz has plans to upgrade the technology on its app, provide ongoing education for its trainers, and launch tablets that will help track each client’s progress and results better. In addition to the technological upgrades, GymGuyz will launch a new marketing campaign spearheaded by the brand’s new hire, VP of Marketing Steve Gregersen.
6. The campaign will enhance the brand’s messaging as a convenience solution, especially for consumers struggling to find time to go to the gym. York said that GymGuyz is the “future of fitness” and that the company is “disrupting the entire industry with [its] innovation.”
Expanding Into New Markets
7. As GymGuyz continues to grow, it has plans to enter several new markets by the end of 2017. In March, CEO Josh York said that he was hoping to expand into South Carolina through Spartanburg and the Arizona market through Scottsdale.
8. York said that Spartanburg has “great demographics” and that he “loves the community.” He also said that the area was an ideal location due to its continued growth. There is currently no official announcement about a location opening in Spartanburg, but York expects that there will be one before the year is over.
9. Three locations in Arizona (Scottsdale, North Scottsdale, and Paradise Valley) will be opening sometime before the end of the year.
10. In early October, GymGuyz announced that it will open its first location in Arkansas sometime in November. The franchise, which will be owned and operated by Michael Moore and Bobby Carlson, will be located in Bentonville and will service the residents of Bella Vista, Bentonville, and Rogers. Carlson said that if there is enough demand, he and Moore will expand their GymGuyz services to more Northwest Arkansas cities and Fort Smith.
11. GymGuyz was founded in 2008 by Josh York in Long Island, New York. York, who has always had a passion for fitness, worked as a personal trainer while he was in college. After graduating in 2007, York realized that too many people often made excuses for why they couldn’t make it to the gym and he thought that a mobile fitness service was the solution.
12. He started the company from his parents’ dining room and initially had one fully equipped van containing weights, resistance equipment, body bars, and other necessary exercise equipment. At first, York was the only personal trainer and he drove the GymGuyz van along the Long Island Expressway everyday to market the brand and attract new clients.
13. Over the next few years, demand for York’s services grew, which led him to hire a couple of certified personal trainers and add more vans to his fleet. York started franchising GymGuyz in 2013 and today, there are over 120 locations in the U.S. and Canada.
Entrepreneur’s Franchise 500
14. GymGuyz has not yet ranked on Entrepreneur’s annual Franchise 500 list, but the company did appear on the magazine’s 2017 Fastest Growing Franchises list at No. 95.
Section II – Estimated Costs
- Please click here for detailed estimates of GymGuyz 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 GymGuyz’ 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
Affiliate Owned Business
- As of December 31, 2016, the franchisor’s affiliate, GYMGUYZ, LLC, had one location in operation. The location has been in continuous operation since 2008. During 2016, the franchisor’s affiliate had two vans and two trainers in operation, servicing a core area in Nassau County, New York, similar to the territory which will be granted to a Franchised Business.
- The financial results of the franchisor’s affiliate for the 2016 calendar year are summarized below: