In this FDD Talk 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 2021 FDD
- Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for an Anytime Fitness franchise, based on Items 5 and 6 of the company’s 2021 FDD
- Section IV – Number of franchised and company-owned Anytime Fitness outlets at the start of the year and the end of the year for 2018, 2019, and 2020, based on Item 20 of the company’s 2021 FDD
- Section V – Presentation and analysis of Anytime Fitness’ financial performance representations, based on Item 19 of the company’s 2021 FDD, including information on the:
- 2020 average monthly membership fees, pay-per-visit revenues, personal training revenue, and total revenue for the 1,326 Anytime Fitness centers that had (i) operated for at least 180 days during 2020, and (ii) mandatorily implemented the Training Suite
- wages and payroll, personal training expense and payroll, rent and CAM, royalties, Training Suite training fees, local advertising, advertising/marketing fund, Healthy Contributions, bad debt, processing/credit card fees, utilities, insurance, proximity cards, technology support, travel and training, and miscellaneous expenses, based on the expense information from the 13 company-owned Anytime Fitness full-service centers, as well as information provided to Anytime Fitness by its franchisees concerning their leasing costs
Section I – Background Information
22 Things You Need to Know About the Anytime Fitness Franchise
Expands Franchise Development Plans Throughout Pennsylvania
1. In early March 2020, Anytime Fitness announced plans to introduce over 25 new gyms in targeted areas throughout Pennsylvania. The community-focused brand will ramp up growth through strategic franchise partnerships and aims to open the new locations within the next three years.
2. At the time of the announcement, there were nearly 80 thriving Anytime Fitness locations open throughout the state. Kickstarting this Pennsylvania development push have been two gym openings in Philadelphia, three throughout the Pittsburgh area, and one in Bradford.
3. With an open real estate market, multiple successful existing franchisees, and a favorable competitive landscape, Pennsylvania is an obvious and attractive area for continued growth. Specifically, the world’s leading fitness brand is looking for motivated franchise partners to develop new locations throughout Philadelphia, Pittsburgh, Altoona, Scranton, and Allentown – all through single or multi-unit agreements.
4. Finding success in Pennsylvania are multi-unit operators Larry Appell and David Sabo who joined the franchise system in 2013 and now own more than 20 Anytime Fitness gyms, three of which are open and operating in Pennsylvania. The duo also owns eight additional licenses across the state with recent lease signings in Clearfield and Huntingdon.
5. Sabo said, “We believe in the customer-oriented approach to the fitness industry that Anytime Fitness embodies. Many other boutique facilities under-service their customers through limited engagement, limited services, etc. whereas we believe there is an obligation to our members to help guide them to achieve their health and wellness goals. We’re in the people business, building connections in our communities, and we’re seeing tremendous success with the support of the franchise team.”
6. The franchise development team at the corporate headquarters of Anytime Fitness (in Woodbury, MN) is looking for other qualified franchisees who share Sabo’s desire to help others.
7. Tom Gilles, director of sales and real estate for Self Esteem Brands, parent company of Anytime Fitness, said, “With proof of concept in the region and a neighborhood-focused culture that resonates perfectly with the supportive atmosphere of our gyms, we’re poised for explosive growth throughout the state. Growing our presence in Pennsylvania provides an opportunity to build on our existing success while welcoming new franchisees looking to create a supportive gym community that helps members achieve their health and wellness goals.”
8. Chuck Runyon, co-founder and CEO of Anytime Fitness, added, “We’re not looking to simply grow a franchise brand – we’re looking to grow and help individuals reach their specific goals and achieve a healthy, happy lifestyle. We’re searching for local entrepreneurs who share our passion for building relationships and helping others so that we can achieve that vision in communities across the state.”
Steps Up to Help Communities ‘Make Healthy Happen’ in 2021
9. In early December 2020, Anytime Fitness announced that it was making the journey to better physical and mental health more safe, accessible, and social at a time when it’s never been more important. The importance and urgency of physical and mental health was at an all-time high due to COVID-19.
10. According to the Centers for Disease Control and Prevention (CDC), “Regular physical activity helps you feel better, sleep better, and reduces anxiety. It can also help with preventing weight gain and when combined with calorie reduction, helps with weight loss. It can also help boost immune function and help prevent diseases that also increase a person’s chances of having severe illness from COVID-19 such as heart disease and Type 2 diabetes.” The CDC also advises exercising regularly for improved mental health.
11. To support the communities it continues to serve during the pandemic, Anytime Fitness announced new virtual programming and resources that would inspire and help new and current members to make healthy happen in 2021, including:
12. Investing in the Mission of Movemeant Foundation – The HeartFirst Charitable Foundation has awarded an initial $300,000 grant to the Movemeant Foundation, a nonprofit organization that designs fitness and movement programs to enable women and girls to embody confidence and develop healthy habits. By leveraging fitness and physical movement as platforms for social change, Movemeant Foundation has served as a catalyst to create a new generation of healthy, strong, and self-assured young women. Movemeant Foundation will share $25,000 in grant funds to Fast and Female, a Canada-based charity with a mission to keep girls healthy and active in sports.
13. In addition to the initial $300,000 grant, the HeartFirst Charitable Foundation granted $1 for each 30-minute workout logged in the “Move With AF Event” on the Kilter mobile app during December (up to $50,000). Anytime Fitness drove engagement with the “Move With AF Event” to increase donations through its clubs and marketing efforts. In January, when new members signed up to join Anytime Fitness for $1 at participating locations, Anytime Fitness also donated $1 (up to $90,000) to the Movemeant Foundation.
14. Stacy Anderson, brand president of Anytime Fitness, said, “At Anytime Fitness, we know that fitness is essential to living a healthy life – physically, emotionally, and mentally. We’re proud to support Movemeant Foundation, an organization that believes, as we do, that fitness and physical movement is essential to unlocking the values of self-confidence, resiliency, commitment, balance, and community.”
15. Building Healthier Minds and Bodies Through the “Stronger for Good” Virtual Event – Anytime Fitness partnered with Movemeant Foundation; its founder, fitness expert, and confidence life coach Jenny Gaither; and a half-dozen other leaders in health and wellness for the “Stronger for Good” virtual fitness event. The event offered an opportunity to move, learn, and feel better together while combating mental health issues caused by loneliness and social isolation during the COVID-19 pandemic. The “Stronger for Good” event took place on Saturday, January 2. Participation in the event was free, and open to Anytime Fitness members and non-members alike.
16. Making Healthy Happen Through Anytime Fitness Digital Resources – Anytime Fitness is committed to the health and well being of its members, owners, and communities. With many locations across the country being temporarily closed (at the time of the announcement) due to COVID-19 restrictions and many people feeling uncomfortable returning to the gym, Anytime Fitness provided virtual options for members to stay or become healthy while enjoying friendly social interactions.
17. The Anytime Fitness mobile app gives members access to thousands of online training programs. The app also offered several ways to virtually connect with a local Anytime Fitness coach who could help develop individualized workout plans to help start the new year off strong. Additionally, daily free workouts led by Anytime Fitness coaches were available on Facebook at 9:30 a.m. ET.
18. Anytime Fitness was founded in 2002 by Chuck Runyon, Dave Mortensen, and Jeff Klinger in St. Paul, Minnesota. The business partners and friends first met in the early 1990s while working for the same fitness club. In 1995, they ran their first joint business after they purchased Southview Athletic Club. Under their ownership, Southview grew from 500 to 4,000 members over seven years.
19. After selling Southview Athletic Club in 2001, Runyon, Mortensen, and Klinger used their experience to develop the idea for Anytime Fitness. They also made sure that Anytime Fitness reflected the needs of long-term gym members, whom they had surveyed at Southview Athletic Club.
20. Runyon, Mortensen, and Klinger decided to franchise Anytime Fitness from the start. Eric Keller, a former employee of Southview Athletic Club, was interested in their business concept and agreed to become the first franchise owner of Anytime Fitness. Within a few short years, Anytime Fitness grew to 77 locations and it opened its first international gyms in 2005 in Canada.
21. By 2010, Anytime Fitness had more than 1,200 clubs in operation and expanded into other countries, including Mexico and India. Over the next decade, Anytime Fitness continued to expand rapidly around the world. Today, there are Anytime Fitness locations across 50 countries and all seven continents, including Antarctica through the cruise ship Magellan Explorer.
Entrepreneur’s Franchise 500
22. Anytime Fitness ranked No. 30 on Entrepreneur’s 2021 Franchise 500 list.
Section II – Estimated Costs
- Please click here for detailed estimates of Anytime Fitness franchise costs, based on Item 7 of the company’s 2021 FDD.
Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees
- Please click here for detailed information on Anytime Fitness’ initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2021 FDD.
Section IV – Number of Franchised and Company-Owned Outlets
- Outlets at the Start of the Year: 2,355
- Outlets at the End of the Year: 2,423
- Net Change: +68
- Outlets at the Start of the Year: 2,423
- Outlets at the End of the Year: 2,454
- Net Change: +31
- Outlets at the Start of the Year: 2,454
- Outlets at the End of the Year: 2,361
- Net Change: -93
- Outlets at the Start of the Year: 38
- Outlets at the End of the Year: 28
- Net Change: -5
- Outlets at the Start of the Year: 28
- Outlets at the End of the Year: 14
- Net Change: -14
- Outlets at the Start of the Year: 14
- Outlets at the End of the Year: 13
- Net Change: -1
Section V – Financial Performance Representations (Item 19, 2021 FDD) and Analysis
Part 1 – Historical Financial Results for Anytime Fitness Centers
- Several years ago, Anytime Fitness implemented a Training Suite (also referred to as Anytime Fitness Live Programming), and recommended that Anytime Fitness full-service centers implement this program. In March 2019, Anytime Fitness made the program mandatory for new and renewing Anytime Fitness full-service centers.
- As of December 31, 2020, Anytime Fitness had 2,361 Anytime Fitness centers in the United States, and 2,078 of those centers operated for at least 180 days during 2020. Of these centers, 1,326 had mandatorily implemented the Training Suite. The earliest to open of these centers opened in May 2002 while the latest opened in December 31, 2019.
- Anytime Fitness excluded 59 centers that did not operate for at least 180 days of 2020.
- None of the 1,326 centers permanently closed in 2020.
- Anytime Fitness gathered information provided to it by these centers to compile the information below concerning the revenues from various sources in 2020. Those centers received monthly revenue from 3 primary sources.
- One source is monthly membership fees from ongoing members. Another source is pay-per-visit fees, which are typically paid by employers or insurance companies who pay a nominal fee on behalf of their employee or insured for each visit. A third source is personal training revenue.
- The following represents information on regular monthly membership fees, pay-per-visit fees, and personal training fees reported to Anytime Fitness by these 1,326 Anytime Fitness centers. The information has not been audited, and Anytime Fitness did not independently verify the information.
- A fourth source of revenues is one-time enrollment fees for new members, but these fees are not charged by all centers and the fees are not consistent between centers. A fifth source is vending income, which some centers do not have and is, in any event, minimal. Thus, Anytime Fitness does not provide information on these additional revenue sources.
- The following represents information on regular monthly membership fees, pay-per-visit fees, and personal training fees reported to Anytime Fitness by the 1,326 Anytime Fitness centers who were required to implement the Training Suite and who operated for at least 180 days during the calendar year ended December 31, 2020.
Average Monthly Membership Fees