Club Physical? any thoughts

[Deburgh]

In the future, Im looking at possibly setting up a gym.

I see Club Physical amongst others can be franchised.

Does anyone train at any? know anything about them?

Im in the South Island and they havent come down this way yet.

Thanks in advance

[Pseudonym]

I train at one, but I'm not sure what I can tell you in terms of franchising... They're mostly in Auckland, but I think they've currently got franchises as far south as Wellington.

[Deburgh]

Any good? Any different to other gyms you have trained at?

Do they have that competitive advantage;)

[mr yoyo]

Your advantages as far as buying a CP as opposed setting up "LD's get huge quick" independently would be in terms of business systems and group advertising that you get instant access to, along with the continuity of your members being able to train elsewhere in the country. I am fairly sure that the club physical franchise system has been assesed by most major banks, and you can borrow money against the franchise as opposed to needing a house or other security to support it.

My personal thoughts would be that a gym is only as good as its owner, staff & equipment. You could buy the worlds best setup, but if you let idiots run it who allow clients to get hurt,or the place doesnt have the right atmosphere, then your business would quickly suffer.

There are several CP's in AK, and some do much better than others.

[2guns]

My personal thoughts would be that a gym is only as good as its owner, staff & equipment. You could buy the worlds best setup, but if you let idiots run it who allow clients to get hurt,or the place doesnt have the right atmosphere, then your business would quickly suffer.

yeah well said

[Deburgh]

Ty Mr Yoyo, good points

[daniel_nz]

Club Physical in Teatatu is really nice, and well set up, I personally recommend it.

[Deburgh]

Thanks Daniel, can you be any more specific as to why it is any better than other gyms?

[daniel_nz]

Well all i can say is ive been to a lot of gyms, and some just have a good atmosphere, I know theres the people who really like the dungeon type gyms with the dim lighting, and old heavy equipment no extras. Then there are the people who like the lifestyle/club fitness center type gyms, ive worked out in both and can see the benifits of both each to there own. However I feel club physical has a nice combintation its a fitness centre but with a nice amount of seperation between the weights room and the cardio bunny room. A large amount of heavy free weights dumbells and plates, as well as a lot of good machines and benches. It also offers other benifits spa, sauna, music, tvs when doing cardio. Also offers store for supplements, perhaps not the cheapest but convienent. Price well might be a bit higher than your typical dungeon gym but if you use the other facilities its worth it. $~20 a week isnt to bad, ~4$ a work out for me training 5 times a week.

8th or so gym ive trained at, and consider it pretty good 7.5/10

[Deburgh]

Thanks Daniel for elaborating.

[waldo]

and you can borrow money against the franchise as opposed to needing a house or other security to support it.

Are you sure? I would have to say no bank would lend with no security to a start up franchise. Perhaps if it was already established with 1000 members then maybe.

Also pays to have a good lawyer look at any franchise agreement as you can end up being tied to systems that may not suit you. Most major law firms have a specialist in franchise law.

Having said this, Club Physical is an established brand that is nationally recognised. That certainly can't hurt.

[mr yoyo]

yup... thats the beauty of buying a franchise as opposed to a start up stand alone venture. The system and name essentially guarantees there will be some clientele, the marketing machine would launch before the gym even opened and therefore instant revenue should be available to support debt.

Whilst buying a gym wouldnt be "blue chip" like a subway or mcd's, it would still have some loanable value.

Agree on the Lawyer to, theres a lot of hidden things in some aggrements

as a flipside a majority of good franchise masters also heavily screen potential buyers , and wont sell to people that arent suitably skilled.

[Deburgh]

Thanks guys..

I had never heard of Club Physical as they have no gyms in the South Island yet. Obviously there are pros and cons with being the possible first.

I have almost finished a BBS (Bachelor of Business Studies) so that should hopefully assist. I will be sure to bring lawyers, accountants etc on board as and when things move.

On a side note, I got offered a Subway franchise for about $250 k 7 years ago I see one for sale now at $750k.