CBE Winter Report.qk - IHRSA

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PART I: LESSONS FROM THE PAST TurningPassion FRANCHISING: intoProfit By Catherine Larner This first installment of a two-part feature on franchising in the European fitness industry considers previous franchise endeavours in this market, and how Curves has set a better example. As the fitness industry in Europe grows and continues to mature, it seems that only the brave or the foolhardy are willing to start their own club companies and go it alone against the big, established brands with the big bucks. One can’t help but wonder: Is it too late for fitness enthusiasts to turn their passion into a thriving business? Certainly not, according to the wave of franchisers offering a gamut of products to enterprising individuals. 18 Club Business Europe � JANUARY/FEBRUARY 2008 � www.ihrsa.org Franchise agreements, which offer an established name with instant credibility, a tried-and-tested business format, as well as training and support, can give new club operators the head start they need to make it in today’s ever more competitive marketplace. Ideally, the franchiser to franchisee relationship is two-way, with both parties seeking to help and support the other. Franchisees are likely to be people who might have recently been made redundant (with a cash sum helping towards initial franchise start-up costs), those who wish for a more independent career path, and people who see the benefits offered by franchising. Just as clubs today target a wide range of special populations, so, too, are there now franchises for men only, women only, and children, as well as franchises for small community facilities, multi-clubs operations, and medical clubs. Indeed many businesses have sprung up around niche markets in recent years following the phenomenal global success of the 30-minute, circuit-based, women-only Curves International concept. Inevitably, Curves’ success has led to imitations—Lady Moving and Lady Fitness in France, Fitness Woman in Spain, and energie for Women in the UK among others. But it has also encouraged operators to adapt the format for other markets.
Starting early: A young member cycles at SHOKK Energie While franchisers have had their problems in the past, franchising has much to offer the fitness entrepreneur and the public at large. The time may be right for franchising to become an important key to increasing market penetration. It may provide the impetus the industry needs to expand throughout Europe. EMULATING CURVES Notable franchises in the UK include energie Fitness Group and Rosemary Conley Diet and Fitness Clubs, which recently won the British Franchise Association Franchiser of the Year Award and has 170 franchisees in the UK. Elsewhere, Kieser Training, a Swiss therapeutic gym, which has 147 clubs in five countries, has been very successful in Germany, Austria and Switzerland. Newer European franchisers have Curves to thank for establishing a viable model to emulate. Other companies are now developing franchise concepts tailored to meet the needs of additional niche markets “No one embraced franchising like Curves,” says Jan Spaticchia, founder and chief executive of the energie Group in the UK. “Four years ago we didn’t understand franchising.” First launched in Texas by founder Gary Heavin in 1992, Curves began franchising in 1995, and now boasts more than 10,000 locations in 44 countries. At the moment there are some 731 Curves facilities throughout Europe, including 258 in the UK “Many franchisers in England and Germany have tried to copy the Curves concept,” says Babette Marzheuser-Wood, a partner with the Franchise Group of Field Fisher Waterhouse, which has represented Curves in Europe. “The Curves concept is easy to roll out with a low entry cost and a simple and appealing exercise model. However, because some franchisers do not have the training facilities and support that Curves have, their success has been limited to their domestic markets.” In the past, franchising failed to thrive for other reasons as well. Some still remember the 1990s when it earned quite a bad name. In the UK, franchises were led by American companies whose hard core gym image failed to take off, reinforcing many of the negative stereotypes associated with clubs. � “ Catching up: Energie Fitness is one of the fastest moving companies in franchising Jan Spaticchia Now that our operational systems, support network and training provision is well established and demonstrating success, we are ready to expand our product offering. ” —Jan Spaticchia, founder and chief executive, the energie Group www.ihrsa.org � JANUARY/FEBRUARY 2008 � Club Business Europe 19
Page 1 and 2: Club Business January/February 2008
Page 3 and 4: The world’s first Adaptive Motion
Page 6 and 7: Club Business EUROPE FEATURES page
Page 8 and 9: ihrsa.org A 2007 Sponsored by Infor
Page 10 and 11: News & Notes 9th Forum Il Nuovo Clu
Page 12 and 13: News & Notes continued Vivafit chai
Page 14: News & Notes continued Velocity and
Page 18 and 19: Interview We will work with our par
Page 22 and 23: European success: Kieser Training o
Page 24 and 25: NEW & IMPROVED! continued “ With
Page 26 and 27: Products � Torque Fitness, LLC, (
Page 28 and 29: Calendar of Events 2008 2008 IHRSA
Page 30 and 31: The Finish Line Tracy Powell One Hu
Page 32: Champions train with Technogym ® w

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