CBE Winter Report.qk - IHRSA

European success: Kieser Training
operates in five countries
“
Fully fledged fitness
clubs run under a
franchise agreement
in the UK have suffered
more from the lack
of investment by the
potential franchisee
than from concept.
”
—David Minton, founder,
the Leisure Database Company.
FRANCHISER SNAPSHOTS
Curves International, Inc
Founded: 1992 (franchising since 1995).
2007 revenues: e1.360 billion.
Number of units in 2007:
10,000+ worldwide; 731 in Europe, including 258 in the UK.
2007 membership (worldwide): 4 million+.
Costs: Initial franchise fee: e25,227 to e32,649 (varies
by country). Annual royalties also vary by country. Some
are a flat fee of e337; some are 6%, with a minimum
of e201 and a maximum of e610.
Support: Site selection, sales, marketing, education, training.
Contact: Jim Johnson, VP of International Operations,
jjohnson@curves.com, www.buycurves.com.
energie Group
Founded: 2003.
2007 revenues: e7,728,304.
Number of units in 2007: 33.
Current membership: 20,000.
Costs: Start up costs from e26,670.07. Royalties depend
on franchise product purchased and size of premises.
Support: Sales, marketing, education, training.
Contact: www.energiefranchise.com; +44 0845 363 1020.
20 Club Business Europe � JANUARY/FEBRUARY 2008 � www.ihrsa.org
Turning Passion into Profit continued
In France, the public’s perception of the sector is still coloured by a
number of business failures, including franchises, where members lost
money and faith in fitness clubs.
“The concept of franchising fitness in the UK has been slow to take
off on anything bigger than a small matchbox. Think single room
for Curves or hired space for class format,” says David Minton,
founder of the Leisure Database Company.
“Fully fledged fitness clubs run under a franchise agreement in
the UK have suffered more from the lack of investment by the potential
franchisee than from concept,” says Minton. “Energie Fitness has not been
immune to this form of under-investment. However, the more stringent financial
barriers to entry the company is employing are now starting to pay dividends.”
Today, energie is one of the fastest moving companies in this market. Recently, it
launched SHOKK Energie, a franchise for children, in a joint venture with SHOKK Ltd,
the operator of youth gyms for children, which will provide equipment and training.
The first UK SHOKK Energie franchise opened last Summer, and three more have been
sold. SHOKK intends to launch the franchise concept into its global network, with
Ireland, Portugal and China committing to sites late last year.
Energie also has plans for men’s, personal training, and day spa franchises. Franchise
products will be introduced at various price points to accommodate a range of budgets
from e6,970 to more than e209,000.
“Now that our operational systems, support network and training provision are well
established and demonstrating success, we are ready to expand our product offering,”
says Jan Spaticchia, founder and chief executive of the energie Group in the UK. The
company hopes to move into mainland Europe soon. �
Next in the March/April issue: Franchising as the way of the future.
Catherine Larner, IHRSA’s reporter in London, can be reached at
cbe@catherinelarner.com.
SHOKK Ltd
Founded: 1999.
2007 revenues: e2,731,000-e4,097,000.
Number of units in 2007: 175 company-owned facilities
worldwide, 148 in the UK, and four SHOKK Energie
franchises open or sold in the UK.
2007 membership: 100,000+ youth.
Costs: e40,965+.
Support: All areas of
management, operations
and marketing.
Contact:
www.energiefranchise.com;
+44 0845 363 1020.
SHOKK-ing:
the first SHOKK
Energie opened
last summer