Fitness Franchises Are Shaping Up Nicely

by Nicole Card ()

THE FITNESS INDUSTRY has been reshaped over the past decade with the explosive growth of a number of female-only fitness centres. Each is using the franchise model to fast track their growth. The word ‘gym’ has largely been dropped in favour of describing the centres as fitness club or studios. Sweaty workouts and muscle mania have been replaced by a holistic focus on diet and well being.

Founder of Fernwood, Di Williams is now taking her successful fitness clubs overseas.
Three major players – Fernwood, Contours and Curves – are the leaders in this trend, which seems to have captured the mood of the female market.

Fernwood was one of the first franchised chains to gain a foothold in female fitness in Australia.
Established in 1989 by Diana Williams in her hometown of Bendigo for “women wanting a sanctuary to workout in”, today Fernwood boasts 80 clubs, 2200 staff and 80,000 members across Australia. The initial fitness club – established by Williams and business partner John Clow with joint savings of $7000 – was a converted class room in an abandoned school, equipped with exercise equipment they managed to borrow.
Motivation to build a business stemmed from Williams’ own experiences. “I’d joined a gym and loved the idea of weight training and cardio vascular exercise but it was a bit blokey and I noticed many women who joined did not stay long, or return to the gym.”
Four years after opening their fitness club Williams and Clow were keen to expand and financially the only option was to build a franchise. “The decision in 1993 to go into franchising was pivotal to our growth and success,” said Williams, adding “It was the perfect means of involving managerial staff in the daily affairs of the business, their own business. Details such as working at weekends, wiping marks off walls and bringing in flowers from the garden are very important.”

Contours Express studios
Contours Express Studios burst onto the female fitness market in 2005 after opening its first studio in Bendigo. Within two years Contours had opened its 100th studio and by the end of this financial year CEO Dave Hundt anticipates having 250 studios and a lot more members.

Contours Franchisee Kyleigh Rivett runs four studios in two states.
Over the past three years Contours has sold one franchise every seven days and opened a studio every 14 days, earning it a listing as one of Australia’s fastest growing franchises, with revenue in the tens of millions.
“The majority of franchise leads now come through word of mouth, usually via one of our 45,000 members,” Hundt said. “We also successfully use online and print media to drive franchise applications. The strength of our business model and the success of our franchisees are our key sales features.”
To ensure each newcomer has a good chance of success, studios are located in areas servicing a minimum of 25,000 people and are positioned a suitable distance from similar establishments.
Founded in the US, the global franchise has more than 500 franchisees operating studios in 23 countries and every two days Contours opens a new studio somewhere in the world. The Contours exercise model is the same the world over: a 29-minute workout combining weight bearing and cardiovascular activity, which has been proven to increase metabolism and burn calories.

Curves Clubs
With a membership of four million women in 10,200 clubs in 58 countries, the world’s largest female fitness chain is Curves International. Australia’s 398 clubs boast a membership of around 120,000 and the growth has been purely organic, driven they say, by word of mouth.
Waco in Texas is home to Curves. The first gym opened there in 1992 and by 1998 there were more than 1000 clubs. The first Australian Curves opened in Hervey Bay in Queensland, in 2004 and since then 397 more have joined the fold across Australia. Australian staff comprise a Director of Asia Pacific Region, Director of Operations and Marketing Manager in Sydney, and Areas Directors across the country.

Curves has a global membership of four million The absence of a heavy local administrative infrastructure helps contain the cost of the franchises. “In 2007 [US] Entrepreneur magazine ranked Curves as number one franchise in the fitness business category, and the number four franchise in the low cost category,” said Curves Marketing Manager for Australasia, Leslie Hayden.

“As a franchisor Curves is very nurturing and very accessible, it provides tremendous support to members and franchisees. Before they open their club new franchisees attend a one-week Curves Club training course in management and exercise machinery. Some elect to fly to Curves offices in Texas but trainers also regularly come to Australia to conduct the Club Camp as well as refresher courses for franchisees and their staff.”
Many Curves franchisees are female; one of the first to sign up in Australia was Melbourne Curves franchisee, Francine Mitchell, who alongside 599 others from all parts of the globe attended the training course in Texas. The impression remains vivid; the massive logistical exercise, which catered for several nationalities, was well orchestrated.
Leaving a high-flying career in marketing, Mitchell had considered various franchise systems but her views crystallised after joining the local Curves club as a member. “I thought if I can do it and I love it, anyone can do it. I loved the idea of Curves, it was affordable and flexible so I went on to do lots of homework on Curves, and spoke to my mentors then signed up as a franchisee.”