Business Opportunity

Franchise vs Pick Up The PaceTM Back
Congratulations! You've made the important decision to open your own circuit-training gym. This exercise format is successful because it works. Now you need to make another important decision: open a brand new operation, to purchase a franchise, or license the established name of Pick Up The PaceTM. First and foremost, we want you to do your own research. Don't take anything we say for granted. Read our materials. Then go to the other guy's web sites and read what is (or isn't) there. Bring out the calculator and do your own number crunching. In short, do your homework. This is a big step and we want you to make an educated decision.


There are several franchises out there that want you to buy their program. The most visible of these is Curves for WomenTM. We're not here to knock CurvesTM. On the contrary, if they weren't doing something right then they wouldn't be the most successful franchise in the world! There are other, less well-known franchises available too. We encourage you to look at all of them before you make any decision about what's right for you.

There are three main advantages that the Pick Up The PaceTM licensee has over the fitness franchise: freedom, equipment quality, and capital investment.

FREEDOM:
We understand that each area is different, and that a Pick Up The PaceTM gym in New York, NY will want to operate differently than a Pick Up The PaceTM gym in Winger, MN. With our licensee program, you retain control over all business decisions. We show you how to add 'profit centers' to your gym, but you decide what you want to offer to your members. If you should choose to do so, we will help you add massage therapy, tanning, nutritional counseling, yoga, aerobics, personal training, body wraps, pilates, and anything else to your gym! The choice is yours.

If you talk with a representative from one of the fitness franchise operations, ask them if you can add tanning. NO! Ask them if you can add yoga. NO! Ask them if you can add massage therapy. NO! The franchise system requires each of their gyms to be identical. No freedom to offer what the members are asking for. No freedom to explore new revenue streams. No freedom to set their own hours. No freedom to make their own decisions. No freedom at all!

EQUIPMENT QUALITY:
There are two components to consider when looking at equipment quality. First, the construction of the machines and second, are the machines adjustable?

Pick Up The PaceTM equipment warranty: Frames: Limited Lifetime, Cylinders 3 years, Bushings & moving parts 2 years (These warranties are the longest offered for hydraulic exercise equipment in the fitness industry). Specifications: 11 Gauge Steel, 1.25", 1.5", 2", 3". Oil impregnated bushings, 6 position dual-action (double concentric) hydraulic cylinders.

Pick Up The PaceTM equipment is also fully adjustable. The resistance can be altered in mere seconds, simply by turning a dial! Most other circuit training machines are not adjustable at all, which means that the user will eventually plateau and stop making progress towards their fitness goals. This is a huge advantage that you, as a Pick Up The PaceTM gym owner, have over your franchise competition! It is not uncommon for members of a popular franchise to switch to Pick Up The PaceTM because they have hit a 'training plateau' at their current gym.

CAPITAL INVESTMENT:
It's no exaggeration to say that when you choose Pick Up The PaceTM over a franchise, you are saving $60,000!! How does that work? When you enter into a franchise agreement (or purchase a franchise) you are signing a contract stating that you will pay their headquarters a monthly royalty. This is a monthly 'bonus' for them, and an added financial burden for you!

The monthly royalty can range from $395 per month to $500 per month. Assuming the franchise agreement permits you to use the franchise name for 10 years, you will be paying $60,000 in royalty payments over the franchise term!


120

number of months in 10 years
x$500
monthly royalty payment
=$60,000
total paid in royalty over the franchise term

As they say in advertising….and that's not all! In this example we have used $500 per month as an example, but some franchise operations charge more than that! Be sure to ask about any hidden charges too. For example, one company quotes a lower franchise fee, but then adds on a monthly 'advertising fee' that brings the total to $590 per month.

Also, be aware that the monthly royalty payment can increase during the franchise term. It is not uncommon for a franchise to charge a smaller fee for the first year, and then balloon it up in the following years. Starting in the 2nd year of operation, some will increase the monthly royalty fee to 5% of your gross sales. Not net sales, gross sales!


The point to remember is that when you sign a franchise agreement, you are contracting to pay them (the franchisor) anywhere from $47,400 to $70,800 over the next 10 years. Don't forget that the franchise agreement is valid for only a limited number of years, and once that time period has expired you get to renew (pay again). We encourage you to do your homework! Visit some franchise web sites with a calculator and pencil. Do the math. We want you to make an educated decision.

 

Franchise
Pick Up The PaceTM
Equipment
Questionable quality. Cylinders are probably not adjustable. High quality steel construction. Fully adjustable cylinders with 6 different settings.
Equipment
(upholstery)
More often than not, you cannot choose the colors you want. Standard Upholstery Colors:Black, Dove Gray, Teal, Burgundy, Forest Green, Royal Blue, Sky Blue, Purple
Monthly
Royalty Payments
Ranges from $395 to $590 per month, or 5% of gross sales, whichever is higher! None!
Zero!
Zilch!
Monthly
Advertising Fees
Sometimes included in the franchise fee, but not always.Can be over $100 per month. None!
You decide when and how you want to advertise.
You
make the decisions!
Equipment
Packages
Limited 5 to choose from.
Length of Term
Usually limited to 10 years, after which you must renew (pay again!) or change your name, logo, etc. No expiration! You have full use of the Pick Up The PaceTM name and program for as long as you want.
Package
Usually limited. You are often charged extra for training, certification, manuals, equipment, or other basics. Pick Up The PaceTM license package provides what others don't. We don't have hidden charges or extra fees.
Continuing
Assistance
Usually limited (sometimes only 30 days!), or provided for an additional charge. Unlimited telephone and email support. Optional follow-up visits available.
Training
Typically, you travel to 'headquarters' for training. Sometimes it's only 2 days. Usually costs extra. We include 3 days of training at your gym! No travel expenses and no extra costs or fees.
Gym
Membership Options
Often limited to women-only clubs, even if another variable would work in your area. Women-only, men-only, coed, or senior clubs are all options. It's up to you and your specific demographic!
Profit Centers
Most franchises do not allow you to offer extra profit centers! Pick Up The PaceTM not only allows, but encourages extra profit centers like tanning, retail sales, nutritional counseling, and sublease agreements.
Certification
If it's even offered, it sometimes costs extra. Upon completion of the on-site training, you will be a certified Pick Up The PaceTM instructor. A certificate will be issued.

Top of Page

 

 


Copyright © 2003-2005 Pick Up The PaceTM. All Rights Reserved.