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YAFF = Yet Another Fitness Franchise

About Ryan Knoll

Attorney and advisor with an interest in franchising. Feel free to email me comments and questions on the "Contact Us" page.
1 comments
Joe
Joe

Snap Fitness is struggling across the country. The reason why is the CEO's vision of offering "NO CONTRACTS". The CEO boasts about how "no contracts" eliminates the barrier of entry; however, it does nothing to eliminate the barrier of exit. Franchisees are faced with a never-ending marketing battle where they just don't win. The interesting thing is that for each new member the franchisor makes a $5 fee plus a $1 online service fee. There is a huge turnover in customers and the franchisee has an extremely difficult time getting an established customer base. In the colder climates, when the weather warms, the members leave in the droves. One location in Utah went from 900 memberships to only 300 in a matter of months. Some locations, go from doing well to going broke. Apparently, the CEO doesn't understand the principle of securing the stream of revenue with a contract. Isn't fitness a lifestyle anyway?