With more than 145 locations operating in 16 states, Retro Fitness is entering the second half of the year with nearly 20 franchise agreements signed for new or emerging market development, as well as six new gyms in operation. The national low-cost, high-value fitness franchise expects to open nearly 25 locations by year end, and is on track to have approximately 250 gyms in the next two years.
Anticipating growth beyond 700 locations by 2020, the franchise’s surging national demand has been noticed by Forbes and Franchise Times magazines, which recently named Retro Fitness the No. 1 Fitness Franchise in America and top franchise over $500,000. Driving the investor-friendly franchise’s growth are strong-unit economics and streamlined business operations. For example, the top 10 percent of the company’s franchise units are outperforming the national industry average with $2,175,471 average gross sales per unit, $851,008 average EBITDA, 3,200-plus average membership base and $149.50 average revenue per square foot.**
The company will be sharing details on its growth, target markets and new offerings at the International Franchise Expo June 16-18, 2016 at the Javits Center in New York City. Located directly inside the entrance at booth No. 405, Retro Fitness seeks prospective franchisees interested in bringing the brand to new, as well as core markets in the Northeast and Mid-Atlantic – including Connecticut, Manhattan and Westchester County, NY, Philadelphia and Eastern Pennsylvania, Maryland, Northern Virginia and Washington, D.C.
“We expect to see exponential growth in the next few years. We’re adding 3-4 new franchisees each month, breaking into fresh territories across the nation and adding more value for both members and franchisees with new offerings and initiatives,” Retro Fitness CEO and Founder Eric Casaburi said. “A key factor to our success is that Retro Fitness is constantly evolving and embracing change. Our $19.99 a month membership rate made us rock stars overnight, but we’ve realized that consumers want quality training and support, versus unguided gym access at a low cost. That’s why we’ve created results-driven programs like the New Exercise Order that encourage members to come to our facility for that reason, not just the low price point.”
Retro Fitness began testing the New Exercise Order (NEO) powered by Retro Results last year and will launch the program network-wide in 2017. This multi-level personal training program provides a solution to members of all fitness levels and desired price points. The training tiers are comprised of Team Conditioning (TEAM), Small Group Strength Training (SGST) and One on One Training (1:1). All levels of training incorporate MYZONE technology, which displays real time heart rates, calories and effort data on large screen TVs inside the gym. This technology gamifies the workout experience, encouraging members to perform to the best of their abilities and push themselves to new limits.
“We noticed that many of our members have dual memberships,” Retro Fitness VP of Personal Training, Mike Urti, said. “They would join our clubs for $19.99 a month, yet go to a boutique studio down the street for $150 a month. We thought to ourselves: Why can’t we keep them inside our facilities? NEO is the solution – it offers our members a far more effective fitness regimen, at a more affordable price.”
By combining affordable membership options with a high-quality gym experience and state of the art equipment associated with big-box clubs, the gyms attract inexperienced and seasoned exercisers of all ages. Meanwhile, ancillary offerings such as the Retro Blends Smoothie Bar, personal training, child care, group fitness, pro shop and tanning create additional revenue centers that maximize bottom line returns for franchise owners. Further, with the flexibility to open in 15,000 to 18,000 square-foot spaces, the gyms are designed to scale back on square footage without cutting back on services and staff. This results in lower costs for both owners and members, while still offering high-quality equipment and amenities.