Snap Fitness Pursues Aggressive Global Growth With New UK Master Development Agreement

Snap Fitness the world's leading 24/7 fitness franchise today announced a master development agreement for the United Kingdom with TwentyTwoYards Ltd. The agreement is one element of the Lift Brands-owned company's rapid international expansion; its Indian franchise partner recently announced plans to bring 300 new clubs to the second most-populous country in the world.
"The importance of living a healthy and active lifestyle transcends cultures" Peter Taunton Lift Brands CEO and Snap Fitness Founder said. "Snap Fitness' model has proven successful across multiple continents and with the fitness and business expertise of TwentyTwoYards we are confident America's fitness brand will be embraced by individuals across the pond."
As indicated by the 2014 State of the UK Fitness Industry Report the rapidly-growing low-cost market continues to drive the UK health and fitness industry's growth. Year over year the report found a 4.5 percent rise in the number of health club members. There are three Snap Fitness clubs currently operating and eight in development in the UK but the TwentyTwoYards group plans on opening 200 locations over the next four years.
"In the UK we have an ever-increasing awareness and desire to prioritize personal health and fitness" said Matt Quinn of TwentyTwoYards. "Snap Fitness clubs are helping more people than ever achieve their lifestyle goals and I couldn't be more excited to bring this internationally-proven brand to our country."
Snap Fitness is also expanding its footprint in the Indian market. Since selling its first franchise in 2009 Snap Fitness India has expanded rapidly with 50 clubs open or in development. Snap Fitness India CEO Dr. Virkam B.M. announced plans of opening 300 additional clubs by the end of 2017. The company which is pursuing new locations in cities including Delhi-NCR Bangalore Raipur and Kolkata.
With a total of 500 clubs opening over the next four years in the UK and India Snap Fitness is expecting to increase its number of clubs 25 percent.
"Entrepreneurs around the globe are recognizing the opportunity that Snap Fitness provides – not only is it a win for their portfolio but for the community as well" said Steele Smiley Lift Brands Chief Officer responsible for all domestic and international growth. "We are aggressively looking for the right partners to bring Snap Fitness to other emerging markets."

Under the agreements Snap Fitness provides master franchise partners with exclusive rights to use the fitness brand's trademarks intellectual property and systems for the length of the term. Additionally a dedicated team at Lift Brands headquarters in Chanhassen Minn. works directly with the companies to provide support.Currently Snap Fitness has more than 2000 clubs open or in development in 15 countries. 

Snap Fitness to have more than 100 centres by next year

Bangalore-based Snap Fitness India, the Indian master franchisee of Minneapolis, US-based fitness chain Snap Fitness that operates round-the-clock, is looking at an initial public offering (IPO) after a year when it completes 100 centres across the country.

Snap Fitness entered India in 2008 with its first centre in Bangalore. At present, there are about 50 Snap Fitness centres in India, of which 33 are located in Bangalore. The company is now plans to open centres in tier-I, tier-II and tier-III cities to take the number of total centres to 300 over the next three years. Of these, about 30 would be company owned. However, if the company gets external funding, they will open 100 company owned centres. While the company operates 24 hours a day, it may look at keeping centres in smaller cities closed at night.

Snap Fitness centres, in sizes of 3,000 sq ft, 4,000 sq ft and 5,000 sq ft, typically entail an investment of between Rs 1.2 crore and Rs 1.5 crore each. It follows a 'hub-and-spoke' model, where it will have one company-owned centre and close to four franchise-run locations built around that area. Over the next three years, the company and its franchises will spend about Rs 350 crore.

Its flagship stores earn about Rs 1.6 crore to Rs 1.8 crore annually, while about 50% of the earning goes to meet operational expenses.

The fitness industry in India is estimated to cross Rs 6,000 crore by 2015 while more than 95% of the sector is still unorganised. Organised brands like Talwalkers, Gold's Gym and Snap Fitness contribute the remaining.