Gold’s Gym is battling to get out of Chapter 11 bankruptcy protection by innovating its business model and going after a wider market.
The company has announced the launch of a smaller footprint model to its range of franchise offerings to make the brand more attractive to franchisees with smaller budgets and enable more mass-market penetration globally.
The new model will target those with an investment range of US$1.5m (€1.3m, £1.2m) to US$2.5m (€2m, £2.2m). The current range of investment required for the traditional, larger footprint clubs is US$2.5 to US$5m (€4.4m, £4m).
Starting at 10,000sq ft (929sq m), the new smaller-scale Gold’s Gyms will be designed to house core facilities associated with the brand – such as modern cardio and strength equipment, personal training areas, group exercise classes and a Kids’ Club.
There will also be a range of optional upgrades for clubs from 10,000 – 15,000sq ft, including a hybrid functional training area, a Gold’s Studio offering and a recovery area.
“As we continue evolving our 55-year-old brand to offer the best and safest fitness experience possible, we’re simultaneously looking to enhance our approach to global franchise development to offer more opportunities for people to take control of their destinies through Gold’s Gym ownership,” said Gold’s Gym president and CEO Adam Zeitsiff.
“The new scalable footprint model is designed to maximise flexibility by giving franchisees more affordable investment options, while delivering high-quality fitness centres to geographic regions with limited space to build.”
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Craig Sherwood, Gold’s Gym’s chief development officer, added: “After putting a significant amount of time and research into this, we feel now is the best time to begin developing our facilities in this more scalable fashion.
“This new model is made for the future of the fitness industry, providing full-service amenities with added financial and regional benefits.”
• On 5 May 2020, Gold’s Gym filed for Chapter 11 bankruptcy protection, due to the impact of coronavirus lockdowns. At the time, Zeitsiff said that the move was part of a restructuring process which would see at least 30 company-owned gyms close permanently.
By Tom Walker
Source: Leisure Opportunities