- Industry Q & A

Provide an overview/ description of your industry.  Include reasons why it’s a great industry to start a business in today.

The fitness club industry is a thriving and continuously growing part of the US economy.  Fitness clubs range from small mom & pop operations to large, multi-national chains.  There is increasing awareness throughout the country about the benefits of health and wellness, which is providing more and more opportunities for fitness club owners to grow their businesses.  According to industry data, over 55 million people belong to at least one fitness club nationwide, and consumers are allocating increasing portions of their income towards fitness every year.

How has your industry changed in the last 10 years?  20 years?

The fitness club industry has changed a lot in the last 10 years.  Gone are the days when the industry was dominated by large box gyms. The trend for many years has been increasing specialization.  Consumers now can choose among an array of “discipline specific” gyms. Pilates, Yoga, spin, boxing -  you name it, and a gym exists for it.  Consumers are willing to pay a premium when they find a gym that meets their specific needs, and the gyms do not have to provide endless amounts of amenities because they focus on one area, and they do it very well. Gyms that are not discipline specific are struggling to compete with the “low-cost, high value” chains like Planet Fitness and Crunch. With this, the majority of the success stories in the fitness club industry are ones that find a niche, and dominate that space.

What trends do you see in your industry over the next 5 years?  Next 10 years?

The trend of increased specialization absolutely shows no signs of slowing down. Consumers want options, and now expect that they can find a gym that caters to their specific fitness objectives.

What is the biggest concern about your industry that a franchisee candidate should be aware of and investigate?

Fitness likely isn’t going away anytime soon, and the demand for gyms should remain in place since there are not many viable alternatives to having a physical place to exercise. However, competition has been and will remain strong in the fitness industry, and taking care of customers is of paramount importance, since they will always have other options if they feel you are not meeting their needs.

Why do you think your company stands out in the industry?

PickUp USA stands out in the gym industry because of our unique specialization.  Basketball is an immensely popular sport, and has very strong participation rates with over 23 million annual participants. PickUp USA is the only basketball focused fitness club, so for those consumers that play basketball, we are a natural choice.  We also provide our customers with traditional gym amenities like cardio and weight rooms, so they don’t have to choose between us and a more traditional gym. We are a one-stop shop!

What makes your franchise/ business opportunity more attractive than your competitor’s?

The gym industry has a strong revenue model, and most gyms generate income from 3 sources: memberships, personal training, and retail merchandise.  PickUp USA has all 3 of these, and we also have a fourth revenue channel that is unique to us: private court rental.  During off-peak hours, we rent the courts to private parties. This is a strong opportunity to maximize revenue throughout the day, and take advantage of the slower times that occur during the day.  In addition, PickUp USA has a strong point of differentiation compared to other fitness clubs, with our focus on basketball.  Consumers are well-informed, and have many options for gyms. PickUp USA provides consumers a unique option for their basketball and fitness needs.

Describe the ideal candidate.  Do you think your requirements are any different than your competitor’s?

PickUp USA seeks individuals who really believe in our concept.  What we do is unique, and there is a huge market for our services.  We spent years refining our brand before offering franchise opportunities, and we are looking for franchise owners that will be as passionate about our product as we are.  We also look for individuals capable of building and developing a strong team for their club.  The staff at PickUp USA is critical to the customer experience, and it is very important for our club owners to select and develop team members that will deliver world-class service to our customers.

What’s the strongest skill you require in a candidate?  

Leadership.  Being passionate about your business is incredibly important to succeed as an entrepreneur, but if you can’t get your team to operate with that same level of passion, you will not reach your potential as a business owner.  Being able to recruit, train, and continuously motivate and develop a team is key for success.

Describe the working environment of your franchisees. Is your environment typical of other companies in your industry?

Our working environment is similar to other fitness clubs.  Our gyms are large, open floor-plan facilities with basketball courts, fitness areas, locker rooms, lounges, and small retail shops.

Why has your company been successful?

PickUp USA has found success because we put the customer first.  Every decision we make is in the interest of being as customer friendly as possible.  This creates a positive reputation for our clubs that allows word of mouth and referrals to really take off.  When you take care of the customer, they will take care of you.  We go out of our way to wow our members and guests in every interaction with them, and they have referred friends and family, and the result is a continuously growing business.

What advice would you give someone interested in buying a franchise in your industry?  

Buying a franchise in any industry is a big decision.  It’s a major investment of both time and money.  It’s challenging, and can be incredibly rewarding.  My advice to someone interested in buying a gym franchise is to make sure this is something you are truly passionate about. When you believe in the work you are doing, you will have almost endless energy to grow and develop your business, and you will feel good selling your product and services to your customers.

How much experience in this industry should a franchisee candidate have should they consider buying a franchise in your industry?

Experience can definitely benefit someone looking to get into the fitness industry, but it is by no means a requirement for success.  The beauty of becoming a franchisee is that you get immediate access to systems, procedures, and tested business practices.  If you trust the process, and put in the work, you will likely be rewarded for your invested time, energy, and money.