Home Grown Fitness Franchisor Ripe for the Times

Upstart fitness franchisor Jetts Fitness 24/7, one of the only remaining national fitness chains wholly Australian owned, is relishing in the current economic climate and experiencing exceptional growth with a new unit added every weekend.

The 24 hour express fitness operator, with its Headquarters on the Sunshine Coast, QLD, operates 18 clubs in QLD, NSW and WA and is expected to end the 09 year with 55 clubs in operation across 5 states and the ACT.

“The demand from both consumers and potential franchisees has been exceptional, Say Brendon Levenson, Managing Director of Jetts. The current market trends in the fitness industry in combination with a value focused consumer has created the perfect storm for our market positioning.”

Jetts Fitness clubs are characterised by the ability for members to access the club 24/7 via a unique card access system, even when the club is not staffed. The innovative technology combined with small footprint locations provide a low overhead structure compared to traditional fitness operators.

“Our clubs have a focus on what members in the current market want; a high value, convenient fitness offer that enables members to get in and get out on their terms with no crowds, no contracts and a time that suits their busy schedule.” Says Levenson.

Each club provides the “nuts and bolts” of a fitness club such as treadmills, resistance machines and free weights, eliminating the pools, steam rooms, group fitness rooms and other auxiliary services found at traditional health clubs. Members benefit from a high value experience by only paying for what they use with memberships half that of other operators.

The franchise system, released to the market in August 2007, has received a tremendous response since inception from applicants in all states, with international requests coming earlier than expected.

“When we got our first enquiry from South Australia we knew we were getting somewhere, when we got a qualified applicant from Korea it came as a bit of a surprise.”

Whilst the group has been bombarded with enquiries, the focus has remained on quality franchisees, with most applicants qualified on their ability to open multiple clubs within 12-18 months.

“We wanted to be solid on our recruitment processes from day 1, Says Brendon. We resisted the urge to sell these things to anyone and everyone, for the sake of maintaining quality in our execution as we engaged in our expansion plans.”

The tactic is working well for the franchisor, with 85% of franchisees qualified to open successive clubs.

“Of the 18 clubs, only 2 are owned by single operators, and they are looking to move into second clubs by year’s end, Says Brendon. Our first franchisee is looking to open his fourth club within 18 months with a goal of 5 clubs within 2 years in reach.”

Multi unit capability is a core outcome of franchise ownership due to low set up costs, streamlined overheads, limited staff and low stock requirements.

“Our low staff model is proving to be a hit for franchisees with clubs staffed just 30-35 hours per week by a casual/part time manager. Ninety percent of memberships are paid in advance via automatic, recurring direct debits which make up 85% of revenue, so cash flow predictability is solid with little or no cash handling.

Integrated technology systems enable franchisees to manage the business remotely, with most franchisees spending just 5 hours per week overseeing the operation. Online club performance tracking and real time video monitoring through the clubs comprehensive CCTV system allow franchisees to have eyes on the club from anywhere in the world.

“We built this to be powerful yet simple, and our cross section of franchisees is proving the ease of the system. Only two of our franchisees are from the fitness industry, with the majority coming from small business or middle management backgrounds.”

“The majority of our members love the fact that they can come when they want, enabling more consumer opportunity to get fit and stay healthy.”

For more information on Jetts Fitness, phone 1300 JETTS 247 or visit www.jetts.com.au

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