This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

5 Fitness Franchises Getting Buff

Stocks in this article: TOWN LTM

Initial investments for full-service fitness franchises can top $1 million compared with a convenience-type franchise initial investment that is more likely to be in the range of $250,000, says Paul Segreto, president and CEO of franchisEssentials.

However, investment alone shouldn't be the reason to choose a fitness franchise. Prospective franchisees should also have a thorough grasp of the company's franchise disclosure document or FDD.

Another way to establish the soundness of a franchise is by looking at data measuring loan repayments.

To go directly to fitness franchise profile pages:

Click here for Planet Fitness.

Click here for Retro Fitness.

Click here for Snap Fitness.

Click here for Title Boxing Club.

Click here for Anytime Fitness.

According to an analysis of Small Business Administration loans by Blue MauMau, a website for news and information related to franchise ownership, several fitness franchises ranked better than other franchise owners when it came to failure rates for SBA-backed small business loans. The data measures loans from Oct. 1, 2001 to Sept. 30, 2011.

Planet Fitness franchisees with SBA loans seem to be among the best performing loans, according to the data. Of the 37 loans worth $18 million made by Planet Fitness franchisees, there has been a 0% failure rate amongst the loan repayments.

The fitness franchise with next lowest loan failure rate was Anytime Fitness. The data says 7.83% of the gym's 217 SBA loans worth $39 million failed. SNAP Fitness had an 11.2% failure rate across 107 SBA loans worth $16 million.

Don Sniegowski, BlueMauMau's founder, says another thing to consider when searching for a franchise is if there are company-owned units.

"They need to have skin in the game," he says. If they don't, "they're removed from that end customer."

Here are five fitness franchises worth checking out.

2 of 7

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,416.85 +225.48 1.31%
S&P 500 2,021.25 +19.09 0.95%
NASDAQ 4,683.4070 +45.4130 0.98%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs