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
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

5 Fitness Franchises Getting Buff

3. Snap Fitness

Corporate locations: 80

Franchise fee: $15,000 per store

Initial investment: maximum of $361,695

Monthly customer fee: $34.95 for the average single membership

Snap Fitness 24-hour fitness centers provide fast, convenient and affordable workouts in clean, comfortable locations close to home, the company says.

Founded in 2003 by Peter Taunton, Snap Fitness is growing quickly.

The company is adding between 15 and 20 clubs per month. The company is able to scale down costs by shrinking fitness club size and eliminating some amenities, such as swimming pools and racquetball courts. It currently has approximately 1,295 stores open today, with another 1,913 in development.

The company is also working on rolling out its newest idea, the Rolling Strong mobile gyms to accommodate the trucking community and those who travel frequently for business or vacation. Members pay $29.95 per month and can use any mobile or the bricks and mortar locations. (As of right now, all six Rolling Strong locations are corporately owned.)

Josh Schaubach, a franchisee in Yuma, Ariz., owned two Snap Fitness locations but recently sold them back to corporate and is using the money as an investment in more locations.

Schaubach says Snap approached him about purchasing the locations because the fitness centers were the most profitable in the company. While Schaubach didn't disclose the price, he did say it was the most ever paid for a Snap Fitness club.

In October he plans to open a Snap Fitness in El Centro, Calif. He also plans to open other non-West Coast stores.

A veteran in the fitness industry, Schaubach worked for several big box fitness clubs before deciding to go out on his own. He says he originally had planned to open his own gym, but found Snap Fitness met the values and amenities he wanted to give customers.

"At big box clubs there's many benefits ... training is bar none. That's great, but in some way most gyms fail when someone walks into the club -- they're just a dollar," he says.

"I created a business plan of what I was looking for. I wanted to have connection. I wanted the members to come in feel like they were part of a family, that we cared more about their health and well-being than just collecting their dues. [Snap] fit most of everything I needed," he says, with the support he needed in running his own business.

Stock quotes in this article: TOWN, LTM 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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.
DOW 16,486.11 -15.54 -0.09%
S&P 500 1,880.48 +5.09 0.27%
NASDAQ 4,152.5940 +25.6270 0.62%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

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