Winner: SmartCompany 2007 Award for Fastest Growth sponsored by HP
SmartCompany50 rank: 1
Revenue: $25.4 million
Growth: 782%
Founders: David Hundt, 35; Will Deane, 36, Peter Hammond, 37, Steve Sacks, 41
Based: Sydney
Employees: 14
Industry: Cultural and recreational services
Website: www.contours.net.au
What could possibly be new in gyms for women? Women have always wanted to get into shape. So why has this new gym chain built revenue from $7.1 million to $25.4 million in just a year? And has a net profit of $10 million?
David Hundt, Will Deane, Peter Hammond and Steve Sacks saw the success of express fitness franchise overseas and adopted the idea to the Australian market.
The marketing message to 35 to 75 year old women was simple: it takes 29 minutes, three times a week to get fit. It combines a low-impact aerobic workout and resistance training using weight-bearing equipment.
Contours started in Bendigo three years ago and within 14 months the company had $1 million in revenue. Now it has 112 operating studios and more than 155 franchisees across NSW, WA, SA, Queensland and Victoria.
Nearly all franchises are profitable, Hundt says. He claims Contours has had a big impact on the industry. "Women are busier than ever and are becoming more discerning about the most efficient way to get into shape."
The franchise model is run by an Australian-based team and is easy to manage with small levels of stock, creditors and debtors.
A franchise advisory committee was formed after the first year of operation and disgruntled franchisees are advised to speak to the franchise development manager.
The strategic goal is to have 300 studios with more than 300 members each. The focus is also on automating systems to free up franchisees' time. This will include online reporting, training, MIS systems, centralised database and customer relationship systems.
Key success factors:
Took a successful overseas model and adapted it to the Australian market.
Simple marketing message: Get fit in 29 minutes, three times a week.
Simple franchising model that is Australian-based with monthly training sessions in sales and equipment.
