Smart50 rank: 7
Revenue: $4,900,000
Growth: 193.64%
Founders: Justin McDonell, 38, Jacinta McDonell- Jimenez, 36
Head Office: New South Wales
Employees: 15
Industry: Health and community services
Website: www.anytimefitness.com/en-au
Brother and sister team Justin McDonell and Jacinta McDonell-Jimenez have a problem many franchisors would love to have. While they helped establish more than 80 franchisees since launching in 2009, they have actually sold the rights to another 100 territories.
Not surprisingly, keeping pace with that sort of growth has created a number of challenges.
“The big challenge has been having key people in key roles, such as franchise sales, operations and general support areas,” McDonell- Jimenez says.
“The team grew quite quickly with the right people. Staff turnover has been quite low, which has enabled us to ensure we grow with the more effective people required to cater for our growth.”
The other big issue is property – finding the right sites in the pre-sold territories has been extremely difficult. Anytime Fitness has responded to this problem by adjusting its property requirements and bolstering the number of stuff dedicated to the task of finding suitable sites.
That task is made a little easier by the model that Anytime Fitness has brought to the sector. The main idea behind the clubs is that they are opened 24 hours a day and concentrate on providing members with access to basic fitness equipment.
“We don't offer all things to everyone, such as classes, child minding and saunas and pools, so with this, the fees are much more affordable,” McDonell-Jimenez says.
The model is attractive to franchisees because of the relatively low cost base. Despite the long opening hours, staffing levels are low as the gyms are monitored by security and safety equipment.
The no-frills model of the gyms also means they can be placed into smaller spaces than most fitness clubs, meaning lover rents and overheads. McDonell-Jimenez says franchisee support for the business is highlighted by the fact 45% of the franchise network are owned by a multi-unit franchisee.
“We operate in a popular segment which was traditionally occupied by larger players, who had dominated the health and fitness industry,” she says.
“We also see competition as a threat, but we deal with this through our own efforts and personalising our business towards our members and franchisees.”
“We have had various successful marketing campaigns such as a 12 hour sale, where our clubs offer great discounts to join. Our promotion saw some 1,600 members join, which saw an extra $1.2 million being added to our overall revenue. This has been well received, and we now run them four times a year.”
