Gold's Gym Owners...

[Coopie]

I met with a Franchise Consultant this week. I am considering becoming a franchisee and I am interested in Gold's Gym. Can someone give me some "real world" thoughts on the Gold's corporation? I have requested their franchise kit, but I expect it to mostly be propaganda and not highlight any of the downsides.
Thanks...

 

[Thor]

Hey Coopie

I remember talking to a former gym owner once and he told me that back in the 80's he and the other gym owners he knew all had to sell juice on the side because owning a gym wasn't profitable enough. Although that was here in small town CT, so maybe in L.I. it would be better. After all I've heard some people call it " Strong Island". Anyway good luck man.

 

[Coopie]

Not like that at all. Golds dis intensive demographics and can tell you, based upon zip code, approx how many members you'll get per month, how much they'll spend on supplements, pro shop, how many will actually show up, etc. Very well-researched package they put together.

An entry-level Gold's can expect to net about $150,000 profit annually. That's "net-net", i.e. after all expenses and taxes. Not bad - it's about the equivilent of earning $210,000 pre-tax.

 

[Wynn]

You can shop around and compare. Gold's has changed hands again recently and the franchise requirements and fees were raised. I know of some that have ended their agreement as a result. The gym I was a member of, Belleville and Whippany, NJ has and changed the name to Signature Fitness. Bev Francis' gym in Syosset has become a Powerhouse. Since you're in LI you could drop in there and ask for details. It will depend on what you are willing to pay and how much business you draw in.

 

[Wynn]

One other: Milos Sarcev's gym had been Gold's in Fullerton, CA. I read a thread on his forum that mentioned he might change back if the right conditions are met.

http://koloseumgym.com/

 

[Coopie]

Wynn - thanks for the heads-up. I didn't even know that Bev's changed and I live like 20 minutes from there. Gotta get out more

 

[Pez]

Has Anyone Noticed?

.... that most places that were Gold's have switched to independent names or Powerhouse/World's?
Golds sold the company and from what gym owner told me they want to make it like a 24 hr fitness type of place.
Another owner told me what she paid in franchise fees and it was alot. They dont offer you shit other than the name, national advertising, and the right to sell their merchandise. This guy owned a golds since '86 and anytime someone from HQ came the franchisee had to pay their way.
Its not worth it.

 

[D.K.]

your going to need to be woth a few million going in period, I think a net woth of 3,000,000 used to be the standard back about 1 year ago, plust I belive you will 1 million up front, If I remember correctly.

thanks

 

[ERC]

I know that they say that you need major net worth but the fact is if you have the business knowledge and a awesome location they will work with you. My best friend owns 2 golds and he is no where close to that amount. He has told me many times how much he regrets not doing his own gym. He says that they have their heads in everything that you do. He admits that Golds made a lot easier to start but if had to do it over agian he would go non franchise.

ERC

 

[joshbarnett]

coopie-where did you get $150,000 profit number from? just wondering?

 

[vitor]

Was in a healthclub startup before joining the military. For the money golds wasnt worth it to me. Powerhouse was great for us, 16000 franchise fee, with consultations, setup etc, you need to get your own equipment etc, but they were easy to work with, dont need to pay 100000 for the golds gym name

 

[Username-X]

Not like that at all. Golds dis intensive demographics and can tell you, based upon zip code, approx how many members you'll get per month, how much they'll spend on supplements, pro shop, how many will actually show up, etc. Very well-researched package they put together.

An entry-level Gold's can expect to net about $150,000 profit annually. That's "net-net", i.e. after all expenses and taxes. Not bad - it's about the equivilent of earning $210,000 pre-tax.

Whats the amount "you" have to invest...how much capital?

 

[vitor]

Cash Reserves Probally 40-100k
Build out 200k - Locker rooms, group exercise area, day care, juice bar, all that jazz

Equipment Lease still put 30k down
Cpu's 6000
ADvertising Marketing 20000
Inventory 5000k
Training/Staff BS 5000k
2 Months Rent 16000k

i can go on and on

 

[LATS]

i was a gym owner at one time for 7 years.. loved owning a gym.. will not get rich but, is a great experience.. i can tell ya from experience and knowing many golds gym owners that those figures are not correct.. they are inflated.. i was at a golds once that my buddy owned.. a couple of his employess found some golds gym stickers and placed them on a few of the treadmills (in front of the shroud) just for kicks.. the golds "crew" came in and saw it and threatened to pull his license.. he had to show them by that afternoon that the stickers were gone or he would lose thegold's name.. he told me that they are in his biz all tehtime.. he later got rid of the golds name after 15 years and changed it a name of his own choosing.. his profits are up and the gym is better for it..

 

[Crowler]

Not like that at all. Golds dis intensive demographics and can tell you, based upon zip code, approx how many members you'll get per month, how much they'll spend on supplements, pro shop, how many will actually show up, etc. Very well-researched package they put together.

An entry-level Gold's can expect to net about $150,000 profit annually. That's "net-net", i.e. after all expenses and taxes. Not bad - it's about the equivilent of earning $210,000 pre-tax.

Ih ave owned gyms and health clubs in NC, NY and Fl starting back in over 20 years ago. They are selling a pipe dream if they say NET 150K on a start up.

Walk into any Golds and ask to talk to the owner and tell him that and see what he has to say.


CROWLER

 

[Kane]

I saw an add recently for Dorian Yates "Temple Gym". They are now franchising .. Another option you might want to look into.

 

[Rob Roy]

My first question is, have you ever worked in a gym? Managed a gym? If you havn't, then you're walking in blind. You really have to understand all of the ins and outs before I would advise anyone to throw there butt on the line. It's not an easy business. That's not to say that it can't be profitable, because it very well can be. I have found the fitness industry to be rather lucrative myself, but it has taken alot of time, sacrafice, blood, sweat and tears. If you have a family, be prepared to not be all that involved. If you're still all about it, find a mentor who has become successful in the indusrty and become a sponge. By the way 150k net start up is just somebody selling you a pipe dream. Don't get closed.