A FIT FOR EVERYONE - A FRANCHISE OPPORTUNITY - Retro Fitness
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AN INVESTMENT FIT FOR EVERYONE Retro Fitness is a rapidly growing franchise model within the $30 Billion health and wellness industry that provides a high return on investment with strong-unit economics and streamlined operations. In a world where what you see is not always what you get, Retro Fitness is a business opportunity that delivers on its promise. Our success is based on a simple value– quality. Quality in the brand, the facility, the support, the corporate team, the training, the ongoing operational assistance, and maybe most importantly, the quality of our franchise owners. Smart, savvy and successful, our diverse group of franchise owners includes doctors, lawyers, C-level executives, multi-brand entrepreneurs and everything in between. They’ve all chosen Retro Fitness to grow and expand their investment portfolios and are united by a common goal: to deliver the very best personalized fitness experience fitting each-and-every member’s budget. When Retro Fitness started franchising in 2005, the philosophy was simple: deliver more fitness for less money. Over the last decade, the model has evolved into an all-encompassing fitness experience designed for valued members to accomplish their fitness goals through a variety of exercise options all under one roof. Eric Casaburi Retro Fitness Founder
POWERFUL PERFORMANCE One of the largest segments driving fitness industry growth is “high-value, low-price” (HVLP) health clubs, which Forbes calls, “the dominant competitors in the health club market” today. Retro Fitness was at the forefront of HVLP movement and remains an industry leader today. FOR THE CONSUMER, Retro continues to distinguish itself from traditional big-box gyms by offering an amazing value-proposition designed specifically for today’s consumer– a one-stop shop for any fitness enthusiast’s budget. FOR FRANCHISE OWNERS, our strategic pricing strategies, wide variety of high-end equipment, vast array of training offerings and amenities means Retro Fitness can attract and retain members, while providing owners with multiple revenue streams maximizing bottom line returns. ▶▶ AFFORDABLE $19.99 PER MONTH ▶▶ SMALL GROUP FUNCTIONAL HIIT CLASSES MEMBERSHIP ▶▶ WEARABLES AND PERFORMANCE ▶▶ STATE-OF-THE-ART FITNESS FACILITIES MONITORING ▶▶ 60-75 PIECES OF CARDIO EQUIPMENT WITH ▶▶ RETRO BLENDS® JUICE BAR PERSONAL LCD SCREENS ▶▶ AMENITIES: CHILD SITTING, TANNING, HYDRO ▶▶ THREE DIFFERENT TYPES OF CIRCUIT MASSAGE TRAINING EQUIPMENT ▶▶ PRO SHOP FEATURING SUPPLEMENT SALES ▶▶ PERSONAL TRAINING
A BUSINESS “I wanted to join a franchise that would be easy for my son and I to operate together. We found Retro Fitness to be the perfect fit. What set Retro apart from other concepts is that the brand is always looking to grow and improve the model to offer the best membership experience, while at same time MODEL help us maximize bottom line returns.” Bob Polizzano and Bob Polizzano Jr. THAT FITS YOU Philadelphia, PA While our current franchise owners come from diverse industries and backgrounds, they are united by a common objective. Each wanted an outstanding investment opportunity that would benefit themselves and their families, while providing a balance between lifestyle and business investment. That is one of the primary reasons that only about a third of Retro Fitness owners are owner/operators. The rest leave the day-to-day operation of the club to their trusted managers and staff, along with the ongoing assistance of Retro Fitness corporate. “Our return on investment as Retro Fitness owners has been strong and profitable. Not only do you get predictable monthly income from membership dues, the Retro model has so many other revenue centers like the Retro Blends Juice Bar, personal and group functional training, group classes, tanning, child sitting and a pro shop that allow us to generate additional dollars every day.” Bevan and Jaley Cox Cedar City, UT
ONE STRONG ONE ONE-ON-ONE TRAINING TEAM One, Strong, and Team (OST) are Retro’s three proprietary training programs focused on generating positive and infectious energy that results from inspired, and highly personalized, One-on-One, Small Group and Team training. Whether a competitive athlete, a weekend warrior, or someone who’s just working out to be the best they can be, OST has a program that’s right and coaches that will inspire our members to reach their goals. The physiology behind OST is focused on improving strength, coordination, muscular endurance, metabolic conditioning, and core STRONG body movements. Our primary objective is simple: help each member reach their unique and individualized peak level of physical fitness. FOR FRANCHISE OWNERS, OST provides a powerful alternative SMALL GROUP STRENGTH TRAINING revenue stream, while at the same time providing Retro Fitness members with the type of personalized training, and equipment, typically only found in “boutique” gyms- and at a fraction of what they charge. TEAM TEAM CONDITIONING
$2,211,967 VERAGE GROSS SALES PER UNIT A OF TOP 10% OF RETRO FITNESS CLUBS THE FUTURE $527,426 OF FITNESS AVERAGE EBITDA IS STRONG REPORTED BY TOP 10% OF RETRO FITNESS FRANCHISE OWNERS 5,605 Industry analysts predict a steady growth in the demand for health, wellness and fitness among all demographic groups – from Millennials to Baby Boomers. It’s estimated that currently about 20% of American adults have a fitness club membership, a number that experts think could double in the next 10 – 15 years. Retro Fitness offers franchisees the incredible opportunity to leverage the potential of the fitness industry. MEMBERSHIP BASE AT THE TOP 10% OF RETRO FITNESS CLUBS $142 AVERAGE REVENUE PER SQUARE FOOT OF THE TOP 10% OF RETRO FITNESS CLUBS AVERAGE GROSS SALES FOR THE TOP 10% OF RETRO FITNESS CLUBS OPERATING DURING THE PERIOD 3/1/18-2/28/19. TOP 10% INCLUDES 14 CLUBS. 6 OF THESE CLUBS, OR 43%, ATTAINED OR EXCEEDED THE AVERAGE. AVERAGE EBITDA FOR THE TOP 10% AS SHOWN IN 2017 FEDERAL TAX RETURNS SUBMITTED. TOP 10% INCLUDES 10 CLUBS. 2 OF THESE CLUBS, OR 20%, ATTAINED OR EXCEEDED THIS AVERAGE. AVERAGE # OF MEMBERS FOR TOP 10% AS OF 02/28/2019. THE TOP 10% INCLUDES 14 CLUBS, 5 OF WHICH ATTAINED OR SURPASSED THE STATED AVERAGE. READ ITEM 19 OF OUR APRIL 30, 2019 FDD IN ITS ENTIRETY FOR ADDITIONAL INFORMATION, IMPORTANT DEFINED TERMS, ASSUMPTIONS AND QUALIFIERS RELATED TO THESE FIGURES. A NEW FRANCHISEE’S RESULTS MAY DIFFER FROM THE REPRESENTED PERFORMANCE. THERE IS NO ASSURANCE THAT YOU WILL DO AS WELL AND YOU MUST ACCEPT THAT RISK. THIS ADVERTISEMENT IS NOT AN OFFERING. THIS INFORMATION IS NOT INTENDED AS AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY, A FRANCHISE. IT IS FOR INFORMATION PURPOSES ONLY. OFFERINGS ARE MADE BY PROSPECTUS ONLY. ©2019 RETRO FITNESS LLC. ALL RIGHTS RESERVED.
DEDICATED SUPPORT Retro Fitness provides full training and support for franchisees, including comprehensive site selection and lease negotiation assistance, exclusive vendor partnerships, management training and ongoing business consultation to equip every franchisee with the tools needed to succeed. Retro Fitness even provides a dedicated financial broker to assist franchisees in the execution of strategic funding solutions for initial and continued development objectives. ▶ ▶F ULL STAFF TRAINING ON-SITE ▶ ▶T URN-KEY PROFIT CENTERS OR AT RETRO UNIVERSITY Juice Bar services with pre-negotiated discounts, I ncluding top performer recruiting tactics, proprietary Personal Training System designed compensation structures, and elite Retro for maximizing net profit and full line of exercise performance systems and procedures apparel and accessories with easy online ordering ▶ ▶I NTERIOR/EXTERIOR DESIGN/BUILD- ▶ ▶COMPUTER SYSTEM EQUIPMENT OUT SERVICES BY INDUSTRY-LEADING Management software and billing ARCHITECTS AND SUPPLIERS and collection solutions through the Flooring (rubber, custom/specialty), lockers, largest company in the Industry mirrors and more from top manufacturers ▶ ▶C USTOM STRENGTH TRAINING AND CARDIO ▶ ▶D IRECT MARKETING SOLUTIONS EQUIPMENT FROM TOP MANUFACTURERS Including system which allows you to Including pre-negotiated discounts and warranties monitor how info request calls are being handled by your staff, via our “call tracker” recording, delivered right to your email ▶ ▶LOCATION SERVICES Detailed demographic profiles, nationwide real estate/lease/purchase negotiating ▶ ▶M EMBERSHIP SALES (PRE-SALES) SERVICES/CONSULTING A customized club launch and presale ▶ ▶MEMBER RETENTION AND LOYALTY marketing plan for your location and Members can download our free app – compatible plan implementation assistance with iPhones®, iPads®, Smartphones and tablets – offering a customizable workout ▶ ▶O WNER/MANAGER SUPPORT AND TRAINING log and nutrition diary along with the ability Regular manager meetings and training, Grand to order smoothies during a workout and Opening assistance, internet, security/safety schedule personal training appointments procedures, field operations/evaluations, connecting each member to your gym 24/7 purchasing cooperatives and more
FRANCHISE AT A GLANCE ▶▶ Founded in 2005; Franchising since 2006 ▶▶ Advertising Fee: 2% ▶▶ Total Operating Units: 140 and growing ▶▶ Available Territories: All 50 States ▶▶ Multi-Unit Franchisee Operating Units: 55% ▶▶ Minimum of $300,000 non-borrowed ▶▶ Average Unit Size: 12,000 - 20,000 sq. ft. liquidity ▶▶ Total Project Cost: $944,250 to $1,592,500 ▶▶ Net worth of $1.5MM ▶▶ Franchise Fee: $69,000 ▶▶ Requirements can be cumulative amongst ▶▶ Royalty Fee: 5% partners ALL THE RIGHT ANSWERS ▶ ▶DO YOU HAVE AN EARNINGS CLAIM? ▶ ▶DO YOU OFFER TRAINING? Yes, please find our full Item 19 Yes, we provide training for opening and document at OwnARetro.com. ongoing operation of your Retro Fitness club. It begins with eight days of training at our ▶ ▶W HAT BUILD OUT OPTIONS EXIST corporate headquarters, followed by another FOR A RETRO FITNESS LOCATION? eight days of training at your location. Then The model is highly transferable to we stay connected through regular training of various venues to include inline and your management and staff. free-standing buildings in retail, residential and industrial areas. ▶ ▶D O I NEED TO HAVE PRIOR EXPERIENCE IN THE GYM OR FITNESS INDUSTRY? ▶ ▶H OW MUCH DOES IT COST TO OPEN No. In fact, many of our franchisees come A RETRO FITNESS FRANCHISE? from diverse industries and backgrounds The total project cost of a Retro Fitness with little to no previous industry experience. club varies from $944,250 to $1,592,500 We will help you hire and train a qualified, depending on the size of the space. knowledgeable team of fitness professionals to best manage club operations. ▶ ▶D OES RETRO FITNESS ASSIST IN THE DESIGN AND EQUIPPING OF MY GYM? ▶ ▶HOW MUCH MONEY CAN I MAKE? Yes, Retro Fitness has a “Design Standards Profitability will vary considerably Manual” sample floor plan designs and depending upon such factors as: location, architectural resources to assist in keeping operating costs, financing terms, your the consistency of the Retro Fitness brand ability to manage and control the business, the same throughout the franchise system. sales and other factors. We do not predict In addition, Retro Fitness has a standard sales or profits for any new locations. We equipment package from the industry’s encourage you to discuss this with existing leading manufacturers with substantial franchisees and your personal advisors. discounts to ensure the member experience is similar across all Retro clubs. ▶ ▶W ILL RETRO HELP WITH THE FINANCING PROCESS FOR OPENING A FRANCHISE? ▶ ▶W HAT IS THE AVAILABILITY OF A RETRO Yes, our dedicated financial broker will FITNESS LOCATION IN MY AREA? work with you in reviewing your finances to Retro Fitness locations are available in determine the best products and services all 50 states. The availability of territories available for financing your Retro Fitness will be discussed in full detail prior franchise through a network of lenders. to signing a franchise agreement.
RETRO FITNESS 43 COUNTY ROAD 537 W COLTS NECK, NJ 07722 732-431-0062 RETROFITNESS .COM This is not an offer to sell a franchise. Offerings made by prospectus only. ©2019 Retro Fitness, LLC. All rights reserved.
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