WE GET YOU. A Franchise Opportunity
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1 . A Franchise Opportunity
2 In a world where what you see is not always what you get there s one business opportunity that delivers on its promise. Retro Fitness. It comes down to quality. Quality in the brand, the facility, the support, the corporate team, the training, the ongoing operational assistance. But what tells the story better than anything is the quality of our franchise owners. Smart, savvy and successful, they recognized a great opportunity. They jumped on it. And now they are enjoying the results. At Retro Fitness, our message to current and prospective members is: We Get You. That s also our message to you. We Get You because we understand the need to balance quality of life with quality of investment. Please read on to learn more about how at Retro Fitness We Get You. WE GET YOU FISCALLY FIT Retro Fitness is a rapidly growing franchise model within the fitness industry that provides a high return on investment thanks to strong-unit economics and streamlined operations. The combination of state-of-the-art gym facilities that feature pieces of cardio equipment with personal LCD television screens, three different types of circuit training equipment and the Retro Movie Theater make Retro Fitness more than just your average gym. The low monthly membership of $19.99 a month attracts potential members, while the expertly designed layout of each club appeals to investors by utilizing space and resources efficiently, so that owners are not paying for space and utilities that go unused. Along with the strategic membership price, Retro Fitness retains members through additional offerings, which provide owners with multiple revenue streams maximizing bottom line returns. Tanning Group Fitness Personal Training State of the art Equipment Retro Blends Juice Bar Pro Shop All Clubs Access Child Sitting Retro Theater Leverage The Growth of the Fitness Industry
3 When I started Retro Fitness in 2005, my philosophy was simple: deliver more fitness for less money, by providing an exciting and inviting environment for exercising, fitting to any fitness enthusiast s budget. Eric Casaburi Retro Fitness Founder & CEO WE GET YOU A BUSINESS MODEL THAT FITS YOU Only 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, with the ongoing assistance of Retro Fitness corporate. Our current franchise owners come from diverse industries and backgrounds. But they have one thing in common: they were looking for an outstanding investment opportunity that would benefit themselves and their families. And they were looking for that balance between lifestyle and business investment. And they found it. We look forward to showing you how Retro Fitness delivers the perfect fit. Megan Sweitzer Now that I have a successful gym open and a second on the way, I tell people interested in opening a Retro Fitness that this model is strong. When I was in their shoes, my research proved to me that this model works so why try to reinvent the wheel? If you work with Retro corporate, you will be successful. They ve been successful at other locations, so that s exactly what I ve done to achieve success. Warren De Stefano I knew nothing about the gym business when analyzing the Retro Fitness business model. What was great for me was that Retro Fitness actually held my hand step-bystep throughout the entire process including real estate, construction, operations and everything in between. They teach you everything you need to know to open and operate the business and coming from the newspaper industry, I needed that support. Holli Gagliardi Our return on investment as a Retro Fitness owner has been strong and profitable. One of the main reasons for that is the multiple profit centers existing in our club above and beyond our membership base like Retro Blends juice bar, personal training, supplements, tanning and child care. It s great to know that we have revenue coming in from other areas of the club that allow us to maximize returns. AS SEEN ON Watch the full episode at cbs.com/shows/undercover_boss Joseph Zito The best part of being a Retro Fitness owner, I don t spend a lot of time in my business. I m an owner who has spent approximately 12 hours at my business over the past three years! Retro Fitness to me is also a beautiful thing because it s my retirement plan, it s my pension plan, it s my life insurance plan...it s something I don t stress over. It s something that I monitor from my cell phone. It s something that is very easy to run with the tools that they give us and it s an amazing part of my life.
4 POWERFUL PERFORMANCE Retro Fitness puts you in the right space at the right time. Even during times of economic challenges, the fitness center industry remains strong. In fact, U.S. health club industry revenues for 2012 totaled $21.8 billion. And industry analysts predict a steady growth in the demand for health, wellness and fitness among all demographic groups from Millennials to Baby Boomers. Retro Fitness offers you an incredible opportunity to leverage the potential of the fitness industry and is currently on track to grow to 700+ locations by Retro Fitness franchise at a glance History: Founded in 2005; Franchising since 2006 Total Operating Units: 140 and growing Multi-Unit Franchisee Operating Units: 55% Average Unit Size: 12,000-20,000 sq. ft. Total Project Cost: $781,350 to $1,572,250 Franchise Fee: $69,000 Royalty Fee: 5% Advertising Fee: 2% Earnings Claim: Yes; Full Item 19 available Build-Out Options: Inline and Free-Standing Available Territories: All 50 States QUALIFICATIONS Minimum of $300,000 non-borrowed liquidity Net worth of $1.5MM Requirements can be cumulative amongst partners WE GET YOU STRENGTH IN NUMBERS Hard Work Pays Off. 1) Top 10% of Retro Fitness clubs have average gross sales per unit of $ 2,3I0,030 ( The industry average in the US is $1.10MM) 2) Average EBITDA reported by Top 10% of Retro Fitness franchise owners is $ 798,350 3) The membership base at the average club is ( Top 50% report EBITDA of $490,955) 3,578 (Top 10% have over 6,600 members) 4) The Top 10% of Retro clubs have an average revenue per square foot of $ I60 (Top 50% report $116 per square foot) *Average gross sales, average EBITDA, average membership, and average revenue per square foot numbers are published in Item 19 of the Retro Fitness 2015 Franchise Disclosure Document. This is not an offer to sell a franchise. Offerings made by prospectus only Retro Fitness LLC. All rights reserved.
5 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. Pre and post opening support includes: Full Staff Training On-Site or at Retro University: Including top performer recruiting tactics, compensation structures, and elite Retro performance systems and procedures Interior/Exterior Design/Build-Out Services by Industry-Leading Architect and Suppliers: Flooring (rubber, custom/ specialty), lockers, mirrors and more from top manufacturers Custom Strength Training and Cardio Equipment from Top Manufacturers: Including pre-negotiated discounts and warranties Location Services: Detailed demographic profiles, nationwide real estate/lease/purchase negotiating Turn-Key Profit Centers: Juice Bar services with pre-negotiated discounts, proprietary Personal Training System designed for maximizing net profit and full line of exercise apparel and accessories with easy online ordering Computer System Equipment: Management software and billing and collection solutions through the largest company in the Industry Member Retention and Loyalty: Members can download our free app compatible with iphones, ipads, Smartphones and tablets offering a customizable workout log and nutrition diary along with the ability to order smoothies during a workout and schedule personal training appointments connecting each member to your gym 24/7 Direct Marketing Solutions: Including system which allows you to monitor how info request calls are being handled by your staff, via our call tracker recording, delivered right to your box Membership Sales (Pre-Sales) Services/Consulting: A customized club launch and presale marketing plan for your location and plan implementation assistance On-going Weekly Owner/Manager Support and Training: Regular manager meetings and training, Grand Opening assistance, internet, security/safety procedures, field operations/evaluations, purchasing cooperatives and more SCAN HERE TO GET YOUR RETRO APP
6 ALL OF THE RIGHT ANSWERS Q: What are the size requirements for a Retro Fitness Outlet? A: A typical Retro Fitness outlet is approximately 12,000 to 20,000 square feet and is determined based upon site availability in your preferred market. Q: Do you offer training? A: Yes, we provide training for opening and ongoing operation of your Retro Fitness club. It begins with eight days of training at our corporate headquarters, followed by another eight days of training at your location. Then we stay connected through regular training of your management and staff. Q: What is the availability of a Retro Fitness location in my area? A: Retro Fitness locations are available in all 50 states. The availability of territories will be discussed in full detail prior to signing a franchise agreement. We Get You...A Powerful Opportunity Q: How much money can I make? A: Profitability will vary considerably depending upon such factors as: location, operating costs, financing terms, your ability to manage and control the business, sales and other factors. We do not predict sales or profits for any new locations. We encourage you to discuss this with existing franchisees and your personal advisors. Q: Do I need to have prior experience in the gym or fitness industry to become a franchisee? A: No. In fact, many of our franchisees come from diverse industries and backgrounds with little to no previous industry experience. We will help you hire and train a qualified, knowledgeable team of fitness professionals to best manage club operations. Q: What is the estimated initial cash or liquid assets I will need to have? A: You will need minimum liquid assets of $300k and net worth of $1.5MM either individually or cumulatively amongst a group of investors to obtain necessary bank financing. Q: What are the ongoing royalty fees a franchisee must pay? A: 5% royalty from the franchised outlet s total gross revenue. Q: Will Retro Fitness help with the financing process for opening a Retro Fitness franchise? A: Yes, our dedicated financial broker will work with you in reviewing your finances to determine the best products and services available for financing your Retro Fitness franchise through a network of lenders. Q: Does Retro Fitness assist in the design and equipping of my gym? A: Yes, Retro Fitness has a Design Standards Manual, sample floor plan designs, and architectural resources to assist in keeping the consistency of the Retro Fitness brand the same throughout the franchise system. In addition, Retro Fitness has a standard equipment package from the industry s leading manufacturers with substantial discounts to ensure the member experience is similar across all Retro clubs. GO RETRO
7 SM Retro Fitness 43 County Road 537 W Colts Neck, NJ retrofitness.com This is not an offer to sell a franchise. Offerings made by prospectus only Retro Fitness, LLC. All rights reserved.
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