Hottest New Franchises
2015
Crunch is a gym that believes in making serious exercise fun by fusing fitness and entertainment and holding true to a philosophy of No Judgments. Headquartered in New York City, and co-owned by New Evolution Ventures (NeV) and private-equity firm Angelo Gordon, Crunch serves over 400,000 members with both corporately owned and franchised locations (Crunch Essential) in cities throughout the U.S. and in Australia. Crunch continues to expand across the U.S. and around the globe. In particular, the Crunch Essential model represents an incredible opportunity for those interested in owning their own business where the potential rewards are immeasurable.
| Year | Franchised | Change | Company-Owned | Change | Total | Change |
|---|---|---|---|---|---|---|
| 2013 | 29 | 107.14% | 15 | 15.38% | 44 | 62.96% |
| 2012 | 14 | 366.67% | 13 | 85.71% | 27 | 170.0% |
| 2011 | 3 | -- | 7 | -- | 10 | -- |
Investment Required
The initial franchise fee for a Crunch franchise is $25,000. Crunch provides the following range of investments required to open your initial franchise. The range assumes that all items are paid for in cash. To the extent that you choose to finance any of these expense items, your front-end investment could be substantially reduced.
| Item | Established Low Range | Established High Range |
|---|---|---|
| Initial Franchise Fee | $25,000 | $25,000 |
| Training Expenses | $1,000 | $5,000 |
| Lease Deposits | $5,000 | $20,000 |
| Leasehold Improvements | $150,000 | $800,000 |
| Construction Consulting Fee | $1,500 | $1,500 |
| Deposits/Lease and Other Down Payments for Fitness Equipment, Fixtures, Other Fixed Assets | $35,000 | $185,000 |
| Opening Inventory | $1,000 | $5,000 |
| Site Selection Travel Expenses | $500 | $3,000 |
| Security Deposits, Utility Deposits, Business Licenses, Bonding (if required), and Pre-paid Expenses | $3,000 | $20,000 |
| Professional Fees | $5,000 | $25,000 |
| Signs | $7,500 | $25,000 |
| Office Equipment, Computer System, Furniture Graphics Package and Supplies | $25,000 | $35,000 |
| Initial Advertising | $15,000 | $30,000 |
| Insurance | $5,000 | $16,000 |
| Additional Funds (3 months) | $25,000 | $200,000 |
| Total Investment | $304,500 | $1,395,500 |
Ongoing Expenses
Crunch franchisees pay a royalty fee of 3.5% of monthly gross sales and a marketing fund contribution fee of up to 2% of monthly gross sales. Additional expenses include a performance fee, additional training fees, and a monthly local advertising expenditure, among others.
What You Get: Training and Support
The Crunch initial training program consists of two days of classroom training and up to eight days of in-club site training at a location designated by the company, as well as seven days of video and web-based training. The manager and one other individual are required to complete the initial training. The classroom portion of the training program takes place in New York, NY, and includes webinar and video sessions. During the training, franchisees will be instructed in many diverse aspects of business operation, including real estate, service, sales and marketing, personal training, grand opening, finance, and construction. Crunch may offer additional training or refresher courses once or twice yearly, as needed.
Territory
Crunch grants exclusive territories.
Note: The tables and information regarding the number of operating units, investment required, ongoing expenses, training and territory grants were taken from the company's 2014 FDD.
2014
Crunch is widely considered to be one of the most innovative and exciting brands in the fitness space. And the Crunch Franchise business represents the most progressive and competitive fitness model in the industry, one created by a management team that literally helped build the industry from the ground up. Crunch is one of the hottest fitness clubs, in one of the best industries there is. It's led by a world-class team of fitness professionals that have identified a sweet spot in the market that will give franchisees a competitive advantage. There are no judgments here. No too much or not enough. No glares of disapproval. Here we keep open minds. We are nurturers. We seek only to encourage, empower and entertain. There is no one type. There is no one reason. There is no one way. What we are is a diverse community; what we have is a culture of fun; what there is, is room for everyone: all kinds of people with all kinds of goals who've chosen to come reach them with us.
| Year | Franchised | Change | Company-Owned | Change | Total | Change |
|---|---|---|---|---|---|---|
| 2012 | 14 | 366.67% | 13 | 85.71% | 27 | 170.0% |
| 2011 | 3 | -- | 7 | 75.0% | 10 | 150.0% |
| 2010 | 0 | -- | 4 | -- | 4 | -- |
Investment Required
The initial franchise fee for a Crunch franchise is $25,000. Crunch provides the following range of investments required to open your initial franchise. The range assumes that all items are paid for in cash. To the extent that you choose to finance any of these expense items, your front-end investment could be substantially reduced.
| Item | Established Low Range | Established High Range |
|---|---|---|
| Initial Franchise Fee | $25,000 | $25,000 |
| Training Expenses | $1,000 | $5,000 |
| Lease Deposits | $5,000 | $20,000 |
| Leasehold Improvements | $150,000 | $800,000 |
| Construction Consulting Fee | $1,500 | $1,500 |
| Deposits/Lease and Other Down Payments for Fitness Equipment, Fixtures, Other Fixed Assets | $35,000 | $185,000 |
| Opening Inventory | $1,000 | $5,000 |
| Site Selection Travel Expenses | $500 | $3,000 |
| Security Deposits, Utility Deposits, Business Licenses, Bonding (if required) and Pre-paid Expenses | $3,000 | $20,000 |
| Professional Fees | $5,000 | $25,000 |
| Signs | $7,500 | $25,000 |
| Office Equipment, Computer System, Furniture Graphics Package and Supplies | $25,000 | $35,000 |
| Initial Advertising | $15,000 | $30,000 |
| Insurance | $5,000 | $16,000 |
| Additional Funds (3 months) | $25,000 | $200,000 |
| Total Investment | $304,500 | $1,395,500 |
Ongoing Expenses
Crunch franchisees pay a royalty fee of 3% of monthly gross sales and a marketing fund contribution fee of up to 2% of monthly gross sales, among others.
What You Get: Training and Support
The Crunch initial training program consists of two days of classroom training and up to five days of in-club site training at a location designated by the company. The manager and one other individual are required to complete the initial training. The classroom portion of the training program takes place in New York, NY, and includes webinar and video sessions. During the training, franchisees will be instructed in many diverse aspects of business operation, including real estate, service, sales and marketing, personal training, grand opening, finance, and construction.
Territory
Crunch grants exclusive territories.
Note: The tables and information regarding the number of operating units, investment required, ongoing expenses, training and territory grants were taken from the company's 2013 FDD.
