The key ingredients of Snap Fitness’ recipe for growth

From little things, big things grow

Since then, the average Snap Fitness venue has more than doubled in size to between 600m² and 800m², accommodating the shifting needs of today’s gym customers. It has expanded its facilities and additional services like child-minding while providing a high-quality, localised experience.

Alongside franchisees, the brand has now rolled out 313 gyms across Australia and New Zealand. The franchise’s sustained growth has been driven by a deep understanding of local performance drivers and fine-tuning the value-add to franchisees.

For Snap Fitness, support starts well before the club opens and continues long after. The development team oversees site selection, looking for opportunities where competition is low and prospective customer volumes are high. The leasing team helps negotiate with landlords, and franchisees are piloted through licensing to set up for 24-hour operation.

“We’ve identified that clubs need to have a really strong start to be successful and that hinges on finding the right location,” says Snap Fitness National Development Manager Gabe Condello. “We’re there with franchisees at every step of that process.”

New Snap Fitness franchisee Andrew Tawadrous is preparing for the imminent launch of a new greenfield club in Sydney’s Blacktown, readily acknowledging the commitment and time involved to get everything ready.

“Being new to the business was daunting, so the support from Snap Fitness through every stage has been invaluable. Site location was tough – and it took time. Then there was dealing with council, the physical club design and now we’re planning our marketing and pre-sales campaigns. It’s a lot for someone with no experience,” Andrew says.

A dedicated pre-sale specialist helps each club open with specific member targets to achieve the all-important break-even point within months. There’s an online training portal, the Snap Academy, and a team of HR, marketing and operations staff on hand for franchisees.

Partnering for prosperity

Andrew has faced some challenges as he prepares for the launch. This included encountering delays and complications when securing finance, at which point he turned to Gabe and the Snap Fitness team for advice.

“One of the most stressful aspects of opening a business is securing the funding. I deal with all the banks and financial institutions, and I know how important clear and open communication is in this process,” Gabe says.

“As a franchisor, it helps that CommBank understands franchising – and our business model specifically – and has a solid grasp on commercial leasing. These are massive components in getting a club open,” Gabe says.

Andrew adds that “accessing finance meant I could earmark my savings for cashflow once the business opens. Having money set aside to cover things like leasing costs and staff once we’re operating has given me business confidence.”

When franchisees thrive, we thrive

It’s no coincidence that most Snap Fitness franchisees are multisite owners, as it’s something the franchisor actively advocates and encourages.

“That’s one reason we’ve worked so hard to streamline the club open process, so it’s just a matter of accessing additional funding and replicating the success. Many franchisees have opened a second site within 18 months of the first,” Gabe said.

It’s also something Andrew has set his sights on. “I don’t want to jump the gun, but I’m planning on being a multi-club owner, so I’ll be having that conversation with Gabe when this one is up and running,” he says.

When it comes to funding, Gabe has spotted a pattern among multisite franchisees. 

“Generally, you’ll see a franchisee borrowing from one bank for their first club, then shopping around for the next. What I’m seeing more often is CommBank borrowers staying put for their second or third – one franchisee is four years in and has just opened his 15th site – all with CommBank. That says more than I ever could,” he said.

Like many franchises, Snap Fitness is navigating tighter discretionary spending. In response, the brand has sharpened its focus on its local roots and connection to the community. It’s a strategy that’s working for Australia’s fastest-growing 24-hour gym chain, with around 20 new clubs due to open in the short term and plans for a further 200.

“When our franchisees thrive, we do,” said Gabe. “We know we’re doing something right. Our enquiries are up by 500% thanks to the entire team's efforts. That gives us a huge advantage and means we can select the right franchisees for our business, further setting us up for success,” he says.