How did you get into the industry?
I wanted to start a business which could be done around one’s schedule and personal priorities. Since I had a newborn baby, I made a list of things I could do in order to be there for her when she needed me. Bookkeeping/accounting was one idea which came to mind, and it turned out that finance can be very lucrative.
What’s New in the Business or in the Franchise Model?
Tax law is constantly changing, and therefore, the demands on a business owner are greater. A business can no longer tally up a bunch of write offs and call it a day. Bookkeeping and tax prep require knowledge and planning, and we work with each client’s CPA to ensure a smooth tax filing each year.
Where do you See Opportunities or Challenges for the Franchise/Business Moving Forward?
One challenge we see currently is being able to break through the noise of other very established franchise concepts, many of which are part of larger development companies with endless financial resources and brand power. The other challenge would be our ability to hold steady on our pricing structure as competitors enter the industry at rock bottom pricing that devalues the boutique fitness market. There are many opportunities in the fitness/franchise industry. One major opportunity is the ever-increasing attraction consumers have with boutique fitness. Many people want the feeling of an exclusive and intimate club where they can get to know the other members in their class. People are constantly searching for that sense of community and comradery in the gym. Level Red is just the place for them! Other opportunities are with franchising in general. Because the industry is becoming so competitive, many entrepreneurs or business people are not taking the chance on going at business along. Instead, they rely on the expertise and experiences gained by franchise companies who have demonstrated success.
What is your Goal for the Business Moving Forward?
Our franchise sales goals are to sell a minimum of 20 clubs per year and for each club to retain over 30% profit.
Talk to us About Training and Support, How Do You Deliver?
The best part about our training and support is that it never ends! The first part of our program consists of pre-recorded trainings as well as 1-2 weeks of classroom style training. After classroom training ends, our franchisees have access to our Franchisee Specialists, who work full time in order to answer questions and solve problems. Each industry has different quirks, so the first time a franchisee is working on books for a particular industry, they are going to need assistance.
How is your Franchise Model Structured?
A. Training and Support Model?
B. What is the Fee Structure?
Initial Franchise Fee: $45,000
Royalty Fee: Greater of $1,000 or 6%
B. Territory Definition?
For a multi-unit development agreement, the franchisee will be given a county surrounding the target location. For a single location, the franchisee in generally given a 10-mile initial radius to develop. After development, the exclusive territory would shrink to 5 miles. This may change depending on factors such as population or the territory.
D. Day in the life of a Franchisee?
Although out franchise owners are not required to work in the business, we do expect them to have a part in its success. Our franchisees should be active in communicating with their staff, setting sales and growth goals, reinforcing standards and quality at the club and keeping an open line of communication with LRB corporate. The franchise owner should have regular meetings with their managers to discuss seasonal trends, class attendance, staffing concerns or changes, marketing and promotions and goals. The Franchisees main purpose should be to maintain and enforce the systems, culture and philosophy of Level Red Boxing.
What does Your Franchisee Do in the Business Every Day?
Initially, train, sell, train, sell, sell, sell, train, sell. Then, constantly finding ways to delegate each piece of the business, little by little. An owner/operator needs to be confident delegating in order to grow.
Who is the Ideal Franchise Candidate?
- Management experience
- Market knowledge
- Passion for health and fitness
- Dedicated to changing lives and member experience
- Financially stable, steady income and not dependent on the success of LRB
- Searching for success and growth, not a hobby
- Interested in multi-unit development
Success Stories and Failures with Franchisees?
We have experienced many successes. The most notable and gratifying has been the way LRB constantly changes and improves the lives of our members. Through our Glove Graduation System, philosophy and extreme emphasis on member experience, we have gotten countless numbers of people to stick to fitness and actually succeed.
For more information on the Level Red Boxing Franchise brand, visit the website: