WORKOUT ANYTIME

## Executive Summary

Workout Anytime is a premium 24/7 fitness franchise operating over 200 locations across the United States with expansion into Central America. Founded in 1999 by fitness industry veterans, the brand offers a low-cost workout experience for consumers while targeting profitability for franchisees. With 73% of franchisees owning multiple units and significant leadership changes in 2025 including a new CEO and CMO, Workout Anytime is positioning for accelerated growth in the competitive fitness franchise space.

## The Business

Workout Anytime operates 24-hour fitness centers featuring cardio equipment, strength training, and group fitness amenities in a clean, well-lit environment. Founded by John Quattrocchi and Steve Strickland, both veterans of American Fitness and Bally Total Fitness, the concept emphasizes delivering first-class fitness experiences at accessible price points. The business model allows for semi-absentee ownership with many franchisees maintaining other careers while staffing qualified personnel for daily operations.

## The Numbers

**Investment Range:** - Total Initial Investment: $1,060,850 - $1,840,550 - Alternative estimate: $784,950 - $2,073,050

**Fees:** - Franchise Fee: $45,000 - Royalty Fee: 6-8% of gross sales (sources vary) - Marketing Fee: Variable

**Financial Requirements:** - Minimum Net Worth: $500,000 - Liquid Capital: $150,000 - $400,000 (sources vary)

**Performance Indicators:** - Average Unit Volume: $460,000 annually - Estimated Owner Earnings: $55,231 - $69,039 - Franchise Payback Period: 24-26 years (estimated) - Multi-Unit Ownership: 73% of franchisees

## System Health

**Unit Count:** 190-200+ locations across 22+ states (all franchised)

**Growth and Recognition:** - Franchise Times Top 400: Ranked 339 in 2024 (up 14 spots from prior year) - Top 200 Fastest-Growing Franchises designation - Expanding internationally into Central America - 50% of growth from existing franchisee expansion, 50% from new owners

**2024-2025 Milestones:** - Entered new markets: Arizona, Maryland, New Mexico - 2023: Nearly 30 franchise units signed, nearly 20 new locations opened - 2024 Goal: 50 new units sold, 25 clubs opened - 2025: 3 new franchise agreements, 8 leases finalized YTD

**Leadership Changes (2025):** - Jerry Pugh (largest franchisee) named CEO in Q2 2025 - Larry Brayman joined as CMO (30+ years experience from Gold Gym, Ray-Ban, LensCrafters)

## Franchisee Experience

**Training and Support:** - Two-week initial training at corporate headquarters - 200+ different training classes available throughout franchise lifecycle - Complete operational playbook provided - Marketing materials and ongoing development support - Dedicated support team from signing through operations - Training described as unparalleled and above and beyond amazing by corporate

**Ownership Model:** - Suitable for semi-absentee ownership - Many owners maintain full-time jobs with staffed operations - 60% of franchise partners are multi-unit franchisees

**Important Disclosure:** - FDD discloses lawsuits and/or bankruptcy information - Prospective franchisees encouraged to contact current owners for direct feedback

## Risk Assessment

**Potential Concerns:** - High investment ($1M+) for fitness segment - Long estimated payback period (24-26 years) - Fitness industry highly competitive with many established players - FDD litigation/bankruptcy disclosures require due diligence - Moderate estimated owner earnings relative to investment

**Risk Mitigators:** - 73% multi-unit ownership indicates franchisee confidence - New leadership brings extensive industry experience - 24/7 model provides competitive differentiation - Semi-absentee model reduces lifestyle disruption - 25+ year track record demonstrates concept viability - Comprehensive training infrastructure supports new owners

## Competitive Position

Workout Anytime competes in the budget/value fitness segment against Planet Fitness, Anytime Fitness, Crunch Fitness, and regional 24-hour gyms.

**Advantages:** - 24/7 access provides convenience differentiation - Premium positioning at accessible price points - Strong multi-unit ownership demonstrates unit economics - Semi-absentee model appeals to investors - New leadership team brings proven industry expertise

**Challenges:** - Planet Fitness dominates budget segment with massive scale - Anytime Fitness has larger 24-hour footprint - Investment higher than some competitors - Smaller system size limits brand awareness

## Validation Questions for Franchisees

1. What were your actual build-out costs compared to FDD estimates? 2. How long did it take to reach membership levels needed for break-even? 3. What is your actual member acquisition cost and retention rate? 4. How has the semi-absentee model worked for you in practice? 5. What is your experience with the training programs and ongoing support? 6. How do you compete with Planet Fitness and other budget gyms in your market? 7. What led you to open additional units (for multi-unit owners)?

## Data Gaps

- Specific Item 19 financial performance representations - Detailed member count averages per location - Breakdown of revenue streams (memberships vs personal training vs other) - Franchisee satisfaction survey data not publicly available - Specific nature of FDD-disclosed litigation - Detailed competitive market analysis by geography