Franchise Feasibility Assessment

Pro-fit investment group |

FITNESS FRANCHISE FEASIBILITY REPORT |

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Leah L Hruska |

3/11/2010 |

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Table of Contents

Table of Contents ii

Executive Summary iii

Introduction 1

Franchise Costs vs. Growth 1

Scope 1

Analysis 1

SNAP Fitness 1

The Zoo Health Club 2

KoKo Fit Club 2

Conclusions and Recommendations 3

EXECUTIVE SUMMARY

This report analyzes the top three fitness franchises available for PRO-FIT Investment Group in the Lincoln, NE market and provides a solid purchase recommendation based on the groups’ predetermined investment criteria.

Fitness Market Analysis

Amid a recession, few markets continue to gain in financial strength; health and fitness not only continue to gain, they fall into one of America’s multi-billion dollar industries. Only three fitness franchises met the investment group’s financial criteria SNAP Fitness, The Zoo Health Clubs and KoKo Fitness.

Facility Overview

SNAP Fitness, while not in business the longest has been franchising the longest, since 2004. The midsize facilities are open 24/7 with multiple security and surveillance cameras. In 2009, SNAP Fitness received Entrepreneur Magazine’s award of #1 Fitness Franchise. SNAP Fitness projects $160,000 needed for working capital with a minimum net worth of $250,000.

The Zoo Health Clubs began their business during the 1970’s, however they just recently began to franchise their name and business model. The Zoo Health Club offers the same 24/7 convenience along with a larger facility offering a supervised children’s play area, however staffing would be increased. The Zoo Health Clubs projects $172,000 needed for working capital with a minimum net worth of $300,000.

KoKo Fit Clubs is a revolutionary new fitness center that merges the technology of today with proven fitness techniques. Customers insert their key into a multi-function piece of equipment, which displays their current workout, progress and goals. KoKo Fit...