Snap Fitness Australia has a big vision: at least 200 clubs and overseas expansion are in the five year plan. Right now Snap has six clubs, with 10 planned and 30 territories sold. Brisbane based Roz Barker is the Australia and New Zealand managing director and highly experienced in the industry with roles as varied as group fitness instructor, sales representative, and state management.

"I've been working in the industry for 20 years, selling full service memberships. In the last four years in clubs it's been harder to sell membership. People don't want to use all the facilities like the childcare and the group classes. Cardio and weights are the prime focus," she explains. "Snap is an easy sell, we have world class equipment."

This focus on the gym basics and day and night access is where the appeal of the 24/7 club lies. But with another US-based system and a home-grown offer competing for like-minded members, the fitness arena is a lively place to be.

"Jetts is probably our closest competitor, they have no contract membership and look similar to our clubs. Anytime Fitness runs 12 month membership, on a bigger scale. I think they're more like a full service club," believes Barker.

The all-hours access system at Snap is made affordable by the clubs being staffed for just 35 to 40 hours a week and no contract membership.

New members undertake a short induction about equipment operation and gym etiquette. "About 60 to 70 per cent of our members are experienced gym users who just want to get in and get started," says Barker.

The franchise system works well in regions and areas with lower demographics because it's so affordable, she adds. In a lower demographic a franchisee owner operator works better than a gym with a manager. But the ideal is a higher income membership base and no debt chasing.

A typical location for a Snap outlet is a high profile strip mall, with cafes, small convenience stores and a post office.

"Our most successful outlet is Milton, which is among 20 complementary businesses with parking and good signage. It's on a well lit, busy road, that's safe to use at night.

"When we look for sites, and we have a property manager who does this and organises the leases, we would not put a franchisee in a site we would not open a corporate club in. It has to tick all the boxes," advises Barker.

Competition is heating up in the home-base Brisbane area, says Barker, which has corporate stores in Carina and Strathpine, although the fitness chain is now in WA and NSW, with the Victorian market and Tasmania the next focus.

"We've got AFL and NRL high profile player interest in franchising and this will drive expansion through the southern states," reveals Barker.

"We're working towards 20 plus clubs opened and 40 sold by the end of the year, and 250 clubs across Australia and New Zealand operating within four years."

Snap aims to have 10 corporate clubs across the two countries in the next two years. Right now there is one corporate club in New Zealand and three franchises sold.

"The market is suffering more there but when finance approval comes through, the model can be more favourable because of costs. There are already 650 memberships at the club in New Zealand."

The franchise offer
Snap is in the process of accreditation with both NAB and Westpac. At the moment a financial partner, DLL, funds franchisee equipment purchases from Technogym, guaranteed by the US Snap business.

"These are definitely harder times than three or four years ago but we are still opening clubs. We work to help franchisees get broker funding."

For starters a current three pack purchase offer means franchisees pay $90,000 for three Snap gyms instead of $35,000 for each.

But what else differentiates Snap's franchise offer from the competition?

"The first big difference is we're a global company and we've got an aggressive plan. Secondly we have better equipment. And I've been in the business 20 years so we have operations experience in running health clubs.

"We screen franchisees and like to meet them as soon as possible. They have to take a keen interest in the business but a passion for health and fitness is not crucial," says Barker.

But building the business is essential and before franchisees undergo what is called the Snap University (a four day training process when franchisees learn about operations), they undertake pre-sales training.

"As franchisors we do the first newspaper ad, we're on a fitness club lead generator, we have the 1800 numbers and our website. We help them with the initial marketing plan," Barker explains.

Local promotions, flier drops, local paper ads, and sometimes radio campaigns are ongoing ways to promote local business. Franchisees are encouraged to build relationships with local businesses and communities.

The franchisor also helps recruit managers, and personal trainers recommended by a number of colleges; assistance extends to reviewing and retraining some trainers within the system. "We lend a hand where we can," says Barker.

"In the US every club has an account manager who ranks outlets according to performance. Once we have 10 clubs we'll get an account manager who is there to help.

"It's important to empower staff, especially franchise owners and give them plenty of room to grow, develop and expand their business. There's no big brother mentality at Snap Fitness," she says.