Gold’s Gym Franchising, LLC is the franchisor. The company offers to operate health clubs identified by the marks and use the franchise system. Gold’s Gym offers club members a full range of amenities, products and services.
All new franchisees must offer in their club following training, products and services cardio: training equipment, resistance training equipment, group fitness, personal training, locker room services, a kids’ club. New Gold’s Gym clubs must also have a “pro shop”.
Pro Shop sales of clothing, accessories, drinks, bars, supplements, nutritional products, and other items. For certain circumstances (if a facility will be located in certain large, urban locations, like Manhattan, New York), some of these requirements may be waived by the franchisor. New franchisees also may provide additional amenities, products and services currently approved by the franchisor (for example, cardio cinema, basketball, racquet and other courts, smoothie bars and juice bars). The franchisor also recommends that a swimming pool be installed in the new Gold's Gym premises.
The franchisor requires that franchisees and one other person designated by the franchisee, including the facility’s general manager must complete the initial training program. For those franchisees who are business entities, their managing owner (or designated manager approved by the franchisor) must complete the initial training program.
Additional training is required for those franchisees who participate in one or more optional Studio Programs. During the term of the Franchise Agreement, the franchisor may require franchisees and/or their employees to participate in additional training programs and courses at the time and location he will designate.
Personnel required to attend training may include both newly-hired managers and previously-trained and experienced employees. Also, the franchisor may require the franchisee to provide training for its personnel using formats and procedures that the franchisor will periodically define. Franchisees (or owners, or general managers) must participate in every annual convention for Gold’s Gym Facility operators that the franchisor may decide to organize.
Territory Granted: The franchisor must first accept a specific location where franchisees will operate their business. The franchisor itself will designate a “Site Selection Area” at the Franchise Agreement if franchisees have not found an eligible location at the time when they sign the Agreement. Generally, Site Selection Areas are identified by using city boundaries or as a circle with a radius of a specified distance from a specified intersection determined by the franchisor.
The franchisor doesn’t have a minimum size for a Site Selection Area. During the Franchise Agreement’s term, the franchisor or its affiliates will not operate or permit any other party to operate a Gold's Gym whose physical premises are located in (i) the Site Selection Area (until the franchisor designates the Territory) or (ii) the Territory (once the franchisor has designated the Territory), except as provided in the FDD, if the franchisees comply with the Franchise Agreement.
The Territory is defined as a circle with a radius of a certain distance from the main entrance to the facility, which is determined by the franchisor. This distance will be determined by the franchisor depending on factors it deems important, like demographics, the nature of the site, nearby businesses and homes. In a densely populated area, the minimum Territory may be as small as one-eighth of a mile and up to three miles in some rural areas.
Obligations and Restrictions: The franchisor recommends (but does not require) personal participation by franchisees or the managing owner in the direct operation of the Gold Gym facility on-premise. Franchisees must always retain and exercise direct management control over all aspects of the business, all amenities, and other products and services it offers.
The manager must
- devote its full-time and best efforts to daily operation on-premise,
- complete management training program,
- not be engaged in any other commercial activity other than passive investments that do not interfere with its duties as a manager.
All goods, products and services, that from time to time required by the franchisor, must be offered by the franchisee. It is forbidden for franchisees to offer, sell, provide or otherwise distribute at the Gold Gym facility any goods, products and services that are not approved by the franchisor in writing.
Term of Agreement and Renewal: The term of the agreement is 10 years. Franchisees can acquire one successor franchise following the form of the Franchise Agreement in force at that time, if franchisees and their guarantors fully complied with the Agreement throughout its duration. Then-current the Franchise Agreement, including on Territory and fees, may be materially different.
Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease, or other obligation.