The franchisor is Snap Fitness, Inc. Snap Fitness club provides the members 24/7 access to the gym with innovative fitness technologies and high-class fitness equipment. Snap Fitness club also offers group fitness, personal training.
Before opening the general manager and one other employee must attend and complete initial training provided by the franchisor. The length of this training is 5 days and held in Snap Fitness headquarters in Chanhassen, Minnesota. Besides the on-site training program, the franchisor will provide complimentary onboard training throughout one-on-one phone calls and online conference calls.
From time to time, the franchisor may provide additional training. For attending that training franchisee may be charged a fee. The franchisor may also require the principal owner*, general manager, or other appointed employees to attend any form of presentation of new methods and programs for operation, training, management, sales, marketing, such as conference, meeting, convention, seminar.
*The principal owner has at least 25% interest in the franchisee entity.
Territory Granted: After signing the Franchise Agreement, franchisees will be able to choose a preliminary designated area. The preliminary designated area is a general geographic area where the club operates. Unless it could adversely affect the interests of another Snap Fitness franchisee, the franchisor typically approves the franchisee’s choice.
After the franchisee has acquired the area, the Franchise Agreement will be completed to represent the area (which will become the club's “authorized location”) and define a “designated area” around the authorized location. If the territory that the franchisees acquire is within a pre-designated area, their designated area will be substantially the same as their pre-designated area in terms of size, shape, demographic characteristics.
For urban areas, one urban block is the minimum designated area. The minimum designated area for suburban and rural areas may be up to three miles by car from the franchisee’s location. During the term of the Franchise Agreement, the franchisor and its affiliates will not develop, operate or grant anyone the right to develop or operate a Snap fitness club physically located in a designated area (exception for designated special areas).
Obligations and Restrictions: If the franchisee is an individual, he/she must devote their full time and best efforts to operating the club. If the franchisee is a legal entity it must be their general manager. The franchisor expects that franchisees will stay informed about organizational plans, initiatives, and direction.
For that purpose, the franchisee will send electronically or otherwise for regular review of communications by the franchisee. The club must be on-premises supervision by the franchisee or the general manager. The general manager must complete the training course.
All of the products, equipment, and services required by the franchisor from time to time must be offered by the franchisee at the club. Any unapproved products are forbidden to offer in the club. The premises can be used only for operating the club. If it is not forbidden by the law, clubs should be open 24 hours daily.
Term of Agreement and Renewal: The initial term of the franchise is 10 years. If requirements are met, the Agreement can be renewed for additional 10-year terms countless times.
Financial Assistance: Through a Preferred Lender Referral Agreement, the franchisor provides two financing programs. The New Club Finance Program suitable for new franchisees opening the first Snap Fitness club and existing Snap Fitness franchisees opening an additional club. The Re-Snap Finance Program is for modernizing existing Snap Fitness clubs.
New franchisees may attend this program if they acquired an existing Snap Fitness cub to renew, transfer, or require contractual modernization of the club. Sometimes the franchisor with third-party finance companies or banks may provide for franchisees. Except as described above, as of the date of this Disclosure, the franchisor does not offer direct or indirect funding, and the franchisor does not guarantee a franchisee’s note, lease, obligation.