Golds Gym
Golds Gym offers branded health clubs where you can operate a fitness facility with comprehensive equipment and programs. Known for its extensive workout options and studio programs, Golds Gym operates in the competitive health and wellness industry.
About Golds Gym
Gold's Gym International, Inc. is an American chain of international co-ed fitness centers originally started by Joe Gold in Venice Beach, California. Each gym offers a variety of cardio and strength training equipment as well as group exercise programs. Gold's Gym's has its headquarters in Dallas and is now owned by RSG Group.
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Golds Gym franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a Gold's Gym Facility ranges from $2,356,000 to $5,162,000. This includes costs such as real estate and construction, inventory, equipment, and other supplies [p.1, p.21].
What is the initial franchise fee?
The initial franchise fee varies based on different scenarios. For a new Gold's Gym Facility, it is $40,000 unless you qualify for a Veteran Discount, in which case it is $32,000 [p.12]. If renewing an existing facility, the fee is as per the current franchise agreement [p.20]. This fee is fully earned upon signing and is not refundable under any circumstances [p.86].
What are the ongoing royalty and advertising fees?
The franchisee must pay a monthly royalty of at least $2,000 or 5% of the Facility's Gross Revenue, whichever is greater [p.86]. Additionally, franchisees contribute to various advertising funds on a monthly basis as required by their franchise agreements [p.191], although specific amounts are not detailed in these excerpts.
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts. The provided FDD excerpts do not detail the length of the initial franchise agreement or the renewal process beyond mentioning that a renewal fee applies for existing facilities under expiring agreements [p.12].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, a franchisor can refuse to permit a transfer of ownership of a franchise except for good cause [p.52]. Good cause includes but is not limited to specific conditions, and the franchisor also has a right of first refusal to purchase the franchise [p.105]. This means you cannot sell or transfer your franchise without the franchisor's prior written approval and satisfaction of applicable conditions [p.105].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on any legal grounds available by law, as stated in [p.212] and [p.224]. Additionally, termination is permitted under specific provisions of the General Business Law of the State of New York, as mentioned in [p.224].
What financial requirements — net worth and liquid capital — do I need to qualify?
Based on the provided excerpts, there is no specific mention of minimum net worth or liquid capital requirements for qualifying as a franchisee. The FDD does emphasize maintaining sufficient working capital reserves [p.79], but it does not specify exact amounts or conditions related to net worth. Therefore, this isn't specified in the excerpts.
Do I get an exclusive or protected territory?
You do not receive an exclusive territory but are provided with a protected territory [p.45]. The size and definition of this territory can vary based on factors like demographics and the character of the site, ranging from as small as one-eighth of a mile in densely populated areas to up to 3 miles in rural areas [p.42].
What training and ongoing support does the franchisor provide?
The franchisor provides various training courses and programs to franchisees and their personnel on a periodic basis at times and locations designated by the company. These trainings are mandatory for newly hired managers and previously trained employees. Additionally, annual conventions must be attended by the franchisee or one of its owners, with fees currently set at $500 per person but subject to increase based on certain criteria. The franchisor may also authorize third parties to provide some of these training services. [p.42, p.84]
How many franchised outlets are there, and how many have closed or been terminated?
The FDD does not provide a specific number of franchised outlets. However, it indicates that since the end of the most recent fiscal year, three franchisees have ceased operations or been terminated: two in Florida and one each in North Carolina and New Jersey [p.63, p.65].
Does the franchisor share any financial performance or earnings information?
The franchisor may provide financial performance information for its outlets if there is a reasonable basis for it and it is included in the disclosure document [p.58]. However, other than the average Gross Revenue of existing facilities reported in Item 19, no specific financial performance or earnings projections are shared with potential franchisees [p.61]. This isn't specified in the excerpts for all scenarios, but such information can only be provided under certain conditions as outlined in the FDD.
What am I restricted to selling, and where must I buy supplies?
You are not specifically restricted to selling any particular items, but you may be prohibited from operating a similar business during the term of the franchise. As for buying supplies, you must acquire certain items from suppliers designated or approved by the franchisor, such as the Gym Management System and related services, Gold's Gym® branded products, site selection and lease negotiation services, Operating Assets, and other required equipment and services [p.24].