My Gym Franchise Cost & Fees
Date of Incorporation: 1983
Franchising Since: 1995
Headquarters: Sherman Oaks, California
Business Description: The franchisor is Gym Consulting, LLC, d/b/a My Gym Enterprises. The franchisee will establish, develop and operate a center in a building (a Fixed Center) and/or a business providing services and products to places like schools and day care centers (a Mobile Business), which emphasizes children’s physical education by teaching pre-gymnastics, tumbling, fine and gross motor skills, sports skills, group interactive activities (including games and relays) and stretching, in a bright and cheery atmosphere using a warm and caring staff.
Franchise Offer: The franchisors offer to enter into Franchise Agreements with qualified corporations and persons that wish to establish and operate My Gym Businesses.
Financial Assistance: The franchisor does not offer direct or indirect financing and does not guarantee franchisees’ notes, leases or other obligations.
Training and Assistance: If franchisees operate a Fixed Center, the franchisor will furnish to franchisees (or the Managing Owner) and the Center Manager a pre-formal training program and a formal training program. Franchisees (or the Managing Owner) and their Center Manager must successfully complete, to the franchisor’s satisfaction, a pre-formal training program and a formal training program. If franchisees operate a Mobile Business, the franchisor will furnish to franchisees (or the Managing Owner) and the Center Manager a formal training program, and it may, in its discretion, provide franchisees (or the Managing Owner) and the Center Manager a pre-formal training program. Franchisees (or the Managing Owner) and their Center Manager must successfully complete, to the franchisor’s satisfaction, a formal training program. The pre-formal training program lasts approximately 7 days, and the formal training program lasts approximately 19 days. The franchisor offers its formal training programs mainly at its Encino, Pasadena, Valencia, Toluca Lake and Huntington Beach My Gym Business locations. The pre-formal training may be located at any of those locations or the franchisor may offer it at an existing My Gym Business near the franchisee. Franchisees (or the Managing Owner) and the Center Manager will attend additional and/or refresher training programs conducted at their My Gym Business or other location(s) specified by the franchisor which it designates as mandatory, including national and regional conferences, conventions and meetings, and their other employees may be required to attend mandatory training programs presented by the franchisor at their Center.
Territory: Franchisees will operate their Fixed Center within an exclusive “Territory.” The Territory will typically be a circle with its center at the front door of the Fixed Center. Franchisees will be permitted to operate a Mobile Business within the exclusive “Territory” described in the Franchise Agreement. Mobile Business franchisees can only offer and sell Services and Products to the Institutional Facilities (and the customers located therein) that are located within the Territory. The franchisor intends to provide franchisees with a Territory that will include a minimum of 7,500 children of thirteen years old or younger (as determined using data from the U.S. Census Bureau), which typically will be a circle with a radius of 1-7 miles. The radius of the Territory will be smaller in urban centers, where there may be a high concentration of residential and working populations.
Term of Agreement and Renewal: The length of the initial franchise term is 12 years. If franchisees have complied with all agreements, they may renew for another 12-year term.
Obligations and Restrictions: Franchisees (or a Center Manager) must devote full time, energy, and best efforts to the management of the My Gym Business. The franchisor has the right to approve the Center Manager, who must also be successfully trained in accordance with the training program. Franchisees may sell and provide only products and services that conform to the franchisor’s standards and specifications. Franchisees may only sell products to end-users and other entities that do not resell the products. Franchisees may offer and sell products only face-to-face to customers. Franchisees may not sell products by use of other means, such as the Internet, catalog, direct mail, and toll-free numbers.
Estimated Number of Units: 385
|Name of Fee||Low||High|
|Initial Franchise Fee||$55,000||$55,000|
|Apparel and Promotional Items||$7,200||$7,200|
|Advertising and Promotion||$8,500||$12,000|
|Travel and Living Expenses While Training||$0||$5,500|
|Real Estate and Improvements||$20,000||$50,000|
|Computer Hardware and Software||$4,500||$5,500|
|Additional Funds (first 3 months)||$25,000||$50,000|
|Name of Fee||Low||High|
|Initial Franchise Fee||$25,000||$25,000|
|Apparel and Promotional Items||$500||$750|
|Computer Hardware and Software||$2,500||$4,500|
|Additional Funds (first 3 months)||$3,000||$9,000|
|Type of Fee||Amount|
|Royalty Fees||Fixed Center: 7% of Gross Volume.
Mobile Business: $125/month to $250/month; or 7% of Gross Volume.
|Transfer Fee||Fixed Center: $15,000
Mobile Business: $7,500
|Website Hosting Fee||An amount as the franchisor’s specifies; currently, $250 per year.|
|Marketing Fund||Up to 1% of Gross Volume.|
|Regional Ad Fund||Not presently charged.|
|Music Licensing Fee||As required by the music licensor; currently $500 per year.|
|Enterprise Software (MGM 3.0) Monthly Fee||Currently $75/month.|
|Minimum Purchase Requirements||Fixed Center: $8,000 per year;
Mobile Business: $4,000 per year.
|Late Fees and Interest on Overdue Payments||$25 late fee, plus interest of 18% per annum.|
|Audit Expenses||Cost of audit.|
|Additional Assistance and Guidance||$150/person per day plus expenses of the representative.|
|Optional Training||Reasonable fee; currently $1,000 per person.|
|Web-Based Employee Training||Not presently charged.|
|Supplier Testing||Will vary under circumstances.|
|Securities Offering Fee||$5,000 or the franchisor’s actual expenses, whichever is greater.|
|Indemnification||Will vary under circumstances.|
|Costs and Attorneys’ Fees||Will vary under circumstances.|
The above information has been taken from the FDD of My Gym. Year of FDD: 2016
Franchise Direct's Disclaimer
You may be interested in the following franchises...