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itness Premier is a 20-year-old gym chain that has been successful in expanding its reach across the U.S. through strategic real estate scouting and community engagement. The brand focuses on smaller markets where traditional gyms often don't operate, allowing it to fully immerse itself in local culture and create a strong presence in communities that are receptive to this kind of engagement. This approach has been successful, as in the first half of 2024, the gym chain expanded its system footprint by 30% and signed deals for six new gyms in the Southeastern U.S.
Fitness Premier's success stems from a holistic approach to community building, which involves engaging both within the gym walls and beyond. The brand collaborates with local organizations such as youth sports teams, police and fire departments, and the military to establish itself as a vital part of the community fabric. The founder and CEO, Jason Markowicz, emphasizes the importance of being a good neighbor and offering a great product while supporting the local community.
From a financial perspective, Fitness Premier's focus on smaller markets offers several advantages. Real estate costs per square foot are lower in these markets, allowing the brand to avoid paying premium rents. The cost to market themselves in a small town is also less, as word spreads quickly when they do a good job. The company owns about half of the commercial real estate it operates in, further enhancing financial stability.
Fishers Real Estate, based in Texas, handles Fitness Premier's real estate scouting. They conduct a national search for suitable sites in communities with a population of more than 10,000 within a five-mile radius. These sites are then cross-referenced with factors such as age, education level, and income to ensure they meet the brand's criteria. Over the years, Fitness Premier has created a model that can be adjusted to fit the needs of each community.
Fitness Premier's approach to market selection not only creates wins for the overall business but also provides a protective environment for franchisees, helping them sustain their operations. The gym offers three membership tiers—basic, platinum, and a premium tier that includes Relax and Restore suites focused on recovery. They also provide small group training, personal training, nutrition coaching, boot camps, and sports performance programs, offering multiple revenue streams.
Looking ahead, Fitness Premier is poised for continued growth. The brand remains committed to entering new communities in alignment with its franchisees and maintaining a pace of growth that allows it to find and attract strong leadership that serves the communities it enters. At the end of the day, Fitness Premier is focused on being a good neighbor and getting as many people as possible off their couches and into the gym to get healthy.
