Case Study : Planet Fitness And Snap Fitness

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Operations Operationally speaking, the two franchises operate in a very similar manner with some notable differences. Planet Fitness and Snap Fitness are both self-service facilities open 24 hours a day, 7 days a week. The support offered by each respective franchisor is essentially the same as it relates to training, marketing and advertising (see Table 2). Table 2: Franchise Operating & Support Comparison Planet Fitness Snap Fitness Absentee Ownership Not allowed Allowed Locations Owned 87% - more than 1 40% - more than 1 Facility Size (Average) 16,000 square feet 3,500 square feet Staffing (per location) 12 – 15 1 Training Headquarters / Onsite Headquarters Ongoing Support Newsletter Meetings Grand opening Internet Security/safety procedures Field operations/evaluations Purchasing cooperatives Lease Negotiation Meetings Toll-free phone line Grand opening Internet Security/safety procedures Field operations/evaluations Purchasing cooperatives Lease Negotiation Marketing Support: Co-op advertising National media Regional advertising Co-op advertising National media Regional advertising Ad slicks As it relates to noteworthy differences, Planet Fitness requires a facility nearly five times that of the average Snap Fitness club. Surprisingly, the average Planet Fitness club is sixteen thousand square feet as compared to Snap Fitness’s average of three thousand square feet. Although absentee ownership is allowed, typically 90% of current Snap franchises are

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