Corey Butcher believes if you can’t beat’em, join’em. At least that is the approach he took with his gym businesses reports Reuters.
Last year, Butcher brought all of his clubs under the umbrella of Gold’s Gym, a national franchise with some 520 U.S. locations.
“The problem was you’re fighting against the dollars of LA Fitness, 24 Hour Fitness and Bally’s,” said Butcher, 38, who prides himself on turning around underperforming clubs. “We needed some synergy in the corporation. Really the only way of doing that I felt was with a franchise.”
Butcher, who began managing health clubs at 23 and bought his first at the tender age of 26, first researched the idea of creating his own unified brand. After determining costs were prohibitive, he tossed his hat in the ring with Gold’s in March 2009, spending about $50,000 on franchise fees and another $250,000 on physical upgrades to meet the company’s requirements. It was a natural progression; he had already acquired one struggling Gold’s location in 2007; in addition, the company’s corporate offices were based in Dallas, making for easy access to corporate support.
In the 18 months since completing the conversion, Butcher said results have defied the economic downturn. At a time when many clubs around the country have suffered declining membership rolls, his business saw combined revenue rise 17.5 percent. He attributes it to strict protocol and the marketing power of a national brand.
“We felt very fortunate we did the conversion when we did,” Butcher said.
Photo by ~Twon~