Fitness Heavyweights Sell New Idea

(Friday, January 02, 2004) - Next month, Linda Koogen and Susan Cruz are going to do what more than 4,000 entrepreneurs have done in the past few years.

They're opening up a fitness center tailored to women who don't exercise.

The two longtime friends are among the first franchise owners of Butterfly Life, a San Ramon venture backed and founded by fitness heavyweights Mark Mastrov, CEO of 24 Hour Fitness Worldwide Inc. - also in San Ramon - and Linda Evans Fitness Centers' CEO Mark Golob.

"We really like the concept. We really like the idea of being the first," said Cruz, who left a job in telecommunications sales after 25 years in the business, to start a Brentwood franchise with her friend, who was working as a personal trainer at Linda Evans Fitness Center.

"I really love that total woman idea," of focusing on psychology, diet and fashion, as opposed to simply offering fitness training, said Koogen, who put together an initial $29,500 investment with Cruz to start the venture.

If basing a business on getting inactive women off the couch and onto the circuit seems a little optimistic, think again. Curves International of Texas has opened more than 6,000 franchises worldwide since 1995. The business is quickly becoming the Starbucks of weight loss and fitness centers for women, with franchises proliferating in strip malls and neighborhood centers around the country and in the East Bay.

But Curves no longer is alone. Competitors such as Slender Lady Inc. of San Antonio, and Lady of America Corp. of Fort Lauderdale, Fla., are opening up similar franchises at a rapid clip. Between 2000 and 2002, the number of franchises opened by five companies in this market segment jumped 68 percent to 4,305, according to Frandata Corp., a Washington, D.C, firm that performs data analysis on the U.S. franchise industry.

Although Curves accounted for the bulk of that growth, other clubs' franchises also spiked. Lady of America, which runs Ladies Workout Express centers, grew 74 percent, and Slender Lady increased by 44 percent, according to Frandata.

What these centers are selling is both simple and, at least for now, compelling. By promoting no-frills neighborhood locations, short circuit-training sessions designed for women, and various weight-loss, fitness and beauty offerings, a new group of franchise operations is winning not only customers, but franchise owners.

"Definitely Curves for Women is doing gangbusters," said Brad Morick, a research data analyst at Frandata. But, he noted of the other similar franchise businesses, "They are all growing."

View all Butterfly Life Press Releases

This article has been read 858 times.

Printer Friendly