Fitness master franchisee is just a step away

The group outdoor personal training concept Step into Life Australia was started in 1995 and franchising began in 2001. Photo / Supplied

The popular Step into Life outdoor personal training service, which had 138 operational franchise holders in five Australian states at the beginning of this year, is now seeking a master franchisee to roll out the business in New Zealand.

Laurel McCulloch, franchise broker with LINK Business Broking in Ellerslie, says the Step into Life service is different from the usual fitness industry businesses.

"Instead of going to the gym alone and having difficulty keeping motivated, this business focuses on including clients in group outdoor fitness sessions which makes it more fun and more social."

McCulloch says Step into Life has more than 400 individual sessions catering for all types of client requirements that programme franchisees can offer their members.

"Each member is assessed before starting a programme. Their heartbeats are checked each session and they receive regular reports on their progress."

McCulloch says Australian members enjoy the outdoor sessions and in very bad weather the classes are taken inside.

"In Australia where the business has been successful for 10 years there are many areas with similar weather conditions to New Zealand," she says, adding that the Australian territory is growing at the rate of 34 to 40 new franchise territories per year, not including resales.

"Due to the interest shown by prospective franchisees in New Zealand, a pilot franchise operation was launched here in Browns Bay in September 2008 and now the time is right to consider appointing a master franchisee for the country.

"The asking price for the Step into Life master franchise is $120,000 and the purchaser will need to be somebody with a good business background and understanding of the fitness industry but not necessarily a trained fitness instructor."

Step into Life Australia was founded by Larry and Mark Cohen in 1995 with the group outdoor personal training concept first operating from four company-owned suburban locations. Franchising began in 2001 based on a need to improve customer service via a franchise model that provided trainers with a vested interest in the training they were providing.

In 2004, with around 70 franchises in five states, the next level of management was required to provide support to franchisees at a state and local level so master franchises were sold in Victoria, New South Wales, Queensland, South Australia and Western Australia.

"The introduction of the master franchise structure had a dramatic and positive effect on support and sales, with average turnover and profits increasing substantially over the last financial year," McCulloch says.

She says the franchise concept, model and system has been proved on various different levels.

"The clients enjoy the service and there is a reported 90 per cent retention rate of clients measured three-monthly. The referral rate of clients is also very high."

McCulloch says the master franchisee offer for New Zealand provides an opportunity for suitable and highly skilled candidates to grow a proven business model through franchise sales and by providing support and training to the franchisees.

Support and training would be extended from Step into Life International to the master franchisee and then from the master franchisee to New Zealand franchise holders.

"The master franchisee would be in control and lead Step into Life New Zealand," McCulloch says. "The candidate or candidates must be prepared to develop a very good understanding of the Step into Life Franchise system and culture. It requires people with excellent communication, people and leadership skills at all levels. It also requires a business coaching mindset with patience to ensure the continued success and income stream of franchisees."

McCulloch says the successful applicant for master franchisee must attend an initial eight-day training programme at the Radisson Resort in Gold Coast, Queensland.

"The master franchisee will be provided with all the elements required to sell franchises in New Zealand, including presentation materials, franchise manuals and ongoing support from the Australian head office."