Premier gym chain Gold’s Gym has been featured among the top 100 brands in the Franchise 100 list – India’s Top Franchises for 2020 published by The Franchising World magazine. The close to two-decade old brand was one among the very few fitness brands that witnessed significant franchise growth in 2019 despite tough market conditions.
The company was able to add 18-20 centres and was on track to meet its year-on-year targets. Last year alone, the franchise network of Gold’s Gym stood at 150 centres, recording over 35% growth in its franchise outlets, from 111 franchise-owned outlets in 2017.
Nikhil Kakkar, COO, Gold’s Gym, says, “From 80 clubs across 45 cities a couple of years back, we now have 150 clubs across 95+ cities with over 1 million happy members as we keep growing.”
Outlining the reasons for growth, Kakkar says that their focus on smaller cities with its ‘Activ’ format worked for the brand. Designed for cities and towns with population of 2 lakhs or below, the model offers low capex investment and lower customer fees.
“Further, we have started a loyalty program with our aggregators. We have tied up with various sports leagues and have associations with more than 50 brands,” he adds. The brand strongly believes that the next level of growth will come from huge untapped potential in Tier II and III cities. The company plans to reach 200+ clubs in 125+ cities in the next 2-3 years with focus on ‘Regular’, ‘Express’ and the newly introduced ‘Activ’ formats.
Speaking about the format for smaller cities, Kakkar, says, “We had to design an Indian model for Tier IV towns. The paying capacity of these citizens has to be considered and in parallel the investor also has to be profitable after 2 years. In order to achieve this, the capex has to be controlled and the investment has to go down. Also, there won’t be same number of members as in any Metro city and we have to consider this. Another important aspect of this model has been that we are not charging exorbitant fees just because we are an international gym. If other local gyms are charging Rs 14,000-15,000 for annual membership, we are also charging the same but offering international services at lesser cost. As a result, there will be growth.”
Franchise 100
The Franchising World, India’s no.1 franchising magazine, identifies the Top-100 franchise brands and celebrates their achievements every year in its anniversary issue. The issue highlights the established and emerging Indian and global brands that are increasing their positioning in India along with the new-age brands that are lucrative and profitable, expanding fast and can act as a reference guide for budding entrepreneurs and investors across India.
Franchise 100 is the one-stop destination to know everything about the franchise industry and the leading brands, which investors and prospective franchisees can consider to start their entrepreneurship journey.
