How did you get into the fitness industry?
I started in the industry in 2003. I applied for a Field tech position with Life Fitness and recognized the market potential and need for services. Although larger brands like Life Fitness had in-house techs providing services to their customers, there weren’t really any independent fitness equipment repair companies that did this type of work. That was when I started AES Fitness and we went to market supporting all gyms, hotels, commercial and residential fitness centers. It’s been a fun ride and I look back and can’t believe that we’ve been able to build the company really just through hard work and lots of sweat!
What’s New in the AES Fitness Business or in the Franchise Model?
Our model has evolved with new equipment, new technology and the increasing number of fitness and gym facilities on the market. We’ve supported several large fitness franchise chains and when each new location opens, we are their approved vendor to provide services and be there for their franchisees. Through research and development, we are able to stay ahead of the market and be able to repair and service just about any equipment that customers have. We also have redefined and developed our lead generation and sales process to drive more customer traffic in more markets more consistently, which we believe is one of the keys in being able to replicate the success of the corporate business in new franchise markets.
Where do you See Opportunities or Challenges for the Franchise/Business Moving Forward?
I see opportunities in the growing big box gym model and also in the real estate world with the resort like buildings being built with the amenity of Fitness facilities. There is also big opportunity in the residential market, really no one in our industry is focusing on the residential market which is growing exponentially and people really need help maintaining and supporting their home gyms and home equipment.
What is your Goal for the AES Fitness Business Moving Forward?
My goal for the business is to expand and grow in different markets nationally as well as grow our corporate foot print on the East Coast. There is so much market out there and really such a big consumer demand for the fitness repair industry, we want to be the premium brand in the market segment and really drive the market growth and create brand awareness for the benefit of the overall brand, system and individual franchise partners.
Talk to us About Training and Support, How Do You Deliver?
Our training and support will be conducted both in the field and also at our location in our 3,000 square foot warehouse where we keep a full inventory of commercial fitness equipment and are able to train franchisees on repair techniques, services and processes in addition to the business operations and strategies. We have 52 hours of training at the corporate location and 34 hours of training at the franchisee’s location in the field. Ongoing, we will support franchisees with management, operations, marketing, financial management and all elements of operating the AES Fitness business model. We treat franchisees like our business partners and work closely with them to implement and execute every part of the business model.
Your most difficult moment at the Franchise Business for AES?
It’s a big transition to move the model into the franchise model and we have been working hard to structure, organize, define and build the franchise system. It’s one thing to run the business with corporate resources and staff, but another when we are working with third party business owners who are counting on us to give them the support, training, systems and resources needed to implement and execute the model.
Define your Franchise Model:
A. What is the Fee Structure? The initial Franchise Fee is $30,000 to open a market with AES and we have an ongoing Royalty Fee of 6% of Gross Sales. We do have a Brand Fund contribution of 1% of Gross Sales as well which we put towards the advertising and marketing of the overall brand to drive more traffic into the businesses and create awareness for the value proposition we have with AES.
B. What is the Territory Definition for AES? We have large market Territories and want Franchisees to have markets which are plenty big to drive the business to the level that all of our partners would like to. We do a minimum of 1,000,000 population for the Franchise Territory and do offer exclusive territories.
C. Day in the life of a Franchisee? We work closely with customers, it’s a combination of keeping solid customer relationships, driving to locations to provide repair services to clients and providing great customer service.
Who is the Ideal Franchise Candidate for AES?
A franchisee could essentially be anyone who is ready, willing to learn and enjoys working with people. You do not need to have a background in repair work or in the fitness market, we can teach all of the specifics when it comes to how you should operate, you just need to go execute and follow the franchise blueprint!
For more information on the AES Franchise System or to connect with Adam Schwalb, visit the AES Franchise Site: https://aesfitnessfranchise.com/