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Snap Fitness Acquires Group Training Franchise

Snap Fitness Acquires Group Training Franchise

Snap Fitness, Chanhassen, MN, recently acquired Kosama Complete Body Transformation, a group training program franchise, Snap Fitness announced. The purchase price was not disclosed.

“The fitness horizon is always introducing new crazes, and there is no doubt that 2012 will be even more embracing of group fitness sessions,” Peter Taunton, founder and CEO of Snap Fitness, said in a release from the company. “It’s a way for people to motivate their friends, and it’s a good way to work out that is cost efficient. We have quickly recognized the many advantages of such a workout and look forward to strengthening Kosama’s presence among the industry leaders.”

Kosama, which had been headquarterd in Des Moines, IA, offers a group exercise program that integrates muscle confusion, nutrition and consultation. New members pay $299 to $389 (depending on the market) for the initial eight-week Kosama program. At the end of the program, that member may join as an alumni and pay a standard $59 per month membership for unlimited participation in the classes.

The Kosama locations offer one type of class at various times each day. The type of class that is offered changes depending on the day of the week. Members can take as many classes as they like through the week. The equipment in each facility is more accessory oriented. The locations do not have the traditional large cardio and strength equipment of traditional health clubs.

The Kosama program comes with a money-back results guarantee. The parameters for the guarantee are that a member must attend class a minimum of three times per week for the full eight-week period. If at the end of that period the member is not satisfied with his or her results, the company will refund the full dues for that session, a company spokesperson says.

Founded in 2010, Kosama has grown to 19 locations in five states and plans to have 75 to 100 locations by the end of 2012. Kosama will maintain its current business model, according to Snap officials.

The Kosama and Snap Fitness franchise- and corporately-owned locations, which typically run 3,500 square feet to 5,000 square feet for both companies, will be owned and operated separately, according to Snap Fitness.

No reciprocal membership plans are in place, but Snap officials say that the two models might operate in the same area, allowing members to take advantage of both offerings under one membership umbrella. In fact, the company plans to allow franchisees to open Snap Fitness and Kosama clubs next to each other in the future.

Bob Kral, president of Kosama, will join the Snap Fitness senior management team and will continue to oversee the day-to-day operations of Kosama.

“I have complete confidence in the Snap Fitness management team and appreciate their commitment to the communities they serve,” Kral said in the release. “With Snap’s guidance, together we hope to grow the Kosama brand to an international level following in the footsteps of Snap’s success.”

The typical start-up cost for a Kosama franchise is $125,000 to $175,000, with $50,000 up front. Snap Fitness start-up costs range from $76,000 to $361,000, according to the company.

Kosama collects 6 percent of the franchisee’s monthly revenues as a franchise fee plus 2 percent for national marketing, according to Kosama’s website. Snap’s ongoing royalty and marketing fees are a set flat rate ($449 per month) rather than a percentage of the franchisee’s monthly revenues, according to Snap’s 2011 Franchise Disclosure Document.

That document also shows that Snap has an average membership rate of $39.99 per month. Typical membership fees are $34.95 for a single membership, $49.95 for a joint membership, and $69.95 for a family membership.

The Kosama purchase comes just a month after Snap Fitness began a partnership with the Pilot Flying J travel centers and Rolling Strong, a company that provides health and wellness services to trucking companies and their drivers. The partnership puts 960-square-foot modular fitness centers at Pilot Flying J travel centers for use by truckers and any Snap Fitness member who is on the road.

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