Snap Fitness Acquires Group Training Franchise

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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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