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• • • FRANCHISE NEWS STORY • • •

Date: 10/8/2009
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Muscle Beach® Increases Market Share By Undercutting Competition
FranchiseWorks.com |  Muscle Beach® Increases Market Share By Undercutting Competition

Muscle Beach®, the fitness brand based on the Santa Monica, California venue that launched the fitness movement, announced its pricing structure today for the legendary brand. Founder and Chairman, Daniel Tschirret, said that his company would undercut its competition by charging as little as $195 per month for a fitness club dealership. Recognized as The Birthplace of Fitness®, the brand is the flagship of Multinational Brands, Inc., located in Wilbraham, MA.

According to Tschirret, “We’ve set the bar at the lowest price point in history, at a level that our competition can’t touch. Nor can they provide as much bang for the buck as we can. When you consider that we don’t charge a whopping $50,000 franchise fee, a staggering 5% monthly royalty, or a shocking 2% monthly advertising fee, our brand falls well within the reach of even the smallest club or a modest investor.”

The company is quick to point out that their industry-low price point adds even more value to their premium brand. Tschirret went on to say, “At these prices, it no longer makes any financial sense to remain ordinary, independent, or married to another brand.”

A fierce competitor in the gym where he is known for doing whatever it takes to perform a lift, Tschirret applies the same mentality in business. He comments, “I’m willing to do whatever it takes, including outwork the competition, to make us world number one in fitness.” He further emphasizes, “With a conversion process that’s so simple, easy, and affordable, it’s not surprising that so many clubs are responding.”

When pressed for numbers and locations, Tschirret explained, “That’s something I just don’t discuss. It simply doesn’t serve any purpose other than to give our competitors a heads-up.” However, he did mention that reservations are coming in at a steady pace. “Even though a lot of clubs are still under contract, they want to make sure that when their time is up their area won’t already be taken by somebody else.”

It’s not surprising that in a volatile economy many owners are looking to sell their clubs. Tschirret lectures that, “Come sale time, a legendary brand is worth far more than an ordinary one. That’s why converting to a Muscle Beach® is the most cost effective way to dramatically increase the value of a club. All things equal, a Muscle Beach® will even carry a higher market value than a Gold’s Gym®. As The Birthplace Of Fitness®, we’ve got a stronger heritage and more historical significance than Gold’s does.” He cites the example of an independent club owner, who upped their asking price by $75,000 based on just strength of name. “Not a bad return for a $195 investment,” he added.

Tschirret comments, “Horizontal integration is the economic principle that allows us to sell far below our competition. Most fitness franchises are one-dimensional, one trick ponies, who generate their revenue from only one source, which is why their fees skyrocket to insane amounts. We’re just the opposite; we’re multidimensional and diversified to the extent that we’re able to generate revenue from a multitude of 29 different fitness businesses.”

Along with traditional fitness clubs, the company also offers businesses that include: seniors’ fitness centers, kids’ fitness centers, gymnastics facilities, tanning salons, massage studios, sports beverage bars, sandwich shops, sports nutrition centers, and fitness equipment stores. Tschirret adds, “Pure and simple, our diversified structure is what allows us to charge substantially lower fees. We’re able to spread our costs over a much greater surface than the franchisor with only one method of operation.”

Another reason for their lower fees is that Multinational Brands, Inc., develops their brands internally, rather than purchasing them through expensive acquisitions. According to Tschirret, “We’ll never purchase an ordinary brand at an overinflated price. Why foolishly invest tens of millions of dollars to acquire a brand that lost its value long ago, only to have to pass the cost on through incredibly high fees?”

About Muscle Beach®
Muscle Beach®, the flagship brand of Multinational Brands, Inc., is based on the legendary venue that served as the foundational launch point for the multibillion dollar fitness industry. It’s where fitness legends Harold Zinkin, Jack LaLanne, Joe Gold, Steve Reeves, Joe Weider, and many others, got their start. Its long legacy, deep lineage, storied history, and legendary reputation, have earned it unprecedented recognition, respect, and prestige. The brand was founded by Daniel Tschirret, BSBA, MBA, a 40 year fitness industry veteran, who is currently building it into the most globally dominant fitness club chain of all time.

If you would like more information about owning a Muscle Beach® fitness club, go to www.franchiseworks.com

About www.FranchiseWorks.com 
FranchiseWorks.com was established in 1999 with the goal of providing qualified prospective entrepreneurs with the right franchise or business opportunity that meets his or her needs. We showcase hundreds of franchise and business opportunities in a variety of industries including new start-ups to established companies. www.FranchiseWorks.com also has information on franchise financing sources, franchise and business opportunity trade show schedules along with the latest franchise news.