FITNESSONE IS INDIA’

INDIA’S MOST
SOPHISTICATED FITNESS CHAIN,
AND WE DELIVER TOTAL FITNESS SOLUTIONS.
Fitness Opportunity

Health & Fitness is a $ 20 billion industry in the US, serving 40 million clients.

IHRSA (Premier Health Club Industry Association) has projected 25% growth in
membership to reach 50 million by end of 2010

Nutrition & weight loss is a $44 billion industry in the US

National trends on obesity and heart disease point to increasing demand for
healthy living and exercise

Globally there is strong demand for branded fitness centers with international standards of
service

Today the Indian fitness industry is probably where US fitness industry was
in the early 1980s
Indian Market Scenario…
Current Market Size – Rs.2500 Crores ($ 450 million)

No of clubs in the India – 970 (Predominantly small time clubs)

No of members – 11,00,000 members

Membership Penetration – 0.30%

Year on Year Growth – 80%

Top Global Markets...
No. of
Size in USD
Country No. of Clubs Members in Penetration
Billion
Million
USA 16.0 29000 41.3 16.0 %
UK 6.3 5490 7.7 13.0 %
Germany 3.7 6054 7.1 8.5 %
Japan 3.5 2000 3.4 2.7 %
Spain 3.4 4500 5.9 14.8 %
Canada 1.6 4700 4.3 14.6 %
Holland 1.5 1800 2.5 15.5 %
Korea 1.0 1200 1.5 3.0 %
India 0.5 970 1.1 0.1%
Top Global Players…

2005 No. of members in

Company No. of Clubs
Revenue in USD Million
Fitness First 1.30 Billion 441 1.19
24 Hrs Fitness 1.10 Billion 375 3.01
Bally 1.03 Billion 437 3.30
Club Corp 1.00 Billion 167 1.90
Virgin Active 465 Million 115 0.65
Gold’s Gym 96 Million 622 3.05
Curves 146 Million 9471 4.21
Fitness One – an Intro

F-One modeled after careful research offers world class equipments & ambience
on par with international clubs.

F-One provides one of the highest level of service in the industry, where every
client gets individual attention from several departments

Fitness Training

Nutrition Department

Physiotherapist Department

Despite being a premium fitness center, it is value priced at Rs.19200 per annum (Rs.1600
per month) and no major player occupies this space in the same price band.
Excellent branding…

FitnessOne has designed specific products to cater to the Niche segments:

Weight Loss Management Program Called ‘TRIM’

Personal training

Offers variety of group classes: Aerobics, Yoga, Dance, Pilates, Martial

Arts, Kick boxing & Spinning, Salsa Dance, belly Dancing etc.’

Set-up Academy of Fitness Management, a division of Fitness One, for providing

knowledge based training for fitness trainers.

Strong branding to capture the mind share of prospects in the markets we serve.
FitnessOne - Company Background

Incorporated in 2004 as a Fitness & Wellness company in India

Within a short span, FitnessOne has set-up 25 centers, 4 fitness equipment showrooms and
over 70 corporate centers with a cumulative space of 1,50,000 Sq. feet (approx.)

Key Promoters Mr. PL Vivekanand & Mr. Arun Kathiresan :

Mr. Vivekanand, pilot by profession and lived in the US for 17 years. Associated with the
fitness industry for the last 7 – 10 years.

Mr. Arun, collectively over 18 years of experience in Indian Financial markets – primarily in
business analysis, investments, banking industry & administration.

Within a short span of time, FitnessOne has grown to be a name with instant recall on the South
Indian mind.
FitnessOne – Existing Network

No. of Clubs at present – 25

No. of equipments showroom at present – 4

2 more FitnessOne and 2 more Pink Centers in the Pipeline

Managing a total area of 1,50,000 Sq.ft

Current Member Base – Over 25,000 approx

Current Market Share – 10%

Target Audience – SEC A+ , SEC A

Over 70 centers in the Corporate Sector

10 Franchisee Operated centers as on date

Franchising Opportunity in India

India has one of the lowest penetration in the fitness industry @ 0.1% Vs 16% in the US

Indian market is likely to grow 25 fold in the next 5 years

Medium scale investments with shorter payback opportunity

Medium scale investments with better returns

Patronage for business even for B class / C class Cities

Franchise Model - Framework

Genuine owner franchisee model

Unique in the fitness industry

Suitable for entrepreneurs who wish to own a business with a

Proven business model

Less risk of failure

The franchisee has to merely follow a fully developed concept

Instant Brand recognition and positive association

Franchise Model - Framework

Franchisee manages day to day operations

All operational costs borne by the franchisee

Major costs include rent, salaries, utility expenses, royalty fee

All range of equipments sourced by FitnessOne

Working capital expenses

Franchisee takes entire profits from operations

Franchisee required to depute a responsible person to manage operations on a regular basis

Franchise Arrangement Tenure of 5 years & renewal option – Another 5 years

Franchise Model - Framework

When you are granted a FitnessOne Franchise, you will pay Rs.3 Lakhs to Rs.5 Lakhs based on the model
which entitles you to

Use of the Fitness One brand name and intellectual property

A primary marketing area (Isochrones)

Comprehensive training for you and your staff

A complete set of up-to-date operating manuals, processes and systems

Total support to co-ordinate your pre-opening marketing and membership drive.

Franchisee pays a one-time non-refundable franchise fee towards various benefits / services
offered by Fitnessone

Franchisee pays an ongoing royalty on a monthly basis

ROI in 2 – 3 years
Franchise Model – Key Benefits

Center Design Support

Center fit-out plan & design

Equipment Layout

Lower negotiated rate contracts with infrastructure suppliers

Sourcing of Equipments at attractive prices

Single delivery point for all items – as per requirement for a centre

Lower set-up cost – due to volume discounts through Fitnessone

FitnessOne Royalties….

A fixed royalty payable on a monthly basis will be calculated based on the model

Ongoing use of the Fitness One Name and Intellectual property

Recruitment & Training support

Systems & Marketing support

Price & Quality Benchmarking

F-One Franchise Model - Summary

Franchising F-One leverages a proven profitable business formula to obtain a greater degree
of brand awareness by utilizing an established name, logo & trademark.

F-One Marketing Assistance: This includes assistance in developing effective marketing plans
for a local market. In addition, F-One has resources and experience to develop regional and
National marketing programs that benefit all franchise owners.

F-One Start Up Assistance: F-One has the experience and knowledge to help new franchise
owners transition from a start-up to a profitable ongoing business.

F-One Management Assistance: F-One is able to transfer a wealth of knowledge on how to

successfully manage and operate a new business till you are able to handle.

Contd…
F-One Franchise Model - Summary

F-One Brand Name Recognition: F-One can offer National or regional brand name
recognition.

F-One Proven System & Business Model: F-One is able to transfer a proven and refined
system of operations. This includes operating and management efficiencies developed by F-
One. Uniform operational standards such as customer satisfaction and quality control,
benefit all franchise owners.

F-One believes in a Win-Win situation and helps you grow with the company, share our long
term commitment and together revolutionize the fitness industry in India.
FITNESS IS AN ATTITUDE

Do you see the opportunity ?

Do you appreciate that the expertise of an industry leader backing you,

translates into a tremendous advantage ?

Do you want to own and run multiple fitness centers ? How big is your dream ?

Do you have what it takes to hire the right people to manage and grow
each of your centers ?

Do you realize that F-One will carefully select just a few franchisees, who
we feel can be trusted to protect and nurture our brand reputation ?

Do you exercise regularly, and work towards personal fitness goals ?

Seize the opportunity to build and grow the business through
multi-center ownership

Partner with FitnessOne and profit from the booming fitness

industry

For more details contact

Yogendran.M 096000 03638 yogendran@fitnessone.co.in

 Street,
M/s.FitnessOne India Ltd., Corporate Office, No.31/A, Ponnappa S treet, Mandapam road,
Kilpauk garden road, Kilpauk, Chennai – 600 010

www.fitnessone.in