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Running a CrossFit Facility Tips and guidance on how to open and operate a CrossFit gym.

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Old 01-18-2014, 10:00 AM   #1
Paul R. Gunawan
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$3000 annual affiliation fee???

I just have to say it is really becoming about business now not just about community anymore. I've been saving money to open my own box but now seeing $3000/year? Make me thing twice to be an affiliate.
I understand the benefit of being an affiliate, however, it's not worth the $3000/year.
With that said I will be opening something like crossfit and not affiliated would be the best way. I understand not using the word crossfit as a business name but you can still use certified crossfit on your business card.
Has anyone open their own box but not affiliated?
Thanks!
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Old 01-18-2014, 11:00 AM   #2
Kenny Markwardt
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Re: $3000 annual affiliation fee???

For all of the marketing and incredible things that CrossFit does, $3000 a year is a complete steal. If you charge $100 a month, you need less than 3 members to stay for a year to cover the cost. If you don't think you'd get 3 more members because you are "X CrossFit" than "X Strength and Conditioning", I think you're a little crazy.
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Old 01-18-2014, 11:01 AM   #3
Jeff Enge
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Re: $3000 annual affiliation fee???

Um, seriously? The affiliation fee has been around for quite awhile. Again as I said to somebody commenting the fee for the Open and Regionals - CFHQ is running a business, they wouldn't be around if they didn't make money. Pay it or don't pay it, that's part of what makes a free market economy.
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Old 01-18-2014, 11:10 AM   #4
Paul R. Gunawan
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Re: $3000 annual affiliation fee???

Maybe I should be more clear where I want to open it. If it is in the US yeah I can see the possibillity for opening the CF box. But for outside the US, where the currency play, it's going to be hard. Not to mention it is harder and more expensive to get some decents CF equipments.
They sould have a different affiliate fee according to where the box affiliation located.
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Old 01-18-2014, 11:39 AM   #5
Adam Morden
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Re: $3000 annual affiliation fee???

I've got to completely disagree - $3000 for the rights to use a name which has massive advertising and name recognition compared to XYZ strength and Conditioning, even if it didn't have the name recognition - $3000 is basically nothing in terms of opening a business. I have probably got at least 200 members over the past 5 years at my latest affiliate due to it being a CrossFit as opposed to just some gym that does CrossFit type stuff. If each person paid on average $100 (low) and only stayed for 10 months( again very low - just so math was easy), that's a total revenue gain of $200,000 for an outlay of $16,000 (1000 for the cert, 3k each for 5 years) Pretty damn good return on investment.

It comes down to are you opening a CF box as a business? - if so, $4000 to get going is really cheap. The barrier to entry on a CF affiliate is basically zero when compared to an average business start up. ( starting a basic affilaite can easily be done with 20K - I started my first with under 10k vs starting an average business, you're looking at at least $100K to get going.

If you're opening it just to hang out with your buddies - you're right no need for affiliation.
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Old 01-18-2014, 12:46 PM   #6
Koa Meador-Levy
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Re: $3000 annual affiliation fee???

Quote:
Originally Posted by Adam Morden View Post
I've got to completely disagree - $3000 for the rights to use a name which has massive advertising and name recognition compared to XYZ strength and Conditioning, even if it didn't have the name recognition - $3000 is basically nothing in terms of opening a business. I have probably got at least 200 members over the past 5 years at my latest affiliate due to it being a CrossFit as opposed to just some gym that does CrossFit type stuff. If each person paid on average $100 (low) and only stayed for 10 months( again very low - just so math was easy), that's a total revenue gain of $200,000 for an outlay of $16,000 (1000 for the cert, 3k each for 5 years) Pretty damn good return on investment.

It comes down to are you opening a CF box as a business? - if so, $4000 to get going is really cheap. The barrier to entry on a CF affiliate is basically zero when compared to an average business start up. ( starting a basic affilaite can easily be done with 20K - I started my first with under 10k vs starting an average business, you're looking at at least $100K to get going.

If you're opening it just to hang out with your buddies - you're right no need for affiliation.
I agree that if 3k makes or breaks your business strategy and finances with running a successful place then CrossFit isnt for you. However those places you so easily bad mouth the "XYZ strength" have been around long before crossfit has and when CF is long and gone and no longer as popular places like Westside, Mana Barbell, California Strength, Hardass Fitness, and the like will still be around. Those are the same places that produce those oly lifters like kendrick farris and lifters like louie simmons that crossfit loves to play "buddy" with
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Old 01-18-2014, 01:07 PM   #7
Kenny Markwardt
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Re: $3000 annual affiliation fee???

Was Adam was bad-mouthing anyone?

Something tells me that if the OP had name recognition or top athletes already, he wouldn't be posting this question in here.
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Old 01-18-2014, 01:19 PM   #8
Adam Morden
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Re: $3000 annual affiliation fee???

Quote:
Originally Posted by Koa Meador-Levy View Post
I agree that if 3k makes or breaks your business strategy and finances with running a successful place then CrossFit isnt for you. However those places you so easily bad mouth the "XYZ strength" have been around long before crossfit has and when CF is long and gone and no longer as popular places like Westside, Mana Barbell, California Strength, Hardass Fitness, and the like will still be around. Those are the same places that produce those oly lifters like kendrick farris and lifters like louie simmons that crossfit loves to play "buddy" with
OK Koa - I'm confused, who did I possibly badmouth??? All I said was that if he used CrossFit (as in XYZ CrossFit) he would get way more name recognition than he would if he went with "XYZ as in WHATEVER HE WANTS TO CALL HIS GYM" Strength and Conditioning. For only 3k that's a steal. I don't know, but I would be surprised if I could license a well known name like Westside for only 3k a year.

Also, I don't personally believe that affiliating is going to make his place any better or worse than it would be otherwise. That's the great thing, and sometimes super frustrating thing about CrossFit being a license/affiliate program vs a franchise. You can make your box as good or as crappy as you want and no one will tell you how to do it (OK lots of people will TELL you but no one can MAKE you)

So how what he names his gym/box/facility - whatever you want to call it - has any relation to the success, quality, or longevity of any other places that choose to associate or not to associate with CrossFit (because that doesn't make them good or bad on its own) I fail to understand?
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Old 01-18-2014, 01:43 PM   #9
Koa Meador-Levy
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Re: $3000 annual affiliation fee???

Sorry I shouldn't have used "bad mouth" but CrossFit affiliates I have seen will speak ill of "non affiliates" forgetting that many strength gyms produce far stronger and faster athletes then any CrossFit affiliate ever could. Many gyms like cal strength etc just have no interest in crap like burpees and wallballs. That is a huge reason not to be an affiliate. Also I have seen strength and conditioning gyms more open to guys wantng to run there own programming or a coaches programming on there own time. I get my programming from Rory Zambard. I am not in Bellevue WA anymore so I had to find a place to train. Most affiliates wont let you come and go and since I have no interest training with a class those other gyms are way more welcoming.
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Old 01-18-2014, 02:33 PM   #10
Paul R. Gunawan
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Re: $3000 annual affiliation fee???

Thank you guys for the input. I don't want to make this thread as a debat but simply your own opinion. Ok maybe a clean good point made debat
I love Crossfit, if not I won't even bother to post on the forum and speak my mind of. I've been training Crossfit for about 4 years now. And I've been coaching for about a year. I'm still learning, as always I will always learn something new. The same as trying opening a Crossfit box. A lot of things I have to learn like planning and searching resources before opening one.

This forum has help me alot in thinking myself to get my own box. Yes it is a business now for Crossfit to survive. I can see now $3000 will be worthed and I want to make a decent living out of it also. But my main goal is to spread the Crossfit in Indonesia.

Like I said before if it is in the US, you got plenty of resources and easy to get Crossfit equipments. But in Indonesia, the only way to get the Crossfit equipment is to get it by container/connex which will cost more in equipment cost.

Yes, in the US it is not hard to get 100 members since Crossfit already known brand. Unlike in Indonesia, which is still a new concept not a lot of people know about it.

The only benefit I can see if I'm affiliated is to get my box name on the map beside the crossfit known brand name. So that any traveling Crossfit know that there is Crossfit in Indonesia. Other than that I don't know what else.
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