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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 09-16-2009, 02:20 AM   #1
Lee Simmons
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Running more than one CrossFit facility

I was wondering if you decided to operate a second or even a third CrossFit facility and run them under the one name eg CrossFitxpress, do you have to pay for more than one affiliate fee? Any of you already doing that and could shed some light, cheers
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Old 09-16-2009, 08:37 AM   #2
Wil Vicinus
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Re: Running more than one CrossFit facility

Earlier this year a rule was implemented that one person could only be the owner of one affiliate (any exceptions you might find are those who had been grandfathered in).

Double check the FAQ or email the affiliate team for more clarification on this if you need it.
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Old 09-16-2009, 08:44 AM   #3
Zack Dunn
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Re: Running more than one CrossFit facility

On the CrossFit FAQ:
9.38. We're thinking of/planning on opening multiple locations. Is that a great plan, or what?

CrossFit no longer allows multiple affiliations. We believe it is better for an affiliate to concentrate on a single location to ensure the quality of hands-on involvement by the owner. So, in essence, the rule is: one trainer, one box.
Maybe try opening a P90X gym?
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Old 09-16-2009, 12:08 PM   #4
Chris Wyant
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Re: Running more than one CrossFit facility

What if one buys another affiliate?

I am opening my own box now but I know the owner of another affiliate asked if I was interested in buying him out of his place.

What about multiple locations for the same Crossfit affiliate? (Before you say that is multiple affiliates hear me out!)

I am starting to get two distinct style of clients - the suburban housewives who love the idea of olympic lifting, going hard to top 40 countdown on Sirius, and a nice long hot shower after their workout. On the other side I have cops, big sweaty guys who work without their shirts on and don't mind puking and will only listen to hard rock when the workout. Now normally I would say have them work together and deal with it or have multiple sessions. But there is something to be said about whether or not the microcosm community of a singular gym can be a determent as opposed to a benefit.

What I am saying is this - my box is on a busy street, good walk by traffic, and is generally well seen. This is my main place, its what drives people in. However, less than 5 blocks away is a huge building of just tractor trailer garages that are sitting empty. Now in the area I live (you are allowed to laugh), those 5 blocks could make or break a membership.

Has anyone else run into this situation? I mean I would think that if you have enough trainers, same business model, and a central location - it is effectively the same as running out of space and expanding to a larger place but leaving behind people at the old location for the benefit of familiarity.


Ok sorry for rambling... I have been working on a buildout for my current place, we are getting showers now!
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Old 09-16-2009, 01:06 PM   #5
Katherine Derbyshire
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Re: Running more than one CrossFit facility

I suspect the reason for the rule is to prevent the globo-ization of Crossfit. I mean, otherwise what's to stop a Bally's or Gold's from sending one guy to a level 1 (or even level 2) and then declaring themselves a Crossfit Affiliate? Or building premium-priced Gold's Crossfit locations?

To handle legitimate affiliate expansion, you'd need to have a way to make sure that all classes at all locations are supervised by trainers who are qualified to be affiliates in their own right. A merger of two existing affiliates obviously gives that, otherwise you'd need some kind of potentially complex vetting for new locations.

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Old 09-16-2009, 01:09 PM   #6
Katherine Derbyshire
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Re: Running more than one CrossFit facility

Quote:
Originally Posted by Chris Wyant View Post
I am starting to get two distinct style of clients - the suburban housewives who love the idea of olympic lifting, going hard to top 40 countdown on Sirius, and a nice long hot shower after their workout. On the other side I have cops, big sweaty guys who work without their shirts on and don't mind puking and will only listen to hard rock when the workout. Now normally I would say have them work together and deal with it or have multiple sessions. But there is something to be said about whether or not the microcosm community of a singular gym can be a determent as opposed to a benefit.
Umm... this suburban housewife rather enjoys watching big sweaty guys workout without shirts....

Katherine
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Old 09-17-2009, 04:33 AM   #7
Peter Terry Haas
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Re: Running more than one CrossFit facility

Quote:
Originally Posted by Zack Dunn View Post
On the CrossFit FAQ:
9.38. We're thinking of/planning on opening multiple locations. Is that a great plan, or what?

CrossFit no longer allows multiple affiliations. We believe it is better for an affiliate to concentrate on a single location to ensure the quality of hands-on involvement by the owner. So, in essence, the rule is: one trainer, one box.
Maybe try opening a P90X gym?
If I remember that discussion correctly, there was a wink and nod that went with that. It's covered in FAQ item 9.39(wfs):

Any private business relationship between CrossFit affiliates (or with persons not listed on the License Agreement) is wholly extraneous to the CrossFit, Inc. relationship with each CrossFit affiliate.

Which I took to mean that while its 1 trainer:1 affiliate license, you can set up any sort of contractual obligation between two trainers. Or said another way:

Chris owns Crossfit Alpha and Bob owns Crossfit Beta. While Bob runs CF Beta on a day to day basis, Chris provided cash/equipment/knowledge to get CF Beta up and running, so they have a contract in place giving Chris 50% ownership and/or revenue rights.

In regards to the OP, I think you could make it work as long as whichever trainer you leave 'in charge' of the box is the one w/the affiliate license. Then setup whatever contractual obligations you want.

Someone please correct me if I'm wrong.
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Old 09-17-2009, 05:02 AM   #8
Heather Archambeault
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Re: Running more than one CrossFit facility

Quote:
Originally Posted by Katherine Derbyshire View Post
Umm... this suburban housewife rather enjoys watching big sweaty guys workout without shirts....

Katherine
ummmm...yeah!
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Old 09-17-2009, 08:08 AM   #9
Wil Vicinus
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Re: Running more than one CrossFit facility

Re: the 'selling' of an affiliate - The way I understand it is this: No one can sell their affiliate status. They can either take on a partner who will take over the running of the operation, or they can sell the business. If they choose to sell the business, the new owner would have to apply for affiliation in order to continue to use the CrossFit name.
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Old 09-17-2009, 07:32 PM   #10
Lisbeth Darsh
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Re: Running more than one CrossFit facility

Quote:
Originally Posted by Wil Vicinus View Post
Re: the 'selling' of an affiliate - The way I understand it is this: No one can sell their affiliate status. They can either take on a partner who will take over the running of the operation, or they can sell the business. If they choose to sell the business, the new owner would have to apply for affiliation in order to continue to use the CrossFit name.
Wil is correct. (Thanks, Wil!)

Affiliation is non-transferable.
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