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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 04-16-2014, 09:22 AM   #31
Jeremy Todd
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Re: $3000 annual affiliation fee???

I run an affiliate in Croatia. Croatia is a small country and not economically strong. You are correct in assuming getting decent equipment will be difficult because it is. What you will find is that researching to find your best options is time well spent.

I think a good way to start your box out there is to do it the way most boxes originally started. Most back in the day most started in garages with maybe 10 ppl. When they outgrew their space and had enough people for a new and much larger space was when things got a little more serious. Maybe being affiliated to start with is not your #1 priority but maybe its # 3 or 4.

When we started we had a space of 2000 sq ft. and 7 ppl the first month. In that first year our goal was to get 100 ppl and fill the gym with equipment. In that first year we did that and affiliated our box which was priorty #3 for us. We needed to be able to pay the bills and grow the business. Our affiliation party was incredible and our people were so proud!

Make this work for you and where you are. I think there is too much pressure for ppl to open something that is amazing from the start. This may be realistic in North America but not so realistic in other developing countries. Let your people help you create something special and when you are ready you will want to affilitate for you and your box.
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Old 04-16-2014, 09:57 AM   #32
Adam Morden
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Re: $3000 annual affiliation fee???

Jeremy makes a really important point - the most successful CrossFit boxes I know were either started from a small location, never going into the red, focused on re-investing back into the business, and expanding as they could afford it - OR - heavily funded by someone with deep pockets. Option 2 is not a common situation for anyone, even in North America =)

Start small, grow organically, make sure you can cover your expenses before you add more. That works for pretty much any business.
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Old 04-16-2014, 12:18 PM   #33
Brian Diez
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Re: $3000 annual affiliation fee???

Just my 2 cents...

Franchises typically charge royalty fees of @ 3-5% of sales in addition to an upfront franchise fee ($10K-$1M easy).

I would say $3K is fair given what's provided through HQ's market presence.

In other words, you would spend far in excess of $3K to get people to come to No Name Gym. Just calling yourself CrossFit XXX gets peeps in the door. That's good business.
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Old 04-19-2014, 12:40 AM   #34
Mark Stiegler
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Re: $3000 annual affiliation fee???

$3k is expensive? We are in a small town in Australia with around 10k population in the immediate area, and we have another box 10mins away!
$3k for most boxes is around two members worth for the year. Do you think the name CrossFit associated with your business will draw at least two members that you may not have got without the name? For me the answer was a resounding YES, in which case it will pay for itself and whatever else it does for you is a bonus!
Tell me another franchise that you can get for only $3k per year? Anywhere.......?

And if finding equipment is an issue for anyone, there are more suppliers in China ready to send gear directly to your door than you can imagine, and much of it is the same stuff you will buy with a reputable name on it from someone else.
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Old 04-19-2014, 05:23 AM   #35
Stuart Bryden
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Re: $3000 annual affiliation fee???

I agree that the name and branding help getting people in the door but it's not a franchise rather an affiliate. With most franchise businesses (at least in Australia) you are paying for a physical product with your start up costs. In this you are paying, I believe, to be affiliated with the brand name.

CrossFit has been very clear in stating it is not a franchise I believe, but the 3K (which is more than that when paid in USD from another country) is more than worth it to be associated with the brand and marketing draw this gives you.

In saying that there is a functional fitness gym in my home town (population 15000) which has been a very successful business for a long time and was so before affiliates started being formed. They get and keep members because of great reputation, experienced coaches etc etc.
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Old 04-19-2014, 12:13 PM   #36
Saul Garcia
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Re: $3000 annual affiliation fee???

Quote:
Originally Posted by Mark Stiegler View Post
$3k is expensive? We are in a small town in Australia with around 10k population in the immediate area, and we have another box 10mins away!
$3k for most boxes is around two members worth for the year. Do you think the name CrossFit associated with your business will draw at least two members that you may not have got without the name? For me the answer was a resounding YES, in which case it will pay for itself and whatever else it does for you is a bonus!
Tell me another franchise that you can get for only $3k per year? Anywhere.......?

And if finding equipment is an issue for anyone, there are more suppliers in China ready to send gear directly to your door than you can imagine, and much of it is the same stuff you will buy with a reputable name on it from someone else.
Can I get more info on these suppliers. Our current supplier, Extreme Training Equipment, was terrible customer service wise and we would like to find a new supplier. Direct would be best.
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