Shapes for Women aims to open 40 new outlets by end of next year
March 26, 2007
By Samantha Enslin
Durban - Shapes for Women, a franchise system of women-only gyms, is planning to open a further 40 outlets by the end of next year to capture a growing market of women who do not enjoy the testosterone climate of conventional gyms.
Barry Owen, who with partner Greg Ivins started the business in February 2005, said on Thursday: "We saw a good opportunity to tap into a market that is not being serviced.
"The concept of women-only gyms is very successful overseas. Virgin Active does a good job of servicing a particular market but not all women find these gyms appealing."
There were about 15 000 women-only gyms worldwide catering to 5 million women, Owen said.
Since Shapes for Women launched in February 2005, competitors Curves and Contours Express, both US franchise systems, have also opened in South Africa.
Curves currently has 47 local outlets and Contours Express has 21 outlets, with plans for a further nine gyms.
The two partners behind Shapes for Women put in start-up funds of R650 000 to open two gyms and then franchised from November 2005.
There are currently 30 outlets around South Africa.
Funds to finance gym equipment and working capital were raised from their own resources and short-term interest bearing loans from family and friends.
To open a Shapes for Women franchise would cost up to R350 000. This includes R210 000 excluding value-added tax for the right to own and operate a franchise, gym equipment, training and marketing.
The gym equipment was manufactured in the US as the company could not source suitable quality equipment in South Africa, Owen said.
The franchisee would have to pay for the refurbishment of premises, which could cost between R10 000 and R80 000.
A franchisee would also need about R60 000 in working capital, depending on expenses. The franchisor charges a flat monthly fee of R3 000 from franchisees.
Owen said a franchise would require about 140 clients to break even, paying R219 a month on a 12-month contract.
In the year to February Shapes for Women generated revenue of about R4.8 million.
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