Franchise News India: Bangalore-based Snap Fitness India, the Indian master franchisee of Minneapolis, US-based wellness chain Snap Fitness that works round-the-clock, is looking for initial public offering(IPO) after a year when it finishes 100 centres across India.
The organization, which was wanting to raise about $8-10 million from private value (PE) equity for less than 30% equity, did not strive for PE because of valuation mismatch, said CEO Vikram BM. Pricewaterhousecoopers (Pwc) was working for the organization in the proposed fund raising activity.
Throughout the following year, Vikram said, Snap Fitness India will have more than 100 centres, of which around 30 would be co.-owned. “With 30 co. owned centres, we could without much of a stretch take a gander at hitting the business sector,” he said. In India, just Talwalkars Better Value Fitness Ltd is recorded on the Bombay Stock Exchange. meanwhile, Snap Fitness India’s master franchisee Force Fitness might look for a pre ipo placement if it figures out how to get expected valuation.
Snap Fitness entered India in 2008 with its first outlet in Bangalore. At present, there are around 50 Snap Fitness centres in India, of which 33 are located in Bangalore. The organization is currently plans to open centres in level I, level II and level III urban areas to take the quantity of aggregate centres to 300 through the following three years. Of these, around 30 would be co. owned. In any case, if the organization gets funding from outside, they will open 100 co. owned centres. While the organization works 24 hours a day, it may look at keeping centres in smaller cities closed at night.
Snap Fitness centres, in sizes of 3,000 sq ft, 4,000 sq ft and 5,000 sq ft, commonly involve a venture of between Rs 1.2 crore and Rs 1.5 crore each. It takes after a ‘Hub and-Spoke’ model, where it will have one Co. Owned centre and near four franchisees in that zone. Through the following three years, the organization and its franchisees will use about Rs 350 crore.
Its flagship stores gain about Rs 1.6 crore to Rs 1.8 crore yearly, while around half of the procuring goes to meet operational costs.
The fitness & wellness business in India is evaluated to cross Rs 6,000 crore by 2015 while more than 95% of the part is still unorganised. organised brands like Talwalkers, Gold’s Gym and Snap Fitness contribute the remaining.
Note: If you are looking for the low cost franchise business in fitness Industry, then you can apply your request here