Franchise Feature on Jamie Hayes
This article appeared in Australian Fitness Network's Club Network newsletter in May 2004.
If you're familiar with the evolution of the Australian fitness industry then chances are you would have heard the name 'Jamie Hayes' at some point in time. Jamie has been a club owner since 1981. He currently owns the Body Express club in Bondi NSW and is the national franchisor for Healthy Inspirations women's weight loss centres.
Healthy Inspirations is a franchise business providing a complete weight loss solution targeting women aged 35 to 60 years. The program was developed in the United States , by Casey Conrad and operates in the USA, Australia and New Zealand.
In eighteen months the franchise network has expanded to ten centres across Australia, in Queensland, New South Wales, Australian Capital Territory, Victoria and Western Australia and according to Jamie, it is set for very rapid growth. (2008 update - 37 centres including New Zealand)
The Program
Healthy Inspirations is a comprehensive weight management business, overseen by leading registered practicing dietician Jill McGregor. Because it is an expert system, Healthy Inspirations centres can be run by people with no dietary or nutritional expertise. The program aims to provide long term weight management and consists of four key elements:
1. A personalised healthy eating program based primarily on supermarket foods.
2. One-on-one coaching sessions, three times per week.
3. A 30-minute, resistance-based circuit, completed three times per week in the Healthy Inspirations centre.
4. Relaxation, to help reduce stress levels, using an electronic massage chair once per week (also in the centre).
A Gym To Attract Women
'Healthy Inspirations attracts a market that the fitness industry has failed to tap. We thought we were attracting them but we weren't,' explains Jamie.
He adds, 'There is a huge demand from middle aged women for an intelligent weight management solution. Healthy Inspirations is based on a proven business model that's been running in the states now for 14 years.
Club owners and fitness professionals who have established a Healthy Inspirations franchises find they attract females who are too uncomfortable to walk into any fitness club, even a women's-only fitness club.'
Port Macquarie (NSW) franchisee, Sue Reid agrees.
'In my health club, we tried to set up a gym to attract women. We included minimal mirrors and tried to create a non-intimidating and friendly atmosphere, but we found that women still perceived the facility to be a gym, and therefore still felt too scared to attend.
What I've found with my Healthy Inspirations centre, is that the gym-perception is removed from the ladies' minds and so our franchise, which only opened in November 2003, is already seeing great weight loss results, and we have around 170 active members already.'
The Healthy Inspirations Difference
In comparison to other existing weight management programs, Healthy Inspirations is noticeably different. For example, Weight Watchers is an educationally-based program with a once per week group meetings for clients, whereas Healthy Inspirations is a one-on-one based system three times per week. In addition, Weight Watchers does not provide an exercise component, whereas Healthy Inspirations does.
Similarly, Jenny Craig is a food-based company where people purchase individual pre-packaged meals and attend meetings once per week for support. At Healthy Inspirations, the meal plans are applicable to family members and clients attend one-on-one meetings three times per week for that support, and they undertake exercise and relaxation elements.
'I guess you could say we are somewhere between a Fernwood Fitness Centre and a Jenny Craig, but we don't want to be either' says Healthy Inspirations franchisee, Steve Lynes.
Steve currently has two Healthy Inspirations franchises, located in Toowoomba and on the Gold Coast, and has plans to open more in the near future.
A Comprehensive Weight Loss Program
'Healthy Inspirations should also not be confused with Curves,' clarifies Jamie, referring to the mini gyms that operate in the United States .
He adds, 'Curves provide people with a simple exercise program at a very low cost. Healthy Inspirations provides a complete weight management program that includes exercise. Healthy Inspirations is a comprehensive program in a one-stop-shop, bringing diet and exercise and support together in an affordable way for customers.'
Two-time franchisee and medical doctor, Joanne Samer agrees. She says, 'Healthy Inspirations is different to other programs out there because it's so comprehensive. The food plans are very well thought through, the exerc
ise programs are completely user friendly and it's all in the one place so the ladies can come and go without anyone else really knowing, if that's what they prefer.' Joanne operates two franchises in Western Australia , one in a commercial industrial park area in Balcatta and the other in a shopping mall in Joondalup.
The Balcatta site also provides the location for Joanne's medical practice which specialises in nutrition, natural hormones and weight loss issues.
Typically, Healthy Inspiration centres operate five and a half days per week, being Monday through to Saturday morning.
Clients Lose Up To 4 Kilos Per Week
The amount of space required is approximately 150 square metres, which enables the centres to be located easily within strip malls and shopping centres. And due to the lack of need for wet areas such as showers, the establishment costs are significantly less than required to open a health club.
'Once we put our investment budget into place we still had money left over, but we've never put our own money into the business since it opened because it just pays for itself. It's a very affordable business to establish and operate,' states Steve.
Jamie has seen a client success rate with the Healthy Inspirations program that he has never witnessed in the fitness industry. 'In my decades as a fitness club owner, I have never had the success that I've seen with Healthy Inspirations clients. Typically, our clients lose two to four kilograms per month. Finally, we are attracting those people who we rarely saw in the fitness industry.'
The bonus for club owners who take on a Healthy Inspirations franchise is that typically, clients who have gone through the Healthy Inspirations program are more predisposed to joining a health club.
Direct Stepping Stone To A Fitness Club
This means, in essence, a Healthy Inspirations centre can create a direct stepping stone into your existing fitness facility for those people who are currently not attracted. 'We anticipate in the final stage of our program, the primary reason why clients will leave Healthy Inspirations is to go to a nearby health club', states Jamie.
The franchise
Healthy Inspirations operates under a franchise network enabling interested parties to establish a business in their local area. Based on current franchisees it has already proved popular with club owners and entrepreneurial fitness professionals wanting to create a new business that compliments their existing business, but one that does not compete with it.
'A Healthy Inspirations centre will not compete with existing fitness facilities, because most overweight women aged 40 years or older, are not attracted to a traditional fitness club; some are, but very few, and that even includes the women's-only fitness clubs.
Their sense of intimidation of traditional health clubs can stem from the look of the existing members, the clothing culture, complicated equipment or group fitness programs, or simply the general environment,' says Jamie.
Not A Gym
Steve agrees, 'We are trying to be very careful about ensuring we are not selling ourselves as gyms. Healthy Inspirations tends to attract people who are in a lack of self confidence phase; they feel really uncomfortable about themselves and often think they have to lose weight to go to a gym. It really has opened up the market, which we weren't able to attract into our traditional fitness club.
Healthy Inspirations really is the part of the industry that we can't provide because we're not dietitians and so are limited as to the amount of information we can provide.
Healthy Inspirations also provides credibility because it follows medical guidelines for the long term approach to weight control; we teach people long term lifestyle habits, we have an exercise component, nutritional component and a relaxation component, so all factors have a great bearing on the amount of weight loss that people experience.'
Joanne goes one step further, saying, 'We would never locate ourselves near a gym.
We would promote ourselves as an anti-gym, in fact. One of the reasons I believe our business is as successful as it is, is because it is perceived to be excluded from the fitness industry.'
She adds, 'For existing club owners, you need to take your gym hat off and think about Healthy Inspirations very differently. It is not a gym and therefore should not be treated like a gym. To think of it as a gym, to manage it as a gym and to expect clients and members to act like it's a gym - will set you up for failure. My strongest advice is if you are a gym owner running a Healthy Inspirations franchise, do not wear the same hat to run both businesses because it won't serve you.
This is because the clientele is so different for both. Healthy Inspirations attracts pre-menopausal and hormonal women, who think and feel and cry, and who don't like it when you ignore them. Our success has come because we don't approach the Healthy Inspirations as a gym model. We approach it as a professional, health service, and therefore, how you run the business is, and should be, completely different to how you run your gym facility.'
Success With Differing Marketing Approaches
Steve has found that the success from his marketing strategies differ between his gym and his Healthy Inspirations franchise. 'With the gym, newspaper doesn't work but for Healthy Inspirations it's a boomer. Similarly, we can send out fliers that work extremely well for the club, but for Healthy Inspirations they tend not to result in such a high success rate.
Additionally, while regional television works very well for both centres, it tends to be twice as effective for Healthy Inspirations.'
Steve adds, 'Sue Reid in Port Macquarie, sees fantastic results from radio, where I don't. This could be a geographic thing maybe because Port Macquarie is smaller than Toowoomba so there may be a tighter knit community base who listens to radio than here. The point is, in line with segregating your businesses from each other, the marketing for your franchise needs to be totally different from the marketing of your club'
Very Specific Territory Guidelines
'There are many elements in the business plan contributing to franchisee success,' adds Jamie. ‘It includes complete operations and marketing systems, as well as staff recruitment and training, site selection and lease negotiation. We are very specific in our territory guidelines to ensure that centres are well located and have adequate populations of the right demographics to support the centre.'
A Healthy Inspirations franchise can be purchased and established for minimal outlay. The franchise purchase fee is $25,000. The equipment that makes up the resistance training circuit is generally leased by the franchisee, and that only leaves site, signage and furniture investments.
Considering the establishment costs are less than for a health club it is interesting to note the clients pay higher fees. Upon joining a client will typically pay an initial program fee of $249 followed by $25 per week thereafter. Hayes says that break even is achieved at sales of around 25 clients per month.
Typically a Healthy Inspirations centre requires two full time staff (usually including the owner) with a couple of casuals taking total staff hours up to 120 hrs per week. All staff undertake a one-week initial training course plus ongoing in-house training.
Why Reinvent The Wheel?
For those new to the weight loss business Jamie suggests that a franchise ‘reduces the risk and expense.
Why reinvent the wheel and spend your dollars on research and development when it is already there, ready to go?'
Initially he had considered whether to establish his own brand, but realised the benefits of joining a mature business group that had already done the hard yards was more attractive.
For more information about Healthy Inspirations and how you can take advantage of this unique healthy franchising opportunity, contact Jamie Hayes by phoning 07 3870 5528 or e-mail jamiehayes@healthyinspirations.com.au.
