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Private Equity News April 17, 2018

Fit Factory Opts for DFW

Why Boston’s Fit Factory Picked DFW for Its Latest Expansion

 

After weighing prospective markets, a Boston-based fitness club is expanding its gym concept business to Dallas.

Fit Factory, a full-service health club that offers fitness classes, partnered with SRS Real Estate to plan and open up to 10 clubs in the Dallas-Fort Worth area within 2 years.

“Dallas just felt like the perfect fit for our business model,” Fit Factory co-founder Ryan Gadles said in an email.

Fit Factory started its operations in 2015 in Boston, where it currently has four locations. With its promise of providing a member-first approach and “superior gym experience” at an affordable price, Gadles said Fit Factory is hoping to grow in Dallas.

“Its sheer size and market density gives us the ability to open more clubs, faster,” Gadles said about Dallas-Fort Worth market.

“Combine this with the real estate shift as it relates to retail and ‘big box’ spaces, we are finding a lot of really good opportunities for great spaces, more so than in Massachusetts.”

One way Fit Factory hopes to attract local members is with its prices. A regular membership at one of the Fit Factory clubs cost $10 per month. In contrast, for example, the cheapest membership at Gold’s Gym in Dallas costs $39.99, according to its website.

However, Fit Factory’s intense training program could cost gym-goers up to $199 per month. The intense functional group training program includes unlimited access to every service the club offers, which may include classes on yoga, cycling and boxing.

“There are always other less expensive options in any business, and I am sure some health clubs that advertise lower prices will inevitably have their place in the market,” Gadles said.

Fit Factory’s retail locations are estimated to be between 25,000 to 35,000 square feet in size. The company is currently finalizing three locations to move in and have already leased one. All four sites are in North Dallas.

“We certainly do not want to limit ourselves to just that area,” Gadles added. “If we could be approximately 30 minutes or 30 miles from Uptown Dallas, that would be ideal.”

He said the company is taking into account the density, traffic and population growth while choosing the locations right now.

“We are making a really large infrastructure and employment commitment to Dallas,” Gadles said. “Starting small and being intently focused on our programs, classes and customer service will be the key here.”

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