Cuernavaca fitness center final report

THE UNIVERSITY OF TEXAS AT AUSTIN
Cuernavaca Community
Fitness Center
A feasibility study for Dr. Kathy Edwards
Pedram Rahmanian | Tatiana Noroozian
12/5/2012
The following report is a feasibility study on the possibility of opening a gym in the Lake Hills
neighborhood in Austin, Texas 78733.

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Copyright 2012 | Pedram Rahmanian and Tatiana Noroozian
Contents
Executive Summary........................................................................................................................ 3
Project Proposal .............................................................................................................................. 4
About the Client .......................................................................................................................... 4
Desired Outcomes ....................................................................................................................... 4
Project Scope............................................................................................................................... 4
Client and Consultant Responsibilities ....................................................................................... 4
Project Costs................................................................................................................................ 4
Work Schedule............................................................................................................................ 5
Deliverables................................................................................................................................. 5
About the Consultants................................................................................................................. 6
Signature Page............................................................................................................................. 7
Research Methodology ................................................................................................................... 8
Interviews.................................................................................................................................... 8
Secondary Research .................................................................................................................... 8
Benchmarking ............................................................................................................................. 9
Action Learning........................................................................................................................... 9
Fitness Center Spatial Component Overview............................................................................... 10
Proposed Amenities ...................................................................................................................... 12
Physical Fitness (Exercise) Room:............................................................................................ 12
Multi-Purpose Court (Gymnasium): ......................................................................................... 13
Group Exercise Room:.............................................................................................................. 14
Locker Rooms and Associated Functions................................................................................. 15
Lake Hills Demographics ............................................................................................................. 16
Competitive Landscape................................................................................................................. 19
Locations................................................................................................................................... 19
Competitor Overview and Analysis .......................................................................................... 20
Competitor Benchmarking........................................................................................................ 21
Anytime Fitness..................................................................................................................... 21
Gold’s Gym ........................................................................................................................... 21
The Hills Health Club............................................................................................................ 21
Westlake CrossFit Model ...................................................................................................... 22
Real Estate Options....................................................................................................................... 23
Start-Up Requirements.................................................................................................................. 25

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Flooring and General Construction........................................................................................... 26
Multi-Purpose Court Requirements .......................................................................................... 27
Fitness Room Equipment Suppliers.......................................................................................... 28
LifeFitness................................................................................................................................. 28
Vision Fitness............................................................................................................................ 29
Precor ........................................................................................................................................ 29
Overview of Insurance Needs....................................................................................................... 30
Personnel Needs............................................................................................................................ 32
Recommendations......................................................................................................................... 33
Option 1: Build a multi-purpose court first and add other amenities in phases........................ 33
Option 2: Build a fitness room first and add other amenities in phases.................................... 33
Option 3: Build the group exercise room first and add the other amenities in phases.............. 34
Option 4: Build the multi-purpose court, fitness room, and group exercise room at once and
add other amenities as desired................................................................................................... 34
Option 5: Do nothing and join one of the identified gyms. ...................................................... 34
Appendix A: Interview with Professor Edwards .......................................................................... 35
Appendix B: LifeFitness In-Depth Overview............................................................................... 37
Appendix C: Equipment Costs..................................................................................................... 40

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Executive Summary
Overview of Project
Dr. Edwards is a faculty member in the Management Department of the University of Texas at
Austin. Dr. Edwards brings a wide variety of organizational experience to her work. In addition
to her work as a faculty member, she has held executive leadership positions in business, non-
profit and governmental organizations, and entrepreneurial ventures. Her current consulting
interests include conflict management, mediation, negotiation, and team facilitation. Dr.
Edwards, a lifelong athlete, is interested in starting up a gym within a 10-mile radius of her
neighborhood. She currently drives into town to take boxing lessons from a local gym, and
would like to have an option that gives her closer access to a workout. She envisions a place for
the community to come together and to host classes. She also desires to provide her nephew with
an opportunity to work as a personal trainer. She does not necessarily wish to own the facility or
to maintain its operations.
Desired Outcome
As a team, we came up with a way to test the feasibility of starting a gym in the West Austin
area. Our client, Dr. Edwards, wishes to establish a fitness center for her community so that she
does not have to drive so far to get her desired workout. We consulted with Dr. Edwards to
determine what type of gym she aspires to open, as well as what services she hopes to provide to
clients.
Research Methods
 Conducted interviews with Dr. Edwards (client), Brian Fahey (realtor), Brenda Starr
(realtor), Allison Van Leeuwen (Assistant Director-Facility Operations Gregory Gym),
Jim Anderson (Mondo Sports Flooring Agent).
 Benchmarked with other gyms within a 5-mile radius to see what services and amenities
they offer to their clients.
 Conducted research on the demographics of the 78733 zip code area.
Results
Our team will create a scalability tool (excel model) that will allow the client to change several
variables (features and amenities as well as their scale) and see the financial impact of these
changes on the feasibility of the venture. We gathered useful benchmarking information of
nearby gyms to give our client an idea of the competitive landscape.
Recommendations
We have identified several options for our client to consider.
 Option 1: Build a multipurpose court first; add amenities in
phases
 Option 2: Build a fitness room first; add amenities in phases
 Option 3: Build a group exercise room first; add amenities in
phases
 Option 4: Build a multipurpose court, fitness room, and group
exercise room simultaneously; add amenities as desired
 Option 5: Do nothing and join one of the identified gyms.

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Project Proposal
About the Client
Dr. Edwards is a faculty member in the Management Department of the University of Texas at
Austin. She is also involved in supervising independent research. Dr. Edwards is the founder of
The Training Institute, a consulting firm that just celebrated its 18th year in business. Dr.
Edwards brings a wide variety of organizational experience to her work. In addition to her work
as a faculty member, she has held executive leadership positions in business, non-profit and
governmental organizations, and entrepreneurial ventures. A sample of her consulting clients
include: Alcoa, Austin Police Academy, Dell, 3M, National Rural Electric Cooperatives, Texas
MHMR, Texas Pharmaceutical Association, etc. Her current consulting interests include conflict
management, mediation, negotiation, and team facilitation.
Desired Outcomes
The desired outcome of this project is to test the feasibility of starting a gym in West Austin area.
The client wishes to establish a fitness center for her community so that she does not have to
drive 12 miles to a gym. She envisions a place for the community to come together and to host
classes. She also desires to provide her nephew with an opportunity to work as a personal trainer.
She does not necessarily wish to own the facility or to maintain its operations.
Project Scope
Our team will research the specific costs of real estate based on the clients preferred location. We
will base several assumptions for equipment, revenue, and utilization by benchmarking with
several gyms in close proximity to the preferred location. Our aim is to provide a relevant and
useful tool for the client to test the feasibility of her visions.
We shall base our model on the up front and operational costs of the envisioned fitness center. In
the model we will include a fitness room, a group fitness space, a multipurpose gym, and retail
space for additional services (e.g. a café/ smoothie stand).
We will also provide 3 options or types of gyms, listing the average up front cost as well as
operating cost. In addition, we will include the types of services and activities for each
respective option.
Client and Consultant Responsibilities
We expect to establish and maintain an honest collaborative relationship with open
communication. The consultants are expected to conduct thorough research using relevant
establishments as benchmarking tools in order to create the feasibility model. The client is
expected to be willing to meet on an as-needed basis in order to assist in the establishment of key
assumptions and to keep the momentum of the project flowing without interruption. The
consultants are expected to deliver accurate and relevant information to the best of their abilities.
The client understands that the deliverables are an estimate and not exact, and are meant to be a
tool to test feasibility should she choose to pursue the venture.
Project Costs
The consulting team will provide services free of charge to Dr. Edwards.

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Work Schedule
The consultant team will meet twice a week for one hour prior to class. Friday is an independent
workday. We will meet with the client as needed.
Deliverables
Our team will create a scalability tool (excel model) that will allow the client to change several
variables (features and amenities as well as their scale) and see the financial impact of these
changes on the feasibility of the venture.

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About the Consultants
Pedram Matthew Rahmanian | BBA’14
The University of Texas at Austin | McCombs School of Business
Bachelor of Business Administration, Management | Pre-Medicine
Certificate in Innovation, Creativity, and Entrepreneurship
Pedram has a strong passion for personal health and fitness. He has
numerous entrepreneurial and consulting experiences that span this
industry, including a project with the Brushy Creek Community
Center.
Tatiana Noroozian | BBA’12
The University of Texas at Austin | McCombs School of Business
Bachelor of Business Administration, Management | Pre-Medicine
Tatiana is a business/pre-med major at the University of Texas at
Austin. She is a novice consultant but is very passionate in any
project she undertakes. With her science background, she is capable
of acquiring necessary information for the research needed for this
project.

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Signature Page
Your signature below indicates acceptance of this proposal and the terms and conditions
herein.
Consultants Client
Name: Pedram Matthew Rahmanian Name: Dr. Kathy Edwards
Title: Independent Consultant Title: Professor
Date: ___/___/______ Date: ___/___/______
Signature: ____________________________________ Signature: ____________________________________
Name: Tatiana Noroozian
Title: Independent Consultant
Date: ___/___/______
Signature: ____________________________________

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Research Methodology
Interviews
For our project, the main method of research we will use will be conducting interviews with our
client as well as with various individuals that have started their own gym, have experience
running a gym, or others who have expertise in certain aspects of starting a company. Since both
of us are students in Dr. Edward’s class, this will enable us to be in contact with her (our client)
more easily. This will also allow us to get to know her better, since we get to see her every other
day of the week. Pedram has done a lot of networking with startup companies, and he currently
has a working relationship with SoZo Global (a nutritional and wellness company) and ETMG
Insurance Management Solutions, so he has developed contacts with relevant industries, which
will enable us to interview some individuals who could provide important information.
As far as our interviews and meetings with Dr. Edwards, we will focus on her desired outcome
for this consultation. To narrow our scope and avoid scope creep, we will ask her to define the
main issues she is interested in for starting up a gym. The components of a gym that she would
definitely want to be included in a start-up gym, all the way up to a dream gym—as one of our
team members said, “From a shanty to the Taj Mahal”. The information we would like to obtain
from our client is cataloged as follows:
1. What type of a gym are you interested in starting?
2. In what area of Austin would you like to open a gym?
3. Who is your target market?
4. Are you interested in renting an existing facility, or do you want to build a facility?
5. Do you think you want to offer amenities? And if so, what types?
6. How do you plan on financing this?
7. Who will run the facility?
8. How involved would you like to be?
Other interviews we plan to conduct will involve realtors, and individuals who currently are
involved in running a gym. We will be able to find out a lot of pricing estimates and information
from these sources. Examples of data we will collect include: cost of land, possible available
commercial property on Cuernavaca, cost of flooring and installation of a basketball court, cost
of exercise machines, maintenance costs, etc.
Secondary Research
The second research method we will use: will be to gather resource information from secondary
sources, such as property listings and the Internet. Also, we will gather demographic data records
on the area of Austin that Dr. Edwards is interested in.
The information that we would like to acquire from these sources are as follows:
 What is the average price of land in ‘west of Westlake’ area, specifically the
neighborhood on Cuernavaca Street?
 Are there any commercial properties around that area that have existing buildings that
could be turned into a gym?
 What are the demographics of that area of Austin: population, employment, household
information, education, and income, among others.

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Benchmarking
The third method we will employ: benchmarking. By identifying and evaluating other gyms in
the desired vicinity, we will be able to provide our client an idea of how to develop her own
plans, with the aim of bringing her dream to fruition. This will also give our client an idea of
what the components of a gym she is interested in actually looks like, as well as provide her with
guidance for making her final decisions.
Action Learning
Finally, we will use action research. Dr. Edwards presented this method to us in the classroom,
and we will put it to use in hopes of improving our strategy and practices of gathering
information for our project. By using this collaborative inquiry method, we hope to get the
opinions and advice of other fellow students who might open our eyes to an aspect of the project
or a particular tool that we may potentially overlook.

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Fitness Center Spatial Component Overview
A Fitness Center is a health, recreational, and social facility geared towards active lifestyles. It is
a place for exercise, sports, and physical activities in general. A successful facility can
accommodate both the serious athlete and the casual recreational user.
The center can be either a for-profit commercial facility or a community/institutionally supported
center.
The social component of a fitness center is an important secondary function. It supports the
patrons’ fitness goals but also encourages social interaction. This is in line with Dr. Edward’s
vision of a place for the community to interact and lead active lifestyles. The social aspect is
represented by elements such as a juice or snack bar, sport spectator seating, and common places.
There are several spatial aspects of a fitness center. Three will be analyzed in detail as they are
the basis of establishing the business model and form the core revenue drivers – a fitness center,
a multi-purpose court, and group exercise rooms.
I. Physical Fitness (Exercise) Room:
This space is specifically designed for exercise, fitness training, and physical wellness
activities. This space provides a comprehensive and varied program of activities to meet
the individual training regiments of its patrons. These programs can be divided into four
categories: warm-up/cool down, free weights, circuit training, and cardiovascular
training.
II. Multi-Purpose Court (Gymnasium):
This space is a diverse asset. The space is characterized by a large open space with
impact resistant flooring such as hardwood. The fixtures put in place can alter the
characteristics of the space and outfit it for various activities such as basketball,
volleyball, indoor soccer, badminton, flag football, various youth activities, dance,
crossfit, boot camp instruction, group fitness, or even rental for special events such as
banquets, or meetings.
III. Group Exercise Room:
This room accommodates organized fitness class activities. It is characterized by an open
space with movable fixtures and equipment, impact resistant flooring, and mirrored walls.
This space can be used for group class instruction, personal training, crossfit, boxing
equipment, yoga, various dance classes, various martial arts classes etc.
The space options above are optional and design the core aspects of the fitness center model. A
center can have any combination of these facilities and in different proportions. It could exclude
various aspects altogether. How the fitness center is designed with respect to the three amenities
above shapes the value proposition and offerings of the fitness center as a whole. In addition to
these spaces, there are some general spatial aspects that any fitness center should incorporate.

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IV. Locker Rooms and Associated Functions
This space is typically separated by gender - possibly adding a third space for families.
This space accommodates the basic functions of changing, storing clothes, and patron
hygiene, including showers and restrooms. Additional optional spaces include: saunas,
steam rooms, and hot tubs.
V. Administrative and Support Spaces
These spaces include general lobbies, social spaces, and staff spaces accommodating the
operation and administration of the facility. It includes:
 Reception counter and equipment rental space
 Offices
 Storage and custodial services
 Staff Support
 Receiving and equipment repair
The potentially hazardous nature of a fitness center requires that facility access must be
controlled even in non-profit facilities. This requires a primary entrance controlled by a
check-in point that has visual access to much of the facility. Ideally the various aspects of
the fitness center should naturally extend out of the main lobby, past the control desk.
There are also various optional enhanced spaces that offer additional value propositions and
present additional revenue streams. These spaces can enhance the patron’s social and overall
experience at the fitness center, which is crucial to maintain membership, increase word-of-
mouth referrals and establishing goodwill within the community. These intangible factors are
crucial to the success of a community fitness center.
i. Structured Activities: Include a variety of well-defined activities.
a. Racquetball
b. Squash
c. Rock Wall
d. Spinning class
e. Yoga and Pilates Studios
ii. Vending Area, Juice/Shake bar, Café, or other food service
iii. Retail shop (sales of athletic clothing and equipment)
iv. Spectator Seating in the Gymnasium
v. Child Care Services
vi. Fitness Assessment Spaces
vii. Message or Physical Therapy Spaces
viii. Spa / Tanning Salon
ix. Pool / Aquatic Center
x. Outdoor Spaces / Fields
xi. Community Special Events / Meeting Rooms

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Proposed Amenities
Physical Fitness (Exercise) Room:
This space is specifically designed for exercise, fitness training, and physical wellness activities.
This space provides a comprehensive and varied program of activities to meet the individual
training regiments of its patrons. These programs can be divided into four categories: warm-
up/cool down, free weights, circuit training, and cardiovascular training. These are typically the
heart of a fitness facility and include the following components:
 Cardiovascular equipment (treadmills, elliptical, stationary bikes, etc.)
 Free and plate-loaded weights
 Selectorized weights (e.g. cable operated weight machines)
 Stretching spaces
 Running track
Value Proposition:
This space provides patrons with the opportunity to build and maintain their physical fitness. It is
a space for members of the communities to work out without having to drive into town or
purchase expensive home fitness equipment. It is also a social place for community members to
support each other in meeting their fitness goals.
Relation to Dr. Edward’s Objectives:
This amenity would give Dr. Edwards a place to workout and stay active closer to home. She
would no longer need to drive into town to workout. It also gives her a chance to help her
community get more active.
Revenue Drivers:
There are two main revenue drivers of this amenity.
A. Membership Access to the room
B. Personal Training with certified trainers
Cost Drivers:
 Equipment Start-up Investment – This requires a large upfront expense to purchase
commercial grade fitness equipment. This can be depreciated over time, but a large
capital investment is needed upfront. A percentage of equipment purchase price is
expensed monthly for maintenance needs. (See Appendix C for research data and cost
breakdown).
o Equipment depreciation
o Equipment maintenance
 Utilities – Commercial cardiovascular equipment, lights, air conditioning, and optional
features such as televisions or speaker systems will require a large amount of electric
power on a monthly basis.
 Custodial and General Maintenance Services – The space needs to be cleaned and
serviced regularly to maintain a clean and enjoyable environment.
 Supervision and Support Staff Wages – We need general support staff to provide patrons
with support and administrative help. These staff members could be simultaneously

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serving other parts of the fitness center, making this expense non-controllable for this
option.
 Personal Trainer Staff
o General – These trainers can be paid hourly to give general support to all patrons.
o Private – These trainers provide private instruction to individual patrons and are
paid by the patrons individually.
Multi-Purpose Court (Gymnasium):
This space is a diverse asset. The space is characterized by a large open space with impact
resistant flooring such as hardwood. The fixtures put in place can alter the characteristics of the
space and outfit it for various activities such as basketball, volleyball, indoor soccer, badminton,
flag football, various youth activities, dance, crossfit, boot camp instruction, group fitness, or
even rental for special events such as banquets, or meetings.
Value Proposition:
This multi-purpose facility offers patrons with a wide variety of social and group activity
options. It’s a place for playing team sports, or to participate in various sporting leagues and
tournaments. It’s a place for the youth to participate in after-school activities and have fun with
friends. It’s a space to have group classes or crossfit/bootcamp sessions. Essentially it is a way to
add a social dimension to their personal fitness goals. Community members could also use the
big covered open space for special events.
This amenity gives Dr. Edwards the ability to foster a lot of community activity. It gives her
space to workout, and the opportunity to use her coaching and administrative experience with
team sports to host various tournaments and leagues.
Revenue Drivers:
There are numerous revenue drivers associated with this space, as it is a very versatile space.
A. Membership Fees for Open Court Access
a. Basketball
b. Volleyball
c. Indoor Soccer
d. Badminton
B. After School Youth Activities
C. Group Classes (CrossFit, Bootcamp, Dance, Yoga, Cheerleading, etc.)
D. Seasonal Sporting Leagues (For Adults and Youth)
a. Basketball
b. Volleyball
c. Indoor Soccer
d. Flag Football
E. Tournaments
F. Court Reservations (Hourly)
G. Special Event Space Rentals (Dances, Concerts, Community Festivals, etc.)

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Cost Drivers:
This space has a significant up front construction cost, but has very little operational overhead.
 Upfront Investment
o Construction
o Equipment (Balls, hoops, jerseys, cones, volleyball net, badminton net, etc.)
 Operational Overhead
o Maintenance and Custodial Services – Need to maintain a clean and safe
environment.
o Administrative and Support Staff – Needed to setup various outfits in the gym.
These staff members are shared with the rest of the facility.
o Utilities – Electricity for the light system and speaker system.
o Coaching Staff for Leagues (Volunteer basis)
o Class Instructors (varied with class offering)
Group Exercise Room:
This room accommodates organized fitness class activities. It is characterized by an open space
with movable fixtures and equipment, impact resistant flooring, and mirrored walls. This space
can be used for group class instruction, personal training, crossfit, boxing equipment, yoga,
various dance classes, various martial arts classes etc.
Value Proposition:
The group exercise room offers patrons with a space to do various aerobic activities such as
yoga, warm-up/cool down activities, calisthenics, etc. It is also a place where they can take
various group fitness classes to meet various interests such as various dance classes, yoga
classes, various martial arts classes, Cross Fit and boot camp classes. It is also a place to do
specialty activities such as boxing workouts or sparring.
This amenity fits into Dr. Edward’s vision to have group fitness classes. It also satisfies her
desire to have specialty workouts, giving her the opportunity to keep up with her passion for
boxing without having to go to into town and visiting the specialized boxing gym.
Revenue Drivers:
A. General membership access to open space
B. Class fees for in-house hosted classes
C. Rental Fees for external hosted classes
Cost Drivers:
This space has a small up front construction costs, small equipment investments, and little
operational overhead.
o Construction
o Equipment (Yoga balls, mats, boxing equipment, various other equipment, etc.)

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environment.
o Supervisory and Support Staff – These staff members are shared with the rest of
the facility.
o Utilities – Electricity for the light system and speaker system.
o Instructor Fees for In-House hosted classes
Locker Rooms and Associated Functions
This space is typically separated by gender - possibly adding a third space for families. This
space accommodates the basic functions of changing, storing clothes, and patron hygiene,
including showers and restrooms.
Revenue Drivers:
A. Locker Reservation Fees
B. Towel Service Fees
Cost Drivers:
o Construction
environment.
o Supervisory and Support Staff – These staff members are shared with the rest of
the facility.
o Utilities – Electricity for the light system and speaker system. Water for the
restrooms and showers.

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Lake Hills Demographics1
Lake Hills Community Association: www.lakehillsca.org
2012 President of the Board of Directors:
Joe Gimenez
512.358.1041
jgimeneziii@yahoo.com
General Facts2
:
 90% Owner Occupied
 90% White (7,878 people)
 50% Female (4,548 people)
 50% Male (4,596 people)
Observations:
1. There is a sizable youth population that would possibly be interested in sport leagues and
other youth targeted activities.
2. The majority of the population consists of adults between 25 and 64. Convenience would
be a significant issue for this group.
1
For a very detailed demographic breakdown of the 78733 zip code, visit:
http://www.city-data.com/zips/78733.html#b
2
According to Movoto.com Neighborhood information for 78733 zip code
1151
2228
293
1943
3330
199
0
500
1000
1500
2000
2500
3000
3500
6 or younger 7 to 18 19 to 24 25 to 39 40 to 64 65+
Population by Age

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The majority of the population in this neighborhood is well educated and employed.
148, 3%
1294, 23%
2512, 46%
1518, 28%
Population by Education Level
High School or Less
High School Graduate
Bachelors or Associate Degrees
Graduate Degrees
0, 0%
4321, 69%
1777, 29%
123, 2%
Employment Status
Employed (Armed Forces)
Employed (civilian)
Not in Labor Force
Unemployed

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Observations:
1. There is a significant number of households with children, indicating a significant need for a
family environment.
2. There is a niche market of single parent households with children that could possibly use a
safe place for their children to go after school.
396
145
25
1503
131
396
35
32
682
131
0 200 400 600 800 1000 1200 1400 1600
1 Person Household
Female Household
Male Household
Married Household
Non-Family Households
1 Person
Household
Female
Household
Male
Household
Married
Household
Non-Family
Households
Without Children 396 35 32 682 131
With Children 396 145 25 1503 131
Household Type by Children Presence
219
779
1108
843
0
200
400
600
800
1000
1200
<$30,000 $30,000 to $74,999 $75,000 to $149,000 $150,000+
Household Income Levels

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Competitive Landscape
View Interactive Map Here: http://goo.gl/maps/jVDvv
Locations
There are four competitors within a geographic proximity to the Lake Hills neighborhood:
Competitor Locations:
A. Westlake CrossFit
B. Gold’s Gym
C. Anytime Fitness
D. The Hills Health Club
Lots Available for Sale
I. 810 Tumbleweed Tr.
II. 1604 Lipan Tr.

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Competitor Overview and Analysis
The Hills Health Club and Wellness Center(D)
4615 Bee Cave Rd.
West Lake Hills, TX 78746
512.327.4881
www.thehillsfitness.com
This Center Competes with:
 Physical Fitness (exercise) room
 Multi-Purpose Court
 Group Exercise Room
This country club offers everything to its clients:
Swimming pools (outdoor and indoor), basketball gym, racquetball courts, outdoor running trail, a wide variety of
cardio equipment, child care, and a café. They also offer a variety of programs and classes, including: general
fitness, group fitness, and water aerobics. This club also offers personal training programs and Pilates classes.
Additionally, they offer massage services to their clients.
Westlake CrossFit (A)
1302 Cuernavaca Drive
Austin, TX 78733
512.364.0365
http://www.westlakecrossfit.com/ This Center Competes with:
This training center offers group training and personal training. They offer workshops to their clients, specifically
targeted at improving your deficiencies and optimizing your strengths. The facility includes Olympic lifting
equipment, as well as simple training tools necessary to give clients the most intense and complete training.
Gold’s Gym (B)
12480 FM 2244
Bee Cave, TX 78738
512.263.0700
www.goldsgym.com
At Gold's Gym you'll find all of the latest cardio and strength training equipment along with a dynamic group
exercise program that includes classes like yoga, group cycling, mixed martial arts, muscle endurance training and
Pilates.
Anytime Fitness (C)
6317 Bee Caves Road
Austin, TX 78746
512.327.9300
www.anytimefitness.com
Anytime Fitness is open 24 hours a day, 365 days a year. Membership gives access to thousands of clubs and is
affordable. The focus of attention is on affordable convenience. Inside, members have access to a wide variety of
cardio and strength equipment.

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Competitor Benchmarking
Anytime Fitness3
Gold’s Gym The Hills Health Club
Contact: Jim Schuppenhauer Anthony Michelle
Membership: 5200 2700
>Contract? No Yes
>Enrollment Fee No $195
>Monthly Fee $30-$35 $79 + tax (12 mo.
Contract)
>Access to
Multiple Locations?
Yes Yes No
>What does
membership fee
include?
24/7 Access Everything
including classes
Access to center except:
 Pilates
 Personal training
 Child care
 Massage
 Café
Amenities:
-Fitness Room? Yes Yes Yes
>Personal
Training?
Yes Yes Yes
-Multi-Purpose
Court?
No No Yes
-Group Exercise
Room?
Yes Yes
>Classes? Yes Numerous, Varies
by Month and
Location
 Cardio and
Strength
 Pilates
 Cycling
 Mind and Body
 Circuit
 Senior
 Water Aerobics
-Swimming Pool? No No Yes
- Locker Room? Yes Yes Yes
-Childcare? No No Yes
-Café? No No Yes
-Spa/Massage? No No Yes
3
We were unsuccessful in establishing contact with Anytime Fitness and obtain specific information about their
business model. We obtained the information above through research on their website.

Page | 22
Westlake CrossFit Model
Contact: Amanda
Westlake Crossfit operates on a model unique from the gyms aforementioned. They have a
personal element to their value proposition. The class sizes are limited and there is always a
trainer present. It is not a gym to workout at on your own. They have a three step member
acquisition process outlined below:
1st step: One-on-One Consultation
They walk you through a short workout (1hr long consultation) and it's FREE.
2nd step: A one-on-one (3-session) "Elements Course" (each 1 hour long)
They walk you through the basic movements of the crossfit workouts and they will do a small
sample workout with you. This 3 session package is $150
3rd step: Sign up for a monthly program (depends on two things: duration of your workout and
duration of your contract).
A basic package (3 times a week, one hour each time) ranges from $120-160 per month. BUT, if
you sign up for longer than a one year contract, you could get a cheaper package.
Benefits of Westlake Crossfit:
 You are working with a personal trainer at ALL TIMES
 There is a maximum of only 12 people per class (and usually only 3-10 show up)
o Small trainer to client ratio
 Classes offered all day, from 6 am-6:30 pm. These classes are one hour long each.

Page | 23
Real Estate Options
www.BrianFaheyRealtor.com
Real-Estate Consultation Provided By:
Brian Fahey
Realtor
Coldwell Banker United
Contacted on November 4, 2012
D: 512.970.8772 E: bfahey@austin.rr.com
609 Castle Ridge Rd. Austin, TX 78746
Brian provided us with a ballpark estimate cost of a commercial acre of land in the Lake Hills
neighborhood to be between $200,000 and $250,000.
www.bstarraustin.com
Real-Estate Consultation Provided By:
Brenda Starr
Realtor, License #535034
Sky Realty
Contacted on November 4 and 5, 2012
D: 512.940.3353 E: golfrealtor@yahoo.com
http://BrendaStarr.actris.mlxchange.com/?r=1017050994&id=31363534323838.370
Brenda found two available lots for sale in the Lake Hills neighborhood. The link above will
direct you to an online posting of the two lots. You can see the geographical location on the map
in the competitive landscape overview. Both of these lots are competitively located in the
neighborhood and provide a high level of accessibility to the residents. They could possibly even
walk to the gym.

Page | 24
Option I.
Address: 1604 Lipan
ML# 6414249
List Price: $787,000
Type: Multiple Lots (Adjacent)
1.95 Acres @ $402,763/acre
View: Greenbelt
Zone: Unknown
Option II.
Address: 810 Tumbleweed
Trail
ML# 9091256
List Price: $450,000
Type: Single Lot, Cul-De-
Sac, Backs to Greenbelt,
Open
5 Acres @ $90,000/acre
View: Greenbelt,
Creek/Stream
Zone: Unknown
These two lots require a much greater level of due diligence. A concern we want to point out is
their unclear zoning. This may be negotiable and there is the possibility to get the land rezoned if
need be. Otherwise, Option II presents a great opportunity. The land is priced lower than the
average given by Brian Fahey, and the sizable lot gives the opportunity to grow considerably, or
even to provide a hike and bike trail to the community.

Page | 25
Start-Up Requirements
Gym Consultation Provided By:
Allison Van Leeuwen
Assistant Director – Facility Operations
Division of Recreational Sports
Gregory Gym (D7500)
Austin, Texas 78712
Contacted from November 1 - 5, 2012
D: 512.471.6045
E: allisonvl@austin.utexas.edu
Allison gave us an estimate average cost per machine for treadmills, ellipticals, etc. to be around
$5,000. She explained that the operational costs such as maintenance, utilities, and operational
expenses such as payroll are too specific to each company and are not easily generalized.
Therefore, we excluded such figures from our project scope. Furthermore, Allison led us to
specific vendors to research for flooring and gym startup expenses. We describe these elements
in detail below.
Mondo Flooring : www.MondoUSA.com
This vendor provides various flooring products.
Sports Imports: www.sportsimports.com
This vendor supplies indoor volleyball, badminton, and tennis equipment.
BSN Sports: www.bsnsports.com
This vendor supplies various sporting equipment, including basketball equipment,
bleachers, and fitness equipment.

Page | 26
Flooring and General Construction
Insurance Consultation Provided By:
Jim Anderson
Mondo Flooring
D: 630.242.4729 W: www.mondoworldwide.com
Local Dealer: Mondo USA Southwest
Michelle Music
C: 512.410.9655
202 Walton Way, Suite 192
Cedar Park, TX 78613
Mondo is an international flooring supplier of fitness facilities. They even do the flooring for the
Olympics. The have various specific products for specialized needs. For the sake of simplicity,
we looked at their multi-purpose indoor flooring products, specifically the Mondosport II which
comes in both a vinyl and wood finish. This flooring can be used in fitness/cardio rooms, indoor
basketball and volleyball courts and gymnasiums in general. Thus, the same flooring can be used
across our entire facility.
MondoSport II - Texture MondoSport II - Backing MondoSport II Wood
Jim gave us a quote of $5.25/ square foot. This price includes delivery, the laminate over the
foundation and the actual flooring, and installation.

Page | 27
Multi-Purpose Court Requirements
Multi-purpose courts are designed around the basketball court. All courts for high school and
beyond have a width of 50 ft. and a length of 84 ft. for high school divisions and 94 ft. for
collegiate and above. Additionally, you need a 3 foot minimum unobstructed space (preferably
10 ft.) bordering the court. .
Dimensions (L x W) Area Cost at $5.25/sq. ft.
No Border 94 ft. x 50 ft. 4,700 sq. ft. $24,,675
3 Foot Border 100 ft. x 56 ft. 5,600 sq. ft. $29,400
Installations of lines: $3,500
Goals and Backboards: $2,000 - $2,500 depending on the brand and quality.
2 Row Tip n’ Roll Bleachers: BSNSports.com
Length Seats Price
8 Foot 10 $675
15 Foot 20 $1,035
21 Foot 28 $1,395

Page | 28
Indoor Volleyball Equipment from Sports Imports
Upright Storage cart (holds 4) $810
International Official Stand $850
Safety Pad for Uprights $245
Net $355
Uprights >$360
Fitness Room Equipment Suppliers
There are a number of manufacturers to consider in purchasing gym equipment. These
companies vary in their product offerings, service, warranties, pricing, support, and overall
value proposition. It is important to do detailed research and contact different companies
to find the best fit for your needs. Equipment costs are benchmarked in Appendix C.
The information in the following company profiles are clippings directly from the respective
company websites.
Selecting a manufacturer is a very personal decision, and is dependent upon specific needs
that are difficult to predetermine. On a very broad level, we believe LifeFitness is a great
candidate. They are the market leader and set standards for other companies to strive for.
They’ve been around for a long time and have been a leader in product innovation. Most
importantly, they have a cooperative philosophy of business. They view their customers as
‘fitness entrepreneurs’ and strive to help them succeed. An example of one of their services
is equipment financing, to help you reduce the initial investment hurdle. This has led them
to be used by countless businesses across the globe, including mega-chain LifeTime Fitness.
An in-depth overview of their service offerings is provided in Appendix B.
LifeFitness
www.lifefitness.com
Virtual Room Planner:
http://lifefitness-commercial.icovia.com/
5100 North River Road
Schiller Park, IL 60176
customersupport@lifefitness.com
Commercial Sales
Phone: 800.527.6065
Available Monday-Friday, 8 am to 5 pm CST
commercialsales@lifefitness.com
It is a point of pride that the history of the company effectively mirrors the timeline of the fitness
movement. While many were still calling it a craze, we were deepening our understanding of
exercise in order to make it easier for people to enjoy the benefits of a healthy lifestyle.
As a fitness entrepreneur, we know you share our commitment to helping people live healthier
lives.
There has never been a better time to invest in your club. By working together, we can help you
improve your business. Together, we’ll keep helping people get the most out of their workouts.

Page | 29
Vision Fitness
www.vision fitness.com
http://visionfitness.icovia.com/icovia.aspx
1600 Landmark Drive
Cottage Grove, WI 53527
Toll free 800-335-4348
Fax 608-839-8994
info@visionfitness.com
M-Th 7 AM – 7 PM CST
Friday 7 AM – 5 PM
CST
Saturday 9 AM – 3 PM
CST (Sept. - April)
Local Retailer:
Fitness in Motion
10900 Research Blvd.
Austin, Texas, 78759 United States
512-345-2333
Vision Fitness is part of Johnson Health Tech (JHT), a name synonymous with quality
fitness solutions for more than 30 years. In addition to Vision Fitness, the JHT family
consists of some of the most respected brands in the industry, including Matrix,
LIVESTRONG, AFG and Horizon. From high-end health clubs to specialty fitness retailers to
sporting goods stores, JHT products are sold in over 60 countries. A strong commitment to
product innovation, superior value and unmatched customer service has made JHT a
leading provider of high-quality home and commercial fitness equipment around the
world.
Precor
www.precor.com
http://precor.icovia.com/icovia.aspx
20031 142nd Avenue NE
P.O. Box 7202
Woodinville, WA 98072
T: (425) 486-9292
T: (800) 786-8404
Local Retailer:
Fitness in Motion
10900 Research Blvd.
Austin, Texas, 78759 United States
512-345-2333
THE PRECOR VISION:
To be the world's most recognized and respected brand in health and fitness.
Precor designs and builds premium fitness equipment for effective workouts that feel smooth and
natural. Our equipment is chosen by health clubs, hotels and spas, universities, and individuals
all over the world. For nearly three decades, we've driven fitness forward with a passionate focus
on ergonomic motion, proven science, and superior engineering. We constantly study and
anticipate the needs of the people and organizations we serve, and continually redefine the levels
of innovation, quality, and service necessary to deliver the very best fitness experiences – all
with the goal of improving the ways people improve themselves.

Page | 30
Overview of Insurance Needs
www.etmg.us
Insurance Consultation Provided By:
Thomas J. Smith
CPA,CPCU, ARM, ARe
Member, Board of Directors
D: 512.279.5611 M: 512.680.6195 E: tsmith@etmg.us
6300 Bridgepoint Parkway Bldg. One, Suite 480 Austin, Texas 78730
Your business needs business insurance because of the many risks and potential threats to its
successful and continued operation. By its nature, a fitness center is subject to heightened risks
as people are in a physically risky environment. A good, tailored business insurance plan can
help protect you and your venture as much as possible.
An exact quote on the premiums cannot be given in a theoretical situation. The estimated
premium figures presented below are estimates from Thomas Smith based on his vast experience
and historical data.
Types of Insurance Coverage to Consider:
1. Employee Benefits [Est. $445 per employee per month]
Health Insurance is now one of the key factors in the decision of a skilled employee to
accept a job. This insurance offers a health coverage benefit. It can either be
participatory (in which the employee shares a portion of the premium payment) or non-
participatory (in which the employer pays the full premium). Aspects of this benefit
include:
a. Health Insurance (Major Medical) [Est. $400 per employee per month]
b. Vision Coverage [Est. $10 per employee per month]
c. Dental Coverage [Est. $30 per employee per month]
d. Supplemental Riders [Volunteer basis, employee pays premium]
e. Group Life insurance [Est. $5 per employee per month]
2. Key Employee Life Insurance [Est. $2,000 monthly]
This policy is used to protect the business from interruptions caused by the death of a key
employee or executive. This person could be any person whose contributions to the
operations and success of the business are essential, such as the owner and operator. The
business is the owner, beneficiary, and premium payer of this policy. In the event that the
person dies, the business receives the proceeds of the policy which gives it the flexibility
to continue operations.

Page | 31
3. Premises Liability [Est. $1,500 Annual Premium]
This coverage provides protection from unexpected expense liability arising from
accidents or injuries of guests arising on the premises of our facility. It also covers costs
arising from law suits related to such incidents. Possible scenarios where this coverage
could come into play include:
 A guest slips on the bathroom floor and is injured
 A guest falls down the stairs and is injured
When a claim is made over injuries sustained on the premises by guest on the premises
not covered under other insurance policies, premises liability insurance covers costs
related to the primary injury such as the doctor visits, medical bills and surgery,
permanent physical disfigurement, inability to work as well as pain and suffering. There
is liability only if the injured party was injured on the business’ property.
4. Property Coverage [Est. $750 Annual Premium]
Business property insurance is a must to protect the company assets (the building,
fixtures, computers, gym equipment etc.) and limit liability in the event of a natural
disaster or other calamity. Business property insurance can be either basic form policies
which provide coverage for damages from such events as fires and storms, or special
form coverage which offers broader coverage. This policy covers damage to the
property, the property of the gym guests that was in the building at the time of the
incident, and the lost income due to the disaster.
5. Crime Policy [Est. $200 Annual Premium]
Crime insurance is usually sold separately because regular property insurance does not
usually cover losses caused by dishonest employees. Businesses use crime insurance
policies to file claims for employee thefts and other offenses with the potential to cause
financial harm, such as:
 embezzlement
 theft
 forgery
 computer fraud
 counterfeiting
 breaking into a safe
 general crime and dishonesty
6. Workers Compensation [Est. $1,500 Annual Premium]
This policy insures a business’ employees from on-the-job injuries. Employees cannot sue
the employer for on-the-job injuries by statute, and in return the employer must participate in
the workers compensation system that triggers payment to the employee in case of injury for
medical bills and damages.

Page | 32
7. Commercial Automobile [Est. $2,000 Annual Premium per vehicle]
Personal automobile policies do not cover vehicles used by the business. If the business uses
vehicles or anything that is required to be titled by the state, then a commercial auto policy is
needed. This policy insures against property damage to vehicles and damage caused to others
by those vehicles.
8. Umbrella Liability Insurance [Est. $250 Annual Premium]
Also known as excess liability or commercial umbrella insurance, this policy provides
additional protection when the business exceeds insurance limits on an underlying policy.
For a single premium, umbrella policies add another layer of protection to any of several
other policies that are held. It is generally the most affordable way to get higher policy limits
on several other small business insurance policies.
Personnel Needs
Starting a gym will demand a number of human resources. Determining how to staff these needs
is very flexible. The general needs include:
 Administrative/ Supervisory position – Make sure member needs are served.
 Maintenance/ Custodial – Make sure the facility is clean and safe. This can be
outsourced.
 Coaching for sport leagues – This can be on a volunteer basis.
 Class instructors – This depends on the classes offered, and typically you can
establish a partnership or contract agreement with independent instructors.
 Personal Trainers – They can be hired full-time, part-time, or on an independent
contractor basis.
Many of these roles can be filled on a part-time basis, outsourced to other companies for a fee,
fulfilled by contractors, or filled on a volunteer basis. You can further gain value by offering
internships for the local youth. Any of these options would allow you to fulfill your needs
without having to have full-time employees and therefore have to offer benefits and pay
additional taxes.

Page | 33
Recommendations
We have identified several options for our client, Dr. Edwards to consider. The final decision has
to be a personal reflection considering her financial circumstances, her desired level of
commitment and her level of risk tolerance.
Option 1: Build a multi-purpose court first and add other amenities in phases.
This is our first option because we believe it to be the most versatile. While any aspect of a gym
will have significant start-up costs, the multipurpose court requires much less than a fitness
room. They have the same cost per square foot in terms of flooring/construction, but a court
requires much less equipment. In addition, the space is much more versatile and can be used for
many different purposes, each of which presents a revenue driver.
For example:
1. Membership fees for open court access
2. After school youth activities
3. Group classes
4. Seasonal sporting leagues
5. Tournaments
6. Court reservations (Hourly)
7. Special event space rentals (dances, concerts, community festivals, etc.)
In addition, we believe this fits into your passion and experience well. You stated that you have
coached basketball, have tremendous nostalgia for your coach, and have experience running
tournaments. This gives you the ability to tap into the identified youth market and bring new
services to the community that is not already offered by the competitors in the area. The social
element of this option can help you succeed with the future expansions.
The downside of this option is that it does not directly give you a place to workout close to
home.
Option 2: Build a fitness room first and add other amenities in phases.
This is our second option because it requires a significant upfront investment in terms of flooring
and equipment. Furthermore, this need is somewhat already met in the neighborhood by the
presence of Gold’s gym at the end of Cuernavaca. Therefore, leading with this amenity will
impose a greater challenge of breaking into the market and gaining market share in the
community. Additionally, it has less possible revenue drivers than the multi-purpose court.
Revenue Drivers:
1. Membership access to the room
2. Personal training with certified trainers
The advantage of this option is that it satisfies the client’s personal needs more directly.

Page | 34
For example:
1. It provides her with a place to workout.
2. It eliminates the need for her to make long drives into town to exercise.
3. It gives her nephew, Mark, a place to work as a personal trainer.
Option 3: Build the group exercise room first and add the other amenities in
phases.
While this option has the least start-up expenditure, we do not believe it is a feasible option. It
does not resonate with the client’s personal objectives or experience. The revenue drivers are
dependent on offering fitness classes, which our client does not want to do personally, and must
therefore rely on outside sources for the core value of the business. This is not a smart way to
start a business. Furthermore, the need is well met by Westlake CrossFit.
Option 4: Build the multi-purpose court, fitness room, and group exercise
room at once and add other amenities as desired.
This option is the most risky due to having the highest up-front costs; however it also gives the
community the highest value proposition and has the most possible revenue drivers. This will
help break into the market faster and gain membership quicker. Further expansion could include
adding the following features:
1. Structured Activities:
a. Racquetball
b. Squash
c. Rock wall
d. Spinning class
e. Yoga and pilates studios
2. Vending Area, Juice/Shake bar, Café, or other food service
3. Retail shop (sales of athletic clothing and equipment)
4. Spectator seating in the gymnasium
5. Child care services
6. Fitness assessment spaces
7. Message or physical therapy spaces
8. Spa/tanning salon
9. Pool/Aquatic Center
10. Outdoor spaces /fields
11. Community special events /meeting rooms
If you outsource these services, you can gain revenue from rent, increase the value of your
facility in comparison to the competitors, better serve the community, and recover your
investment quicker.
Option 5: Do nothing and join one of the identified gyms.
If the client decides that this venture is unfeasible for her, she can still meet some of her
objectives by joining one of the other gyms in the area. This can give her space to workout closer
to home, even though it is not her ideal situation.

Page | 35
Appendix A: Interview with Professor Edwards
Wednesday, October 10, 2012 at 5 PM CST
1. What type of gym were you thinking of?
- Um, what I have had in mind for a while is kind of a community gym for all ages, you know—
really for the neighborhood I live in. Let me just give you some of the threads of my thoughts.
One is that I started my life, my career as an athlete and was a real gym rat. I just want to stay in
shape, for one thing—especially as I get older. And it’s costing me a fortune to drive into town
and work with a personal trainer and all that. And so that’s one thing influencing me. The other is
my nephew, um, is thinking about becoming a personal trainer. He, uh, he’s kind of had a hard
time figuring out what direction he wanted to go in his life and so forth, and he got all into fitness
and lost a hundred pounds on his own and trimmed down to, you know, about as good as it can
get. So, he works out every day, so he’s seriously considering getting his certification for training.
And I thought, well, you know that might be cool to have a place for Mark to work.
2. Similar to a YMCA?
- Kind of like that. And then also, you know, the weights and all that so that you could do Little
Dribblers for five year olds one night, and you could have a volleyball league going the next, and
basketball tournaments. So, a pretty good size gym.
3. For the area that you’re in, is there a building or a facility that you have your eye
on? Or would you build?
- Uh, no, the main road that when you cut off Bee Caves Road, that goes down two or three miles,
is a road called Cuernavaca—it’s the name of the street, and it’s mixed residential and
commercial. And there’s still some property along there.
4. Are you interested in amenities?
- Yes, the other thing going through my mind was for other people as I’m watching people in my
family now, who are in their 80’s—of all of the aches and pains and stuff like that. And I thought,
well you know, wouldn’t it be cool even to do like a medical spa or something, where you had a
whirlpool, or maybe you rented out some space to a chiropractor or physical therapist. You
know—that kind of thing; a medical thing. So of course, now I’m just talking strictly fantasy. So
beyond that, that’s as far as my thinking has gone. To say, you know, there’s a lot of different
needs out there—both for the community, for older people, for little kids, for medical purposes
and things, and that there’s just nothing—you know we’re probably...360 is the nearest big road
to us, which is 3 or 4 miles back into town and then it’s further than that. Now if you go all the
way out to Bee Caves there’s a Gold’s Gym out there, but they don’t have an indoor pool or
anything like that. They’re mostly weights. It may just be totally prohibitive financially, at this
moment. The most money I could put together in a short period of time would be maybe $50,000,
you know, from one source or another. But, this is, you know, this is probably millions—I don’t
know.
5. Is your vision more to own this business, or just to have this center to exist?
- Just to have it there. And so, one of the questions, to me, would be the possibilities of either
putting together a corporation versus making it non-profit, and my role just being kind of to get it
going and maybe doing some of the management to get it started…let Mark have a place to have
a job and so forth, you know.

Page | 36
6. You don’t want to be too involved after you set it up, but you do want to retain
ownership of it?
- Not necessarily. If it could be a nonprofit, then... Also, someone was telling me the other day—
you guys may know more about this—organizations where it’s kind of a combination of nonprofit
and profit. So, what I’m thinking is that area is in the Eanes school district, and the taxes are
pretty substantial out there. And so that’s one of the things kind of holding me back: what would
a commercial building out in that area—what would the taxes be? And would it be better to build
the building as a nonprofit, and then maybe manage it for profit or nonprofit. I’m not so interested
in money. I don’t want to lose money. But you know, I want it to be worth my while. But I don’t
want to be personally stuck in debt for 20 years. I want to set it up so that it would be sustainable
without me. So those are all the thoughts I’ve had so far.
7. And how set are you on the location?
- I would be flexible within about 10 miles.
8. So, is this a situation, where maybe this facility doesn’t need to focus on machines
more so than maybe group activities?
-Yeah, I think we’d want to have a weight room and machine space of some kind. But, I also
think group classes would be nice: yoga or body sculpting. My assumption is that there’s a lot
instructors who, if they had space, would be happy to you know, do that. So that would be part of
my…you know, I have no interest in the teaching or training part of it. I’m past those days, but I
think that would be an interesting win-win to offer space for those classes.
9. What do you typically do when you go to the gym?
-Well, it just depends on what the facilities are. Uh, when I was at Gold’s, it was just strictly
weights, and I didn’t do the group classes at all.
10. So, to recap, are you looking for simply a facility and things to fill that facility?
-In terms of data: like just knowing like in that Cuernavaca area what land is going for. Who
builds gyms and what does it cost to build a gym? What does a weight room cost? What does,
you know, the whole basketball/pool thing cost? Breaking that down—what do those elements
cost to build and maintain?
11. You mentioned the areas by the lake. There is a YMCA off the old 183. It has like 2
lakes so they have kayaking and stuff. So would that be something you want to do
too?
-Um, I probably wouldn’t go that far, just because there’s not a lot of space in that area. And the
clubhouse, they do let people store their kayaks and stuff there. So, people store their stuff
there—the storage costs something, but they store their stuff there for free. So I would probably
stay away from that since that need is pretty well met. Probably wouldn’t be able to get too close
to the lake since the clubhouse is right on the lake, and Cuernavaca runs up probably 3 or 4 miles
back so it will probably end up being a couple of miles from the lake. Because right next to the
lake is pretty built up.

Page | 37
Appendix B: LifeFitness In-Depth Overview
LifeFitness
www.lifefitness.com
http://lifefitness-commercial.icovia.com/
5100 North River Road
Schiller Park, IL 60176
customersupport@lifefitness.com
Commercial Sales
Phone: 800.527.6065
Available Monday-Friday, 8 am to 5 pm CST
commercialsales@lifefitness.com
The following information is clipped from the company website.
Our Mission
We're called Life Fitness for a reason, because helping people live healthier lives is more than just our business, it's our passion.
Commitment, it's what sets us apart. And it doesn't end with the equipment, that's just the beginning. Life Fitness. It's more
than just our name, it's What We Live For.
Our Enduring Commitment
Life Fitness began over 40 years ago with an idea, and a vision - Create a different kind of fitness equipment. Something that
will engage and inspire exercisers to do more, to push themselves further.
Out of this vision was born the world’s first electronic piece of fitness equipment, the LifeCycle Exercise Bike. Our long-standing
commitment to thoughtful product development and partnership has resulted in the global leader in the commercial fitness
industry with over 400 different products delivered to thousands of commercial and home fitness customers worldwide.
Throughout our history, Life Fitness’ dedication to constantly develop better, more effective fitness equipment is rivaled only
by our desire to be a partner to help our customers who choose to become fit, or to provide a healthy lifestyle to others.
Commitment to the Best in Product Development and Innovation
Investment in great products means more than just innovation for innovation's sake. It means thoughtful creation of products
and product features so our customers have the right choice of equipment that is right for them, not the newest fad the will be
hyped today and gone tomorrow.
Our commitment to product leadership is displayed each and every day, by dedicating more people and resources to make sure
our product feel great and perform safely. That they have the best industrial design on the market, with unsurpassed reliability
and durability built in.
A Partnership for Success
Whatever it takes to help our customers. As the top-selling and most trusted fitness equipment manufacturer in the world, Life
Fitness supports your success in ways no other company can. Our global sales and distribution teams are known world-over for
going beyond just bringing you great fitness equipment, by developing a true partnership to help you achieve your business
goals.

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LifeFitness Provides the Following Additional Services:
Equipment Selection
Our two industry-leading brands, Life Fitness and
Hammer Strength empower you to create a fitness floor
tailored to your exercisers. We offer variety in our two
cardio lines and 12 different strength lines, because we
know that having choices helps you choose the right
equipment to best suit your needs. A variety that also
helps exercisers avoid boredom, plow through plateaus
and achieve their goals—which they will attribute to
your facility. Because the best exercise plan is one with
room to grow, the best facilities enable that growth and
thoughtful owners are rewarded for their foresight with
very loyal members.
Including:
 Experienced sales consultants
 Life Fitness and Hammer Strength brands
 Life Fitness Journey
Facility Layout Services
Creating a safe and inviting facility floor plan that
maximizes your space is the first step in creating a
successful fitness facility. Whether you are adding new
equipment, expanding an existing facility or building a
new one, Life Fitness has unsurpassed facility layout
services and expertise to set your facility apart.
Including:
 2D and 3D layout services
 Visio and CAD resources on media website
 Online facility planner
Equipment Financing
Life Fitness finances more fitness equipment than
anyone in the world, including banks and leasing
companies. We help our customers grow by investing in
their future. Several of our customers have started out
with us as single-club operators and after we took a
chance on them, expanded to become multiple-club
owners. Life Fitness understands club operations, and
this allows us to not only assist with financing, but to
help you avoid common—and costly—mistakes.
Including:
 Equipment financing team
 Leasing and financing options
Pre-Sales Office Support
Channeling the energy of a bustling exercise facility in a
sales office is fairly daunting. We offer promotional
videos to create visual excitement that also educates on
the features of Life Fitness equipment. This way,
exercisers immediately connect the idea of your facility
helping them reach their fitness goals.
Including:
 Product/promotional posters
 Life Fitness and Hammer Strength promotional
DVD
 2D and 3D layout posters
Staff Education Tools
The Life Fitness Academy has devised a multi-step
learning solution with options that benefit every fitness
professional. It all begins with e-learning where staff
and trainers can conveniently gain and test their
knowledge. Fun, dynamic live and on-demand webinars
comprise the next level of available training.
Including:
 On-Site training
 E-learning
 Webinars
 Grand opening on-site trainer support
 Product education videos
Member Education Tools
For those facilities that have limited staff, having great
instructional materials to help train your members on
features and proper usage of your Life Fitness and
Hammer Strength equipment can be a big help. The Life
Fitness website Fitness Advisor section is a great place
to direct your exercisers for fitness articles instructional
videos and other tips on how to get the most from their
workout. Our Life Fitness Academy trainers can further
personalize equipment training for your exercisers by
providing in-person instruction for your members, in
your own facility.
Including:
 Educational video content
 Grand opening on-site trainer support

Page | 39
Membership Sales Tools
We understand selling memberships or promoting your
facility to prospective exercisers is critical to your
success. That's why Life Fitness wants to help you
maximize your equipment investment, by giving you the
tools to promote your equipment and it benefits, and
give you unique ways to distinguish your facility. Things
like the Life Fitness Journey Concept and unique
workout tools like Life Fitness Virtual Trainer website.
And staff education tools, so your trainers and staff can
highlight all the features that help sell the equipment's
benefits - and ultimately those of your club - to
prospective members.
Including:
 Life Fitness quick product reference guide
 Life Fitness Virtual Trainer website
 Life Fitness Journey
 Product education videos
Marketing Support - Print and Online
Our marketing teams support 120 countries around the
globe from headquarters and regional offices. We work
hard to understand your specific needs from a point of
view that will resonate with the exercisers you're trying
to attract. We offer custom and ready-made solutions
and collaborate with our customers to create the
ultimate fitness experience. In addition to our
capabilities in creating printed marketing materials, we
recognize that the world is changing and moving to an
ever more interactive existence. We can help you with
website content and online resources to reach your
exercisers before they ever walk through the door.
Including:
 Business solutions website
 Media assets website
 Video content
In-Facility Promotional Materials
Keeping your facility looking and feeling fresh and
exciting can be as easy as adding some new visual
elements. We believe that these can be both eye-
catching and educational. Many of our posters call out
relevant information that makes exercisers feel
comfortable.
Including:
 "Coming soon" posters
 2D and 3D layout posters
 POS promotional items
Public Relations
You’re out there in your area, supporting area residents
and their desire to live healthier lives. Public relations,
both through the media and community, is a great way
to spread the word about your accomplishments and
attract new members.
Including:
 Public relations guide

Page | 40
Appendix C: Equipment Costs
Manufacturer Treadmills MSRP
Length
(in.) Width (in.)
Footprint
(ft2
)
LifeFitness F1 Smart $2,499 77 34 18.2
LifeFitness F3 $2,999 79.5 34.5 19.0
LifeFitness T3 $2,999 78.5 34.5 18.8
LifeFitness T5-0 $3,699 80.25 32 17.8
LifeFitness T5-5 $4,199 80.25 32 17.8
LifeFitness T7-0 $4,699 80.25 32 17.8
LifeFitness Club Series $5,499 83 37 21.3
LifeFitness
Platinum
Club $5,999 80 37 20.6
Vision
Fitness T80 Classic $4,599 80 43.5 24.2
Average: $4,132 79.9 35.2 19.5
Manufacturer Exercise Bikes MSRP
Length
(in.)
Width
(in.)
Footprint
(ft2
)
LifeFitness R1 Lifecycle $1,599 57 26 10.3
LifeFitness R3 Lifecycle $2,599 57 26 10.3
LifeFitness
Club Series Recumbent
Lifecycle $2,999 54 26 9.8
LifeFitness
Platinum Club Series
Recumbent Lifecycle $3,499 65 27 12.2
LifeFitness C1 Lifecycle $1,399 45 27 8.4
LifeFitness C3 Lifecycle $2,299 45 27 8.4
LifeFitness
Club Series Upright
Lifecycle $2,699 48 24 8.0
LifeFitness
Platinum Club Series
upright Lifecycle $2,999 43.5 21 6.3
Vision Fitness V-Series Indoor Cycle $1,199 56 21 8.2
Vision Fitness U70 Upright Bike $2,499 41 26 7.4
Vision Fitness R70 Recumbent $2,999 67 28 13.0
Average: $2,435 52.6 25.4 9.3

Page | 41
Manufacturer Ellipticals MSRP
Length
(in.) Width (in.)
Footprint
(ft2
)
LifeFitness X1 $2,199 81 30 16.9
LifeFitness X3 $3,099 81 30 16.9
LifeFitness X5 $3,899 83 26 15.0
LifeFitness X8 $4,699 83 26 15.0
LifeFitness
Club
Series $4,299 83 28 16.1
Vision
Fitness S60 $3,999 73.2 29.5 15.0
Vision
Fitness S70 $4,999 75 35 18.2
Average: $3,885 79.9 29.2 16.2
Manufacturer
Summit
Trainer MSRP
Length
(in.) Width (in.)
Footprint
(ft2
)
LifeFitness
Integrity
Series $4,699 68 33 15.6
Average: $4,699 68 33 15.6
Manufacturer MultiStation MSRP
Length
(in.) Width (in.)
Footprint
(ft2
)
Vision Fitness ST710 111 87 67.1
Vision Fitness ST700 57 62 24.5
Vision Fitness ST780 Bench 61 26 11.0
PreCor S3.45 $5,799 117 92 74.8
PreCor S3.23 $3,199 53 38 14.0
PreCor S3.15 $1,299 108 72 54.0
LifeFitness G7 $2,999 68.5 70 33.3
LifeFitness G4 $2,499 80 53 29.4
LifeFitness G3 $1,999 80 53 29.4
LifeFitness G2 $1,499 71 48 23.7
Average: $2,756 80.7 60.1 36.1

Page | 42
Manufacturer Bench MSRP
Length
(in.) Width (in.)
Footprint
(ft2
)
Vision
Fitness
ST780
Bench 61 26 11.0
PreCor Multi-angle $329 52 24 8.7
PreCor
Super
Bench $1,050 54.3 26 9.8
Average: $690 55.8 25.3 9.8
Manufacturer Core MSRP
Length
(in.) Width (in.)
Footprint
(ft2
)
PreCor
240i Stretch
Trainer $895 53 16 5.9
PreCor Ab-X $1,195 57 32 12.7
Average: $1,045 55.0 24.0 9.3
Manufacturer
Body
Shape MSRP
LifeFitness Regular $299
LifeFitness Plus $399
Average: $349

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