Japan Agreement Leads Anytime Fitness into Asia

Fast growing fitness franchise Anytime Fitness has reached a master franchisee agreement in Japan.

One year in the making, the Japanese agreement comes just weeks after the fitness chain announced its plans to open clubs in the United Kingdom and Ireland. These international deals, combined with 300 new club openings in the USA each of the past two years, have put Anytime Fitness on pace to open its 2,000th club by the end of next year.

The fitness franchise currently boasts nearly a million members, 1,250 gyms across in the USA, and over 100 clubs open in Canada, Australia, New Zealand, Mexico, and India.

As John Kersh, Vice President of International Development for Anytime Fitness explains âthis is an exciting time for Anytime Fitness as we continue to introduce our brand to different parts of the world.

"Japan is an ideal starting ground for our Asian expansion, and well-suited for the Anytime Fitness concept."

The master franchise group in Japan is comprised of several individuals with extensive experience in the international fitness industry. Their company, Fast Fitness Japan, Inc. will now do business as Anytime Fitness Japan.

The consortium is led by Toru Yamazaki, former Chief Executive of Megalos, the fifth largest health club chain in Japan (a subsidiary of Japanese corporate giant, Nomura Real Estate Group).

Yamazaki personally assembled the master franchise team:

• Akira Okuma, Chairman - Largest investor, and an expert in real estate development.
• Joe Plastino, Vice President of Corporate Strategy and Business Development - A 20+ year veteran of the health and fitness industry.
• Koji Akiya, Vice President of Sales & Marketing - 20+ years in managerial roles in the health and fitness industry.
• Atsuyuki Tsuchiya, Vice President of Operations - Industry veteran in health club operations and management.

The Japanese fitness market appears ripe for expansion. There is a low penetration of gym memberships (only 3-4% of the population as members of gyms, versus 15% in the USA) perhaps resulting from the country's lack of variety in their current club offerings.

However, Yamazaki believes that "we fully expect that Anytime Fitness will reinvigorate the Japanese market with its convenient and affordable fitness offering."

The franchise expects to open the first Anytime Fitness gym in Japan by September 2010, with future aims to have 30 clubs operational by 2012 and over 300 within 10 years.

"We will start in Greater Tokyo, the most densely populated and business centric part of the country," Plastino said, adding "our headquarters are in Tokyo, so we'll be in a strong position to build our reputation and sell franchises."

Yamazaki and his team will continuously monitor trends to determine additional geographic locations, but he expects the concept to thrive in locations where Anytime Fitness has been successful in the U.S. -- suburban markets near larger cities and smaller towns where the market for an Anytime Fitness club exists but where no health clubs are currently located.

Only slight changes are expected to be made to the Anytime Fitness model in Japan - namely, the average club size will be smaller due to scarce land and expensive real estate, and basic adaptations will be made to address cultural differences.

Anytime Fitness Chief Executive and co-founder Chuck Runyon insists that the brand's value will translate overseas, stating "whether it's Minneapolis or Tokyo, there's a market for convenient and affordable fitness options in a friendly, non-intimidating atmosphere."

Membership fees at the Japanese clubs are expected to be in the US$50 to 60 per month range. Similar to Anytime Fitness clubs around the world, the gyms in Japan will feature a wide variety of cardio equipment and strength training machines, and be accessible to members 24 hours a day. 

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