Franchising fitness: P.E.I.'s 3rd Degree Training expands to 6th location
'You have to have people who love it like you do'
3rd Degree Training and Actual Nutrition, a fitness and nutrition company that began in Stratford, P.E.I., seven years ago, is poised to launch a franchise in Saint John, its sixth location — along with Stratford, Summerside, P.E.I., Montague, P.E.I., Moncton, N.B., and Dartmouth, N.S.
It all began nearly a decade ago when husband and wife Steven and Pam Collette decided to get in shape. They tried a few different gyms and fitness programs and enjoyed them, but "didn't really find anything that really spoke to us," Steven, now 38, said.
We don't tell our franchisees they're going to be millionaires by doing this.— Steven Collette
So the Collettes devised their own high-energy fitness regime based on high-intensity interval training, training customers outdoors. They became certified fitness instructors, offering eight-week boot camps with unlimited classes. After a few years, the Collettes opened their facility in Stratford, which is now their corporate headquarters.
'The anti-gym'
Trainers and "motivators" lead participants in cardio exercises like on-the-spot sprints mixed with lunges, squats and other movements that use only body weight as resistance. There's little equipment — just a big room with a cushioned floor, loud music and dozens of sweaty bodies.
"We're kind of the anti-gym," Steven said. "Our slogan is, your body is your gym … you basically need space, a structured program and a lot of motivation."
About three years ago the Collettes decided to franchise the business, beginning in Dartmouth, N.S.
"That was a big decision," Steven said. "You have to have people who love it like you do."
The first franchise owners were a young P.E.I. couple who had first been enthusiastic customers, but were transferred to Dartmouth for work. "They loved the program so much … they jumped at the chance and said let's go at it!" recalled Steven.
Locations in Summerside, P.E.I., and Montague, P.E.I., followed, then Moncton, N.B. and at the end of this month, Saint John.
'A lot of potential'
Kevin McEachern, 37, is the latest franchisee. He was recently downsized out of his last job as a business developer for an international time share company, and said he'd always admired the small business owners he'd met in that capacity — so he decided to become one.
"I was looking for something where I could be my own boss, and preferably an industry that had a lot of potential to access a pretty good size and hopefully expanding market," he said.
Knowing that many small businesses fail within their first five years, McEachern decided to search for a tried-and-true franchise. Researching online, McEachern came across 3rd Degree on the Canadian Franchise Association website, and said it seemed like a great fit for several reasons.
"You need to feel like it suits your personality, you know the people you're dealing with share your values," McEachern said.
'Reasonable' franchise fee
He was also looking for a lower-risk, lower-cost entry into franchising and found 3rd Degree's $25,000 to $50,000 franchise fee "reasonable," especially considering some franchises such as fast food have fees of more than $1 million. The fees are payable only once — after it's paid the franchisee must only follow 3rd Degree's rules, said Collette. They also receive unlimited consultation from the Collettes.
McEachern, like the other franchisees, has had to install a special blue and red cushioned floor in his new facility — one of the biggest single expenses at between $5,000 and $12,000.
That's a perfect way to fuse my passion and something I want to be doing anyway.— Kevin McEachern
"When you're an owner-operator with 3rd Degree Training, you run the business but you're absolutely in the trenches!" said McEachern, noting he's always been a fitness enthusiast.
Franchisees of most businesses are required to work at the business full time, he points out — but he couldn't see himself flipping burgers or making smoothies.
"I thought to myself, that's a perfect way to fuse my passion and something I want to be doing anyway, with a business opportunity," said McEachern, now a newly-minted fitness instructor.
He plans to open 3rd Degree Saint John at the end of February.
'Love what you do'
"We have some irons in the fire for the next couple years too," shared Steven Collette. "Slow moderate growth is important to us, as we don't have a huge plan to massively saturate."
Keeping an eye on quality on finding the right franchisees is 3rd Degree's priority, he said.
3rd Degree charges $250 for new members, $200 for returning customers for their eight week boot camp — a price they haven't raised once over the years. The Stratford location has "a few hundred" clients, some of whom have been devoted customers since the company started, and 20 staff. Customers who travel can attend classes at any of 3rd Degree's locations.
"We don't tell our franchisees they're going to be millionaires by doing this," said Collette. "Obviously multi-unit ownership is something that you have to look at down the road."
What about being the franchisor? Collette said the couple "works for it," visiting each of their franchises at least once a month, sometimes dropping in unexpectedly.
"When you love what you do and you can make a decent living and pay your bills and save a little for your future," it's worth it, Collette said. "I wouldn't quit my job for a million dollars."
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