U.S.-based health chain Snap Fitness is planning to open 240 clubs across India as part of its expansion plan over the next three years. India, according to the Snap Fitness, is one of the growing markets in the Asia-Pacific region. The company already has 60 clubs running in India since 2008.
"Our goal is to have a footprint of 300 clubs over the next three years. Our immediate focus is on opening 20 stores by the end of this year," Peter Taunton, Snap Fitness Global CEO, was quoted as saying by the Press Trust of India.
He said the company envisages to have a total of 300 fitness clubs running across India in three years, of which 270 would be franchise clubs and 30 companies owned.
The Snap Fitness' expansion model requires an investment of Rs. 1.5 crore for each centre. For the franchise-run clubs, the funding would be provided by the franchise owners.
"We follow a 'hub-and-spoke' model, where we have one company-owned centre and franchise-run locations built around that area," Taunton said.
He added the company-owned clubs are mainly funded by accruals but it is also open to Private Equity investments.
Taunton said that Snap Fitness is also exploring the opportunity of opening stores in smaller cities of India apart from metros.
The tier-II cities would be integral markets for the fitness chain, he further said.
The company is likely to strengthen its position in Delhi-NCR, where it currently has 10 clubs. In South India, Snap Fitness is already a key player.
"We will also look to build, operate and transfer model where we will be looking at opening stores in a new area and transferring ownership to a franchisee once it's successful. We currently also manage clubs for franchisees at a management cost," Snap Fitness CEO said.
Snap Fitness is a 24-hour health and fitness centre, which was founded in 2003 by Peter Taunton.
The company has presence in 18 countries, including Canada, Australia, New Zealand, the U.K., India, Mexico and Egypt, with over 2,500 clubs.
Recently, Snap Fitness advertisements were flayed in Australia for promoting the domestic violence.
The company's Brisbane centre removed the advertisement, which showed a man pulling a woman's hair, and also apologised for it, Yahoo News reported.