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Module 1A - Franchise Intro (Crunch DEV Foundations)

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Transcript of Module 1A - Franchise Intro (Crunch DEV Foundations)

THE BRAND
FRANCHISE
MARKETING
FRANCHISE INTRO
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MODULE 1A:
O R I E N T A T I O N
OUR HISTORY
1989
We started modestly in a basement studio gym in the East Village of New York City.
BUILT ON TWO FUNDAMENTAL
CONSUMER INSIGHTS
Gyms are intimidating places
Working out is hard – motivation to do it even harder
1.
2.
WHAT MADE CRUNCH UNIQUE AND SPECIAL?
POSITIVITY
We are nurturers:
we seek only to encourage, entertain, and empower.
INCLUSIVITY
Here we keep open minds. There is no one type or way in our diverse community. Come as you are!
FUN
We know serious fitness is hard, but that doesn’t mean it can’t be an edge-of-your-seat, can’t-get-enough, look-forward-to-your-workouts party.
Our NO JUDGMENTS philosophy
CONTEXT
THE CONSUMER
INSIGHT
Gym’s aren’t a place for most people
Looking foolish trying
to use equipment
Embarrassed of their
physical appearance
Working out is hard,
routinized, and boring
THE CATEGORY
INSIGHT
THE BRAND
INSIGHT
Consumers are becoming less loyal
The fitness industry is out of touch.
Sets unattainable expectations
This prevents many from
even starting
Messages can alienate or
turned off consumers
A unique and special experience can overcome barriers.
Create a culture that is positive
and inclusive
Make the experience engaging
and fun
Physical benefits are relative;
emotional benefits are universal
Crunch is a part of our member’s lifestyle, but their lives are more complex
Cognitive rewards keep
people committed
Demographics are important, but psychographics is what connects them
A gym experience that fuses entertainment with serious fitness
Cool
designs
Fun
lighting
Peek-a-boo
showers
Unique
programming
Proprietary Group Fitness classes
Embody our philosophy of making fitness
fun

and

achievable
Designed to ensure that
everybody
fits in
Strong Personal Training
Certified
personal trainers
Customized programs designed 100%
around the member

Unique, cutting-edge
classes
A quirky and irreverent brand
WE’RE A BRAND WITH
SOUL
S.O.U.L
Our Mission: To Make Fitness FUN
RESPONSIBLE
INNOVATIVE
PASSIONATE
KIND
INCLUSIVE
ALTERNATIVE
FUN
S.O.U.L
TIMELINE
1989
1992
1995
1996
1999
2001
2002
2004
The innovative fitness center with edge and urban appeal is founded
The East Village
studio closes but
two new locations
are opened.
The No Judgments
tagline & philosophy are
introduced to address the
intimidating feel of the
archetypal gym.
We're bi-costal!
Crunch heads west & acquires its 4th
location in LA.
Crunch introduces
Cardio Striptease &
the Broadway Dance
Series (classes with
real cast members).
Crunch hits the small
screen on popular tv
shows like Sex and the City and Will & Grace.
Crunch's 19 locations
are acquired by Bally
Total Fitness for $97
million & 2 more open.
Things heat up when
Crunch introduces
Pole Dancing & Stiletto
Strength classes.
WHAT WE ADDED TO THE
LOW-PRICE EXPERIENCE...
VALUE BUILDING
PROPRIETARY

STRENGTH OF OUR
NATIONAL
FUNCTIONAL
Growing segment of the market
Specialized instruction & innovative programming
Leverage camaraderie and competition in a group setting
BRAND
GROUP
FITNESS
PERSONAL
DISCIPLINE
TRAINING
BRAND
AWARENESS
GROUP
TRAINING
HIIT
STRENGTHENING
PRESSURE-
FREE
ENROLLMENT &
NO COMMITMENTS
Non-commissioned employees
Prospects are given all of the information needed to make an informed decision
No intimidating “hard sell”
Month-to-month memberships – low barrier to commit
Partnership with dotFIT and the National Academy of Sports Medicine
24/7 online meal planning and recipes
Availability of dotFIT science-backed nutritional products in club
NUTRITION
& HYDROMASSAGE
Post-workout perks
ONLINE
TANNING
2006
2013
2016
2017
2017
Crunch is bought by
the Angelo, Gordon
& Co. investor group.
Get fit on the fly - work
out anywhere, anytime!
take fitness ond
the gym with Crunch
Live online workouts.
Crunch opens its 100th
franchise location with
over 700 franchises
sold.
Crunch hits the
200 open location
milestone and
surpasses 1 million
members!
WHY MOVE INTO THE
LOW PRICE
SEGMENT?
PRE-2009
2009
The $10 low-price gym model becomes among the fastest growing segments of the fitness industry
Growth is accelerated via franchising
Industry is dominated by players who offered affordability, but often traded-off the experience
New Evolutions Ventures (NeV) joins Angelo Gordon as an investor/owner of Crunch
NeV believes Crunch can be extended into the low-price segment with a highly differentiated value proposition
The low-price initiative is
KICKED OFF
KEY
DEVELOPMENT
MILESTONES
2010
2011
2012
Brand identity and gym design developed
Developed JV partnerships to launch low-price model and accelerate growth
Construction Manual deployed
Group Fitness programming and training released
Franchise Intranet launched
Operations Manual released
First location opened
20th location opened
WHAT’S NEXT?
Over 1,000 Clubs Sold
Over 300 Clubs Open
Crunch 2.0
- Crunch Experience Strategy
- Continuous improvement and innovation
- New Prototype Design
- New tech-based features

1 BRAND
3 FORMATS
EXPERIENCE
CRUNCH
STRATEGY
ACQUISITION
DIGITAL
MEMBER
IN-CLUB
MARKETING
TOUCH-POINTS
ACTIVATION &
LOYALTY
EXPERIENCE
BLUEPRINT
New Brand Campaigns
Leverage scale – Marketing Automation, BLM, Media
New Social Media approach
Gift cards and promotional programs
SUPPORT
ROLES & RESPONSIBILITES
FRANCHISOR
To build a system that works
Real estate assistance
Construction standards
& requirements
Pre-Sale
Operations
Marketing & Branding
ROLES & RESPONSIBILITES
FRANCHISEE
To Open & operate a great club
Site selection
Build out
Staffing & Training
Following the playbook to brand standards
- Operations
- Group Fitness
- Personal and group training
- Local Marketing
- Retail
FRANCHISE SUPPORT SERVICES
TRAINING
Foundations
Crunch University
24/7 Crunch Intranet Access
Ongoing Training and Support
FRANCHISE SUPPORT SERVICES
Real Estate
Financing & Equipment Support
Construction
CLUB OPENING
Support/Assistance
FRANCHISE SUPPORT SERVICES
Back Office Management
System On-Site Assistance
Dedicated Marketing Support
OPERATING
Turnkey Club System
- Operations
- Group Fitness
- Personal Training
- Group HIIT Training
YOUR CLUB
CRUNCH UNIVERSITY
ONBOARDING TOOLS
OPERATIONS
MANUAL
GROUP FITNESS
TRAINING
CONSTRUCTION
MANUAL
EQUIPMENT
MANUAL
MARKETING
CRUNCH
APPAREL
DOTFIT
INFORMATION
OPERATIONS MANUAL
The Crunch Franchise Operations Manual helps franchisees:
Understand the SOP for the Crunch franchise system
Get started in planning and organizing your franchise
Select a site, organize Pre-Sale and set up your new club
Build a team, operate the facility and serve your members
GROUP FITNESS
Everything you need to know about Crunch’s proprietary group fitness
Quality control
Cost breakdown
Recruitment recommendations
Training checklist
TRAINING MANUALS
Certification process
CONSTRUCTION MANUAL
Step-by-step guide on how to build your club
Construction process
Detail for architects to draw club plans
- Materials & Finishes
- Floor plans, elevations, illustrations
- Graphics & signage
- FF&E
Required vendors
Room-by-room detail
Road map from Pre-Sale to Grand Opening
EXECUTE WITH
EXCELLENCE
EQUIPMENT
Complete equipment package
Equipment specs
Warranty information
Financing support
MANUALS
MARKETING GUIDELINES & BRAND DNA
Marketing & Brand Standards
GUIDELINES
& BRAND DNA
Best practices & tools from Pre-Opening through mature clubs
Logo use, colors, typography, uniforms, etc.
COMPLIMENTARY
CRUNCH
MEMBERSHIP
OUR PARTNERS
PREFERRED
MANDATORY
Contact information is available on the brand intranet, Crunch Fransupport
WHAT
TYPE
VENDOR
CONTACT
Collection Services
Insurance Services
Lighting Solutions
Membership Management System (MMS)
Payroll Services & Employee Handbook
Video Surveillance & Security Systems
Water Massage Beds
Preferred
Preferred
Preferred
Preferred
Preferred
Preferred
Preferred
First Credit Services
FitnessInsurance.com
Complete Lighting Solutions
abc Financial
Paychex
DTT
HydroMassage
William Jackson, VP of Sales
Randy Schumacher, Owner & President
Nina Frey, Sales Rep
Wes Adams, Account Executive
Nick Lombardi, District Sales
Chase Elkins, Account Executive
Paul Lunter, President
WHAT
TYPE
VENDOR
CONTACT
Athletic Flooring
Direct Mail Marketing
Digital Media Buying
Equipment Delivery & Installation Process
FF&E and Pre-Sale
Membership Key Tags
RTDs & Approved Nutrition Products
Mandatory
ecore
MuscleUp Marketing
Mindstream Media
Mass Movement, Inc.
One Source Retail
Suncoast ID Solutions
Europa
Jon Butts, President
Elizabeth Krambeer, Account Executive
Dom Simonetti & Jim Sullivan
Rebecca Leuken, Project Manager
Michele Wright, Account Rep
Tonya Tarlton, Stephanie Suddarth
Retail, Promotional Items & Uniforms
Weight Management / Nutrition Products
Mandatory
Mandatory
Mandatory
Mandatory
Mandatory
Mandatory
Mandatory
Mandatory
CrunchFranchiseStore.com
dotFit
Dan Broudy, CEO Clayton Kendall
Neal Spruce, CEO
THE KEY TO OPERATING A
SUCCESSFUL FRANCHISE
Be accountable for running your own business
But remember you are part of a team
Winning as a team requires that everyone follow the game plan
OUR
COMMITMENT
OUR
RELATIONSHIP
Deliver a world-class brand
Offer comprehensive training and support
Provide a proven turnkey system
Maintain timely and accurate communication
Evolve the system / innovate / keep the brand competitive
We LISTEN
If something can be improved, let us know and we’ll review
We ASK
We’ll research and solicit feedback from other franchisees
We ACT
If a change benefits the system
(company, brand & franchisees), we’ll evolve.
YOUR
COMMITMENT
OUR
RELATIONSHIP
Maintain high standards of service and member satisfaction
Abide by franchise agreement terms
Submit reports and franchise payments on time
Follow brand standards
- Club build out
- Operations
- Marketing & Sales
- Hours of operation
Operate in accordance with applicable laws & regulations
Protect confidential information
Respect and protect the Crunch brand
FUNDAMENTALS
GENERATING LEADS & SALES
No matter where a consumer is in their path to purchase, omni-channel marketing guides prospects throughout the purchase funnel
Impressions
Act
Purchase
Loyalty
Reach
Consideration
Convert
Engage
1
2
3
4
PRIMARY
Direct Mail, search, display, paid social, out-of-home, broadcast, grassroots

SECONDARY
PR, partnerships, social content, website, in-club activation
PRIMARY
Direct mail, email, website, social content, grassroots & in-club activation

SECONDARY
Grassroots, paid search, organic search
MARKETING APPROACH
PRINT ADVERTISING
BROADCAST
OUT-OF-HOME
PARTNERSHIPS
GRASSROOTS &
IN-CLUB ACTIVATION
DIGITAL
PR
Direct Mail
Print
Postcard
4-ups
TV
Radio
Billboards
Phone Kiosks
Bus Shelters
Movie Theatre Ads
Community Events
In-Club (Open-house & charity)
Referral Program
Cross-Promotion
WORD OF MOUTH
Local Sponsorship
Corporate Outreach
Signage
Events
POS collateral
SEM/SEO (Google)
Business Listing (Yelp/Yext, etc)
Email
Social (Paid/Organic)
Display, paid media
Website
Influencers
New club openings
Corporate exposure
Press (Print, Radio, TV, Digital)
Influencers
SOCIAL MEDIA
CHANNEL STRATEGY
GYM & CLASS CATALOG
MOTIVATIONAL COACH
LIFESTYLE MAGAZINE
Center of information and engagement for current and potential members
Motivational content designed to drive awareness
Embodiment of the Crunch lifestyle, showing inspirational imagery and elements of life outside of the gym
HOW OUR
PROCESS WORKS
Marketing is an investment: Grow your leads; convert to members
Pre-sale period:
$8,000/month

Grand Opening:
$15,000

Year One:
$8,000/month

Year Two and Beyond:
$6,500/month or 7% of Gross Sales, whichever is higher

Contribute of Brand Marketing Fund:
2% of Gross Sales
HOW OUR
PROCESS WORKS
Work The Crunch Marketing To Plan Your Marketing Calendar In Advance
Keep up-to-date on Marketing Snapshots, training and best practices
HOW OUR
PROCESS WORKS
HOW OUR
PROCESS WORKS
Club Lifecycle Marketing
Pre-sale
• Start marketing 1-mo prior to start
• Enrollment Center open 3-mo prior to start

Ramping
Plan to drive membership

Mature
Expand marketing strategies
HOW OUR
PROCESS WORKS
Creative Development
Today:

Submit request to Crunch Marketing

All marketing materials must be developed by the Crunch Marketing Team

Future:

Online Ad Builder Portal for Franchisee Access

HOW OUR
PROCESS WORKS
Media Strategy, Planning & Buying
Work with Crunch Marketing on overall strategy

Utilize required and preferred vendors to purchase media (e.g., direct mail, digital, OOH, TV, radio, etc.)

HOW OUR
PROCESS WORKS
Social Media
Keep up with calendar

Post local club content regularly

Follow influencers
HOW OUR
PROCESS WORKS
What you CAN NOT do
Develop your own marketing assets

Hire graphic designers

Bring on your own email platform / send mass emails to leads/members

Hire agencies that conflict with brand “agencies of record”
MARKETING
TRANSFORMATION
CURRENT STATE
Dedicated account support
Integrated campaigns, local marketing tools
- Customized creative asset development
FUTURE STATE
Dedicated account support, marketing & strategy consultants
Planning Roadmaps
- Recommendations on multi-channel mix
- Promotional calendar for mature clubs (yr. 2+)
Local marketing online portal
New Website
Internal/External Signage
HubSpot email automation
Improved Mobile App, powered by NetPulse
Deeper Media Strategy & Planning Support
Foster marketing innovation / best practice sharing
- Test, learn, optimize approach based on data analysis
CRUNCH MARKETING ASSETS
INSERT VIDEO
Q
&
A
Insert Image
Insert Image
Insert Image
New Website (complete)
New Member Portal (Q4)
New Member App (Q4)
New Class Reservations (Q4)
Lifecycle marketing campaigns (lapsed, PT, SGT, Retail)
Rewards & Recognition (app)
NPS, Reviews & Reputation
Referrals / Evangelists (app)
Refreshed Crunch Fitness clubs
Introduce Crunch Select
Elevate Crunch Signature
INSERT VIDEO
CRUNCH ORG CHART
The team outlined below represents your primary Franchise contacts and will guide you to the proper contact for specific areas as you progress
C R U N C H F R A N C H I S E
New Hampshire
New York
Florida
Full transcript