FITNESSONE IS INDIAFITNESSONE IS INDIAFITNESSONE IS INDIAFITNESSONE IS INDIA’’’’S MOST S MOST S MOST S MOST SOPHISTICATED FITNESS CHAIN,SOPHISTICATED FITNESS CHAIN,SOPHISTICATED FITNESS CHAIN,SOPHISTICATED FITNESS CHAIN,AND WE DELIVER TOTAL FITNESS SOLUTIONS.

Fitness Opportunity

� Health & Fitness is a $ 20 billion industry in the US, serving 40 million clients.

� IHRSA (Premier Health Club Industry Association) has projected 25% growth in

membership to reach 50 million by end of 2010

� Nutrition & weight loss is a $44 billion industry in the US

� National trends on obesity and heart disease point to increasing demand for

healthy living and exercise

� Globally there is strong demand for branded fitness centers with international standards of

service

� Today the Indian fitness industry is probably where US fitness industry was

in the early 1980s

Indian Market Scenario…

Current Market Size – Rs.2500 Crores ($ 450 million)

No of clubs in the India – 970 (Predominantly small time clubs)

No of members – 11,00,000 members

Membership Penetration – 0.30%

Year on Year Growth – 80%

Top Global Markets...

8.5 %7.160543.7Germany

2.7 %3.420003.5Japan

14.8 %5.945003.4Spain

14.6 %4.347001.6Canada

15.5 %2.518001.5Holland

3.0 %1.512001.0Korea

0.1%1.19700.5India

13.0 %7.754906.3UK

16.0 %41.32900016.0USA

Penetration

No. of

Members in

Million

No. of ClubsSize in USD

BillionCountry

Top Global Players…

4.219471146 MillionCurves

3.0562296 MillionGold’s Gym

0.65115465 MillionVirgin Active

1.901671.00 BillionClub Corp

3.304371.03 BillionBally

3.013751.10 Billion24 Hrs Fitness

1.194411.30 BillionFitness First

No. of members in

MillionNo. of Clubs

2005

Revenue in USDCompany

Fitness One – an Intro

� F-One modeled after careful research offers world class equipments & ambience

on par with international clubs.

� F-One provides one of the highest level of service in the industry, where every

client gets individual attention from several departments

� Fitness Training

� Nutrition Department

� Physiotherapist Department

� Despite being a premium fitness center, it is value priced at Rs.19200 per annum (Rs.1600

per month) and no major player occupies this space in the same price band.

Excellent branding…

� FitnessOne has designed specific products to cater to the Niche segments:

� Weight Loss Management Program Called ‘TRIM’

� Personal training

� Offers variety of group classes: Aerobics, Yoga, Dance, Pilates, Martial

Arts, Kick boxing & Spinning, Salsa Dance, belly Dancing etc.’

� Set-up Academy of Fitness Management, a division of Fitness One, for providing

knowledge based training for fitness trainers.

� Strong branding to capture the mind share of prospects in the markets we serve.

FitnessOne - Company Background� Incorporated in 2004 as a Fitness & Wellness company in India

� Within a short span, FitnessOne has set-up 25 centers, 4 fitness equipment showrooms and

over 70 corporate centers with a cumulative space of 1,50,000 Sq. feet (approx.)

� Key Promoters Mr. PL Vivekanand & Mr. Arun Kathiresan :

� Mr. Vivekanand, pilot by profession and lived in the US for 17 years. Associated with the

fitness industry for the last 7 – 10 years.

� Mr. Arun, collectively over 18 years of experience in Indian Financial markets – primarily in

business analysis, investments, banking industry & administration.

� Within a short span of time, FitnessOne has grown to be a name with instant recall on the South

Indian mind.

FitnessOne – Existing Network

� No. of Clubs at present – 25

� No. of equipments showroom at present – 4

� 2 more FitnessOne and 2 more Pink Centers in the Pipeline

� Managing a total area of 1,50,000 Sq.ft

� Current Member Base – Over 25,000 approx

� Current Market Share – 10%

� Target Audience – SEC A+ , SEC A

� Over 70 centers in the Corporate Sector

� 10 Franchisee Operated centers as on date

Franchising Opportunity in India

� India has one of the lowest penetration in the fitness industry @ 0.1% Vs 16% in the US

� Indian market is likely to grow 25 fold in the next 5 years

� Medium scale investments with shorter payback opportunity

� Medium scale investments with better returns

� Patronage for business even for B class / C class Cities

Franchise Model - Framework

� Genuine owner franchisee model

� Unique in the fitness industry

� Suitable for entrepreneurs who wish to own a business with a

�Proven business model

�Less risk of failure

� The franchisee has to merely follow a fully developed concept

� Instant Brand recognition and positive association

Franchise Model - Framework

� Franchisee manages day to day operations

� All operational costs borne by the franchisee

� Major costs include rent, salaries, utility expenses, royalty fee

� All range of equipments sourced by FitnessOne

� Working capital expenses

� Franchisee takes entire profits from operations

� Franchisee required to depute a responsible person to manage operations on a regular basis

� Franchise Arrangement Tenure of 5 years & renewal option – Another 5 years

Franchise Model - Framework� When you are granted a FitnessOne Franchise, you will pay Rs.3 Lakhs to Rs.5 Lakhs based on the model

which entitles you to

� Use of the Fitness One brand name and intellectual property

� A primary marketing area (Isochrones)

� Comprehensive training for you and your staff

� A complete set of up-to-date operating manuals, processes and systems

� Total support to co-ordinate your pre-opening marketing and membership drive.

� Franchisee pays a one-time non-refundable franchise fee towards various benefits / services

offered by Fitnessone

� Franchisee pays an ongoing royalty on a monthly basis

� ROI in 2 – 3 years

Franchise Model – Key Benefits

� Center Design Support

� Center fit-out plan & design

� Equipment Layout

� Lower negotiated rate contracts with infrastructure suppliers

� Sourcing of Equipments at attractive prices

� Single delivery point for all items – as per requirement for a centre

� Lower set-up cost – due to volume discounts through Fitnessone

FitnessOne RoyaltiesFitnessOne Royalties……..

� A fixed royalty payable on a monthly basis will be calculated based on the model

� Ongoing use of the Fitness One Name and Intellectual property

� Recruitment & Training support

� Systems & Marketing support

� Price & Quality Benchmarking

FF--One Franchise Model One Franchise Model -- SummarySummary

� Franchising F-One leverages a proven profitable business formula to obtain a greater degree

of brand awareness by utilizing an established name, logo & trademark.

� F-One Marketing Assistance: This includes assistance in developing effective marketing plans

for a local market. In addition, F-One has resources and experience to develop regional and

National marketing programs that benefit all franchise owners.

� F-One Start Up Assistance: F-One has the experience and knowledge to help new franchise

owners transition from a start-up to a profitable ongoing business.

� F-One Management Assistance: F-One is able to transfer a wealth of knowledge on how to

successfully manage and operate a new business till you are able to handle.

Contd…

FF--One Franchise Model One Franchise Model -- SummarySummary

� F-One Brand Name Recognition: F-One can offer National or regional brand name

recognition.

� F-One Proven System & Business Model: F-One is able to transfer a proven and refined

system of operations. This includes operating and management efficiencies developed by F-

One. Uniform operational standards such as customer satisfaction and quality control,

benefit all franchise owners.

� F-One believes in a Win-Win situation and helps you grow with the company, share our long

term commitment and together revolutionize the fitness industry in India.

� Do you see the opportunity ?

� Do you appreciate that the expertise of an industry leader backing you,

translates into a tremendous advantage ?

� Do you want to own and run multiple fitness centers ? How big is your dream ?

� Do you have what it takes to hire the right people to manage and grow

each of your centers ?

� Do you realize that F-One will carefully select just a few franchisees, who

we feel can be trusted to protect and nurture our brand reputation ?

� Do you exercise regularly, and work towards personal fitness goals ?

FITNESS ISFITNESS IS AN ATTITUDEAN ATTITUDE

Seize the opportunity to build and grow the business through

multi-center ownership

Partner with FitnessOne and profit from the booming fitness industry

For more details contact

Yogendran.M 096000 03638 yogendran@fitnessone.co.in

M/s.FitnessOne India Ltd., Corporate Office, No.31/A, Ponnappa SM/s.FitnessOne India Ltd., Corporate Office, No.31/A, Ponnappa SM/s.FitnessOne India Ltd., Corporate Office, No.31/A, Ponnappa SM/s.FitnessOne India Ltd., Corporate Office, No.31/A, Ponnappa Street, Mandapam road,treet, Mandapam road,treet, Mandapam road,treet, Mandapam road,

Kilpauk garden road, Kilpauk, Chennai Kilpauk garden road, Kilpauk, Chennai Kilpauk garden road, Kilpauk, Chennai Kilpauk garden road, Kilpauk, Chennai – 600 010600 010600 010600 010

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