Russian Fitness Centres Find Success in Franchises

The Russian sports industry is expanding through the growth of franchising. The sports industry is going in two different directions. First, the sale of sports products, which has always been the key component in the Russian market, is continuing a healthy growth rate, but now the market is expanding into fitness center franchises. The franchising of fitness centres has now exceeded the franchising of retail sport stores. Franchisees are drawn to the fitness centre market because it offers scaled shares in the company and the pre-existing client base. Members from one franchise are free to use their membership in other franchise locations, creating automatic business for new centres. 

Fitness facilities have been growing at a rate of 40% a year in Russia. There is a strong divide in the industry between the premium, luxury gyms, mid-price gyms, and the lower price ranges. There are also smaller regional gyms that have their own style and clientele. The middle of the road gyms are often favored by the business class. It is this middle price fitness segment that is projected to have the largest growth within the next year.

Gold’s Gym currently holds one of the largest pieces of the fitness market pie. Their chain of fitness centers has been growing for the past 40 years, and entered the Russian market just over 10 years ago. The company started franchising around 30 years ago and now has 650 fitness centres and 5 franchise enterprises in Russia.

Another company that has found success with franchises in the sports industry is Strata-Partners. The company owns ORANGE fitness and CITY fitness, two growing fitness club chains. They got their start in Russia in 1999 and have already grown to 25 clubs across Russia and the countries of Commonwealth of Independent States (CIS).

World Class fitness clubs were the first fitness club to start franchising in Russia. The first World Class fitness club opened in Moscow in 1993, opening Russia and the CIS up to the fitness club world.  The company owns 23 clubs and has 17 franchised clubs located in 14 cities. Global 25 has rated World Class in their list of 25 best fitness clubs in the world. They were the first to separate their services into ‘premium’ and ‘luxe’ for their high end customers. They also founded the personal trainers institute which educates Russia’s future fitness trainers. Students obtain a certification which includes a test which must be passed annually by all fitness instructors. The instructors are primarily world class athletes including Olympians and medal winning world champions. The company is always working to stay at the top of the industry, offering innovative programs in modern fitness centres. The chain was skyrocketed to the world stage during the 2014 Olympics in Sochi, when they were given the prestigious role of “Fitness Services Provider.”

With Russia’s growing economic success, and changing levels of social development, the fitness industry is now playing catch up with large chains like World Class. To stay competitive in this ever changing market companies must stay ahead of the curve by investing in modern technology and enforcing strict business standards while seeking growth through franchising.