Tapout Fitness infuses martial arts programming into traditional fitness training
to provide a strong competitive advantage for its franchisees.
By Bianca Herron
In order to secure the exclusive global rights to the Tapout brand for use in the health and fitness gym sector, Tapout Fitness was formed by Ben Crosbie. In November 2014, he launched the Tapout Fitness franchise program, designed to create a chain of studios and fitness clubs, adapting highly effective, time-tested martial arts training and conditioning programs.
“Tapout is WWE’s official fitness and training partner, so this gives Tapout Fitness built-in credibility, extended reach and exposure,” CEO Ben Crosbie says.
Industry veterans with well over 100 years of combined experience creating and operating the world’s top fitness club brands have rounded out the Marietta, Ga.-based company’s management team, including Executive Chairman Marc Tascher, Founder, Chairman/CEO/CFO of Town Sports International, (NASDAQ Club), former CEO Crunch, Bally among others; President Rick Bouza, former senior executive at Towns Sports International, Crunch and American Leisure; and Chief Marketing Officer David Geller, former head of marketing for Equinox, Blink Fitness, Pure Yoga, among others.
Tapout Fitness
Tapout Fitness is martial arts-infused fitness for all ages and fitness levels. It encompasses immersive fitness programming and signature classes that evolve the world’s most time-tested and effective conditioning programs. Classes incorporate cutting-edge strength and cardio equipment, such as Tapout Martial Arts, Tapout Fit, Tapout Strike, Tapout 20 and Yoga. Tapout 20, one of the company’s most innovative offerings, is a 20-minute HIIT workout that incorporates the basics of martial arts conditioning in a non-intimidating way.
Greg Jackson, the world’s pre-eminent Mixed Martial Arts coach and instructor whose MMA Fight Team has an incredible 85 percent winning percentage in competitions at every level, is a partner in the business and oversees the training of all Tapout Fitness coaches.
The Tapout brand is a joint ownership by Authentic Brands Group (ABG) and World Wresting Entertainment (WWE), which provides Tapout Fitness with access to extraordinary brand marketing and assets. Every franchisee benefits from unprecedented endorsement and support, according to the company.
ABG and WWE are deeply committed to the development of Tapout Fitness into a major fitness chain, giving it unmatched resources, Tascher says. “For example, for the rebranding of one of our Manhattan clubs, Tapout Fitness hosted a grand opening workout event with WWE Superstars Alicia Fox, Lana, Summer Rae, Natalya, Alexa Bliss and Naomi, E! News host Maria Menounos and in collaboration with Amy Dixon, celebrity trainer and fitness instructor.
“The gym takeover event included strength training and cardio workout sessions, as well as Q&A with the stars, providing guests and fans insight into what goes into the workout of a WWE Superstar,” Tascher continues. “The event streamed live and was filmed for future airing. There was a line around the block of people hoping to get in, and special security was needed for crowd control. How many other fitness brands can match this?”
Expert Service
Tapout Fitness creates an inclusive community of members who support each other as their fitness improves. “While the traditional core adult demographic has been 60 percent women and 40 percent men between the ages of 18 and 50, the new programming offers beginner’s programs and children’s classes, so we are the perfect choice for people new to fitness,” Bouza explains. “Our members define quality by the strength and expertise of our programming and instructors. That’s what sets us apart from our competitors.”
Bouza also emphasizes Tapout Fitness’ strong family element, offering programming for children between the ages of four and 18. “Tapout Fitness includes time-honored children’s classes, including Karate, Taekwondo and Tapout Martial Arts,” he says. “We welcome entire families to join, but children are welcome on their own. Tapout Martial Arts is not only a good workout for children, it also teaches them life skills such as focus, mindfulness, discipline, respect and coordination.”
Building the Franchise
Tapout Fitness has an adaptable box model to fit franchisee’s market demographic and best fit into the competitive climate in the area, according to Crosbie. “The best offering may be a smaller boutique-type studio model, or a larger studio with a broader fitness offering.”
Tapout Fitness also offers a “conversion box model” for gyms that have generic programming and are struggling in the face of increasing competition. “This already includes two Manhattan clubs, a 26,000 square foot and 44,000 square foot location,” Crosbie continues. “The Tapout Fitness brand, programming and classes caused an immediate lift in sales, leads, dues rates and program sign-ups. We are starting to attract other owners of traditional “generic” gyms like Bally and Gold’s, who see Tapout as a way to differentiate, increase sales, retention and revenue per member.”
While most new franchises must invest heavily in creating training facilities to support its franchisees, Tapout Fitness already has deep resources for franchisee training: Its Manhattan clubs and senior team, and partner’s facility – the Jackson-Wink Training Academy - and team in Albuquerque, N.M. Our first three-day training occurred in New York in November with great success, and our franchisees have given outstanding reviews about Greg Jackson’s certification program.
“My career and success has been defined by the following key principles," Tascher says:
1. Challenging accepted wisdom.
2. Staying fresh, ever changing, and looking for new ways to attract and retain members.
3. Mining data to increase precision and take the guesswork out of the equation.
4. Emphasizing the need to build engagement, community and enjoyment.
5. Building the best team, which means talent, selflessness and compatibility.
6. Creating businesses that serve all stakeholders, including members, staff, owners and our community. This is one business where everyone can win, which is why we love it and why it attracts the best people.
“When Ben approached us, we immediately saw the ‘white space’ opportunity,” he continues. “While everyone else is competing in one arena, we see ourselves as having almost no competition and huge global growth potential. No one has effectively adapted martial arts, the most respected training programs in the world, to the general fitness market. Our category has millions of devotees and expert instructors to attract, and no major competition. Every colleague I’ve talked to immediately “gets it.” Sometimes the best ideas are the most simple, and we feel this way about Tapout Fitness.
“I’ve been in this industry since the 1970s, have seen almost everything and been fortunate to be part of our industry’s growth and success,” Tascher adds. “However, when I walked out of our first meeting with ABG, I turned to Ben, Rick and David and said, ‘I’ve never seen an opportunity like this before. Not only a great idea ready for explosive growth, but access to an iconic brand and incredibly strong and supportive partners who are in this for the long term.’ I was even more excited when I met our partners, investors and franchisees. Ben has been carefully surrounding himself with strong and committed partners, and has been selective in choosing franchisees. This is a smart and successful group who understands exactly what it takes to succeed. Since then, working with ABG and WWE has been like a dream. In less than six months we’ve added franchisees and area reps that increase our potential size from 30 to almost 400. Has this ever happened before?”
Seeing Growth
Tapout Fitness plans to add more than 14 locations to its brand in 2017, but this could accelerate with conversions. “Opening new locations takes time. It requires careful site selection, patient lease negotiations, design and construction and a strong presale,” Crosbie explains. “However, the club industry has thousands of existing clubs looking for a change. I doubt there’s a more experienced team in the industry for repurposing, repositioning, rebranding and turnaround management, and we love the idea of finding these types of opportunities. Four hundred locations in a few years feels very achievable.”
Crosbie added that Tapout Fitness requires potential franchisees to have relevant business experience, be financially capable and be good communicators as well. “All of the franchisees are fully appraised as to what to expect and they are interviewed by several members of our team,” he explains. “We recognize that this is not simply a franchise sale, but we are creating a partnership – and relationship – for the next 10-plus years. We feel it’s important to ensure that we have the right unit owners within Tapout Fitness to give the members the greatest experience.”
According to Bouza, beyond being a tremendous brand with phenomenal backing, and a truly differentiated fitness approach, a large reason potential franchisees should invest in Tapout Fitness is because of its team and the company’s commitment to supporting franchisees. “As an emerging franchisor we are investing resources to help each franchisee on a more personal level,” he says. “We support our franchisees, whether it’s prior to opening a studio or after they have opened, with marketing or operational help. We believe martial arts, as a category is not just a trend, but also a long-term way to engage in fitness. It has not been developed and professionalized in the way that Tapout Fitness is going to do it.”
