Anytime Fitness

In 2002 Chuck Runyon was frustrated with his gym, it closed at 9. He worked late shifts, thousands like him existed outside normal hours but had nowhere to go. Runyon bought a treadmill, weight rack and rented warehouse space. He installed a key card reader and opened 24 hours. Demand was immediate. The breakthrough was that Runyon didn't need to be there. He hired one staff member for standard hours. After hours the space ran completely unattended. Members used key cards to enter, used equipment and left. This eliminated almost all labor costs after desk hours. A 24 hour gym operated at the labor cost of a gym that closed at 9. Runyon franchise this model. Franchisees paid an initial fee of roughly $42,500. Ongoing royalties were approximately $699 per month flat fee, not percentage based.