United Foundry

United Foundry

Social Media Advertising for Gym. The Inflection Point.

I met Matt Davidson when he owned an F45 Franchise, the international fitness brand that Mark Wahlberg invested into. This is the beginning of our success story with social media advertising for our gym.

 

With his background in sports and fitness as a state champion weightlifter and D1 football player at the Naval Academy and Virginia Tech, Matt wanted to open multiple additional F45 locations.

 

I joined Matt as an equity investor and operating partner with the role of providing financial modeling, site selection, raising capital, business management, and marketing support.

 

However, after adding up all the initial franchise fees, ongoing fees, and equipment markups, we realized that we needed to be one of the busiest gyms in town just to break even. To address this, we decided to launch a facility without the franchise flag and fees, and Premia Fitness was born.

 

Now we were able to build a gym that generated annual cash flow that is multiples of the initial investment. Said another way, instead of making 10% to 15% return on investment with the expensive franchise model, we were making 150% to 200% return. That’s the benefit of a lean, bootstrap approach.

 

People soon inquired about owning a Premia, largely due to our success with social media advertising for the gym, so we licensed the model and content with low costs and no overload of fees, giving our partners the freedom to run a fitness studio and keep most of the reward for themselves.

 

Over the years, we have noticed changes in the fitness industry and experimented with new models and offers. We expanded the gym from offering fitness classes to providing a fully equipped gym open 24/7.

 

Instead of using traditional methods of acquiring equipment — which can cost 6 or 7 figures depending on the size of your gym — we purchased entire gyms from country clubs that were being remodeled and sold off unwanted pieces on Facebook Marketplace.

 

We were able to equip a 7,000 sq ft gym with a net profit (we made more money selling the extra stuff than spent on everything in the first place).

 

Once the build-out was complete, we went mass market with a lower price, which tripled our members and nearly doubled our revenue in just 75 days.

 

social media marketing for gym

 

Screenshot shows Premia Fitness LaBelle growth after implementing changes in January 2023.

 

Our innovative approach has attracted a loyal following, and we continue to explore new ways to provide our customers with the best possible fitness experience.

 

Matt deserves the majority of the credit for the business trick shots we’ve accomplished at Premia Fitness. He’s an eternal optimist, which has been crucial in making asymmetric reward business decisions, where the risks are small and absorbable, and the rewards are orders of magnitude greater than those risks.

 

Premia Fitness is an excellent example of this approach.

 

If you want to learn more about Premia Fitness, and how to use the model and content to start/grow your own gym, visit premiafitness.com to learn more about Premia, then contact us to start a conversation.

 

Whether you are at the early stages of business or looking to create a transformation, my team and I would be honored to explore the opportunity to work with you — as consultants, advisors, or even equity investors.

 

Contact us to start a conversation today.

-Andrew Falde