Ellipse Fitness Makes the News!
Franchise keeps it simple
Group exercise is a singular pursuit
By John Craig, Editor Fitness Business News - 06.2007
APPLETON, Wis. - Lisa Welko was teaching a cardio kick-boxing class at a martial arts gym five years ago when one of the young women in her class approached her with an idea: Let's open our own health club.
It's a quaint notion that a lot of people ponder but few actually pursue.
But for Welko and her eager sidekick, Shana Conradt, this was no idle chatter. Within a few months, they opened a fitness club devoted strictly to group exercise. They worked seven days a week teaching classes, vacuuming floors, and running the front desk. After nine months, they hired their first instructor.
"We're normal people who thought the world needed something different," said Conradt. "We wanted group-exercise classes where members get treated as if they're with a personal trainer. These are not girly classes."
Welko and Conradt apparently struck a chord. The duo now has four Ellipse Fitness clubs in Wisconsin, with a fifth in development, and plans to franchise throughout the Midwest and in Texas.
While many health clubs strive to offer something for everyone, Ellipse clubs maintain a singular focus on group exercise. The clubs consist of a large workout room with meager locker and shower facilities, and a daily schedule of seven 45-minute classes. There are no weightlifting machines and no cardio equipment. Monthly membership fees are high ($70).
"In a world otherwise saturated with fitness concepts that don't work, this one works," said Eric Riess, a St. Louis lawyer who specializes in franchising and is helping Welko and Conradt market their business. "It's a little bit of personal training and a little bit of boot camp. They'll make you do the routine. And the reason people are willing to pay a little more is because they get something out of it. A lot of people have tried the $30-a-month clubs and found that they got nothing out of it."
Ellipse Fitness franchisees need $100,000 to $130,000 to get a club off the ground and pay 5 percent of their monthly dues as a royalty. Clubs need only 50 members to break even, Welko said, and can cap their memberships at 200.
Welko, 35, and Conradt, 28, contrast the Ellipse blueprint with that of a typical gym that charges lower monthly dues while maintaining three times the square footage and a wide array of cardio and weight machines.
"Who do you think is going to have an easier time getting to the break-even point?" Conradt asks.
"I was skeptical at first," Riess said, "but was struck by the high energy level of these women. Their attitude was, 'We've got a concept and we want to share it.' They've got a passion for what they're doing."
The challenge in franchising will be to find other owners who can match the energy and drive of the Ellipse founders.
Riess said the chain's "Victory over Violence" campaign to raise money for domestic-abuse shelters is indicative of owners "who really seem to get it. They're socially conscious, and love and understand the business. I think they'll attract good franchisees."