All-Star Major Multi-location Gyms Discussion

[canz]

I admit that I was a little shocked at how many gyms some programs had. I knew that gyms opening multiple locations was a growing thing, but I didn't realize how extensive it was.

Cross-referencing the list vs the Worlds medal count revealed that EVERY US gym in the top 20 of medals had multiple facilities. (2 extremely good programs, SOT & Brandon, currently have 2 and aren't on that particular map.). You could certainly argue about the direction of cause/effect there, but the correlation is unmistakeable.

I wish there was a way to know/visualize how big all those individual gyms were. Some of the expansion gyms are relatively small, others are fairly large. Small facilities are perfectly appropriate in some markets, I would just be curious.

I also wish there was a way to know/see what business model was being used. Real life businesses don't always break down into simple categories like company-owned vs assisted franchise vs rent-a-logo, but a rough estimation would be interesting.

I would love to know numbers and models others use also/swap notes!

 

[Rudags]

I didn't realize the extent of some of the multi gym locations. Interesting for sure.

 

[BlueCat]

Exactly. Gyms would hope that their expansions would provide a net gain.

But, are there gyms that open a new facility knowing that it will be more of a place to build athletes and less of a place to increase profits? For example, Gym A opens new facility in rural/impoverished area to attract athletes. Athletes need to be given lower payments/ scholarships in order to accommodate situations. But, athletes are grown to be level 5 and sent to main gym where they are expected to field Worlds team, which would bring more credibility to Gym A as they field many Worlds teams and potentially win more globes.

Even the largest gyms are still basically small businesses. I doubt any have the resources to put a facility somewhere to simply farm for future L5 talent with no concern for its profitability.

 

[AndrewSky]

Top Gun has had teams medal from different locations.

Sent from my SAMSUNG-SM-G900A using Tapatalk

So has PCM

 

[HeyMom]

There is tremendous pressure from parents to go to more and more Varsity bid events. It has been genius marketing by Varsity. The event is certainly wildly profitable and their Event Producers are the gatekeepers.

Varsity marketing aligned with the Disney marketing machine = pure marketing genius. IMHO, too many parents view a Summit bid as a way to visit Disney. Trust me, you can visit Disney way cheaper on your own.

 

[dawgshow]

Agree. I think it is also because these select premium events are marketed around the gym owner and coach directly to the parents and athletes. So even if a gym owner has a different path or opinion, those parents and athletes are bombarded with how those events are the best, etc. Great marketing to be sure, but it is hard to say we wont go, when every parents in the gym gets emails, tweets and announcements about it.

I am very thankful to be in a gym that doesn't see UCA, Summit, or Worlds as the be all and end all of cheer. I admit that three years ago I thought competing at Disney was the ultimate experience. Then we actually went and I realized a) it was ridiculously expensive, b) there really wasn't much time to visit the parks unless I kept my child out of school extra time and that was NOT going to happen, and c) at the end of the day it was just another 2:30 on the mat for my child. Yes, it was fun as a spectator to see teams we normally don't see and yes, my child was excited to have beaten a couple of "big" names, but after talking to her it wasn't much different than a competition at our convention center.

The money we spent on that one competition could have given us at least 4 extra times on the mat which frankly this jaded cheer mom will take over another trip to Mickey's place. I do admit that I miss catching up with friends that I've met over the years by not going but that's all I'm missing this year. If my child got a paid bid to the Summit of course I'd want to go, but shelling out a ton of money to go as a Wildcard? I don't have time for a Disney vacation right now, thanks. The other thing that makes me SMH is that people will lay down hundreds, if not thousands, of dollars to compete at Disney but complain about paying $10- $20 to see their kid compete at a different location. Let's ponder that for a moment.

 

[SL&AM]

I am very thankful to be in a gym that doesn't see UCA, Summit, or Worlds as the be all and end all of cheer. I admit that three years ago I thought competing at Disney was the ultimate experience. Then we actually went and I realized a) it was ridiculously expensive, b) there really wasn't much time to visit the parks unless I kept my child out of school extra time and that was NOT going to happen, and c) at the end of the day it was just another 2:30 on the mat for my child. Yes, it was fun as a spectator to see teams we normally don't see and yes, my child was excited to have beaten a couple of "big" names, but after talking to her it wasn't much different than a competition at our convention center.

The money we spent on that one competition could have given us at least 4 extra times on the mat which frankly this jaded cheer mom will take over another trip to Mickey's place. I do admit that I miss catching up with friends that I've met over the years by not going but that's all I'm missing this year. If my child got a paid bid to the Summit of course I'd want to go, but shelling out a ton of money to go as a Wildcard? I don't have time for a Disney vacation right now, thanks. The other thing that makes me SMH is that people will lay down hundreds, if not thousands, of dollars to compete at Disney but complain about paying $10- $20 to see their kid compete at a different location. Let's ponder that for a moment.

You get all the shimmies!!!!!

 

[Rudags]

My curious mind has a Multi-Location Gym Question.

When Gyms have various locations, specifically, gyms they "buy out" or whatever the case may be, who is the owner? For example: If I own a gym and and ABC Allstars buys my gym, am I still the owner and make profits at my own disposal, or does the ABC Allstars own the gym and I get paid a Salary? I am sure it is case by case basis, but I didn't know if there was a general or more common way its normally done.

 

[MissCongeniality]

My curious mind has a Multi-Location Gym Question.

When Gyms have various locations, specifically, gyms they "buy out" or whatever the case may be, who is the owner? For example: If I own a gym and and ABC Allstars buys my gym, am I still the owner and make profits at my own disposal, or does the ABC Allstars own the gym and I get paid a Salary? I am sure it is case by case basis, but I didn't know if there was a general or more common way its normally done.

Definitely different models being used even within programs themselves... Like some are "total" change of ownership...some are partial and some are a franchise-type arrangement. I'm not commenting on specific programs but I know some stuff (and have seen incorrect information posted here but that's for the owners to correct if they see a need )

 

[BlueCat]

My curious mind has a Multi-Location Gym Question.

When Gyms have various locations, specifically, gyms they "buy out" or whatever the case may be, who is the owner? For example: If I own a gym and and ABC Allstars buys my gym, am I still the owner and make profits at my own disposal, or does the ABC Allstars own the gym and I get paid a Salary? I am sure it is case by case basis, but I didn't know if there was a general or more common way its normally done.

I believe that if someone buys your business, by definition, you are no longer the "owner". However I would think that wise businesses generally have their main managers getting incentives based on the financial health of what they are in charge of. Whether or not they "own" it, most would be getting at least a small percentage of the profit, I would think.

 

[MomMomMamaMom]

Soo a new cat paw dot on the map coming soon....

 

[piglet]

Soo a new cat paw dot on the map coming soon....

I am embarrassed by the number of times I read this before it clicked. "New cat paw dot" WHUT?

Any chance the "new cat paw dot" is in Seattle???

 

[icequeen]

Sooo Rockstar is opening an 11th location.

 

[BlueCat]

What do you guys think are the main factors creating the environment of (relatively) rapid gym expansion? The current state was unimaginable when we started over 20 years ago.

 

[dawgshow]

I think there are many factors at play, depending on how the gyms are expanding. If it's a merger or buyout, I think that fear plays into it. Small gyms don't like the perception that they're going to go out of business because the big names are spreading quickly so they merge before they can go under. Along those lines, I think that parent perception also feeds into this. So many parents think that if Susie or Stevie can't possibly go to Worlds on their timeline, they'll move to somewhere where the dream can come true in their eyes. The marketing people behind Worlds and the Summit are pure geniuses and deserve to whatever they are being paid.

Another reason for buyouts/mergers is that gyms see gyms closing relatively rapidly. Part of that reason, though, is that many gym owners are horrible business people. They may know how to cheer and how to coach but they just don't have the business sense. I think that the best case scenario is a partnership where one person knows the industry side and another has strong business sense.

As for straight up expansion, it makes sense that the gyms who have the best business practices have the capitol or credit to expand into areas where there has been a fairly recent surge in athlete interest. Cheer is growing in popularity, especially in the undersaturated areas of the US (which in my mind is anywhere north of the Mason-Dixon line). There is demand so a smart business person would look into those areas to expand. This plays into my second paragraph, by the way.

I do wonder how many of the newly opened gyms will still be in existence in 5 years, especially in cases where multiple locations have opened within a year or two of each other. Of course all of these opinions are from an outsider's view looking in. I could be way off.