Is There A Rule That A Big Gym Can't Open A Location Within 50 Miles Of Another Big Gym

Discussion in 'Allstar Cheerleading' started by alpaca, Nov 25, 2019.

  1. alpaca

    alpaca Best Flyer.. on a parent team

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    I have been told that this is why some of the big gyms have been acquiring smaller gyms. Done so in order to keep their competitors out of the market. It doesn't make sense to me as it creates a monopoly. And cheapens the brand if the acquired gym does not perform at the same level as the flagship.


    Anyone have insight into this?
     
  2. dat.jpp

    dat.jpp Best Flyer.. on a parent team

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    Cheer Extreme and Cheer Athletics both have a location down in Charlotte.
     
  3. alpaca

    alpaca Best Flyer.. on a parent team

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    OK, then that answers that. What I was told never made much sense to me. There were some hasty aquisitions made last year. Actually I'm not entirely sure if it was acquisition or some sort of franchise agreement. The particular location I know about has refused to provide any transparency about the change.

    When talking with friends what are at this gym I asked why didn't management on either side take time and do their due diligence, I was told it was because of this agreement made by some alliance.
     
  4. quitthedrama

    quitthedrama I buy my Insta followers

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    It's definitely not a rule.
     
  5. SthrnCheerMom

    SthrnCheerMom I text ACEDAD all the time

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    Nope. Stingrays, ATA and Twisters are all w/in 5o miles of each other.
     
  6. Keep_Believing

    Keep_Believing Moderator

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    For a long time Woodlands Elite and Produgy All Stars both had Cheer gyms in the same city of Katy. Now different cities, but still close.
     
  7. tuckxandxtwist

    tuckxandxtwist Slow your roll, Sparkle.

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    There is an alliance that has an agreement to not "infringe" on other alliance-programs' locations. But I'm not sure of what programs are involved in the alliance and which are not. If they are not, anywhere is fair game.
     
  8. CLynn

    CLynn Somewhere... some one.... is giving me a slow clap

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    Interesting. Do you know anything else about this alliance?
     
  9. tuckxandxtwist

    tuckxandxtwist Slow your roll, Sparkle.

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    Honestly, that’s about the extent of what I know. I know where I live/the market I’m in is a part of an alliance member territory, but I don’t even know which one (however I have an educated guess).


    Sent from my iPhone using Tapatalk
     
  10. catlady

    catlady Slow your roll, Sparkle.

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    The majority of small business acquisitions happen because the business owner has to choose between bankruptcy or reaching out to other businesses to be acquired and get some financial return on their investment. As far as quality, it just takes time to change staff and clientele mentality, and sometimes the staff and clients just don't want to adapt to a more competitive and/or structured environment.

    @CLynn @tuckxandxtwist Interesting. An equity strategic alliance could be put into place to actually try to keep the mega gyms out. An example would be if Fabulous AS was hurting financially, and the alliance gyms came in and purchased a portion of Fabulous AS's to keep them in business and prevent them from knocking on Mega AS's door to be acquired. <<<<That would be really interesting if that's what they have done. If it's only about infringing on other businesses, however, it's probably a non-equity strategic alliance and more about business conduct....much more boring in comparison.
     
  11. Rudags

    Rudags Two Time Defending Champion, Board Comedian

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    I have heard there are certain gyms who have mutual agreements (or maybe even contracts) with each other about infringing on certain areas. It makes sense. This is course is second hand information I heard but I take the source fairly reliable.

    I also heard that some D1 Gyms were buying, at least partly, into smaller gyms but not converting them so that they have a hand in the D1 and D2 Market! This of course being done silently.
     
  12. CLynn

    CLynn Somewhere... some one.... is giving me a slow clap

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    It would surprise me if the alliance gyms had enough capital for many purchases or investments to keep others a float. The first few maybe but beyond that I wonder how long they could use that model.
    Now that is interesting. Is there anything that specifically prohibits a minority share? It would feel odd to me if say, the NY Yankees purchased a portion of the Pittsburgh Pirates and maybe that isn't a fair comparison. I love the cheer part of this industry, all the rest is really a mess.
     
  13. catlady

    catlady Slow your roll, Sparkle.

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    @CLynn ^^^This is what I was talking about with an equity strategic alliance. You don't have to have a lot of capital if they purchase equity in each other or if they have enough members to do a partial buyout.

    If your business is struggling for whatever reason, you are going to try to find someone to buy it out, or partially buy into, before going into financial distress. The successful gyms can't save everyone, but they can buy partially into these struggling gyms and share resources to help each other out. When the Affordable Care Act came out, the government mandated businesses with over 50 full time employees either provide health benefits or pay a fine. Many smaller and mid size businesses can't afford to acquire other businesses for this reason and an equity strategic alliance could be the answer to that dilemma. The cheer industry is very interdependent, if you're a competitive gym and you start losing your local competitors, that's a problem.