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View Full Version : Anyone have experience in owning a key club gym?



Chris Smith
01-19-2009, 08:04 PM
I currently have a key club gym, which is about 900 sq. ft. I am slowly growing out of my current location, and am looking to expand. I have found a place that is 1,500 sq ft, and great potential at a reasonable rate. The only drawback is that I would be required to have a business license to lease this space. I work full time, and would like to keep this a key club operation. Anyone have any insight in regards to converting this into an actual business?? I am sure I have alot of homework to do before pulling the trigger on this one.


Smitty

Ben Moore
01-19-2009, 08:28 PM
You're going to want to incorporate the business to limit your liability. My suggestion is going to talk to your local small business council and possibly a lawyer. We have a key club too, but it's literally a bunch of guys who know each other and train at the same times together. I don't think that's what you're talking about.

Chris Smith
01-19-2009, 08:45 PM
You are correct Ben--I started this gym to basically do my assistance work and DE Bench days, and I travel to do my ME Bench. I mostly have your average ordinary people that come in to train. Thanks for the input.

drew
01-20-2009, 06:30 AM
Try asking on elitefts.com. A lot of the guys there own or have owned small businesses/key clubs and can probably help you out quite a bit.

Travis Bell
01-20-2009, 07:48 AM
I've been a member of a key club in the past and was very good friends with the owner.

Overall, it appealed to a lot of people because it was essentially an 24hr gym, but with out the nonsense.

What he had to do though was change the locks every year, so that people actually renewed their memberships. He also had video cameras hidden because you run the risk of someone taking your stuff.

He's never had many problems though. Some of the equipment got abused, but the cameras took care of that.

Chris Smith
01-20-2009, 09:00 AM
Good idea about Elite Fitness.
Thanks Travis. My plan would be to have a keyless entry (you can buy the locks with a number pad, which stores up to 100 different codes) and if someone gets behind on gym dues and doesn't want to rectify the issue, just program their number code out. Thanks for the info guys.

=Travis=
01-20-2009, 09:17 AM
Like Ben said, talk to a lawyer about it as well. First you are going to probably need to form a Limited Liability Company (LLC) and run everything through that. You'll (The LLC) also need a liability waiver. There will also be tax consequences that you'll need to look into as well, on the part of the LLC. You may need a business license, depending on where you are and what you're going to do.

jthomas
01-20-2009, 11:12 AM
You can give me a call if you want Chris. 734-642-7877

JJ Thomas/Detroit Barbell

Chris Smith
01-20-2009, 01:58 PM
Hey JJ--I will try to give you a buzz very soon. Talk at you soon.

Smitty

vdizenzo
01-20-2009, 02:30 PM
Please keep us updated. This has been something I am very interested in. Rhodes and I talk about opening a place all the time. This idea is a good jumping off point.

Chris Smith
01-20-2009, 03:39 PM
I'll be sure to do that Vin--I dont know if you remember me or not, but I competed with you at the Bench Bash for Cash down in Orlando a few years ago--Lattimer, Crawford, Burns, Rychlak, etc. competed. I was in the lower weight class with Scott Albano, Rick Lawrence, the Kelley brothers, etc. That was my first big meet--I was a nervous wreck. LOL.

Smitty

Jon Elick
01-21-2009, 02:49 PM
Smitty, Circleville Barbell is listed as a "non-profit organization" with a tax-exempt number. We don't pay taxes on anything and I think it may satisfy your requirement to be listed as a business.

jthomas
01-22-2009, 02:58 AM
Chris, I will call you back this afternoon, sorry for the delay

Chris Smith
01-22-2009, 11:15 AM
That's interesting Jon. If you get a chance, e-mail me your #, and I'll give you a buzz.

Good talking to you JJ. I'll register on your forum very soon.

Smitty

waynedang
01-22-2009, 06:44 PM
What he had to do though was change the locks every year, so that people actually renewed their memberships. He also had video cameras hidden because you run the risk of someone taking your stuff.

He's never had many problems though. Some of the equipment got abused, but the cameras took care of that.


The Lock-up Gym is a key club. We are going to a key card system that will alow us to turn your card off/on if you don't pay.