Kosama brand?

Anyone have any opinions on Snap purchasing this other company (Kosama)? I've never heard of it before. Of course, Snap could put a Kosama center right across from your Snap, if they wanted to...

I'm wary of Peter Taunton buying Kosama. Strategically, it's brilliant that he would do so because he will have sewn up the "equipment users" and the "group fitness class" markets. However, there is an overlap between the two. I currently have some members who would prefer group classes, but it's either not available or not that great. If Peter sells a Kosama franchise within my territory there is no question that I'll lose anywhere from 10-25% to the "competition". It's win-win for Peter because he'll get my "group class" member plus all the additional potential group class members who are just waiting for something like this to come to their market.

My problem is that I have signed a non-compete clause, and I doubt that the non-compete is reciprocal. In other words, it's "Heads, Peter wins - Tails, I lose". And I'm not interested in "right of first refusal" to buy a Kosama franchise in my territory, so I'll be forced to compete for limited fitness dollars with another competitor, at least for that overlap market.

I don't know... maybe i'm blowing this all out of proportion. But considering everything that's been going on over the past couple of years, I no longer trust that Peter is interested in anybody's success except his own.

You're right that there is an overlap in these segments. Actually, I have three clubs right now that are all running successful group training classes. There is a misconception that you need a ton of room to do group training. Granted, having a larger space can help, but you can still do small group training in a typical 2500 sq ft Snap location. You just need a trainer that knows what they're doing (tough to find all too often, I know). I'm not talking about Zumba, etc. Just good station-to-station small group training. It can be quite profitable, and definitely improves retention.

The updated franchise agreement is indeed "heads Peter wins, tails you lose." They can open a club right across the street from yours, just as long as it isn't called "Snap Fitness." Of course, if you wanted to buy a competing club in the same market under a different name, you couldn't do that (I think, don't quote me on that).

The plans to market Kosama and Snap together sound very vague. I don't think they have a solid game plan, honestly. I think the thing that will "save" a lot of Snap franchisees from intruding Kosama clubs is the fact that the fitness segment is very glutted in many markets. Kosama is also extremely small right now and basically unknown. With how much Snap and Anytime have been oversold in many states, how many people are going to be that eager to buy a Kosama franchise, especially with Peter's reputation? I don't know. Peter definitely doesn't care about his franchisees, as long as they continue creating revenue for hi), which is just sad. Very different philosophy than some of the more prestigious and successful franchise concepts.