The Million Dollar Gym

The Million Dollar Gym 1

Building on skills learned in the restaurant and child-care industries, Greek immigrant Peter Luckeris invested in a fitness franchise, and realized his American dream.

When Peter Loukeris arrived from Greece on a student visa, it was not with the idea of becoming an American citizen; he just wanted to get an education and see what he could learn about the United States. “I always wanted to come here because it is a very progressive country,” he says. “You can find your way through society here easier than in the old country.”

“The market and the (Retro-Fitness) concept made sense.”

When he met a girl of Greek ancestry in college, everything changed. Instead of returning to Greece after college as originally planned, he decided to make a life in America. However, when he graduated from college in 1987, jobs were hard to come by, and it turned out that his kitchen skills were of more use to him than his degree in  business administration. So, he worked as a cook to support himself, and eventually moved up the ladder to manage a chain restaurant. But the restaurant business wasn’t for him. “ I wasn’t crazy about the long hours and the corporate environment,” says Loukeris. “I was more programmed to do something on my own.”

Retro-Fitness was with him every step of the way. “They gave me support on multiple levels”

Retro-Fitness: A Perfect Fit

Then in 2007, a friend introduced him to Retro-Fitness, and he was immediately fascinated by the possibilities. Retro-Fitness  was an affordable gym which appealed to a  broad base of customers.  Loukeris wasn’t a health expert or a gym person, but he was comfortable with the customer service aspect of the business. He didn’t consider other franchises. “I had already incorporated several businesses in the past and knew what it would take to create economies of scale,” he says. “The market and the concept made sense.”

Financing in a down market

When the recession began to hit in 2007, it was a double-edge sword: on the one hand Retro-Fitness’ low prices made the franchise even more attractive — even “recession-resistant” as some franchisees called it —  but even so, financing had suddenly become much more complicated.

 

Loukeris had put some money aside, and he figured that he could finance the rest of the franchise without difficulty. He had enjoyed excellent relationships with the banks in the past, and he naturally expected that his contacts would come through for him again. However, the banks were no longer so receptive. They were suddenly concerned about him being “overleveraged” and entering a new industry. Not to be deterred, Loukeris decided to use his own resources to finance his franchise.

Looking For Financing? Read Finding A Loan When Banks Drag Their Heels

Watch: Benefits of Retro-Fitness Gym Ownership

Small Business Administration to the Rescue

At that time, the Obama administration was making it much easier to get SBA loans than ever before, foregoing the usual initiation fees in order to help stimulate the economy. So, using his home as collateral, Loukeris obtained an SBA loan, and also pulled money from his real estate investments. “My wife wasn’t happy with all the loans,” he says, but she believed in me. Ultimately, I was able to succeed because I had prior business experience”

Thinking of using the equity in your home as collateral? Read “Funding Your Business with Home Equity”

Help from Retro-Fitness

Fortunately for Loukeris, he wasn’t alone in his new venture. Retro-Fitness was with him every step of the way. “They gave me support on multiple levels,” he says. “The first is know-how. I knew service, but not health clubs.”

Loukeris found that no problem was too small for Retro-Fitness to help with, from hiring trainers to repairing equipment, and their willingness to assist with day-to-day operations was particularly gratifying. “They’re very good on that,” says Loukeris. “ That’s how I was able to deal with the hard times I went through with financing. I definitely would have been in worse shape without them. Being part of a corporate family definitely helped.”

Interested In Retro-Fitness Franchise? Find Out More Here

Marketing Help

Juice bar provides additional revenue stream

Service businesses depend on finding a steady stream of customers to stay healthy, and in the fitness industry, that means attracting and keeping new members. Retro-Fitness makes sure that new franchises open their doors to a full complement of members through a complex marketing program that leaves no stone unturned. Brand awareness is a huge part of the equation. The more Retro-Fitness clubs consumers see in their communities, and the more advertising they are exposed to, the more likely they are to become members.

Retro-Fitness makes sure that new franchises open their doors to a full complement of members

Marketing Plan

“You start from the top by creating the branding,” says Loukeris, “then you go to the local level.” For Retro-Fitness that means using:

* Direct mail,

  * Newspaper advertising,

* Social media such as Facebook and Twitter,

* Running special incentive programs, and community outreach.

The typical franchise will run programs for athletic clubs, fire and police departments, and participate in fund-raisers for the community, all of which create a good feeling for the club. “There’s no such thing as auto-pilot,” says Loukeris. “It’s a lot of work, and as the saying goes, ‘if you snooze, you lose.’”

Like most franchisees, Loukeris pays a lot of attention to his other profit centers: personal training, the juice bar, branded clothing and accessories. 

Key to member satisfaction: up-to-date equipment

Mistakes Along the Way

Most entrepreneurs have a regret or two when looking back at their early days; there’s always something they would do differently if they had a chance to start over.  Loukeris is no different, saying that he would have found a way to put aside more working capital, as a hedge in case there was a banking collapse or some other economic downturn. Nevertheless, he says, “I pulled it off anyway because of my prior business knowledge.”

“Put aside more working capital, as a hedge in case there was a banking collapse or some other economic downturn”

Immigrant Entrepreneurs and Retro-Fitness

As demanding as running a successful Retro-Fitness franchise can be, Loukeris has no qualms about recommending it for other immigrant entrepreneurs. To his mind, you don’t need an advanced education, but you do need common sense and a business background. Most of all, “you must have the right disposition,” he says.

“You’re very visible,” he explains. “Visible as an owner, and as a manager, so you must wear a lot of hats. You’re dealing the public on a daily basis; there’s no hiding. If you like people, then yes, it will work for an immigrant.”

“It’s … 10 times easier to start a business here than in Europe.”

The Advantages of Doing Business in the United States

As a serial entrepreneur, Loukeris has strong opinions about doing business in the United States versus Europe. “The U.S. is not as bureaucratic compared to Europe,” he says. “And the legal system is ideal for businessmen. The laws are pretty clear, and the labor laws are fair too.” While he thinks his home state of New Jersey is more heavy regulated than most states, it still compares very favorably to European countries, saying, “It’s still 10 times easier to start a business here than in Europe.”

For More Information:

Retro Fitness Franchise Development
800-RETRO-04
info@retrofranchising.com
www.retrofranchising.com

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