Craig Annis is a veteran gym owner with 30 years of experience in the fitness industry. When his daughter pointed out the greatness of his business model, he realized she was right and decided to franchise it.
Craig Annis’ entry into the franchising industry was completely unplanned. After graduating from college in 1992, he aspired to get into the ski industry but was faced with limited job opportunities and ended up working in a small gym. He spent time learning the business and eventually managed and later bought a gym. As his career in the fitness industry progressed, his daughter was intrigued by the flexibility and work-life balance he enjoyed and wanted to follow in his footsteps.
Responding to her interest, Annis realized others could benefit from a similar opportunity. He aimed to expand his model into franchising, allowing people to achieve work-life balance while running a fitness facility. After two years of preparation, he launched his franchise, Vanguard Key Club, in spring 2024. Annis’ personal connection to the business, shaped by his family values and desire for financial independence, drives his vision to create a franchise that prioritizes both family time and financial growth.
The road to success is not without challenges. Early on, he faced numerous obstacles, including making ends meet living out of his gym’s office. He learned to adapt to obstacles along the way and has built success through consistent pivoting rather than grandiose plans. His franchise model now emphasizes low labor costs and building community as key aspects. He personally supports his franchisees and avoids the common pitfall of franchisors of focusing solely on sales, instead aiming to help others succeed without experiencing the difficulties he did in his early days.
Annis recently appeared on “Meet the Zor” to talk with Nick Powils, founder and publisher of 1851 Franchise, about his career as a franchisor. The transcript of the interview below has been edited for clarity, brevity and style.
Nick Powwills: What got you into the franchising business?
Anise: To be honest, this wasn’t planned at all. In 1992 I graduated from college with a degree in Business Administration and wanted to go into the ski industry. But in the Northeast it was a part-time job and you couldn’t make a living from it. So I ended up working as a receptionist at a small gym. Over time, I learned the business and became the general manager of another gym, which I eventually bought. Over the next 30 years, I built many more gyms.
The biggest turning point was when my daughter graduated from business school and said, “Dad, I want to do what you do.” I asked her why and she said, “You come to our games, you take us on the bus, you come to banquets and plays. It’s not a 9-to-5 job.” The facilities we run are 24-hour Key Clubs, unstaffed, like a health club vending machine. She wanted the same work-life balance I had, but there weren’t enough jobs for the two of us, so I suggested we look for someone who wanted to open a similar gym. That’s how the franchise idea was born. I wasn’t ready to retire, so I thought, “Why not run my own facility and show people how to have a good work-life balance?”
Powwills: How many franchises do you have now?
Anise: Zero. We just launched this spring. We’ve been working on everything for the last two years. We have six locations and launched at an international trade fair in New York in June.
Powills: What should people know about franchising and what is missing from most franchise websites?
Anise: The big gap is that many franchisors jump right into selling without explaining what franchising is. Most people don’t know the details. If you say “McDonald’s” or “FDD,” they are lost. Even if you spend money to direct them to a website, they leave because they still don’t know what franchising really is.
The second thing I want to emphasize is work-life balance, which is what attracted my daughter to this business. It’s not just about owning a gym, it’s about building wealth and having time for your family. That’s the message we need to get out there and spread the word.
Powills: Speaking of messaging, what should be on your website to communicate work-life balance?
Anise: Good question. I’m not sure how to visualize work-life balance. Like coaching third base at my son’s baseball games while also remotely getting someone into the gym over the phone. We designed our business so that you don’t have to be in a facility all the time. You can be at home, on vacation, or wherever you have an internet connection.
Pauwills: You’ve been in the industry a long time, through 9/11, the 2008 financial crisis, and now COVID-19. What was the most stressful time for you, and how did you get through it?
Anise: Good question. 9/11 didn’t affect us that much. We were more worried about the financial crisis of 2008-2009. At the time, I was running three gyms and also a service company that maintained gym equipment. When things got tough, I cut costs by firing the cleaning staff and doing the cleaning myself. I realized that people who are serious about fitness will sacrifice other things like movies and eating out before they give up their gym membership.
COVID-19 was another challenge. When everything was shut down, we froze all memberships at $5 per month, which is standard. Then my kids came up with a great idea: rent out the gym to members. $20 per hour for personal use, $30 for families. They organized everything, scheduled the times, and collected the fees. People loved it, and the gym was bustling in a safe way.
When we reopened in June 2020, business tripled. With no staff to train or plexiglass to install, we reopened everything as soon as we were allowed to. While other gyms in the area were still preparing to reopen, members started flocking back. Our quick response and constant communication with our members really helped us during this time.
Pauwills: How have your experiences with these crises prepared you for the future?
Anise: We have learned that fitness is really important to those who commit to it. They don’t give up on it even in difficult times. Our communication with our members during the COVID-19 pandemic has shown us that people rely on exercise for their health, both physically and mentally. We have built a business that is flexible and responsive to our members’ needs. I think that’s what will keep us resilient through any challenges in the future.
Powwills: What is the importance of having 30 years of fitness experience in the franchise business?
Anise: With 30 years of fitness experience, I can take current challenges like COVID and put them in perspective by learning from past challenges like the 2008 financial crisis. Having been through tough times before gives me the tools to combat new obstacles. This experience is an asset I can leverage as a franchise buyer.
Powwills: What expectations did you have when you launched your franchise at the New York Expo in June, and how well have those expectations been met so far?
Anise: I try not to expect too much to avoid disappointment, but I don’t stop working hard. This has been my approach throughout my career. In the beginning, I just wanted one facility. I was 23 years old, struggling and sometimes sleeping in my office for six months. In 30 years, I’ve changed direction so many times. There is no grand master plan, you just adjust when obstacles arise. What I tell my franchisees is to encourage them to stop, consider their options, and change direction if necessary. This career is about helping others build gyms and avoid the struggles I went through.
Powwills: How active are you in helping franchisees start up?
Anise: I am very enthusiastic. I don’t leave it to others. If someone wants to open a gym, I go to their site and walk around with them. The process of building a gym is fun. We’ve built six locations and moved two or three of them. Now my daughter is helping me too, which is great. She has experience and is ready to handle the daily questions and challenges of a franchisee.
Powwills: Have you sold your first franchise yet?
Anise: Not yet. I’ve heard the first one or two are the hardest. No one wants to jump in until someone else sees it. I can show people how successful our six locations are, but they have to see it for themselves before they jump in. I’ve never sold a franchise, so I’m learning as I go. But I believe once the first one is successful, things will start to fall into place.
Pauwills: What is your franchise strategy in the highly competitive 24/7 fitness market, where investments can exceed $1 million?
Anise: Our approach is simplicity. Many brands try to add all the bells and whistles, but we don’t. We focus on running our gyms efficiently with low labor costs and reduced complexity. Our margins are 40% and our biggest expense is rent. Salary is not a significant factor. This model offers potential franchisees the opportunity to operate multiple locations while maintaining a healthy work-life balance.
Powwills: What makes your franchise model different from others in the fitness industry?
Anise: We’re not just in it to sign a deal. We’re cultivating franchisees who genuinely want to be part of our system. While many franchisors focus on selling franchises, we focus on building relationships and helping our franchisees succeed. Our goal is to select candidates who align with our vision and ensure they have the tools and guidance they need to succeed.
Powills: Can you share some insight into operating a multi-unit franchise?
Anise: Yes, our model allows for multiple store operations. My daughter, who has been helping me run the business for over a year, believes she can manage up to 12 stores on her own. We have successfully run six stores and provide guidance on everything from negotiating leases to day-to-day management. We want to show potential franchisees that this is a scalable model.
Powwills: How do you manage the low labor costs at the gym, and what happens if something happens where someone needs help?
Anise: All of our cleaning and maintenance services are handled by contractors. We have a facility maintenance guy who manages six facilities. When it comes to accidents, our gyms are fully monitored 24/7 and we have a toll free phone at each facility. Members also have the mobile number of the operations manager. Our members are good at helping each other out. In emergencies, they will usually step in and call 911 if necessary. We find that members often handle situations better than hiring employees and can avoid liability issues.
POWILLS: Can you give us an example of community spirit within the gym?
Anise: Absolutely! At one of our facilities, a group of members came together to buy a new electric tricycle for a fellow gym-goer with a disability. Everyone pitched in and one member even volunteered to service the tricycle. This sense of community is what sets us apart from the big box gyms. Members feel like they’re part of something bigger, which fosters a supportive environment.
Pauwills: Any final words of advice for anyone considering purchasing a franchise?
Anise: If you are looking for a business that can provide you with a decent income without the constant hard work, this might be perfect for you. Once the facility is completed, it basically runs on its own. There are also opportunities for property developers to use vacant shopfronts as gyms. It is a low-maintenance business that can increase the value of your property without the hassle of managing staff. Interested parties are welcome to visit us and see for themselves.
Check out the full interview here.
Great franchisees are supported in purchasing a franchise. Want to learn more about how 1851 helps franchisees find the right franchise opportunity? Visit www.1851growthclub.com to begin your journey.
