A PROPOSAL FOR CONVERTING HEALTH & FITNESS INTO WEALTH FOR OUR

PARTNERS

TALWALKARS HI FI

ABOUT TALWALKARS

Talwalkars Better Value Fitness Ltd is India’s largest chain of health clubs and fitness centers with over 125 ultra modern branches across India and spread over 60 cities in the country, with 1,25,000 + members.Talwalkars is the only company in the gym and fitness sector to be listed on the Indian stock market with a market cap of INR 400 crores.

ABOUT TALWALKARS HI FI

HI FI, is a brand designed at making fitness a part of people’s lifestyle and a business model to provide assured returns, backed by the guidance and assurance of India’s biggest name in health and fitness “Talwalkars”.HI FI is an active, dynamic, edgy and joyful brand, with the buzzing environment of a fitness channel. A brand and experience that informs, inspires and enthuses the society to be Healthy & Fit. A Movement that spreads Fitness around the Country…it is ‘Healthy India Fit India’.

Every HI FI is designed as a compact and affordable fitness community centre that will take fitness to Tier I, II, III, IV towns and even catchment areas of metro cities which can be started with very low-investment. Return On Investment (ROI) of these models are designed to be upwards of 35% going even up to 50%, giving a payback in 2.5 years, making this a very profitable business opportunity.

The HI FI fitness movement:Not just for individuals, but for the entire communityNot just a gym, but a way of lifeNot just a business, but a movement to assist, support

and train people connected with games & sports, athletics, physiotherapy, medicine, body building, fitness and even businessmen who are fitness oriented

VISION & MISSIONVISIONTo create a healthmovement where each

&every individual is a

part ofthe movement

MISSIONTo create a deliverysystem that

democratizeshealth and fitness bybeing available,

accessible,and most importantlydesirable

WHY THIS INDUSTRY?Sunrise IndustryAs per KSA technopak the Indian Fitness Industry is

approximately 800 crores and growing at 12% CAGR. The untapped potential for the Indian fitness industry is nearly 99% of our population.

Currently 60% of India’s population is under 30 years of age and it’s growing steadily at 8% p.a. Out of 80 million middle class households, 55 million (69%) reside in tier II & tier III cities which accounts for 70% of total consumption in India. This is the Real India with new dreams, aspirations, wants, and needs. The future of health and fitness is immense and will be driven by this emerging new India.

Conceptualized and designed specifically for the needs and aspirations of the 55 million (and growing) households in Tier II and III cities and towns with populations between 2 and 8 lacs

A study of population shows that there are at least 330 potential cities with urban literate population which are ideal for this business

Thus, putting forth an opportunity for at least 330 community fitness centers.

There are three models for Talwalkars HI FI:Type I – 1500 sq ftType II – 2000 sq ftType III – 2500 sq ftAbove all are carpet area

WHY TALWALKARS HI FI ?Industry Leaders:Talwalkars being the trailblazer of the Indian Fitness

Industry has over 80 years of unparallel business understanding, passion and commitment towards success. It is the largest health club company in Asia and the first and only Indian company to be listed on the Bombay Stock Exchange in its category. It is a proven brand with strong fundamentals and “THE” name to be associated with.

We are a brand that delivers a superior and consistent fitness experience, effective and progressive results while making the entire experience fun and engaging for the client and lucrative for the franchisee.

FRANCHISEE&

FRANCHISEE MANAGER

MARKETINGDEPARTMENT

OPERATIONS MANAGEMENT CONSULTANTS

MASTER TRAINERS IN

FITNESS

DESIGN AND SUPERVISION

TEAM

SUPPORT SYSTEM

Our support system is designed like a life support system. It encompasses the following:

Site inspection & selection by our specialized staff

Project Management (Layout design & construction design) and complete interiors with main signage, graphics & posters

Pre negotiated beneficial pricing & pre set Annual Maintenance Contract (AMC) terms for cardio equipment

Signature line equipments designed by Mr. Madhukar Talwalkar

Free weightsGym Accessories

On line & Off line hassle free management, marketing and operational support

Full Standard Operating Procedure (SOP) manual defining the organization structure, staff JDs and appraisal procedures

Full training for key staff on business operations, sales & marketing, membership support and much more.

Pre-launch, launch, and post-launch business planning and support including an annual marketing calendar.

Support for staff recruitment Marketing Support Rate Card Planning

Steam Unit (In Type II & III)Computers & Printers Weighing scale & Height scale graphic Muscle anatomy chartStylish uniformsTV, Music system, EPBAX First Aid Box Hangars & Pouches Water cooler Wall clocksHanuman Idol Standardized stationery & accessories through

empanelled vendors

Lower investment as compared to ‘gym’ modelsSavings of up to 30 – 40% due to franchising options,

as compared to self started projectsCentralized pricing strategy with pre-negotiated deals

with established networks and tie-ups for equipment, furniture/fixtures and material brands.

Easier to roll out than larger formatsFaster pay back with ROI of about 35 – 50%Higher profitability due to operational efficiency and

additional revenue generation opportunities via merchandising

All critical brand standard elements are supplied centrally to maintain uniformity across the spectrum

WHY IT MAKES BUSINESS SENSE?

HOW CAN I BECOME A TALWALKARS HI FI FRANCHISEE

ITS REALLY SIMPLE

STEP I:Decide the city/town where you want to start the franchise or ask us and we will suggest the city/town. We will mail you the Initial Presentation & Application Form (Annexure 1)

STEP II:Fill out the Application Form and send it to us and we will send you the franchisee presentation & franchise documents (Annexure 2 – Financial projections, Organization chart, Capital expenditure, equipment list, SRR)

STEP III:Study all the documents. We will get in touch with you in a few days.

STEP IV: Frequently Asked Questions

What is the investment?

The model offered to the franchisee is based on theassessment of the city and the specific catchment are

done byHI FI staff.

Model Carpet Area (sq. ft.)

Investment (Rs. Lacs)

I 1500 45-55

II 2000 65-75

III 2500 85-95

 

Are there any other hidden costs or investments?The above investment does not include the premise, which you need to have; it can be leased or owned.It’s assumed all utilities are provided at the site, as needed viz. electricity requisite, water, and all necessary permissions are taken from authorities.

Do you as franchisor invest?We provide the brand, complete expertise, total standardization, full training, management support, and operating web based system.We do not invest as this is a pure franchisee model.

What do you charge?As franchisor we charge Rs 10 lacs license fee for providing our brand name to you for a period of 10 years. In the fifth year we charge Rs 80,000 as renewal fees. Royalty is charged at 6%of turnover for first 3 years and thereafter 8% (turnover is gross income net of service tax collected)

 

HI FI is pre designed in every aspect and has been standardized. Once a franchisee signs up and pays the full license fee the Project Management Consultancy (PMC) that includes team of architects’ and contractors come in to play to adapt the pre-designed layout to the site and execute the project in 45 days after layout and drawings are done and we have the premises in hand to begin work.Every material input has been pre negotiated with selected vendors so as to give ZERO hassle to franchisee in terms of quality, price and delivery of items.We provide full training and management support to every first time franchisee partner. We have a full fledged Enterprise Resources Planning (ERP) called Club Intelligence System (CIS) for HI FI The staff structure, the job descriptions, recruiting systems all are set, and every process and step to launch is laid out.

  We have centrally planned the annual marketing and promotions calendar and creative material for campaigns, schemes, and promos. It is pre designed and can be accessed by every franchisee.

 Thus the entire business support is covered from Project to HR, Marketing, Rate Card Planning, Pre sale and Launch to ensure that each and every franchisee is successful.

 

 

WHAT DO YOU GIVE?

Do you provide staff?We don’t provide staff but we help in the selection by recommending agencies who are trained in recruiting as per our set standards, also we use our network of clubs across 61 cities to help you get staff. Where possible, we do phone interviews.

 Do you help in getting finance?

We ourselves don’t do it, but we can guide you to professionals who help raise funds.

 What is the profitability?

The ROI is 35-50% and you can recover your investment in about 2.5-3 years.

 Can I set up a franchisee in a city where Talwalkar is there?

YES you can, provided both do not cannibalize into each other. For that we recommend a minimum distance of 5 kms from an existing Talwalkar health club. But the final decision rests with the company.

`Do I get a secure territory?

YES once you sign up for a location normally we give at least a 3 Km radius as secure territory.

 Is HI FI part of Talwalkars (TBVF Ltd), the listed

company?Yes it is.

Can I do the interiors with my own contractors?Normally No. However we allow it in some cases subject to approval from our PMC based on a variety of criteria.

Can I do any other changes?All elements that contribute to the brand are standardized and controlled by the company and the franchisee is not permitted to change it.

STEP V:If you still have doubts speak with our CEO over the phone or come down to Mumbai for coffee and lunch with our CEO.

STEP VI:Sign the Letter Of Intent (LOI), deposit the part licensee fees of Rs 50,000; arrange for site inspection of our project manager; he will come down to the site(s) and inspect it for commercial viability (Annexure 3 – LOI)

STEP VII:Once the site is approved pay the remaining license fee, come to Mumbai to sign the agreement and meet with Mr. Madhukar Talwalkar (Annexure 4)Once the agreement is signed your meeting is scheduled with CEO and Franchisee Manager to understand the entire execution from start to end

Mr. Madhukar Talwalkar,Chairman TBVF Ltd.The pioneer of the

IndianFitness Industry and themost experienced expertin this domain

THANK YOU FOR MORE DETAILS CONTACT:

Amey Dixit - 09819491519ameyhifi@gmail.com