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The Green Microgym: A Sustainable Business Model


By Jennifer H. McInerney


For eco-minded entrepreneur Adam Boesel, opening The Green Microgym in Portland, Oregon, in 2008, was just the beginning of what’s evolved into a sustainable business model… and, quite possibly, the first franchise of its kind! He equipped his 3,000-square-foot club in Portland’s Alberta neighborhood with


electricity-generating ellipticals and stationary bikes that he hooked up to the building’s power grid himself. In addition to the equipment, the club’s culture plays a substantial green role. By encouraging members to take simple consumption-reduction steps— such as powering down the TV, rather than leaving it plugged into the wall, when not in use—The Green Microgym has made significant strides in reducing its carbon emissions. In 2009, the club’s 200 members collectively gener-


Caplan, l., and Boesel


ated 36% of the business’ electricity—combining human and solar power—and saved 37,000 kilowatt hours, when compared with a club of the same size. According to Boesel, those kilowatt hours translate to 74,000 pounds of carbon emissions, 81,400 miles not driven, and 15 acres of trees planted. The overall savings have yielded lower electricity costs, a reduced water bill, and a “cleaner conscience,” he notes.


“We’ve developed an environment in which we can reduce our total carbon emissions


by 60%, while still maintaining a first-rate, state-of-the-art gym facility that provides our members with a great workout experience,” Boesel explains. There was one hurdle to overcome, however: the “rapidly renewable” fitness equipment.


Boesel had hoped to partner with a manufacturer on the production of the environmentally friendly cardio machines that help power the club; instead, he cofounded a brand-new company, Resource Fitness, which manufactures the equipment used in The Green Microgym and, now, other fitness facilities. One of those facilities is the second Green Microgym, a franchise that just opened


in November, in Portland’s Belmont neighborhood. The new club, which is owned by franchisee Dan Caplan, a personal trainer and 20-year industry veteran, is also 3,000 square feet and features Resource Fitness equipment. “Franchising is an ideal way to spread this business model in an equitable way,”


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Boesel asserts. “Our hope is to have another five Green Microgym franchises open within the next year or so.” —|


Short Takes | Cancer Survivors Turn to Yoga


The Maryland Athletic Club (MAC), a regional, three-facility chain based in Timonium, Maryland, has introduced two programs: the Breast Cancer Survivors Exercise Plan, and the Post Cancer Recovery Plan. Both courses are eight weeks in length, cost $150, include an eight-week club membership, and involve weekly yoga sessions. The curriculum also encompasses small-group strength and cardio workouts and a flexibility, strength- training, and cross-training program. Both are offered in conjunction with the Active Survivors Network, a nonprofit organization that promotes fitness as a way to overcome disease. —|


www. ihrsa.org |


Fitness First to Focus on


‘Growth’ Markets World’s largest chain retrenches in Benelux, expands in Middle East


> Focusing more intensely on devel- oping markets, Fitness First (FF), the U.K.-based club chain, is both adding to, and subtracting from, its worldwide portfolio of more than 500 facilities. The company recently signed a new


10-year franchise agreement with the Landmark Group, which will assume responsibility for the company’s Middle Eastern franchise business. Terms of the agreement were not disclosed. Land- mark, a leading hospitality and retail group based in Dubai, will now oversee 18 Fitness First clubs in the UAE, Qatar, Jordan, Bahrain, and Saudi Arabia. “The development of our franchise


business is an increasingly important part of our strategy, and we’re delighted to partner with Landmark to continue the growth of our business in the Middle East region,” explains Colin Waggett, the CEO of FF. “We’re also on the look- out for new partners in new markets, such as China and Brazil, having suc- cessfully proven the value of our brand and business model to professional franchise partners.” At the same time, however, Waggett


announced that FF intends to sell the 57 clubs it has in the Benelux region to HealthCity International, based in Hoofddorp, the Netherlands. Health- City currently has some 152 facilities, with more than 300,000 members, and is the No. 1 operator in the Netherlands and Belgium and the No. 5 provider in Germany. “This is an opportunity for us to redirect resources and man- agement focus into higher-growth markets, such as Asia,” says Waggett. —|


Colin Waggett JANUARY 2011 | Club Business Internat ional 25


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