Case Study

Location Analytics for Franchisor of High Value Low Price Gym Facilities

IGS worked with a private equity sponsor on the assessment of expansion capacity for a large franchisee of High Value Low Price (HVLP) gym facilities to determine the remaining headroom for growth in the Available Designated Area (ADA).

Key Insights

• IGS designed and built a custom demand model to determine gym membership levels and HVLP customer sub-segments within each zip code, and identified competitors segmented by value proposition type
• IGS conducted whitespace analysis to determine remaining growth headroom, prioritized markets, and evaluated existing locations for risk of attrition from additional HVLP competition

The report provided evidence of sufficient market headroom for growth and validated key hypotheses around specific expansion markets.

Identification of "at risk" locations provided key insights into the downside risk of the investment opportunity.