For this case study, you do not need to factor the franchise initial investment into your decision. Your task is to focus only on whether Anytime Fitness represents a good decision after this initial investment.

Case Study Questions

The Anytime Fitness franchise disclosure document includes an income statement with

four columns outlining the average, top third, middle third, and bottom third financial

performances. Use the income statement spreadsheet, videos, other information and

documents above, and any additional sources to respond to the following questions.

1. Anytime Fitness reports in its franchise disclosure document that one of its highest

performing fitness centers makes $1.5 million annually. This is approximately $1 million

more than the revenue for an average Anytime Fitness center. Use the income statement

spreadsheet to complete the following:

Describe two options to help increase revenues for an Anytime Fitness center.

Describe two options to help reduce direct costs for an Anytime Fitness center.

Describe two options to help decrease indirect costs for an Anytime Fitness center.

2. The Franchise Chatter video includes three key performance indicators (KPI) potential

investors should consider. List the first two key performance indicators. Use these first

two indicators to assess the income statement scenarios (average, top third, middle third,

bottom third). Do each of the four scenarios meet these two key performance indicators?

Why or why not?

3. Review the six options you described in question Would your proposed options

improve the financial performance enough to meet the key performance indicators? What

is your confidence level (high, medium, low) about each option?

4. Based on your analysis, would you invest in an Anytime Fitness center? Why or why

not? Include responses from questions 1-3 and any sources you used as part of your

answer.

(Remember that you only need to focus on the income statement and not the initial investment. Also, if you believe factors in addition to/instead of the key performance indicators should be considered, please include those considerations here.)