Gym owner opens 3 franchises after 11 years in business

ABOUT THIS ARTICLE

Gym World comes from Kilo co-founder John Franklin, who shares lessons about making money in the fitness industry.

Now he has 4 locations with 3 more on the way…

What’s up Gym World?

For 11 years, John Farkas ran Blue Ocean Fitness, one of the first semi-private personal training gyms in Missouri. He expanded twice, survived COVID shutdowns, and realized he wanted to help more people get healthier—faster. To do that, he needed a proven model.

So in 2022, he partnered with Alloy Personal Training and opened his first franchise location a year later. Now he runs four gyms, including his original, and has three more in the pipeline.

My co-host Mateo sat down with him to talk about why he made the switch to franchising and what gym owners should know before going that route.

YouTube video

Here’s what he said: 👇

Building Blue Ocean Fitness

John became a personal trainer at 20 years old. Early on, he came across Rick Mayo, an industry leader running a semi-private training model, and thought it was a cool concept. He wanted to learn more, so he studied the model, connected with Rick, and eventually built a close friendship with him.

💬 Fun fact: They vacation together, Rick officiated John’s wedding, and he’s one of the people John trusts most.

By 2011, John was ready to open his own gym and focus entirely on semi-private training. He had no business experience, no money, but he did have a good credit score. So, he found a 1,000 sq ft space in a former nail salon, signed a 2-year lease, and funded it with four credit cards.

blue ocean fitness gym first location

To keep costs low, he left the old carpet, painted the walls, and outfitted the space with:

  • A homemade TRX stand
  • A few sets of dumbbells and kettlebells
  • An adjustable bench
  • Resistance bands

And when his lease ended in 2013, John upgraded to a 3,000 sq ft space.

blue ocean fitness upgraded gym

In 2019, he expanded again—this time into his dream facility in a busy retail plaza.

blue ocean fitness on the corner of a huge interection
John’s current gym is down the street from his original location. It’s on the corner of a huge intersection, a spot he once thought he couldn’t ever afford.

Today, Blue Ocean Fitness offers semi-private personal training for adults 40-65. Its J-shaped footprint allows for two sessions of six people at once, with space for a third during peak hours.

semi private personal training class at Blue Ocen Fitness
The layout is similar to Ben Supik’s small group training gym.

The gym has 260 members who are billed:

  • $89/week for 2 sessions
  • $99/week for 3 sessions
  • $129/week for unlimited sessions
💬 John says 80-90% of members stick to recurring appointments. Based on his membership numbers and pricing, we can assume his gym generates 7-figures in annual revenue.

And all prospects start with a 30-day trial for $89. The gym has a team of five staff, including a fitness director who manages sales and operations and four coaches who run the training sessions.

💬 John has used the paid trial for years because not everyone is familiar with semi-private training. When he started in 2011, CrossFit and bootcamps were popular, so he had to explain how his model was different. He does this through social media content and clear sales consultations.

Franchising with Alloy Personal Training

During COVID, John found creative ways to keep his community engaged:

  • Semi-private training sessions over Zoom
  • Live workouts in the park
  • Daily live videos in his gym’s Facebook Group
💬 66% of members kept paying their membership, which kept the gym afloat.

That period made him realize how many people were getting sick due to poor health, including his dad. He felt a strong calling to help more people get healthier but didn’t want to do it alone. To make a bigger impact, he needed to grow, and he knew a proven concept like Alloy Personal Training would help him scale faster with less risk.

💬 Fellow Gym Worlder Greg Morrone also opted to open franchised gyms with Alloy instead of expanding FIT Labs on his own.

John was confident about his decision to join Alloy because:

  • He knew the brand and business model, having written content for Alloy for 1.5 years before it became a franchise.
  • Rick Mayo, the founder, was his mentor, and they had a strong relationship.
  • Blue Ocean Fitness already ran a similar model, making the transition easy.

And Alloy’s system was simple:

  • 1,500-2,000 sq ft
  • 150 members
  • Semi-private training sessions (6 clients per coach)
  • $350/month membership
  • 2.5 staff members

So in 2022, he signed a franchise agreement for four locations and opened the first one in May 2023.

first Blue Ocen Fitness franchise
💬 It took a while for John to find the right location. When he did, the fire marshal denied his permit because his architect wasn’t properly licensed in Missouri. This delayed the opening by two months and cost him 20-25 presale members.

He expected finding the next location to take time, so he started looking early. One month after opening his first, he signed leases for the next two. 😅

Today, John still runs Blue Ocean Fitness, has three Alloy locations open, and three more on the way.

blue ocean fitness 3 locations

Advice for gym owners and aspiring franchisees

Expanding a gym—whether independently or through a franchise—is a big decision. And after growing to four locations across two brands in just two years, John has learned a lot about what makes expansion easier.

Here’s what he looks for when opening a new location: 👇

Expenses

John keeps rent under 15% of expected revenue to maintain healthy margins.

💬 Not sure how much rent your gym can afford? This article walks you through a simple tool to break it down.

Lease Negotiations

A good lease can save thousands. John negotiates for:

  • HVAC repairs capped at $1,000 per year (this alone has saved him from paying $15,000 three times)
  • Capped maintenance fees
  • Controlled rent increases
  • Months of free rent (one month per year on the lease)
  • Construction period terms
  • Limiting personal guarantees
💬 If you’re a gym owner looking for the best deal, consider bringing in professional help.

Parking

Convenient parking is a must, especially for members training 2-3 times a week. Since John works with an older demographic, easy access is even more important. A good parking setup means:

  • Plenty of spaces
  • Close proximity to the entrance
  • Easy accessibility
💬 He’s passed on great locations just because parking was bad.

Visibility

John looks for locations with high street visibility so potential members see the gym often. If people don’t know it’s there, it’s harder to grow.

Staffing

With multiple locations, John needs a great team to run each gym without him there. He finds talent through:

  • Client referrals
  • Trainer referrals (pays $2,000 if the new trainer stays 6 months)
  • Indeed, LinkedIn, and Facebook
  • Local universities
  • A recruiter
💬 John says job descriptions matter. He stands out by adding a “10 Reasons Not to Apply” section to his listings. It’s sarcastic, sets the tone for the gym’s culture, and gets more applicants who connect with his style.

For more franchising and business insights, be sure to watch or listen to John’s full interview on Gym World.

cheers,

j

📣 P.S. Found this interesting? Share it with another gym owner who’d think so too.

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