HEALTH & FITNESS

Snappy Business

Two young investors join the fitness bandwagon.

Staff photo by Angie Baan

Bill Carroll
Special to the Jewish News

y

oung Jewish entrepreneurs Brad
Cohen and Jeff Shafritz didn't
make a snap decision when they
decided to launch a new business venture
in the Detroit metropolitan area.
Cohen and Shafritz, both 37, young
marrieds and Huntington Woods resi-
dents, opened a Snap fitness center in
downtown Ferndale in May. Snap Fitness
is part of a national chain of relatively
small, "no frills," low-priced, no-contract
workout franchises that are open 24 hours
a day, seven days a week.
Operating with only the "simple bare
necessities',' the Snap facility is a stark con-
trast to the "big box" gyms that often have
many amenities that patrons never use.
Minnestoa-based Snap has nearly 800
locations in 45 states — with a goal of
1,200 by the end of the year — including
three others in Michigan. Snap ranks 11th
in Entrepreneur magazine's list of top 10
new franchises.
Cohen attended Southfield-Lathrup
High School and got a degree in
mechanical engineering at Michigan
State University. Shafritz, a Maryland
native, obtained a business degree at
the University of Maryland. They both
worked in other fields before settling in
Huntington Woods and meeting each
other socially five years ago.
"We were so compatible and apparently
have such complementary skills, that our
wives and others urged us to invest in
some business together:' Cohen said.
It's not that the pair has nothing else to do.
Cohen's full-time job is being chief operat-
ing officer of the Sterling Group, a Detroit
real estate company. Shafritz is a national
franchise consultant, helping people secure
appropriate business opportunities.
Shafritz checked out the many U.S. fran-
chising systems and the two agreed a Snap
franchise would help them take advantage
of the national health and fitness craze.
They needed a small, neighborhood-type
business for "absentee owners" that could
practically run on its own — what Snap
officials call a "hands-off" operation. They
each spend about 10-15 hours a week
there. "We're young ourselves and love to
work out:' said Cohen.

Brad Cohen and Jeff Shafritz in their 24/7 Snap Fitness center in Ferndale

But it still wasn't a snap decision. They
took into account the state's current
economy, fluctuating state business taxes
and other issues, but chose to put up their
own capital — with no outside investors
— to open the facility "From a real estate
point of view, the state's business climate
is mixed right now; but we have faith in
Michigan, the Detroit metro area and
specifically Ferndale," said Cohen, "and we
want to remain in Michigan. The business
climate in this area is on the upswing."
Added Shafritz, "There are many young
residents and businesspeople in Ferndale
and nearby cities who emphasize fitness
and health and like to work out and, in
fact, many of them are Jewish." Shafritz
handles the sales and marketing part of
the business and Cohen takes care of the
administrative and operational side.
Cohen and Shafritz came up with a
$150,000 buy-in investment that included
complete renovation of the 3,000-square-
foot former auto accessories store.
Another $165,000 included state-of-the-
art Cybex exercise equipment, including
Stairmasters, arc trainers, cardiovascular
workout equipment and a variety of
weights. Television screens are mounted
on much of the equipment so exercisers
don't have to arch their necks to watch TV
high on a wall.

"We've only been open a short time and
we already have about 375 customers:'
Cohen said, "and many of them have told
us they left other fitness places to join
here. No year-long contracts are neces-
sary; people belong on a month-to-month
basis. They consider it very affordable and
convenient. One of our big challenges is
keeping people satisfied on a continual
basis so they'll want to come back month
to month. Summer is really a tough time
to start an inside gym business, but we
project about 1,000 members by the end
of the year."
Cost is $34.95 a month per person,
$54.95 per couple, plus $10 more for any-
one older than 16. There also is a tanning
booth ($14 for an unlimited session), plus
changing rooms, but no showers or swim-
ming pool.
"A key element in our business deci-
sion was to make this a 24/7 operation','
Shafritz said. "In today's fast-paced atmo-
sphere, it's difficult for people to commit
to exercising on a regular basis due to
unpredictable schedules. Each patron has
a card-key that allows them entry at any
time of the day or night, even if no staff is
here. It's often busier here in the middle of
the night than early in the morning."
Cohen's brother, Michael, 44, of
Ferndale, is the manager. He and another

staffer usually are there between 9 a.m.-8
p.m. Cameras maintain 24-hour surveil-
lance, the card-key records the name of
everyone who enters and there's plenty
of nearby, free parking. "Everyone has a
secure feeling," said Michael Cohen.
"I often come here around 4 a.m.
and I'm surprised to find a lot of other
people exercising at that time said Scott
Segal, 37, of Huntington Woods, who has
belonged to three other fitness centers, but
joined Snap Fitness when he drove down
Woodward and noticed the facility two
blocks north of Nine Mile Road.
A real estate investor, Segal travels often
and is liable to work out at any time before
or after his trips. "The difference is that Snap
is clean, neat, has a great low price, new
equipment and is close to home',' he said.
Snap Fitness also rents a 600-square-
foot studio section of the facility to
personal trainers who meet individual
clients or classes there, splitting the pro-
ceeds with Snap. Beth Silver, a Huntington
Woods trainer and teacher, uses the Nia
technique (neuromuscular integrated
action), covering yoga, tae kwon do, mod-
em dance and other movement forms.
"Snap is clean and modern and better
than many places I've worked with;' Silver
said. LI

August 30 • 2007

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