2020 Issue 3 | GearedUp

The PFIFC is “ dedicated to preserving and enhancing the business interests of all franchisees and to collaborating with the franchisor to improve brand equity for all stakeholders .” Under my leadership as president of the PFIFC , we will continue our focus on both aspects of this mission : to protect your business interests as franchisees , while concurrently seeking to find win-win solutions with any new initiative PFHQ introduces .

In 2017 , Rebate to Royalty set the stage for greater alignment between franchisees and franchisor and , in my view , helped propel the brand to new heights . Franchising does not need to be “ zero sum ,” where a win for the franchisor is a loss for the franchisee . By removing the rebate tax on our purchases , the focus turned to maximizing revenue , which is mutually beneficial to all parties as it rises . We will continue to strive to find alignment with every new initiative and create mutually beneficial opportunities .

We will aspire to become better at communicating , both to our franchisee members and to our franchisor . The unification of the FAC and PFIFA last year ushered in a new era of structured meetings between HQ ’ s senior leadership team and the PFIFC Board and committee structure . This has created a forum for franchisees

and HQ ’ s leadership team to share best practices and flush out concerns before anything is implemented . This cooperation is helping the brand execute on a higher level and it will help us emerge from the challenges presented by COVID-19 . This pandemic and the ensuing government-ordered closures across the system highlighted that there is work to be done to shift consumer sentiment around the essentialness of fitness to our general health , wellness , and the safety of our facilities . Whether this pandemic is a “ once in a lifetime ” event or not , we must educate our consumer and public officials that gyms are safe and an integral part of healthy living . This will help fuel the continued growth of our membership ranks and help us work toward obtaining the status of an essential business .

The PFIFC has accomplished much since our founding in 2014 . By diligently building up our equity fund reserves , we were able to forego charging our members ’ dues this year while still maintaining our strong fiscal health . We will continue to build our reserves next year in line with our desire to strengthen our organizational infrastructure and ensure our association ’ s continuity . In 2019 , we made the decision to employ Kristi Hoffman directly as our executive director . Together with the PFIFC Board ’ s support , Kristi will continue to build our internal organizational structure to support our growing needs and make sure that the PFIFC continues to operate professionally and responsively to the needs of our members .

During the shutdown , our franchisee community , along with PFHQ , increased communication to new levels . As clubs reopen and we return to business in this new normal , I encourage all of you to

continue participating in town halls , providing feedback in surveys or directly to the PFIFC Board , and continuing to serve on committees and projects on behalf of the franchisee community . The collaborative nature of our franchisee community is one of the core strengths of this brand .

As I begin my term , your PFIFC Board of Directors will immediately focus on setting priorities for 2021 , balancing the challenges we still face related to COVID-19 and its impact on our business with the opportunities we have to innovate and gain market share , seize competitive opportunities in our markets , and return our businesses to a level of profitability that will fuel our continued development of the brand .

Sincerely ,

W . B . Pete Hopkins PFIFC President

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