Veteran Entrepreneurship Award
2017 MVP AWARDS
“ We run our company like a fighter squadron . Accountability and standards are paramount .”
After graduating from the Naval Justice School with honors , he also served as squadron legal officer and was selected for an inter-service transfer to the Air Force , where he earned his F-16 Instructor designation . Kelly says he has tried to take something away from every leader he came into contact with early in life , a habit that carried on into the military .
Truly outstanding leaders , he says , put their people before themselves and tie everyone ’ s success to the overall success of the squadron . “ Everyone knew their role , knew what was expected of them , and were rewarded for superior performance when they rose to that level ,” says Kelly .
He takes the same leadership approach with Planet Fitness to focus on cultivating leaders . “ You have to develop your leaders on purpose ,” he says . “ If you aren ’ t deliberate in growing leaders within your organization then , once again , you are leaving the future strength and stability of your company to chance .”
When it comes to the future growth of his company , Kelly is leaving nothing to chance . His plans include continued expansion of the Planet Fitness brand in the U . S . and internationally , and the addition
MANAGEMENT
Business philosophy : The best decisions are made at the lowest level in an organization .
Management method or style : Describe an extremely detailed future picture for your company , then get out of the way and let your talented people paint it for you . Provide small brushstroke corrections for them as they create the masterpiece for you ( and themselves ).
Greatest challenge : Articulating to the organization where it is we want to be in 5 years , and keeping them focused on that lighthouse .
How do others describe you ? Having an almost pathological aversion to dysfunction .
How do you hire and fire , train and retain ? Hire who you think is the best at the time , let them learn and then lead . If you need to fire them , you ’ ve most likely failed them , not the other way around . Retain your people by giving them the runway required to fly , and then tie their success to your success . of two complementary franchise brands , The Joint and Modern Acupuncture . In May , he signed a regional development agreement with The Joint , a fast-growing chiropractic franchise , to help develop up to 20 new clinics in Washington .
“ My new partners and I are very excited about these two concepts , and plan on opening them in adjoining spaces whenever possible , as we see tremendous synergies in these exciting brands ,” he says . “ Keep an eye out , as I think both will be incredible success stories .”
Kelly says he is honored to receive the MVP award and hopes his story will encourage fellow franchisees to consider hiring veterans as a smart investment . “ I hope most multi-unit franchisees recognize these skills in our veterans who may be applying for positions inside their organizations ,” says Kelly . “ Consider hiring a veteran . I can pretty much guarantee you won ’ t regret it .”
BOTTOM LINE
Annual revenue : $ 34 million .
2017 goals : Open five more stores in the U . S . and one in Mexico .
Growth meter : How do you measure your growth ? Home-grown leaders who now have an equity stake in whatever we are doing at the time .
Vision meter : Where do you want to be in 5 years ? 10 years ? In 5 years , 60 stores in the U . S . and Mexico , with another 60 in the queue . In 10 years , vigorously pursuing and executing on the best opportunities that will inevitably present themselves .
What are you doing to take care of your employees ? Trying to have as many leadership positions available for the leaders we grow in-house . It ’ s perhaps our biggest challenge . We have an outstanding director of training and development , Jeff Maguire , whose primary duty is to identify , train , equip , challenge , and place our own people into leadership roles . Once in that role , they immediately know what is expected — but more important , what and where their next leadership position resides . They are always focused .
What kind of exit strategy do you have in place ? Death or an 8X EBITDA offer , whichever comes first .
2017 MVP AWARDS
Veteran Entrepreneurship Award
Why do you think you were recognized with this award ? I think my team and partners made me look good .
How have you raised the bar in your own company ? We try to build each club better than the next and are constantly trying to refine and hone our operations . We always share what we ’ ve learned with the other franchisees . In that way , I think we have contributed significantly to the Planet Fitness family overall .
What innovations have you created and used to build your company ? We run our company like a fighter squadron . As a result , there are no silos in our organization , and every area of responsibility across our company has a proper name associated with it . Accountability and standards are paramount .
What core values do you think helped you win this award ? Always admit your mistakes , then let everyone know how you are going to change your behavior to prevent that mistake from happening again . Creating this culture is critical in never allowing people to lose confidence in your leadership , and builds open lines of communication at all levels of your company . It ’ s not about who is right , it ’ s about what ’ s right !
How important is community involvement to you and your company ? Part of our “ future picture ” has always been to be concerned about “ outsider perception .” From the beginning , we wanted to be seen by those outside our organization as a respected , generous , contributing member of the local community . Every club we open has a local relationship with the community that strives to be seen this way . We do myriad charity , community , and in-club events to foster this reputation . It ’ s not forced , but fun .
What leadership qualities are most important to you and your team ? Honesty , integrity , clear communication , accountability , and leading by example — easy to say , and easy to do once it becomes ingrained in your culture . It is almost impossible to change the culture of an organization if it doesn ’ t start at the beginning and isn ’ t demonstrated from the top down .
22 MULTI-UNIT FRANCHISEE ISSUE III , 2017