Cut the Fat on Gym Costs `Anytime'

Your next video will start in

Recommended Videos

  • Info

  • Comments


April 8 (Bloomberg) – Anytime Fitness Co-Founder Chuck Runyon discusses how his company’s shaking up the fitness model. He speaks with Trish Regan on Bloomberg Television’s “Street Smart.” (Source: Bloomberg)

My next guess is shaking up the model for fitness.

In 2002 he cofounded anytime fitness that allows members to work out 24 hours a day without being bothered with all those pesky trainers.

There's is no permanent staff on hand whatsoever.

This is paying off for the company, revenue has grown to $633 million in 2013. welcome.

What is it that people are attracted to with this model?

From the fitness consumer perspective, it is more convenient of it is about being more affordable.

It is really but trading environment that -- about creating an environment that is very friendly.

Squeezing in a work out whenever he can.

24 hours a day.

When they join their local club they can use any of our 2500 loves in the network in all 50 states as well a 16 countries.

It does not matter where you are what time it is.

If you get a workout in whatever it at your life.

What does it cost?

Something between 25 and $45 a month.

We tried to match a membership that is best for the consumer.

It might be a 12, commitment or take -- 12 month commitment give or take.

To people like the idea being a little more independent?

I think so.

When we get there they have a sense of independence, a sense of empowerment can enter level of trash.

-- a level of trust.

I know are members like that empowerment of having the key with no staff available.

Our staff is there 30 to 50 hours a week to motivate coveted coach, to support and to help people reach their fitness goals.

We may notice be there at 4:00 a.m. in the morning.

What about the issues you might have to deal with just a safety standpoint?

If someone is in the gym at four clock a.m. in the morning to what kind of risk might there be?

If you don't have anybody there to help oversee it, is that ever issue?

We have a security threat that is well lit, they all have security systems, panic necklaces and aed's. it is a very secure environment commanding 12 years we've never had any serious incidents.

When you look at if it isn't a good most of the risk and injuries are in things like pools or courts.

We do not have those convoy does have some of the lower impact machines.

The risk of injuries already very low.

Have you had much pushback in terms of states saying we do not like the idea of having nobody be there, and you being open 24 hours?

What kind of legal hurdles have you had to climb?

We introduced the beatles model in two thousand two in the robot eight states out there that had language in place well before our business model existed.

It wasn't against our model is just something that they had not thought of before when they had made this language.

We had to spend a great deal of time educating lawmakers and states all across the country on the convenience this creates for members.

The portability it creates can especially be big about rural and nil cost america, it really creates access to fitness.

We'll return that in every state.

Access to that is, that is great, but here we are in this country, despite all of this frenzy over fitness we are perhaps the saddest we have ever been and is a nation.

-- fact is we have ever been as a nation.

They continued ge bad stuff and we're dealing with iraq getting obesity rates.

That is correct.

The world health organization has come out and say we have a physical inactivity issue.

Our industries position to help people be more different weather in the club, or even at work or at home.

We're trying to solve this issue of activity.

We get ordinary a beats off our smartphone, and sit in front of our computer.

We are fighting a war against lifestyle.

We are also seeing some phenomenal success stories and markets all across the country and across the globe helping people change their lives, starting with physical activity.

Europe 2400 franchises right now.

What are your expansion plans?

Will continue opening over 300 stores a year oblique and in the u.s. -- over the u.s. and globally.

Thank you so much.

Adam is known for causing a stir on the radio, but this time he is launching campaign against a certain patent troll.

We have that story, next.

? these days it is all about building a brand, and who better to take lessons from the household name like new york giants wide receiver victor cruz?

He touches on everything from signing with the superstar agent to establishing a signature dance move.

? i would like to think of myself as a brand first.

It embodies the athlete of embodies everything else, but i would like to think of myself as a walking brand.

I'm so fortunate to grow up about five miles from giants stadium about and to play with this team.

I love everything that new york entails, i think the culture is perfect for not only myself but my brand as well.

I want to emulate my brand, i went there jeter -- i wonder you'd are to be noticed in the spotlight, people love him.

I'm always humbled, i'm the guy who can take hundreds of pictures with anybody.

I will never say no.

Having jay-z there and someone i can talk to, that is always good.

Do a good job of knowing you and moldings around it.

Growing up, everything was nike, it was always if you do not have a pair of nike's you were the cool guy on the block.

Nike was a part of my culture, it was embedded ibn me.

It is naturally became a part of my brand.

They asked me to do this also get -- hethe salsa dance.

When i'm through the grocery store and people ask you to do the dance, i'm like right here?

It was something that was preplanned, but did not think it was go this far.

? time for the scene where we bring you the mist is behind media and entertainment and pop-culture.

Adam just may be its savior.

The comedian is one of the handful of visible podcaster standing up to a company called arsenal audio.

Personal audio claims it invented the idea of podcasting back in the 1990's. it is suiting corolla and others for patent infringement.

The problem of a personal audio is a patent troll, that makes no products, but makes money off of the patents it happens to hold.

Suits by patent trolls make up 76% of patent litigation cases.

This is up from 42% in 2007. he has been researching the story, and the managing partner at media tech capital partners.

Let me start with you steve.

Does adam corolla have a shot to give these guys?

He has a shot, but one of the problems is that the juries have turned out to be very friendly to adventures -- and vendors, and these patent trolls actually go to trial, and you are at risk of losing.

Apple lost a big case where is he like if you read the patent cover that they were not infringing on the patent, and it was with this same company.

Personal audio is basically saying that every podcast out there is using its technology?

This is not about technology, it is about ross e-cig -- rossa processing.

They essentially had people reading stories from newspapers onto cassettes, and then they distributed it to people in the personal audio devices.

They consider that process to be the father of podcasts.

A lot of that and trolling is exactly about this.

[laughter] blank something on your tape recorder.

I think i did a few podcast on my is that player -- cassette player.

Will people have to fork over percentages of their -- and there are 100,000 patent suits every year on average.

That averages increasing every year.

It is a $29 billion industry.

That is how much these settlements and litigation expensive run.

How much?

$29 billion.

It is not going to stop.

As stephen points out of it is typically a jury situation, and it is pretty easy if you have a good litigator to persuade a jury.

Let's back up for a second because you still need to make sure that you are rejecting the people that are inventing things.

-- protecting the people that are inventing things.

At the core of this is something that is good and fundamental to american success.

But somehow, along the way, it has gotten convoluted.

Patent trolling is not new.

Go back to the beginnings of this country.

In the 1800s and earlier, they called them patent sharks because if you had a nice plow or a sledgehammer of any patented it, someone would say i would sue you if you do not give me a license fee.

That has been going on and on.

What has happened now is that technology has made items and processes so complex that you could take a cell phone and look at the several hundred little parts, and if any part of that has a patent that you will cover your greatest of -- you hold, you will sue.

There are two bills in congress right now that would essentially marrow this process.

They would make that the loser pays give and they would also stop the threatening letters.

A lot of these letters are going , they're going to end-users, someone who has wi-fi in their coffee shop, and they say you have to pay up, instead of saying cisco.

You cannot sue the end-user.

That has been a big problem.

Quick this is a consumer friendly set of litigation that is likely to be passed.

Who is against the?


the bar association, the law schools] they're making a lot of money, they have to make money for those lawyers.

They are worried, it is this balancing act to the two talked about.

What congress needs to do is listen to everybody, and be very careful about it.

There's bipartisan support.

What would a change system really look like?

It would change -- first of all they're telling the patent office and you can be more careful.

Your green lighting very broad and unfocused patents.

Number to cover the system would say no more suits against end-users unless you are suing the maker of the technology.

There's also the issue of the loser pays in some cases.

It is who, where, when, how, and why.

The research that has to be done before the litigation begins at this new legislation is making.

Back to adam corolla, he is saying enough, i'm not going to let you come after me.

As we're in the midst of this whole environment, and these various decisions that congress would like to make on this in various bills, this this help them?

With cowan funding as a shot go but he is not alone -- crowd funding he has a shot, but he is not a loan.

Their various efforts at both gives the patent trolls, and most of the list because they have unlimited resources.

He asked to raise $1.5 million, and that is why people cave in pay these fees rather than taking this to court.

We will be watching for it, thank you very much.

Pimm, we have taking stock coming up.

Indeed we do.

Have the pleasure of speaking with bob saget, he has a new book out and i will find out about his time on full house.

That is coming up at 5:00 p.m. eastern.

More street smart is up next with trish regan.

? adrenaline, twists, turns, and plenty of burning rubber.

Speedways $1.5 billion empire.

We decided to rank its biggest and baddest racetracks.

? is 56 minutes that they are, that means a bloomberg television is on the market.

I am alix steel, let's get you caught up in more stocks ended the day the.

They ended up 1/10 of one percent, rebounding from the worst three-day drop since 2011. it is still below its 100 day moving average, unable to reclaim that level.

Average stock is down nine percent from its most recent peak, and that is according to the spoke.

The ims came out with its annual forecast this morning, and the chief economist sat down and with stephanie ruhle and erik schatzker on market makers.

They asked him about his economy, and where he things it is approaching escape velocity v i do not like that term.

I think the u.s. economy is in very good shape.

I think the recovery is very solid.

It is going to continue.

Why do not like that term?

I do not have the sense that there is some critical level of growth.

When of all of your engines aligned, and it works, when they're not a look online they can sputter, but there's no miracle growth rate or anything.

With declining participation rates here in the united eight and the rise of technology, questions and the u.s. about whether or not essential growth is going to be lower from here on out.

Is it the same around the world?

We are seeing a world that is going to grow emotionally in recovery than it has not passed -- more slowly in recovery than it has in the past?

In many countries, are we a ble to grow like we have before?

In many cases it is no.

The financial crisis may have made things worse.

Each country will have to look very carefully at what we can go.

That is a big issue for countries like japan, also some countries in the euro zone.

The imf cut its forecast for russia.

Not too much.

1.3% was computed when crimea was not even fully in place.

Given what has happened, and the fact that this is likely to lead to outflows from russia, an increase in the policy rate for the devaluation of the investment climate in russia, we may well revise the 1.3% down to . what kind of ballpark are we talking about?

I think if things remain the way they are, five percent might be a reasonable guess.

If things got worse, a larger adjustment might be needed because we can be looking at naked growth in russia is the bottom line -- negative growth in russia?

I do not think so.

Probably below one percent.

Every year we've got into the new year feeling optimistic about was going to happen, and avery are been disappointed.

-- every year have been disappointed.

What are we not thinking about that could take 2014 down?

The issue is that the things we worry about are the things we do not even.

N think about.

It is the unknown unknowns.

We're are not very worried about

This text has been automatically generated. It may not be 100% accurate.


BTV Channel Finder


ZIP is required for U.S. locations

Bloomberg Television in   change