In the previous post, I was writing about some of the new projects we are pursuing at elements group…. Believe it or not, there was too much to fit into one post, so this is a continuation of the previous, “upward momentum” story…. it is certainly an exciting time to be in the fitness space, and each of these projects adds additional depth to our consumer experiences, and additional revenue for our franchisees…

Intranet Goes 2.0
Believe it or not, elements is the only fitness brand to offer a full service information and training intranet.
The owners intranet has served us well, and we have added literally 1,200 training tools, resources, tips, mini-handbooks, and forms. We have been researching new technologies that will allow us to transform the intranet into a “dashboard” for all clubs, franchisees, and central team members. The “dashboard” would include a better-organized access to the hundreds of training options, as well as a better way for us to deliver news, updates, and brand items to you and your entire team. It will have varying security levels to allow, for example, front desk employees to access certain levels of information, while owners can access a complete set. Overall, the “dashboard” will provide a better-organized way for us to manage the growing amount of training tools, enabling club managers to understand and easily access these resources.

We will also be developing video training for some key sales, marketing, and operational topics, which will greatly assist in staff development at the club level.

The official Workout of ______ Hotels!
We are working to secure a deal with a major international resort chain to brand their fitness and lifestyle amenities as “elements living.” Brand-name amenities improve a guests experience at a resort, and for us, it is a powerful way to expose thousands of upscale guests to our brand. There are many synergies that can develop from this relationships… and we will keep you posted

For more information on business opportunities including obtaining a stock prospectus on elements group, click here.

As the weather chills and the Holiday lights go up, the end of the year provides a great time to reflect, and to plan for upcoming 2009. Last week, I was writing a letter to our franchisees about some of the new projects we are investing in. When I was finished, I re-read the letter, then again, and found myself impressed (I am tough toimpress!) with the momentum and the positive direction and tremendous growth the elements fitness brand is experiencing.

We have been hard at work to continue to grow and position elements as the leading fitness and lifestyle brand for women. I thought it would be great to share a listing of some of the exciting projects that are currently in our development pipeline.

- elements stories - a new “social” website which will connect the corporate site, magazine, and BalanceD. elements is a special brand - we are a collection of people who are making it happen…. entrepreneurs, survivors, motivators, leaders, mothers, daughters…. although each of us id different there is so much which is similar…. We will be “weaving” stories throughout this site….. stories of our club owners, members, friends, family members… women who are transforming their lives through being a part of the elements movement….. We will be taking all of the member testimonials (and continually adding) to create a dynamic, interactive experience….. My thinking is that this will be an incredible membership sales tool, a entertaining website for current members to visit and interact on, and a market differentiator for us - elements will be the only fitness brand with a live, growing social network. before/after pics, stories, motivation, overcoming…. from across the country, we will see the bonds that tie, and watch a community be built (Jan 2009 launch)

- New supplement line! - we have some great developments in store here! The line is coming together nicely… we are still asking for as many survey responses as you can get - my goal is to have 500 individual surveys prior to making any development decisions on the products - we would like (if possible) a true cross-sampling from all clubs, all ages, and all potential buyers…. this will be a significant revenue center for your club, we want to ensure the new brand and products is the best possible fit! (Projected Mar/Apr 2009 launch, products will be available for purchase in-club and also commissioned online)

- elements television network - We are about a month from announcing “elements TV” - a full entertainment system and network inside the clubs. Music videos (with top selections for our target audience), tips from the advisory board, healthy tips, and branded “shorts” - commercials set to music that you can select and run for all things elements: the latest magazine issue (more readers is better exposure and retention for you), personal training ads, testimonials, diet coaching ads, supplements (once launched), specialty classes and more. elements TV is a complete, expertly branded entertainment experience which will take the club experience to the next level - best news is we are working on a major corporate sponsor (Victoria’s Secret, lancome, or Estee Lauder type) to underwrite 80% of the ongoing cost of the network, implementation and production! (Ready in-club Mar./Apr 2009)

NEW CLUBS! We are very excited for our newest club openings… Columbus, Ohio and Madisonville, KY are already in presale. We will very soon have some great new cities coming online including… Aventura, Orlando, Toronto, Greenwich, and California. In addition, we have some exciting developments in the works…Expect some big things in 2009!

Stock Offering:  Miami Beach, FL – 11/01/08 – elements™ is pleased to announce the launch of their new stock offering program through our parent company, ELEMENTS GROUP. Franchisees, vendors and investors will now be able to purchase stock and own a piece of the fast-growing fitness and lifestyle brand.

Set to correspond with the introduction of the new stock offering program, elements™ has also created a robust corporate business website at www.elementscentral.com to keep investors informed and generate interest for potential investors. The “elements central” site will offer real-time announcements, annual reports, brand previews and strategic information about all facets of the company.

For more information on business opportunities including obtaining a stock prospectus, click here.

What an exciting time of the year to be able to announce our expansion into the consumer products space.   elements has been growing steadily since 2004, to emerge as the category leading fitness brand for women. We have been heavily investing into the creation of consumer portals and networks, such as our elements living magazine, our All Star Fitness Advisory Board, BalanceD interactive Diet, elements living TV (coming soon!).  Possibly one of our most exciting announcements comes at the end of this year… the birth of Oceånica, by elements.  Our creative team has developed a genious offering with Oceånica products….  the beautiful, smartly designed line will feature organic and very potent anti-aging, slimming, and health enhancing ingredients. Over the next few months you will see a very exclusive line of weight loss products unveiled.

Having an exclusive, well-designed line will help the elements brand in many ways, including adding a powerful new revenue stream for franchisees, a great addition to the wellness experience for members, and an important “star” to allow elements into some of the top fashion and lifestyle books.  Look for many exciting announcements to be coming about Oceånica, our products, and our launch parties very soon!

Leave it to elements to completely redefine the way weight loss is sold in America…    Diet in the US is a multi-billion dollar a year industry. Thousands of weight loss plans, pills, programs, and books are sold each day to consumers who are eagerly seeking the newest, the best, or the most effective way to permanently lose those extra pounds.  Last year, we had developed and launched BalanceD Diet, our innovative weight loss program revolving around a health, balanced lifestyle. The cornerstone of the BalanceD Diet program is a multi-million dollar website which allows clients and diet coaches to set goals, track progress, and engage our clients.  The BalanceD website is available both to consumers online, as well as to clients inside the elements and BalanceD clubs, where a personal diet coach works directly with the client to help create a custom solution.  The interactive site acts as a backbone of the weight loss plan, an interactive wellness encyclopedia, which is complemented by the 1-on-1 coaching and encouragement provided by our lifestyle consultants.  A winning beauty and slimming line is the third essential component of our weight loss system, and is one of the most exciting….

Over the past two weeks, elements has received three formal proposals from major landlords offering free rent, and up to $60 per sq ft in “key” money to locate our clubs in their plaza. Doing some quick math, if you take a (typical) 6,000 square foot space, that means the landlord will contribute over $360,000 to cover the cost of buildout, allowing a franchisee to virtually just move in. As if this wasn’t strong enough, we are seeing these offers coupled with generous free and reduced rent periods to ensure that a club has a good jump-start. Only the best landlords can (or will) afford to do this strategy, but since our clubs are located in top centers, it has put many potential elements franchisees in a unique, and very lucky situation.

Many first-time business owners do not know that, in commercial real estate, it is normal for a professional landlord to pay “TI” (tenant improvement) money as an incentive to attract popular national tenants to their center. The more favored a brand is, the more “TI” money the landlords are willing to pay to attract that brand to their center.

This makes good sense for landlords, the best “anchor” tenants quickly define the image of the Plaza, and the ultimate long-term success. Many landlords do not want to re-invent the wheel here, so they will follow the lead of other successful landlords and plazas nationally. Owners of great brands can offset a larger portion of their initial startup and construction expenses through a landlord contribution. elements has been very popular with landlords since the beginning. Our clubs have great curb appeal for a plaza, and attract one of the top buying demographics (upper income women, age 30-65) to the plazas on a repeat basis. As a result, elements and our startup team has always had excellent results with landlord negotiations. (we help to negotiate all leases on behalf of our franchisees)

I have said many times that we believe this is one of the best times in history to open a business in the US. Economic trends have converged to make this an excellent time to negotiate a lease, as landlords are sweetening their deals to attract key tenants to sign leases. We are seeing “TI” amounts double what they were last year, and long free rent periods, typically one year or more. Wow… what an exciting thought for any business owner -being provided a “turn-key” space, and a full year of no rent expense.

I heard one time that the definition of luck is luck is when preparedness meets opportunity. Successful entrepreneurs will think themselves very luck to be able to launch their businesses this year.

I was speaking to a well-respected executive from the franchise industry today. I really enjoyed our call, and I thought I would share some of the conversation with you - it really shows the process of buying a franchise from the other side of things…..

In business, you can either let or make things happen. Successful people make things happen, and are confident in the decisions and choices that they make (both in business and in life). This conversation became especially relevant because, as the end of the year approaches, many aspiring entrepreneurs will be following their dream of owning a businesses a reality this year. And other will not… they will blame the economy, the holidays, their jobs, family, or a whole host of other factors which will cause them to procrastinate their decision making until next month.

Why is January a better month to make a decision than December? What will change between now and then? If an entrepreneur is at the point where they have collected all the information, it is very unlikely that anything will materially change within the next months. In fact, going through the notes and checklists they have developed along the process should confirm they have all the information you need to make a sound decision.

In business, it is important to identify what it is that holds you back. If it is the fear of the unknown - recognize that this is entirely normal, as with any big decision. There will always be reasons not to buy, not to invest, or not to grow, but if you are serious and have a passion for businesses, it is important to look for reasons to buy as well.

From our seat, many prospective franchisees do not realize that delaying their decision without good reasons sending the wrong message to the franchisors, who are evaluating you as a potential Developer. Franchisors (your partners) are looking for passion for the model and business savvy which includes decisiveness.

As an entrepreneur, you want to be in the position of having options. In other words, you want to be awarded the franchise and have the option of saying No. Delaying in decisions often removes that option for the candidate. As December approaches, elements will be announcing several great new club locations, and new Regional Developers - we are proud that our new partners understand that success comes from within, and possess the drive and determination that come hand-in-hand with success.

elements group began a limited sale stock in our parent company last month, allowing outside investors, franchisees, as well as our own members to share in the impressive growth of the international fitness and lifestyle brand. A private stock offering is different from the publicly traded kind, each investor must meet certain financial criterion, and receive a several hundred page prospectus, which details the brands extensive growth strategy over the next 5 years. An integral part of the worldwide expansion of elements involves acquisitions as well as the development of company-owned locations, strategically creating one of the strongest fitness brands to date. We have also created (to my knowledge) the only fitness-oriented investment fund, with our Leisure Growth Fund product.

Over the past 4 years, we have positioned elements as a lifestyle - more than just a fitness club, elements is about a healthy, balanced way of life. The brand offers a complete experience to consumers, including popular fitness centers, diet and weight loss centers (BalanceD), acclaimed online magazine and media channel, All Star Fitness Advisory Board, and supplement /product line. Each quarter these offerings get further developed, and new additional announced, such as our soon to be launch “elements Broadcast Network” and “Channel Fit” launching in all club locations in 2009.

Our position as a lifestyle brand, and leading franchisor allows us to always be monitoring acitivities within the fitness industry, and give us a unique advantage in acquisitions - as we can carefully select only the best most qualified location to acquire and convert to elements clubs.

The stock offering and Leisure Growth Fund allow elements and our partner companies to pursue an aggressive acquisition and “rollup” strategy. One unique advantage we hold in this arena, is the value of the company-owned locations to further strengthen the performance of our franchised locations, using our core “hub and spoke” development approach. The far reaching effects of this model allow the company to be significantly stronger in operations than many others in the space, and allow a diverse scope of opportunities for our investors and partners.

We gave congratulations this week to our three Atlanta gyms, for winning the prestigious “Best of Atlanta” award. It was notable to mention that this was the second “Best of” award elements had won in two weeks. To me, this is notable because it shows that consumers and members are really expressing their loyalty and affinity for elements. We get countless requests each week from potential members across the country (and sometimes world) requesting or inquiring about club locations. This growing database is becoming a major asset to the brand, especially since prospects receive our “elements living” magazine free of charge, where they can interact with our fitness experts, keep tuned-in to the latest fitness and lifestyle tips and trends, create a customized diet, and download video workouts. This “element experience” is being enhanced again next year with the addition of a full supplement line and robust online store. Consumers are able to “experience elements living” at home, and also at their Award-winning local elements club… what a concept!