Franchise Trends in the
Weight Loss & Control Business

Data compiled by the U.S. National Institute of Health indicates that, as of the year 2000, 65% of the U.S. adult population was overweight and more than 30% were obese. Obesity and excess weight continue to increase, giving rise to heart disease, diabetes, hypertension, stokes and other health complications. Excess weight and obesity increase, both, the risk and severity of disease as well the risk of death. Data also shows that an increased number of Americans are concerned with fitness and healthiness. This is due, in part, to the government's efforts to educate the public as to the role of healthy bodies and healthy lifestyles in sustaining life.

Consumer Weight Loss & Control Trends

During the late 60's, as televisions became commonplace within households, superstar models became the accepted standard of beauty in the U.S. To meet this standard, Americans became obsessed with dieting and weight loss. By the 1980s, the term anorexia became popular, characterizing those who took the obsession too far. In 1982 the first liposuction procedure was performed to surgically remove excess fat.

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The consumer of the weight loss and control industry includes a multitude of people. The market is not just limited to overweight and obese people, but may also include people who are health conscious, suffering from medical conditions or the caregivers for overweight or obese children and seniors. Gary Heavin, owner of the Curves fitness franchise, says about his deceased mother, "the high blood pressure, that contributed to the blood clot, that took her life was unnecessary…we now know that exercise and proper nutrition will almost, always, alleviate the cause of hypertension and most other diseases". The IDEA Association indicates that most people, who seek the assistance of a personal trainer, want to establish and maintain some level of fitness. They are not just seeking to loose weight. IDEA further indicates that those seeking the assistance of a trainer are, on average, 41 years old, 74% are woman, over 80% are healthy, 50% have some medical condition, 19% have physical handicaps and 31% are either amateur or professional athletes.

Weight Loss & Control Business Trends

The first recorded diet was introduced in the U.S. in 1898, based on a concept of slowly chewing foods. This was followed, in 1918, by the publication of the first diet book, which established dieting as a lifestyle change, obtained by counting the number of calories consumed. During the 1950's, the U.S. government became involved in promoting the fitness of its citizens. The American College of Sports Medicine was established in 1954 to promote health and fitness, both, in the U.S. and worldwide. In 1961, Weight Watchers was established as the first group-counseling type of diet program. Aerobics were established in 1968 and formed the basis of modern day fitness, fitness based on exercise. Since that time, many diets, diet plans and diet programs have been introduced to help individuals in their desire to loose fat, reduce sugar, burn calories, increase protein, reduce carbohydrates, and the list goes on. The current list of diets and diet plans is too exhaustive to even list.

To meet the public demand for foods to assist in weight loss and control, the scientific community and the food industry merged to develop a series of foods. In 1958, the first sugar substitute, Saccharin, was introduced, followed by the first sugar-free soft drink, Tab, in 1963. Since then, a number of foods have been produced or modified and advertised as low fat, low salt, fat-free and numerous other terminologies.

The most recent and popular diet craze, low-carbs, is based on lowering the consumption of carbohydrates. To reduce carbohydrates in food products, manufacturers are substituting sugar free sweeteners, known as polyois, into foods, replacing traditional sugar contents, cup for cup. The elimination of cane sugar from foods provides a benefit that is two-fold. It reduces the caloric count of food, which benefits both dieters and individuals with diabetes. Prepared Foods indicates that, as of May 2004, 827 low-carbohydrate foods were introduced into U. S. markets.

All food products packaged in the U.S. are required to have labeling, specifying the nutritional content of the product. Established standards, however, have not accounted for the various terms that are being used by manufactures. In the weight loss and control arena, terms such as net carbs, low-carbs, low sugar, sugar free, etc. are not explicitly defined. This issue arises every time new foods are entered into the marketplace. It is expected that the U.S. will experience growth and expansion in the labeling and packaging industry as it pertains to diet foods as well as other types of foods.

The number of health and fitness facilities established, to assist in weight loss and control, has exploded in the past couple of decades. Health and fitness facilities generated more than $14 billion in the year 2003. The International Health, Racquet and Sports Club Association reports the total number of U.S. facilities, as of July 2004, to be 26,046. Recent industry growth is presented as follows:

Jul. 2004 - 26,046
Jul. 2003 - 23,500
Jan. 2002 - 17,807
Jan. 2001 - 16,938
Jan. 1992 12,629

The number of personal and fitness trainers are also experiencing high growth. The IDEA Association estimates the number of practicing, personal trainers to be in excess of 65,000. IDEA indicates that the number may be, somewhat, flawed since a trainer may hold more than one certification and belong to more than one professional organization and these are the sources from which the data are derived.

In the year 2000, health experts concluded that about 1.2 billion people, worldwide, were consuming either too much or the wrong types of food. This number of people, for the first time in history, equaled the number of underfeed and under-nourished people in the world. As such, obesity is considered as much a global epidemic as hungry in undeveloped nations. In terms of growth and expansion, the weight loss and control industry has nowhere to go but up!

Weight Loss & Control Franchise Trends

Entrepreneur's annual Franchise 500® ranks the top 500 franchises based on numerous factors, to include financial strength and ability as well as growth rate and size. Table 1 shows the top 10 weight loss and control franchises included in that listing. The table also lists the weight loss and control franchises included in the Franchise Times 2004 Top 200, which ranks franchises based on worldwide sales. Table 1 shows the three weight loss and control franchises that made the Top 200. The Franchise Times also compiles a FAST 55 listing, which ranks the top 55 franchises that started in the last five years and realized the fastest growth. The two weight loss and control franchises that made this listing are also shown in Table 1.

Table 1: Franchise Rankings

As the table shows, various weight loss and control franchises exist to offer a variety of products and services. They include supplements, exercise programs, fitness programs and training facilities. Economists estimate that consumers spent more than $33 billion, annually, on weight loss products and services during the 1990's. Liberty Harper, founder of the Liberty Fitness franchises, offers insight into the lengths that weight loss and control franchises are extending services to satisfy their consumers. Liberty states, "... your Liberty Fitness trainer is waiting and willing to help you to find what works best for you! Even finding a park, with benches for upper body pushups and dips, and some stairs to strengthen the lower body, has the ability to act as your temporary gym."

Weight loss and control franchises are expected to continue growth and expansion over the next decade. The following timeline shows the growth pattern of Curves, the largest and fastest growing weight loss and control franchise as recognized in the Guinness Book of World Records.

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