Current StatusConcept / Business Plan
Amount InvestedNone. Only time on Business Plan & communicating with the team from the US.
Funding RequiredRM2,223,202 (USD536,069)
DescriptionAn international franchise* opportunity to open a 8000sf Fitness outlet from the US. This is a brand that was formed through a strategic partnership between 2 powerhouse brands – a brand development, marketing and entertainment company & the preeminent provider of an international sports-based entertainment company. 

The concept of the Fitness Business is a fusion concept derived from different disciplines as well as from training programs of pro-athletes who belong to the sports-based international brand.

*complete information on the brands will be revealed to potential investors.
Business OpportunityThe opportunity lies in these differentiating factors compared to other Fitness Centres:

1. Strategic Partnership With Top Ranking International Sports Entertainment Provider – Prominent branding visibility.
2. Athletes Driven Martial Arts Infused Fitness Program – based on various martial arts & the training & expertise of international athletes. A program for everyone, at any level. Other places will offer equipment plus a myriad of classes. There are no clear program designed to help with a person’s fitness journey.
3. Equipment only membership option – All other fitness center sells high price membership packages as they include the classes. Not everyone wants to join classes. 
4. Martial Arts Belt Ranking Program – for both Adults & Kids.
5. International Pro-Athlete Ambassadors – no other Fitness Center has a strong stable of international Athlete Ambassadors.
6. Fitness-Brand Clothing & Accessories – again, no other Fitness Center can boast of having a performance brand for sports wear.

The target market :
– Age: 20s – 40s
– Area: KL, PJ District (PJ, Subang, Shah Alam)
– Size : 2 million (source: Department of Statistics Malaysia)
Revenue / Business ModelThe business model of the Fitness Business will be from :
1. 5 Membership Packages (Main source of income)
2. Fitness-Branded Clothing & Accessories
Management TeamBoth the founders are passionate fitness enthusiasts who are looking for better opportunities for people like themselves to be fit & healthy. 

Sanjeev Muniandy (Chief Executive Officer)
Sanjeev has more than 17 years working experience with specialisation in Product Development and Management. He also has experience in Customer Service, MVNO start-up, e-commerce, Peer-To-Peer Lending, Big Data Analytics and mobile app design. Sanjeev has worked for telecommunications providers and a public listed service enabler company.

Joshua Muniandy (Chief Operating Officer)
Joshua has more than 20 years working experience primarily in the IT sector as well as in Training & Development. He has been involved in Internet Commerce Consultancy, Project Management, Business Development and Project Consultancy. Joshua has worked for companies such as MIMOS, JARING, VADS, EDI Malaysia and E-Commerce Sdn Bhd
Company Backgroundna.
Funding MilestoneTotal Funding Required: RM 2,212,902

Milestones :
Month 1 – RM 1,011,428 
– Initial Setup Fee
– Initial Operating Payroll
– Construction & Design

Month 2 to 5 – RM 1,201,474
– Advertising & Promotion
– Fitness Equipment & Soft Goods
– Shipping & Installing 
– Presale Members acquisition
– Year 1 negative EBITDA
– Launch

Month 6 – Launch
% Equity AllocationUp to 49%.
Expected ROI17% in Year 5.
Risks and Mitigation1. Competition from 4 major Fitness Brands
Our value proposition is that the brand has 2 strategic Power brand partners as its pillars and caters to the impressionable target market of Millennials and Young Couples. We believe these two qualities will put us above the rest.

2. Saturated Marketplace
Other fitness centers offer a buffet of classes (too many choices) with no fitness program. The core focus of this Fitness Business is its uniquely designed fitness programs with proprietary equipment, to assist members to start from whichever level they are at.

3. Only 1 outlet in Malaysia
This will be advantage as being the first outlet in Malaysia that is attached to a powerhouse sports brand will generate a lot of attention & visibility to our marketing and advertising. 


4. Forecast Error- Difference between predicted revenue and actual revenue
This will be directly related to Low Membership take-up and included steps to be taken if the event of a Forecast Error.

5. Low membership take-up
We have included a Marketing budget to cater for forecasted membership take-up and a buffer in the event we do not hit our 1st Year target. We will deploy social media influencers to spread the word and leverage on our celebrity ambassadors to push take-up.
Exit Strategies1. Sell off the franchise after 5 years.
2. Investor take his profit ROI and walks away, while we maintain business.
3. We become majority shareholder while Investor takes a minimum.
4. Series A fundraising – enables for investors to cash out with high valuation & company to expand into another franchise.
Company NameXADACO PLT (a new company will be established for this franchise)
Business Address15, Jalan Camar 4/21, Villa Damansara, 47810 Kota Damansara, Petaling Jaya, Selangor.
Contact PersonSanjeev Muniandy