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Gold's Gym

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Gold's Gym International, Inc.
Company typePrivate[1]
GenreFitness
FoundedAugust 25, 1965; 58 years ago (1965-08-25) in
Venice Beach, California, U.S.
FounderJoe Gold
Headquarters
Dallas, Texas
,
U.S.
Number of locations
Nearly 700 worldwide (May 2020)
Area served
United States, Canada, Mexico, Russia, Nepal, Jordan, India, Czech Republic, Australia, Costa Rica, Japan, Morocco, United Kingdom, Netherlands, Germany, Austria, Italy, Egypt, Saudi Arabia, Peru, Indonesia, Spain, Poland, Venezuela, Mongolia, Philippines, Armenia, Trinidad and Tobago, South Africa, United Arab Emirates, Turkey, Kuwait
Key people
Sebastian Schoepe[2]
ParentRSG Group
Websitegoldsgym.com

Gold's Gym International, Inc. is an American chain of international co-ed fitness centers (commonly referred to as gyms) originally started by Joe Gold in Venice Beach, California. Each gym offers a variety of cardio and strength training equipment as well as group exercise programs. Gold's Gym's has its headquarters in Dallas and is now owned by the German RSG Group.

History

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Gold's Gym in Round Rock, Texas
The original Gold's Gym located at 1006 Pacific Ave in Venice, California

Joe Gold opened the first Gold's Gym in August 1965, in Venice Beach, California,[3][4] long before the modern day health club existed. Featuring homemade equi pment and dubbed "the Mecca of bodybuilding", it was frequented by Arnold Schwarzenegger[5] and Dave Draper.[6]

Early developments

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In the 1950s bodybuilding was more seen as an outsider sport, as those sports enthusiasts were considered to be outcasts of the normal society, who didn't fit in and were more considered as anti-social groups.[7][8][9] Gyms in that early time in California, the early home of bodybuilding, were mostly setup as outside activity places. Joe Gold was unsatisfied with those offers, so that he founded Gold's Gym as an inside place for his friends and for himself.[7][8] 1965 he decided to convert one of his properties in California into the first gym in Pacific Avenue in Venice Beach, that caused some excitement among many bodybuilders, who enjoyed the place and realized its new potential. Dick Tyler commented it as "big news for big men", a location that should become synonymous with the rise of legendary bodybuilders like Arnold Schwarzenegger, Dave Draper, Lou Ferrigno, or Franco Columbo.[7][8] Although for cost saving purposes Joe Gold designed his own equipment, the monthly membership fee of $60 was insufficient to maintain the business. Being a merchant marine, Joe Gold wanted to go back to the sea,[10] he sold Gold's Gym already in 1970 to Dave Saxe, known as an antique dealer, and Bud Danits, who was a jeweler.[7][8] Soon the new owners faced the same challenge of an unprofitable business and considered converting the location into an antiques shop, if not the gym member Ken Sprague seized his opportunity and purchased the gym in late 1971.[7][8][9] Having a background in the film industry, he injected new energy into the business by organizing bodybuilding competitions and by sponsoring shows in which he could successfully show off Gold's Gym's athletes. Finally, Gold's Gym became a profitable business.[7][8][9]

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Gold's Gym original logo, a bald weightlifter holding a barbell, was designed in 1973 by professional wrestler Ric Drasin, who was Arnold Schwarzenegger's training partner for four years.[11] During a training break, he sketched the weightlifter on a napkin. The logo became an iconic symbol within the bodybuilding scene.[7][8]

Gold's Gym as Film Set for Pumping Iron

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Due to Sprague's contacts to film industry and persuasion skills, an opportunity arose in 1975, when the filmmaker George Butler was set out to film the groundbreaking docudrama Pumping Iron (1977) directly in Gold's Gym as the primary filming location. Sprague having strong commitments to his gym and the sport as well as understanding the requirements for film, he offered Butler full and unrestricted access to the gym.[7][8][9] Preparing and improving the gym as film set, he also had certain windows painted over to control backlight and installed a lightening grid. Even though the film makers run out of funds to finish the production, Arnold Schwarzenegger and other bodybuilders helped to raise additional funds for its completion. The docudrama Pumping Iron became a best seller, which brought attention not only to the gym itself but also to bodybuilding and physique in general.[7][8][9] Due to that impact, Gold's Gym became the most famous gym worldwide, which rose the membership prices by a 3.3 factor. Since, body building was moving towards a mainstream sport. Also many actors of the film industry began to build up more muscles as was seen in movies before, expanding the influence for good body shape to wider areas in society. Gold's Gym continued to be considered a landmark in bodybuilding culture[12] and has achieved cult status.[13]

Transition to an international franchise

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In 1979 Gold's Gym was sold by Sprague to the trio Ed Connors, Pete Grymkowski (former Mr. World), and Tim Kimber.[14] It was the most famous gym in the world at that time.[15] After two years of ownership,[16] they moved from the 5500-square-foot facility into a 60,000-square-foot building over a six-year period. The tree owners extended Gold's Gym to the franchise system and made licensing out deals all over the USA. Gold's Gym was one of the first companies in the health and fitness industry to franchise, starting in 1980.[17] Using the momentum of its fame it sold licenses for products such as fitness equipment and clothing. Soon the brand expanded internationally, after the first outside USA opening in Canada 1985. In 1993 the limit of 1 million members was exceeded. During the nineties Gold's Gym expanded around the globe,[18][19] even in Japan and Russia. Due to the international franchise, the original character changed subsequently to a modern commercial gym fulfilling the standards of modern fitness industry. In 1999 the company was sold again to the private firm Brockway Moran & Partners for estimated $50 million.[20] It was sold again in 2004 to TRT Holdings for $150 million.[21] German fitness company RSG Group acquired Gold's in August 2020.[2] The growth of Gold's Gym continued expanding the business with modern wellness programs that grew to more than 3000 company partners. The original Gold's Gym in Venice Beach is considered a national sports landmark by ESPN and is named on its list of the 100 most important sports venues.[22] Notable users of Gold's Gym have included such celebrities as Jessica Alba, Jodie Foster, Morgan Freeman, Dwayne Johnson, Jim Morrison, Keanu Reeves, Hilary Swank, Big Show,[23] and Tiger Woods, and many others.[18] In 2016 Gold's Gym opened 58 new locations across the world and in 2017 its first locations in Amman in Jordan.[24]

New ownership by RSG Group

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The impact of the Covid-19 pandemic heavily affected the company, so that it finally was forced to file bankruptcy with its 61 company-owned gyms and over 700 franchises across six continents. On May 4, 2020, GGI Holdings, LLC (Gold's Gym) and 14 affiliated debtors filed Chapter 11 bankruptcy in the United States District Court for the Northern District of Texas. The debtors have requested joint administration of the cases under Case No. 20-31318.[25] Like nearly all businesses, Gold's Gym was required to temporarily close its US locations in March 2020 amid the COVID-19 pandemic. In April of the same year Gold's said that it would permanently close 30 of its locations. They said their filing for bankruptcy would only affect company-owned locations and set a reemergence goal for August 2020. The company owns about 10 percent of the nearly 700 worldwide locations.[26]

Finally, on July 13, 2020 Gold's Gym was auctioned due to a judicial auction procedure. Rainer Schaller, the owner of the German fitness company RSG Group, won the auction of Gold's Gym for $100 million.[2] Rainer Schaller fulfilled his dream to finally own the legendary fitness brand, which had inspired him to start his own fitness company in 1997. Previously, the RSG Group has been primarily active in Europe and expanded to a global company with the integration of Gold's Gym into its portfolio. Since, Gold's Gym has been revitalized and it has also established a new presence in Europe by opening new gyms in Austria, Italy, and Germany. Also new gyms have been opened in e.g. Dallas, Highland Meadows, Georgetown. The expansion process continues worldwide, e.g. in Europe, India, Australia, etc., and includes modernization of many of its gyms.[27]

Corporate Information

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Gold's Gym is privately owned by the international fitness company RSG Group and has about 68 company owned gyms and via its franchising program about 520 international gyms in countries, e.g.: Australia, Austria, Costa Rica, Egypt, Germany, India, Italy, Japan, Mexico, Mongolia, Netherlands, Peru, Philippines, Poland, Saudi Arabia, Russia, Spain, United Arab Emirates, United Kingdom, and Venezuela. Corporate headquarters are in the Dallas metropolitan area.[28]

Current Operations

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Gold's Gym has locations across six continents. In 2015 and 2016, Gold's Gym topped the J.D. Power Health and Fitness Center Satisfaction Report.[29][30] In 2017, Gold's Gym launched GOLD'S AMP,[31] a fitness app that is meant to serve as a digital personal trainer for people to use anytime and anywhere. It includes numerous customization workout options led by Gold's Gym coaches and thousands of music mixes. In July 2020, new parent company RSG Group reported that Gold's Gym had 61 company-owned gyms and over 600 franchise-owned gyms.[32]

Corporate sales and wellness program

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Gold's Gym operates a national corporate wellness program which has over 3000 company partners including Home Depot, Bank of America, Whataburger, and Union Pacific. The corporate sales and wellness program offers custom health and fitness plans for employees nationwide including memberships, nutrition, and wellness programs. Gold's is one of two official health clubs of the AARP. Through the AARP it offers month-to-month memberships, and is also the official health club of the Blue Cross and Blue Shield Association. Gold's offers online enrollment.[33][34][35]

Equipment in the studios

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The Gold's Gyms all have a large strength training and free weight area with heavy dumbbells up to 150 kg, Olympic barbells and a spacious area for endurance training, a functional area . There is a wide range of different fitness courses in specially designated rooms. Personal trainers can be booked for an additional charge. All studios have at least one sauna, and some locations also have a posing room for preparing for bodybuilding competitions.

Gold's Gym Challenge USA and Fitness Competition

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A major marketing campaign for members is the annual Gold's Gym Challenge, which takes place in the USA. It is a 12-week competition that focuses on the visibility of body changes. In January of each year, participants begin by taking stock of their bodies by measuring and photographing them. After 12 weeks, measurements and photographs are taken again to document the results. Each participating Gold's Gym selects its own winners, who then have to compete nationally. Finally, an overall winner is chosen. The winners of the Gold's Gym Challenge have been featured in numerous publications, including PopSugar, The Atlanta Journal-Constitution,[36] and Women's Health. In 2023 the Gold's Gym Challenge USA was replaced by annual the Gold's Gym Fitness Competition.

Nutritional Supplements

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A marketing division founded in 2021 by the RSG Group is Gold's Gym Nutrition—a self-developed and distributed nutritional supplement line. The range offers various nutritional supplements for athletes in the form of drinks, shakes, bars, powders and capsules.

Sportswear

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Since the 1980s Gold’s Gym sells special designed clothes especially bringing out its logo, a bald weightlifter holding a barbell, which has become an iconic symbol within the bodybuilding scene. Today, the business branch "Gold's Gym Apparel" designs its own functional sportswear and accessories for both genders by recognizing the legendary symbolism. Also some elaborate items are produced sustainably in Portugal. In April 2024, Gold’s Gym Apparel was present for the first time at the world’s largest fitness and health trade fair FIBO in Cologne, Germany.

Franchise Groups

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Gold’s Gym SoCal

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Gold’s Gym SoCal is a franchise group that owns 23 locations in the Southern California area and operated by the Banos brothers, who opened their first gym in North Hollywood in 1988. The group’s president is Angel Banos and Brian Morris is its senior vice president.[37]

Gold’s Gym India

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Gold’s Gym India has more than 150 locations in about 90+ cities of India.[38] Gold’s Gym has started its presents in Mumbai in 2002. It is the second largest fitness group in India. Their founders are Rajesh Advani and Jagdish K. Valecha. Today it is owned by "Fitness Unicorn Cult.fit".[39]

Gold’s Gym Japan

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In Japan the largest franchiese owner is Eiji Tezuka, who has grown Gold’s Gym in Japan to more than 95 facilities across the country.[40][41]

Gold’s Gym Arabia

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Gold's Gym in Cairo along the Nile

The franchise group Gold’s Gym Arabia has over 70 gyms in Saudi Arabia. The owner of the group is Batterjee Holding Co. in Jeddah. The gyms use state-of-the-art Matrix Fitness equipment. Gold’s Gym have become a pioneer in female fitness in Saudi Arabia.[42]

Criticism

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Numerous customers have reported that Gold's Gym franchises have acted in dishonest and unscrupulous ways. They cite advertised deals not being honored, billing irregularities, contract terms being fraudulently altered by sales staff after signing, and problems canceling accounts or relocating.[43] A Gold's Gym in Provo, Utah, was successfully sued for fraud in 2006, for changing a contract after it was signed in 1999.[44]

An accusation of the same conduct of fraud arose again in 2017: on February 10, 2017, the billing processor for the gyms, Paramount Acceptance, and 26 companies under the VASA Fitness name (including new gyms since 2014) were served with a consumer class action lawsuit with numerous causes of action including fraudulent misrepresentation, violations of the Telephone Consumer Protection Act, and violations of the Utah Consumer Sales Practices Act. The plaintiff published the entire complaint.[45]

After ten years of litigation involving a licensing agreement for a fitness center in St. George, the Utah Supreme Court affirmed a decision to deny attorney fees to Gold's Gym even though Gold's Gym prevailed in the underlying litigation (Gold's Gym International, Inc. v. Chambers, 2020 UT 20).[46]

References

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  1. ^ Brown, Erika (August 7, 2003). "Investing In Obesity". Forbes. Retrieved September 24, 2007.
  2. ^ a b c Kufahl, Pamela (August 26, 2020). "Gold's Gym CEO, Others Gone After RSG Group Finalizes Purchase Of Company". Club Industry. Retrieved December 4, 2020.
  3. ^ "About Gold's". Gold's Gym. Retrieved July 15, 2014.
  4. ^ "Gold's Gym Celebrates 50th Anniversary; Inducts Arnold Schwarzenegger Into The Gold's Gym Hall... -- DALLAS, Aug. 26, 2015 /PRNewswire/ --". PRNewswire. August 26, 2015. Retrieved February 22, 2016.
  5. ^ "Seeing Stars: Where the Stars Work Out". seeing-stars.com. Retrieved January 9, 2007.
  6. ^ "Joe Gold's Dungeon". davedraper.com. Retrieved December 21, 2011.
  7. ^ a b c d e f g h i "The Story of Gold's Gym: The Mecca of Bodybuilding". thebodybuildingarchive.com. Retrieved December 5, 2023.
  8. ^ a b c d e f g h i "Gold's Gym History of the Apparel". anaxfitness.com. Retrieved December 5, 2023.
  9. ^ a b c d e "Original Gold's Gym". builtreport.com. Retrieved December 5, 2023.
  10. ^ "Influence of Gold's Gym in the World of Fitness and Bodybuilding". gymnation.com. Retrieved December 5, 2023.
  11. ^ Perine, Shawn (December 1, 2005). "Gold's goes bald.(HARD TIMES)". Archived from the original on May 18, 2013. Retrieved March 17, 2016.
  12. ^ Emery, Mike (January 2003). "Men's Bodybuilding: A Short History". Retrieved January 9, 2007.
  13. ^ "The cult of the gym: The new puritans". The Economist. December 19, 2002. Retrieved January 9, 2007.
  14. ^ Lombardi, John (October 1991). "Little Miss Dangerous". Spy (1). Sussex Publishers: 45. Retrieved April 19, 2016.
  15. ^ Interviews with Bill Grant, Ken Waller, Dave Du Pre, Pete Samra, Tony Pearson, Ken Sprague, Wayne Gallasch; October/November 2015; by Marc Martinez for an upcoming documentary, for which trailers are available
  16. ^ Stoughton, Stephanie (August 27, 1999). "Brothers Stake Their Claim to Gold's Gym". Washington Post. ISSN 0190-8286. Retrieved November 13, 2017.
  17. ^ "Gold's Gym". Entrepreneur Media, Inc. Retrieved July 9, 2017.
  18. ^ a b Smith, Stephen P. (2005). "America's Greatest Brands, Volume IV".
  19. ^ "About Gold's Gym". Gold's Gym Philippines. Retrieved January 19, 2017.
  20. ^ "TRT Holdings Inc. is new owner of Gold's Gym". Dallas Business Journal. June 15, 2004. Retrieved March 2, 2009.
  21. ^ Goldman, Stuart, ed. (August 1, 2008). "Tension Builds Between Gold's Gym International and Gold's Franchisees". Club Industry. Retrieved May 4, 2020.
  22. ^ Caple, Jim (September 19, 2008), "America's 100 Most Important Sports Venues", espn.com
  23. ^ Carra, Chris (July 6, 2020). "Gold's Gym America: My Epic Visit! (Updated 2023)". Chris Carra. Retrieved May 11, 2023.
  24. ^ "Gold's Gym Amman". Gold's Gym. Retrieved March 10, 2018.
  25. ^ "Bankruptcy of GGI Holdings, LLC". Bloomberg. Retrieved May 4, 2020.
  26. ^ Stone, Madeline (May 4, 2020). "Gold's Gym has filed for bankruptcy protection after closing locations amid the coronavirus outbreak". Business Insider. Retrieved May 4, 2020.
  27. ^ "Trainieren unter Bäumen und Böden aus Autoreifen: So sieht das angeblich nachhaltigste Fitnessstudio der Welt in Berlin aus". businessinsider.de. Retrieved December 5, 2023.
  28. ^ TRT Holdings (January 25, 2012). "TRT Holdings Announces Plans to Build New Headquarters". prnewswire.com. Retrieved October 13, 2015.
  29. ^ kristi.white (June 29, 2015). "2015 Health and Fitness Center Satisfaction Report". J.D. Power. Retrieved November 13, 2017.
  30. ^ Robin (June 23, 2016). "2016 Health and Fitness Center Satisfaction Report". J.D. Power. Retrieved November 13, 2017.
  31. ^ GmbH, finanzen.net. "Gold's Gym Delivers An Audio Fitness Experience Anytime, Anywhere With New GOLD'S AMP™ App". markets.businessinsider.com. Retrieved November 13, 2017.
  32. ^ Saul, Josh (July 14, 2020). "Gold's Gym to Be Bought Out of Bankruptcy by German McFit Owner". Bloomberg. Retrieved December 4, 2020.
  33. ^ "Gold's Gym – AARP". regsignup.com. Archived from the original on June 9, 2012. Retrieved October 13, 2015.
  34. ^ "Smarttrainingsystems.com". Archived from the original on November 13, 2016. Retrieved October 13, 2015.
  35. ^ "Axiom". bcidaho.com. Archived from the original on April 7, 2016. Retrieved October 13, 2015.
  36. ^ Brooks, Michelle C. "Todd McFarland, 49, of Hoschton, Ga. lost 39 pounds". The Atlanta Journal-Constitution. Retrieved December 11, 2017.
  37. ^ "Gold's Gym SoCal Marks 35 Years with Long Beach Expansion". clubinsideronline.com. Retrieved December 5, 2023.
  38. ^ "Cult.fit acquires Gold Gym fitness chain across India". businesstoday.in. Retrieved December 5, 2023.
  39. ^ "Mukesh Bansal-led Cult.fit acquires Gold's Gym India business". indiatimes.com. Retrieved December 5, 2023.
  40. ^ "volution Architect: Gold's Gym CEO Shares Secrets to Success". healthandfitness.org. Retrieved December 5, 2023.
  41. ^ "Gold's Gym Celebrates Strongest Year of Worldwide Growth in Company History". prnewswire.com. Retrieved December 5, 2023.
  42. ^ "Golds Gym Expands in Saudi Arabia". matrixfitnessblog.co.uk. Retrieved December 5, 2023.
  43. ^ Gargulinski, Ryn (January 13, 2009). "Complaints against local gyms triple since 2005". Tucson Citizen. Retrieved March 2, 2009.
  44. ^ Andreason vs. Felsted, Viertel, Peterson and Gold's Gym of Provo (May 11, 2006), Text.
  45. ^ "Class Action Lawsuit Against VASA Fitness and Paramount Acceptance". Archived from the original on February 13, 2017. Retrieved February 12, 2017.
  46. ^ "No attorney fee award for Gold's Gym as prevailing party". Brian Craig Law. Retrieved September 1, 2021.
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