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.

Discover Success with elements

It is no secret that we are moving into the next stage of development of (elements group) growth, which involves the acquisition of strategic facilities across the country. This acquisition strategy will quickly expand our footprint of fitness club operations, as well as provide excellent resources for franchise training – further strengthening the overall operations of the brand. Since our team is headed by former Nike VP Bruce Fabel (CEO of elements), we have been attracting the attention of many serious investors, elements is quickly becoming positioned as one of America’s great franchises.

I was very happy to receive a call today wi from Jeff Hicks, CEO and Partner of the Crispin Porter + Bogusky ad agency. The agency, known as the “factory” is widely regarded as one of the top creative agencies in the world, with such noted key clients as Microsoft, Burger King, BMW. Although this was the first of many possible talks, the idea of having such a major ad agency on our team is certainly exciting. Next week I leave for the west coast to announce our expansion into California, and to begin fielding requests from potential franchisees and stockholders in the Western States.

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As the chairman of elements group, I have the privilege of collaborating in many diverse areas of our brand’s growth. Franchise training is one of my most favorite, and one of our most important jobs, as we continue to build a brand described as “the category leader in fitness clubs for women.”

The following is an excerpt from a training exercise I did, which could relate to any business trying to improve its visibility within a market…

Is your club famous yet? Lets talk today about how to really build
buzz locally, and drive more traffic to your elements club organically.