Gold's Gym

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Gold's Gym International, Inc.
Company type Private [1]
Genre Fitness
FoundedAugust 25, 1965;59 years ago (1965-08-25) in
Venice Beach, California, U.S.
Founder Joe 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 (CEO) [2]
Parent RSG Group
Website goldsgym.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.

Contents

History

Gold's Gym in Round Rock, Texas Gold's Gym North Round Rock.tif
Gold's Gym in Round Rock, Texas
The original Gold's Gym located at 1006 Pacific Ave in Venice, California Gold's Gym Los Angeles-01.jpg
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 equipment and dubbed "the Mecca of bodybuilding", it was frequented by Arnold Schwarzenegger [5] and Dave Draper. [6]

Early developments

In the 1950s, bodybuilding was seen as an anti-social outsider sport dominated by outcasts. [7] [8] [9] Gyms in California, the early home of bodybuilding, were usually set up outdoors. An indoor gym had operated in Santa Monica, but it was shut down by the city in 1959 amid allegations of sexual misconduct. [7] Bodybuilder Joe Gold was dissatisfied with ad hoc gyms, and in 1965, he converted a building he owned on Pacific Avenue in Venice Beach into the first Gold's Gym. Many bodybuilders soon became enthusiastic clients. [7] [8] Dick Tyler commented it as "big news for big men", a location that would become synonymous with the rise of legendary bodybuilders like Arnold Schwarzenegger, Dave Draper, Lou Ferrigno, or Franco Columbo. [7] [8] However, despite the spirited reception and Gold's money-saving measures such as building his own exercise equipment, monthly membership fees proved insufficient to maintain the business. [7] A veteran of the merchant marine, Gold wanted to go back to sea, [10] and in 1970, he sold the business to antique dealer Dave Saxe and jeweler Bud Danits for $50,000 (equivalent to $392,000in 2023). [7] [8] Saxe and Danits were also unable to operate the gym profitably and considered converting it into an antique shop. Instead, gym member Ken Sprague seized the opportunity and purchased the gym in late 1971. Having a background in the film industry, he injected new energy into the business by organizing bodybuilding competitions and shows to exhibit Gold's Gym athletes. Finally, Gold's Gym became profitable. [7] [8] [9]

The original Gold's Gym 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

Due to Sprague's contacts in the film industry and his persuasion skills, an opportunity arose in 1975, when the filmmaker George Butler set out to film the groundbreaking docudrama Pumping Iron (1977), with 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, offered Butler full and unrestricted access to the gym. [7] [8] [9] Preparing and improving the gym as a film set, he also had certain windows painted over to control backlight and installed a lightening grid. Even though the filmmakers ran 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 more than tripled the membership prices. Gold's Gym continued to be considered a landmark in bodybuilding culture [12] and has achieved cult status. [13]

Transition to an international franchise

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 three 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 the modern fitness industry. In 1999 the company was sold to the private firm Brockway Moran & Partners for an 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

The impact of the Covid-19 pandemic heavily affected the company, forcing it 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]

Gold's Gym Milano Monterosa in Italy Gold's Gym Milano Monterosa in Italy.jpg
Gold's Gym Milano Monterosa in Italy
Gold's Gym in Berlin Gold's Gym in Berlin.jpg
Gold's Gym in Berlin

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

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

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

Gold's Gym operates a national corporate wellness program that 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 Blue Shield Association. Gold's offers online enrollment. [33] [34] [35]

Equipment in the studios

Gold's Gyms all have a large strength training and free weight area with heavy dumbbells up to 150 kg, Olympic barbells, as well as an area for endurance training. 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

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

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

Since the 1980s, Gold’s Gym has sold specially designed clothes with its logo of 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

Gold’s Gym SoCal

Gold’s Gym SoCal is a franchise group that owns 23 locations in the Southern California area and is 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

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

Gold's Gym Harajuku Tokyo GG franchise HARAJUKU TOKYO.jpg
Gold's Gym Harajuku Tokyo

In Japan, the largest franchise 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

Gold's Gym in Cairo along the Nile Gold's Gym and Ruby Tuesday in Cairo along Nile River.jpg
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 has become a pioneer in female fitness in Saudi Arabia. [42]

Criticism

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]

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