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Wednesday, December 17, 2008

STILL STANDING

L.A. Boxing grows despite economy on the ropes



Sweaty men pound punching bags and mingle outside the ring as closing time nears. It may seem like an old-style downtown boxing ring, but it's not. This fitness franchise has more in common with a fast food restaurant than a gritty den for training pugilists.

The Henderson L.A. Boxing location, just outside the Galleria at Sunset mall, is one of three local franchises. The company's business has grown even as consumers have slashed their discretionary budgets.

Although men outnumbered women about 10 to 1 on a recent night at the 4,365-square-foot gym in Henderson, females at any given time tend to make up half or more of the typical L.A. Boxing gym's members, company Chief Executive Officer Anthony Geisler says. He was in Las Vegas last week to attend the company's fourth-annual convention for franchisees.

JEFERSON APPLEGATE | BUSINESS PRESS
Rodney Crisler, left, and Jermain White train at the L.A. Boxing in Henderson. The gym, at 605 Mall Ring Circle, offers a variety of courses taught by professional fighters.

JEFERSON APPLEGATE | BUSINESS PRESS

Fitness fans and families have found a "comfortable" atmosphere L.A. Boxing, local gym owners said. Fitness buffs mingle with current and former pro fighters at the Henderson location.

"Being franchise-owned, it makes people, especially families, comfortable walking into a boxing gym," said Rani John, the co-owner of the gym at 605 Mall Ring Circle.

John and business partner Carmen Iannelli invested $180,000 in the venture three years ago. He said business has been steady for the past two years, and he considered that a success given how hard the local economy has been hit by the downturn.

John said he understands that gym memberships are among the items people often forgo when times are tough. Therefore, with budgets in mind, L.A. Boxing offers classes in boxing, cardioboxing, kickboxing, judo and other mixed-martial arts starting at $49 a month for those with multiyear memberships. Month-to-month dues can run about $69 a month, John said.

Members can take as many training classes at they like for that fee, and pro boxers serve as instructors.

Those local prices are lower than the average national membership dues quoted by Geisler ($84 for month-to month and $54 a month with a three-year membership). John said the market dictates the rate.

"This is what we are charging here," he said. "It gets pretty competitive here in Las Vegas, because there is a boxing gym every five miles."

Fitness competition comes from the likes of 24-Hour Fitness, Gold's Gym and the Las Vegas Athletic Club. John tries to position his franchise based on value.

The Mall Ring Circle store, for one, is well-stocked: about 30 punching bags, weight machines and a boxing ring await gym members. And it's where shoppers can find it, among shops and restaurants.

The boxing-gym franchise concept has proved successful in the current economy, Geisler said. L.A. Boxing has grown 80 percent in locations across the country over the last year. The 16-year-old franchise has 115 franchise gyms in 21 states, the District of Columbia and Puerto Rico.

A fourth Southern Nevada franchise is planned for Summerlin, a master-planned community in northwestern Las Vegas.

The decline of other fitness-industry operators has benefited Santa Ana, Calif.-based L.A. Boxing, Geisler said.

"We think a lot of boutique gyms are going out of business, and (their customers) are looking for places to go," he said. "There are a lot of high-end gyms, charging $150 a month, and their customers are looking for someplace else to go."

Working out at L.A. Boxing isn't for the faint-hearted, Geisler warned.

"You walk into an L.A. Fitness and your ass is ours," he said. "If you want to do Pilates, our gym is not for you."

Contact reporter Valerie Miller at vmiller@lvbusinesspress.com or 702-387-5286.

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