Mind Pump: Raw Fitness Truth - 2815: Mark Mastrov

Episode Date: March 16, 2026

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Starting point is 00:00:46 This is Mind Pump. Today's episode, we brought back the godfather of the gym industry, Mark Mastroff. This is the guy that wrote the book on how to build a successful gym. franchise. He's the founder, the original founder of 24th Fitness, and he's still heavily involved in the gym business. In fact, he came back to 24th Fitness and he tells that story. He's getting his baby back. So this is an incredible episode. Always a good time with Mark. By the way, if you're a trainer or an aspiring trainer, we have a group for trainers. It's literally organized and designed to teach trainers that to be successful, and you can get in there for seven
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Starting point is 00:03:19 Enjoy the rest of the show. Mark, welcome back to the show. Hey, thanks for having me. This is awesome. All right, I got to open with this. So what's going on with you in 24 Fitness, the company that you founded, you left a long time ago. What's happening? I think last time I was on, we were talking a lot about that and how I left and what I thought.
Starting point is 00:03:39 But, you know, it came back to me. You know, I took crunch to the market last year and we had a very successful transaction in June with the team there. And then I stepped off the board and was looking at myself in July and got a phone call that, hey, two four, might be available if you want to make a run at it. And I was like, well, hell yeah, I'll make a run at it. And kind of wanted to bring back by the baby back, so to speak, and spent two months negotiating a term sheet with the current ownership group they had at the time and finally got them to agree to my price, my structure. We signed it. And then I went out and raised a capital, brought in this group called Long Range Capital as my partner. And then finished the debt facility
Starting point is 00:04:22 at the end of the year and got it closed on the 31st of December. So effective the beginning of this year was able to step back in and kind of have some fun and reignite that brand. And she's got a great team there. So it should be nothing but blue sky. Now, you say this so calm and cool and diplomatic about this. But you have to take, for the audience that doesn't know, you have to take us back to the day leaving.
Starting point is 00:04:47 I don't know how much you can or will share about like what it felt like to grow that thing to what you grow to, to exit, two point something billion? One seven. One seven. Okay, to one seven billion that you exit that thing for. You stay on the board, leave, not really probably the way you expected to leave. So I want to know how that felt what you were going through in that moment. And then when you leave, do you picture this day down the road?
Starting point is 00:05:16 Like, are you thinking, or are you thinking I'm going to go compete and go crush? I mean, you always think like you can go back and buy something you built because they may screw it up, fuck it up, all that good stuff. But I think when I sold the company in 2005, which is like 20 plus years ago, I was staying with whoever bought it. They all wanted me not to sell single share, stay, keep rolling. And I had a lot of people at the table. And then this last group came in, forced him a little and said, we're going to buy it.
Starting point is 00:05:41 We're going to give you a much bigger number. We're going to preempt it. But we don't need you. I'm like, what do you don't need me? We don't need you. We got people we can bring in. I was like, oh, okay. And so I'm out completely.
Starting point is 00:05:51 And then about two weeks before closed, they come back to me and say, look, we got a recap accounting issue where we have to have a significant role by some shareholder. Would you roll? And so I kind of took the bullet for the team and let everybody else exit. I rolled a decent chunk over. And then I just stayed on as chairman. And then they went out and hired a team to come in. And that team, to me, just made every mistake you can possibly make from the beginning of time, blew through cash, brought in consultants to the point where, you know, we were in. in Covenant default, heading into Covenant Default at the end of 07.
Starting point is 00:06:25 Now, when this is happening, are you, I mean, you're obviously on the board, so you have a vote. Are you just sounding the alarm the whole time? Yeah, and are you outnumbered? I mean, what's happening? No, I mean, Ted Forstman was a storied guy, built Gulfstream, made a ton of money, and he bought this business kind of as a last-minute spend. He bought IMG, and then he bought us at 24-hour, wrote a big check and funded it, and he made me five promises in the transaction. and he failed all five. You know, one of them was he had $500 million to dry powder that we could use to grow with. And three months later, I'm like, hey, I want to deploy that capital.
Starting point is 00:07:00 I got this big acquisition. He was, I had to give it back. I don't have it anymore. Like, what are you talking about? That's part of our deal terms. He's like, well, I lost it. The other one was, you know, I can give you all five, but the other one was no fee, right? I don't want the VCs to charge a big fee.
Starting point is 00:07:14 And probably two months in, he's like, I'm going to charge $2.5 million annual management fee. I go, no, you can't. and ride you can't do he goes fucking sue me right wow so you're like okay i'm going to sue my new partner and okay i guess i'm not doing that then the last one was his team there's a guy named tom lister who was the lead on the deal of ted played very little role he had three really sharp people that came in and did all the diligence and cut the deal with me and everything i said oh you guys stand because in the past i've seen you know the head vc disappear no we're staying forever mark we're not leaving month three they're gone they all quit all took new jobs
Starting point is 00:07:49 and so you get handed all that and you're like, you know, this is pretty interesting. So I started looking at the financials and the CEO they brought in was spending money like a drunken sailor on consultants, you know, bringing in Bain and employment consultants and I said to him, I said, look, I think we had a problem here. So I called Ted and said, look, I think you're going into
Starting point is 00:08:09 covenant default. He goes, what are you talking about? I just looked at the books. I go, no, you're going into covenant default. You're spending more money than you're supposed to have on the books. So he said, can you fly to New York? I said, yeah. So I flew to New York the next day where he was based.
Starting point is 00:08:22 The CEO at that time was in the room and I walked in, which I didn't expect. And he's like, show me, he tells the CEO, show me, you know, how we're doing. He goes, we're doing great, blah, blah, blah, blah, blah. And Ted goes, Mark, we're doing fine. I go, let me show how to read the financials. I point everything out. And Ted goes, we're fucking in covenant default. He gets it right away.
Starting point is 00:08:42 And he's like, Mark, you need to fix this. So I spent the next three months grinding it out with the team and we were able to get through it. and then, you know, the beginning of the year came around. I said, look, that's not for me. I got to go do something else. So I left in 08, the beginning. And the CEO decided to put a press release out, which was crazy to me.
Starting point is 00:09:03 Like, you put a press release out that I left, like you're celebrating me being gone. And I got two phone calls like the first day. Legitently two phone calls the first day. One was from Lorenzo Furtita to talk about doing something with the UFC, which we eventually did. And the other was from a group called Angela Gordon to see if I'd be interested in taking a look at the crunch business.
Starting point is 00:09:19 which of course we did. So he kind of handed me two big opportunities on his way out of kicking me out of the company, so to speak. I had no idea they reached out that quick to you because I know you had a you had a five-year non-compete, right? No non-compete. Oh, you didn't have a non-compete. I was one of the five things I had in my deal is I would have no non-compete. If you want me to stay, you're throwing me out. I don't have a non-compete. I'm not going to come back and do a non-compete. Right. So no non-compete. Tesla, yeah, no problem. No non-compete. Oh. I think when the CEO at the time found out I was leaving with no non-compete. He lost his mind. He's like, we can't have that.
Starting point is 00:09:51 I'm like, well, I mean, you're throwing me out in a sense. You don't want me around, no problem. I helped you save your ass, but you want to be your own guy. I get it. You want to be the man. So be the man. I'm going to go take a time out, go do something else. I thought maybe it takes six months, chill a little bit.
Starting point is 00:10:06 But the phone started ringing like crazy. Right after they put the press release out, I was like shocked. And so, you know, we ended up looking and putting two really nice new businesses together with the UFC that Adam Sedlack runs now. And then crunch, which we. We just sold to Lennon Green the summer for a monster number that Jim Roli's running. You know, Jim left 2-4 right after me. I didn't know that's how you guys.
Starting point is 00:10:26 And I didn't know he's running that now. Yeah, Jim's the CEO there. He's kicking ass doing great work. Oh, no shit. Oh, that's cool. Take me back. Okay, the second thing you said, the VC charging a 2%. So does that mean that basically what he did was he funded the business and then he was charging
Starting point is 00:10:43 interest on the money that he funded? Explain that to me. Generally, when you buy a business, you know, you invest capital. and then you put debt on the business and you don't take interest on your capital. Unless you do a preferred piece, which you don't want to allow them to do. So I don't let that happen.
Starting point is 00:10:59 They're investing equity up front. I'm investing equity with them, pair of pursue, and then we'll have a debt facility from a bank if we need a couple hundred million bucks. We'll pay interest on that. Got it. And then as you're sitting at the board, you say, I'm on a management fee
Starting point is 00:11:11 for stewarding the company as the lead investor. And I've seen people gout you for a lot of cash in that area. So when I got older and smarter and Ted Forkman shows up, I'm like, no fee. No fee. We don't charge anything. Awesome. That money goes back to the company to grow. Right.
Starting point is 00:11:28 Versus in their pocket for just showing up at a board meeting and making sure we're doing all the right things. And these guys said, no, we want a $2.5 million management fee. And I'm like, well, paperwork says you can't have one. Fuck you, assume me. Wow. And you're like, okay, I guess I could have a management fee. And that's $2.5 million of capital that you could be deploying out to it.
Starting point is 00:11:47 Oh, they did so much. many crazy things, which at some point are writing a book, I've ever get the chance. But they brought in a gal to be like, who was a CFO for them at one point, to come into the board and get involved in the company. And after I left, they made her chairman. And two or three years later, it's all public record. She left the company and sued them for $25 million because she felt that that's what she deserved. And that's what was promised by the Foursne Little Company. And they ended up writing her a $25 million check just to basically move on in life. Wow.
Starting point is 00:12:19 So a lot of crazy shit went down post my departure. Yeah, when you were, you're outside looking in and this stuff, then you're gone and you're looking back. Do you remember like the final straw that broke the camels back for them? I remember being there and knowing when you left and feeling it. I'll give it to you. I mean, I've never talked about it, but you're asking it. And I'm always right at you.
Starting point is 00:12:40 So we had a big business in Asia. Steve Kleinfelter was running it. We were kicking ass in Asia. We're growing like weeds out there. But Ted didn't like Asia. He's like, I don't want to go. I don't like Asia so much. You know, it's nice.
Starting point is 00:12:53 But I said, well, let me sell it. And they said, yeah, can you sell it? Yeah, I can sell it. So I got a buyer, and I had a deal done for $160 million to buy 24 clubs. I mean, a big number. Yeah. And that was going to be awesome for the company. And this is at the end of 07.
Starting point is 00:13:09 And so come around into the middle of the month. We're supposed to close the 15th of December. The buyer comes to me. He says, look, we want to bump it to January 1 to put it into next year. It's important for us to put the capital work next year versus this year. That shouldn't be a problem. So I go to this gal that he had brought in. She's on the board and Ted and say, look, they want to bump it two weeks.
Starting point is 00:13:31 Go, no, fuck no, they got to close it now or they can't have it. What are you talking about? They've got to close it now. Why? It's two weeks. We want it now. We're not going to let them delay it. I was like, I didn't understand that.
Starting point is 00:13:41 I was like, well, they're going to blow out of the deal. And they did. they said no we're not going to do it this year we either do it next year we're out and they're out so i leave the company in january i'm like this is fucking stupid right i leave the company in january long story short they took our cfo and put him out there to run the asian business two years later they're bankrupt oh wow wow writing checks a hundred sixty million dollar check going to bankrupt in two years two years later they basically walk away from the whole business and step out of Asia and lost everything.
Starting point is 00:14:15 And that's the first anybody's probably heard of this because I've never really talked about it. So that was, I just broke my back when I was like busting my ass for them, getting them out of their covenant situation, trying to help out their CEO, figure out the business, selling a business unit that would put a lot of cash
Starting point is 00:14:28 on the balance sheet and cured everything they needed. And they just fucking fumbled it all. So I said, maybe it's time for me to go do something else because you guys are not the smartest kid. I mean, is he that much of an idiot at this time or is this almost feel like it's a personal thing?
Starting point is 00:14:41 Like just because you wanted it to get done, it's just like a big F you to you. I mean, what's going through your head at that minute? I mean, sometimes I look back and say I was really pissed off and I was going to go head to head. But then I say, no, I mean, I had four kids. I had my wife. And we're saying, hey, you know, I can retire. I got plenty money in the bank. I don't need to work anymore.
Starting point is 00:15:02 But I'm going to get bored. And then when Lorenzo called me first and I went and met with him and he said, look, I mean, I want to take UFC and soft in it because at that time it was McCain saying it's cock fighting and, you know, Dana's fighting everybody. And he's like, I want to open gyms up and put kids in there and show about the discipline and respect that mixed martial arts brings to communities. So I sat with them, and literally in two hours, we shook hands on a 50-50 partnership. That fast. I was just so, like, I was a breath of fresh air. And Lorenzo, Frank, Dana, they're awesome. So we put a deal together and we started open gyms. And then I get the call on crunch. And,
Starting point is 00:15:41 you know, hopped on a plane, went out and met with the Angela Gordon guys. I could tell you a whole story there. I don't know if you want to spend time. No, yeah, no, I want to hear it. Just as you know, the last two times we've been done here, I feel like, I was like, man, I want to know more of the behind-the-scenes business stuff. And I feel like he's been so politically correct every time. Like, I want to hear all the other stuff.
Starting point is 00:15:58 Yeah, no, I get it. Give us the juice. So Angela Gordon says, look, come out, take a look at our business. Yeah. And so I came out. I took Jim Rowley with me and Mike Feeney. You know, Mike does all the construction, layout design. He's like phenomenal.
Starting point is 00:16:12 So I said, come with me. Jim, come with me. So we fly out there. We spend a week looking at all their clubs. And they're losing $2 million a month, a month. And they have like 28 clubs. And so I come back and I sit down with the Angela Gordon team. And I'm like, my suggestion is to put this in a bankruptcy and move on.
Starting point is 00:16:31 They're like, thank you very much. They kick us out. We go back home. A week later, I get a phone call. And Angela Gordon says, look, we heard what you said. We respect what you said. Would you be willing to put. it in a bankruptcy with us and then pull it back out and rebuild it. I'm like, yeah, I'd be up for that.
Starting point is 00:16:48 So we, they had a $40 million debt facility with Goldman Sachs. And they said, look, Mark, we've cut that down to $25 million if we pay them cash to put it into bankruptcy. And then you got a fund in and out of bankruptcy, which would cost us, you know, $5 to $8 million. So I said, well, let me talk to Goldman because I think $25 is not the right number. So, well, they're not going to go any lower. I go, well, let me talk to them. So I got on the phone with Goldman and kind of walking them through my thinking and said, the most I'm going to give you 15.
Starting point is 00:17:18 And after a couple days of back and forth, they agreed to 15. Wow. So we bought the debt out for 15. We put the capital and they take it into bankruptcy. In the meantime, Ben Midgley, who worked for us at 2-4, I don't know if you guys remember him, but Ben ran corporate sales, phenomenal guy. And he came to me at some point and said, look, Mark, I want to move back to Kiddy Bunkport, Maine, where I'm from.
Starting point is 00:17:40 I want to raise my family there. I got three young children. And I want to stay here, but I just, you know, there was no remote work in those days. And so he's like, I want to move back. No problem, Ben. Love you. Let's stay in touch. He goes back.
Starting point is 00:17:52 Well, he ends up working for Planet Fitness. And he spends a couple years and eventually becomes president of Planet Fitness. And so he gives me a call right before I'm looking at this crunch opportunity and says, look, I'm leaving planet. It's crazy here. These guys are nuts. I can't handle it. They're right motorcycles in the office.
Starting point is 00:18:08 They're feeding pizza for me. He's like, I'm going to get out of here. I go, what do you want to do? He goes, I don't know. I was thinking about maybe starting something similar. And I'm like, well, I'd be up for that. So I put him together with a kid that worked with me named Craig Pepindana, who was my EVP of sales and marketing phenomenal.
Starting point is 00:18:26 And the two of them started working on a concept like, hey, we're going to start a little franchise business. And then this crunch thing falls in our lap. And I'm like, well, shit, why don't we talk to Craig and Ben about parking it inside this crunch brand? And so they were like, yeah, let's do it. So merge that into the crunch bank, gave them a bunch of equity. And then we started the franchise business.
Starting point is 00:18:47 We took five of our best operators at two, four, who had left, were all free agents, and backed them in a couple locations each to prove the model out and then let them grow their areas. So a guy like Curtis Harmon eventually opened like 40 clubs and made a shit ton of money. And we started growing the franchise business. And that's how that all came together, a long story short. But, you know, Ben led that with Craig. and then Jim stepped in full time and said, look, I want to be the CEO and grow this thing.
Starting point is 00:19:12 I'm like, awesome. Let's do it. So Jim stepped in there and started cranking, and he's basically done a phenomenal job. When you look at Crunch and you see it's going under like that, what gave you the confidence that you could bankrupt it and come back? There had have been something you're looking at the books or the model. Like, what do you see to take that kind of risk?
Starting point is 00:19:33 Well, you guys know the business. It'll make you laugh. They had a kid running the company who came out of the, hotel industry. Okay. And his philosophy was no salespeople, no marketing. Very Carl Liebert, Home Depot style. It would be field of dreams.
Starting point is 00:19:50 They will come, right? And I was walking through the place there's like, nobody there. And they're like, look, they'll see these beautiful clubs and they'll all join and just word them out. It'll be amazing. I'm like, our industry doesn't quite work that way. Unfortunately, it's nice, but it doesn't work that way. So I felt like if we turned the marketing machine on it, it's a very cool brand.
Starting point is 00:20:07 I've always loved the name and the whole shtick behind it, you know, no judgments, et cetera. And if we put our systems in place, our technology, our sales systems will turn it. And we turned it very fast. Wow. One thing that I, Mark, that I notice about you that's often, that you're often praised for is the relationships that you build and how loyal people seem to be with you. You mentioned at least five or six names here that I know have been with you for decades. talk about the value of that and how are you able to do that? Because it's quite rare to see somebody where people are willing to follow them wherever they go.
Starting point is 00:20:45 And that's one of the reasons why you're so successful, I would say. Talk about that a little bit. Yeah. So, I mean, I learned early on, I think my dad put it in my head is that replace yourself with people who are better if you want to be successful in business. You can't do it all yourself. So my first gym, like your guys is first gym. You're doing everything. I'm doing payroll, marketing.
Starting point is 00:21:04 operations, janitor, I'm doing everything. And I start replacing myself as we find more and more success. And then I like to share. And so I know there are some guys that build their companies. They don't share. They don't give stock. They keep everything for themselves. And they basically run it like a dictatorship.
Starting point is 00:21:20 I believe in sharing and giving out as much as I can to everybody, making them true partners. And all these folks have done very well by being a part of what we've built. And so my job is to mentor, to fund, to back and develop people. and allow them to live to their dream. And so I know Jim's super happy with, you know, the wealth he's created through the crunch transaction and the wealth he will create in the next round,
Starting point is 00:21:44 therefore, forth from there. Adam and others have done extremely well at UFC. Chris Smith up in Canada is doing phenomenal work up there, growing a really cool brand called Fitness World, and I can go on and on and on. But I think when you find people with talent and you get behind them and let them grow and just kind of keep them in the guardrails,
Starting point is 00:22:04 let them kind of find their way, you get rewarded. And so I'm happy to share the pie and happy to reward people so they can make as much money as a dream to make. And we'll both win together. Talk about the guard whales because it's not just about that. There's lots of companies that you'll make a lot of money. You'll get shares. And they don't have the same loyalty. Talk about you just mentioned with guard rails and working with people and allowing them to do their thing.
Starting point is 00:22:32 Yeah, I mean, I believe in paying people extremely well more than they deserve and let them earn as much as they want. So I don't have a problem overcompensating people. I don't have a problem giving them lots of equity. And then I'm there for them. So my, I'm sure you've heard me say my view is that I'm in the upside down pyramid. I'm at the bottom and I work for you. You don't work for me. I'm here for you.
Starting point is 00:22:54 Whatever you need. You call. I pick up. You need an email. I give you an answer. You text me. I'm answering you. I mean, my wife kicks me all the time under the table.
Starting point is 00:23:01 were at dinner, I'm on my phone. Give me five seconds here. I got to get back. You know, I want people moving and want to be able to be there for them. So I feel like I've got a lot of loyalty to my team and my people, and I want to make them great
Starting point is 00:23:14 and coach them up best I can. Yeah. It says a lot too that, like your ability to distinguish that quick, right? So I, when we were scaling this, I operate from a similar philosophy and like relationships, I think, is a big reason why we had a lot of success
Starting point is 00:23:29 and tend to give a lot. And I know I've made some mistakes even early on where we're growing a side or a department. And I'm like, give someone so much that they end up not following through and living up to that because I come from that place also. Sure. What is it for you? Like, what do you see in that person? You go like, this is someone who I can give a percentage or give ownership. Like, what do you see? I mean, they've come up the ranks. And so they've worked their way up from sometimes the bottom. I mean, Jim came in as an example. I talked to you a lot about Jim today. But Jim came. in out of the Marines and his brother was working for us and he came in as a sales counselor and then he worked as well all the way up to president at 24 hour within probably a decade
Starting point is 00:24:12 where he ran half the company and he's very very talented you could see it um what I used to do a lot is we have our conventions and I would have people that I thought were potentially leaders and I would cold call him to come up on the stage and speak and close out a session or talk about what they're doing and that's when you see people shine. And so I remember I took Jim out of the audience and he needs you come up, close this thing out. And he's like blew everybody's mind. He did a phenomenal job. He's like, okay, this guy's got leadership skills. Same thing I've did with Adam or Brian who's sitting behind us here who Brian runs all the crunch gyms here in the Bay Area. He's a phenomenal operator. And so I just call him up. Hey, talk a little bit about yourself, talk a little bit about
Starting point is 00:24:53 this subject matter. That's a nice way to do it. And then, you know, the old test is get to meet their family, get to meet their people who are friends around them. and who are they as a person, you know, and then spend time with them, break breads, travel, you know, hang out. We used to do events all the time at 2-4 where, you know, we'd have 500 people show up in Hawaii for four days, and you'd get to know people. Oh, yeah.
Starting point is 00:25:14 You'd spend time and you'd break bread to eat together, and you start to say, I really like this person, and we get along, and I think we could work well together, and then give them a shot, put them up into a higher position. If they perform, put them up again. And make sure that they earn some serious money, so they're super happy, and their family's got the opportunity to, you know, enjoy life a little bit.
Starting point is 00:25:34 Mark, do you remember? Probably it was 19, you don't remember. It was 1998. You came into a club that I was working and had me give you a tour. Do you remember that? We talked about it last. Okay. Okay.
Starting point is 00:25:46 That was such an awesome moment for me. You're 19 at that time. I was 18 or 19 years old. And at the time, I was selling just crazy numbers of personal training and memberships. And you showed up and he said, I want you to give me, I want this kid to give me a tour. They told me you're a badass. I'm like,
Starting point is 00:26:02 oh, I got to meet this guy. I gave you a tour. And I was too young to understand. Like, I'm the owner of the company's coming in to get a tour. But I remember that. I always remember that.
Starting point is 00:26:12 So I think that's part of your success is that you give people that feeling, which is why they tend to follow you whenever you make jumps. Now, looking back at 24, you left, they're different now. So talk about like, because at one point,
Starting point is 00:26:29 that was the model. Like 24-hour, they were the ones that created the model for a successful health club. They really were. Everybody else had to copy them at that point. But after you left, their image changed. It wasn't the same. Now when you're looking at it now, what are you going to, what are you looking at? What are you going to try and change or switch or what are you going to do different? Yeah, no, great, great question. I mean, after I left, they probably went through five leadership groups and probably three different investors, maybe four. And they kind of went on a path that lost their way. I think they were, they were performing pretty well at one point and then struggling at another point. They changed leadership. And then a group came in and put a lot of
Starting point is 00:27:07 debt on it and didn't equitize it as much. So they had a heavy load of debt. And then they started to struggle a little bit. And so they hit the pandemic. And at that point, just decided that, you know, we're going to have to file bankruptcy and reorganize. And then at that point, the equity guys are gone. They lose their investment. And the debt holders have the right to kind of come in and own the company, which is the reason why we wanted to buy that debt at crunch when we bought it from Goldman Sachs to now we control the debt. We control the outcome of bankruptcy. So we're in first position. So they kind of came through there and they finally landed on a guy by the name of Carl Saff to be the CEO. Came out of Best Buy. It was like a CEO there, super sharp. And he righted the ship,
Starting point is 00:27:50 reorganized it, leaned it out pretty heavily and didn't grow it all for the last. four years because his hands have been tied behind his back by the guys that owned it. They didn't want to put any money into the business. They remodeled. They kept the clubs running well. But the company kind of lost its way a little bit. So as I step back in, I'm trying to take a look at where they sit right now and what I think we can do to kind of bring it back to where it was because we were on fire and doing everything right and had an amazing opportunity. And it kind of got fumbled by the leadership groups that came in behind. And it's hard for a guy that even Carl, who's the CEO, and all of a sudden I show up, right?
Starting point is 00:28:28 The founder's back, you know, and he's an old fart now, but what the hell? What are we going to do? Is he still there? Oh, this is a new Carl. Oh, okay. Yeah, Liebert's gone, of course, but Sanft is running it. And, you know, he's done a great job. I think, look, let's learn.
Starting point is 00:28:41 Let's see what you think. What do you see? And I've been pointing a lot of stuff out that, look, this is where I think we need to go. And if you want, bring it to the team. And if they like it, let's do it. And we're going to bring back nutrition because they kind of walked away from nutrition. We're going to bring back personal. personal training because they kind of walked away from personal training.
Starting point is 00:28:58 We're going to change the pricing structure and make it simpler and easier. We're not going to go down to 99 HVLP stuff. That's not where we're going to be. These boxes they have are 40, 50, 60,000 square feet in pools and courts. They're beautiful. We're going to bring in recovery and put a lot of capital to work. So we'll remodel about 60 clubs this year, give or take. We'll try and open six or eight.
Starting point is 00:29:21 We'll try and buy eight or ten because we got a lot of cash on the balance. cheat to go kick some ass. But it's going to be a year or two to kind of resurrect and find out what the new future is for the company. And I'm excited to see what the team there decides to do. There's a lot of really talented people. Do you think we're in a kind of changing landscape? It felt like five, eight years ago, you know, you saw the F-45s, the Orange Theory's kind of explode. I kind of feel like they've peaked and they're kind of tipping back off. It seems like this spa recovery, bigger kind of footprint, even places where you can do work and it seems like it's going in that direction? Like, what's your thought when you look at the
Starting point is 00:30:04 entire landscape of the direction of the space? And is there any plans of melding some of those ideas in with the 24? Yeah, it's really interesting because if you look at the way I look at the business. So I kind of, if you remember, every five years, I try and take a project near my home and build what I call it as the Club of the Future. I'll make some crazy brand name and I'll just go and dabble with it and see. So I live in Vegas now. So I took some score of footage there and I'm building what I think is the club of the future. And so what's inside that club, right? And so there's definitely Medi Spa. So we can start to do body scans. We can start to do gLP. We can do peptides, NAD and get into IV therapy and really start
Starting point is 00:30:45 to help people understand how to enhance their workout, enhance their recovery, enhance their bodies. So we want to get into that. We're going to equip. it with the latest and greatest, craziest stuff out there. You see a lot of these clubs now that are very focused on the freeweight side of the house going after the Gen Z market. I'd say 40% of people joining gyms right now are from the Gen Z. They're on fire. They love working out. They love training. They love strength. Traders in Boston. Yeah. So that young crowd's really cool to watch. And then we've moved away from what I call group showers to private showers. So what I've started doing in the clubs, even the one that's here in the Bay up the
Starting point is 00:31:25 street here that Brian built, you know, we've got 10 private showers in there, well-appointed, beautiful, full service. You go in, use it yourself, come out, we clean in behind you, and roll it to the next person. And we're moving towards that to make the clubs more unisex-oriented to eliminate some of those issues that come around with the they, them stuff. But at the same time, make it a little bit more higher-in high-scale. And then recovery starts to get bigger. There's beginning, intermediate, and advanced recovery, right? Yeah. So you can spend 100 grand or 500 grand,
Starting point is 00:31:56 depending on what you want to put inside your recovery room. If you want to do hyperbaric chambers, which is what we're going to start to do, you know, we're starting to hit the big stuff and people are going to go crazy for some of the treatments they've never tried that will present to them as a first time opportunity to see. I think that the
Starting point is 00:32:12 opportunity to combine this exploding medical intervention that is going to continue to explode, the GLP-1s, the new generations, the peptides. I mean, this is huge. We've never seen anything like this when it comes to medical interventions. To combine that with, which we believe this to be necessary, to combine it with a good trainer, a good coach, strength training, diet, so you don't lose the muscle.
Starting point is 00:32:36 That has to be the future. And I think that's such a great opportunity because I can see people using, we talk about this all the time, using GLP ones without strength training, without that kind of coach, it's not the best solution. but in combination, it's great, which leads us to personal training. You said you're bringing that back. Why did gyms generally move away from that, and why was that a mistake? So, I mean, the pandemic came and everybody had to work from home, and the trainers started
Starting point is 00:33:04 training people in their garages or in the parks or at their home of their client, and they built a little business up, and so a lot of them didn't come back to the fitness industry. They stayed out on their own independently. And then these little gyms would show up that you could rent space from. and bring in your clients. And so they started using those, making a little bit more money. And the gym struggled to replace people.
Starting point is 00:33:26 As you know, a lot of people didn't want to work after the, you know, over 20-21 period. It's like, I don't need to work anymore. She's going to send me money. I'm good. So I think the flip side was that the training core kind of decreased a little bit.
Starting point is 00:33:40 There's still a lot of success in places. There's still gyms doing big numbers, but they had to rebuild that culture. And at 2-4, they kind of fell in that trap where they, you know, I went into a gym, blow your mind. I went into a gym on the East Coast that's doing 3,500 workouts a day. I mean, it's like incredible, right? I tour the whole facility and go, how's your personal training appointment?
Starting point is 00:34:00 Oh, it's good. How is it? We did 13,000 last month. Oh, my God. I'm like, well, how many trainers do you have? We just have one. I'm like, what? One.
Starting point is 00:34:08 3,500 workouts? Yeah, I mean, you guys should be doing 200 grand a month here. So they're like, okay, we're going to start hiring. Yeah, you need to hire and get back at it. but the opportunity's there. And to me, it's about helping the members achieve their goals. As you guys know, personal training is super important because everybody trains, but they don't watch their nutrition.
Starting point is 00:34:28 They don't know how to lift properly. They aren't exercising properly. They aren't getting a functional in. And so the trainer plays this massive role in helping people get on the right path, whether they want to stay with that trainer for a year or a month, a day, whatever. It's a big, big benefit. And so that's what we need to focus back on a two floor for sure is to rebuild that personal training.
Starting point is 00:34:47 I 100% agree with that. So what moved us in that direction? So we're now on like 18 months of that. Off air, we'll talk numbers in the business and what we've done and some of the ideas that we have. Well, it seems as there's going to be this massive divide of people that go the AI robot, no human connection, and then there's going to be another side
Starting point is 00:35:08 that's going to be thirsty for that human connection. And we're doubling down on that. We really believe that, I mean, we were meant to be with each other. And there's so much that happens when you're actually with another human being that AI just can't replace. And I know there's going to be a lot of people
Starting point is 00:35:27 that will adopt it. I know it'll be low cost. But there's going to be a ton of people, I think, that are going to be thirsty for connection. And I think it's going to make a huge boom. I think it's good. Do you think that's... No, 100%.
Starting point is 00:35:37 I think that, you know, AI is going to play its role. But at the end of the day, I think we're in a great space because we want community, We want experience. We want to touch and feel. And we don't want to sit at home all day.
Starting point is 00:35:50 And so I think ultimately the trainer is a great opportunity for people in career change. And the money that, you know, that trainers make is ridiculous. Yeah. You know, there's folks making $150, $200,000 training in the gym, right? And they're like loving it with full benefits. You know, the club feeds them new prospects every day that come in and enroll. I mean, Adam Sedlack is doing at UFC Gym 2 for 10. 22. You get two personal training sessions for 22 bucks as you join. Wow. And they convert that well to
Starting point is 00:36:23 they convert well, but it gives people a chance to see what training is about, how it can enhance them. And a lot of people like, shit, I want more of this. And then they go and buy training. But his philosophy is that everybody gets touched, if they want to be, if they don't want to no problem, but that's such a ridiculous price. We lose money on that. We don't make money. We pay the trainer more Of course, yeah. But it's a way to let people know that personal training is super important, and we got your back. Do you think one of the biggest mistakes that gyms can make is forget that it's a people business and think it's more of a equipment and maybe analytics and, you know, we got the nicest looking whatever versus like it's about, it's really about the people, isn't it? It always is.
Starting point is 00:37:02 I call it the guru in the box. It's who the leader is, right? Who are you following? And if you have like you're 18, 19 years old, the whole gym's fault. following you. You're the GM. You're in charge. They love you. You got charisma. They're like, oh, my God, I'll follow this guy at the end of the earth. So you've got to have that person in the location that kind of leads to the charge
Starting point is 00:37:21 and then builds a team around them. That's awesome. And so from that standpoint, it's always about people. Everything in life is generally about people. But, you know, technology is moving fast. AI's moving fast. Holograms are starting to show up. We're going to have all this crazy shit. You know, we'll see what everybody does. Maybe a robot's going to be teaching me how to work out. I don't know. But I do think at the end of the day, when you come into the gym, the change that's really interesting is that the gym is packed all day long because nobody's working. People have jobs now from home and they can work from five to eight and go work out from eight to ten and come back and finish up at home.
Starting point is 00:37:58 Are busy hours changing the gym? Is that changing a lot? Oh, interesting. I was in Hawaii and I went into a 24-hour finish gym at 1 o'clock in the afternoon and there's over 550 people in it. Wow. I was like blown away. I'm like, does anybody working? No, I mean, this club's busy all day.
Starting point is 00:38:18 It's like, so the gym business is 24 hours a day now. It's not like, you know, morning, noon, and night. Yeah, it used to be like that. All day long people are in there. Different shifts of types of people come in throughout the day, which is really awesome for our industry and in all. awesome for people to have that flexibility to come in and train in hours that normally were quiet that are now a little bit busier than ever before. Yeah, Gen Z, you'd mention them a bit, and I had read some statistic about the drop in alcohol sales. And they're just not
Starting point is 00:38:45 interested in hanging out like that and looking for healthier options. Is that like a demographic you're really trying to kind of include like hangout-wise? I know there's some gyms that actually are trying to create kind of like a lounge experience for them so they can extend their workouts to connect. I've got this. I've got this. I've got this. wacky theory where the baby boomers, call it the 60 to 80 crowd, you know, got into fitness. You know, in the 70s
Starting point is 00:39:09 and 80s, they started exercising and this part of their life. And then their children underneath them kind of grew up with them at their gyms or country clubs. And they exercised as well. Like, oh, this is pretty normal. Now the baby boomers are focused on longevity. I want to live forever. I'm going to take my peptides, my J.L.P.
Starting point is 00:39:25 Warns. I'm going to exercise. I'm going to lift weights. I'm going to do all this stuff you see in social media. And then their children are see it. Now the grandkids, which are, I call the Gen Z folks, right, are looking up at my mom and dad workout, my grandma and grandpa workout. I work out. I played sports. I want to exercise. Hey, what's this peptide thing? You know, what's this social media thing? And so we're starting to see that people are recognizing that, you know, to live longer and live healthier, you got to do some strength training, right? If you want to do it in the park, God bless you. But if you want to come to a gym,
Starting point is 00:39:57 we'll take care of you. But I think that there's a, of, change in the scenery right now where everybody has recognized that, you know, gyms and fitness is the third place. It's not Starbucks. It's homework and gym. And that's where community is. And now they're getting into running events and Pilates is blown out like crazy. And everybody's into exercise.
Starting point is 00:40:19 It's kind of cool. It is. It is. And we saw a huge switch where women weren't strength training. Now they are. Now you're seeing a lot of kids working out. So is fitness having its like biggest moment? I think it is. I think that's well said. I think it's having its moment right now. And a lot of people, like I did some interviews with some of the national media and their whole thing is, why would you come back to 25-hour fitness? Like, you know, the business is kind of gone now. Like, what are you talking about? Fitness is on fire. You're missing it. Planet Fitness has 2,000 locations. Crunch is 600 and open in 100 this year. 24-hour's got a big business. L.A. Fitness got a big business. EOS is killing it. Rich and those guys are awesome over EOS. They're doing great.
Starting point is 00:41:01 where everybody's on fire. What am I missing? You just don't know. That's how I've been there. Well, I mean, you highlighted that when you talked about the gym. He said it was New York or East Coast that 3,500 workouts and only 15 grand in personal training. That's... 13 grand and one trainer. One trainer. I'm like, I'm coming here. I'm going to... I mean, we were doing 100...
Starting point is 00:41:21 I want this guy... Yeah, we were doing 100 grand in personal training a month out of Santa Teresa when we were getting 1,500 to 1,700 workouts. Crazy, right? So, I mean, you're talking about almost... be doing double that. Yeah. That's, I mean, so what a huge miss. It's just, it's just a big opportunity for people as they look at career change or coming back to the industry. You know, I'm seeing, I've got a gym that I'm working with because I, what I do is I, I tour around all the two floors.
Starting point is 00:41:47 I pick a couple gyms in each market that they're going to report into me every day. And I kind of manage them. So I get a feel for what's going on, how hard they're working, et cetera. But I had a gym I went to and I said, look, what did you do last month ago? We did like 38. I go, oh, it's pretty good. What's your all-time record? They go, 116 back in the day. They looked it up. I said, can we do 116 this month?
Starting point is 00:42:06 They go, ah, it's like the 12th of the month. They go, there's no way. I said, can we give it a shot? They did 108. I mean, just like, just because every day I'm like, sell, do, service, work to desk, work the floor, talk to members. And you start working. They go 108. And this month, they're on pace to hit 120.
Starting point is 00:42:24 It's not that hard. Yeah. I mean, I was literally going to ask you that question, how big is. a difference that just the right team can make in the same club. I mean, you could switch out the team or change the attitude, dramatically different in revenue and experience for the members. Yeah. You know, totally different.
Starting point is 00:42:41 Do you see, I've been reading articles on the gym industry and how they're saying that the middle type of gym is disappearing and it's becoming either the expensive kind of country club experience and the super low, inexpensive, you know, entry type gyms. Is that, do you see that happening? Do you see there any room for the middle? Yeah, I mean, that's, that's what the word has been in the marketing and the media for the last couple of years is that the middle is gone, like the 25 fitness at 40 bucks and LA fitness at 40 bucks is gone.
Starting point is 00:43:12 And then the HPLP is really 10 bucks. But the reality is that that $10 is the lost leader when they come in the door. They're buying the next tier up. They want recovery. They want all club access. They want classes. So they're stepping up to $25 to $35 to $35. So they're approaching the middle.
Starting point is 00:43:30 And then the other thing is the gym of today is like $75, right? So you see these guys are coming out with these huge freeway gyms with lots of cool lighting. And they're charging $75. They're getting it all day long. So the middle is still there. You just have to decide, you know, how you want to market to it. I wonder if it's into your point of like leadership and people is did all the great people leave to the, like either if you were an old 24-hour guy that would, a great GM or RVP or whatever, did you end up going and starting your own own interior fitness?
Starting point is 00:44:04 Or did you go and, you know, get into one of the spas because there was more money than everybody just left that middle? Is that could be that? I mean, that's what it sounds like is that. I mean, a lot of talent has left the industry during the pandemic and after and some of the brands that, you know, went through difficult times. Gold's gyms filed BK, 24-hour Biled BK, New York Sports filed BK, Equinox got hit really hard. Ellie Fitness got hit really hard. So, you know, a lot of those guys struggle and people left because they had to cut back on payroll and couldn't take care of them.
Starting point is 00:44:32 So they spun out into other organizations. So groups like EOS, which Rich Leads, has picked up a lot of people on waivers. So they've got a lot of X-24, X-Crunch, X-Lifetime people that, you know, been able to help them grow their business. And so I think the talent's still out there is just, like you said, spread out a little bit. And then a lot have gone out and opened up their own gym concepts and done really well. which is awesome to see. Is the footprint of gyms, you mentioned free weights a few times.
Starting point is 00:45:01 So I noticed this. So I work out in a couple commercial gyms here and there. And I noticed that the footprints seem to be moving more towards strength training and away from, you know, back in the year was a big cardio. Now it looks like it's more strength training. Is that, do you see that as continue moving that direction? Yeah, I think if you look at the Gen Z, the young audience is coming in, cardio is shrunk, right?
Starting point is 00:45:21 Selectorize is still nice, but they really want to work out on unique equipment. So I don't know if you've seen Skelcore. No. With that? Skel core, phenomenal. Look them up, man. They're awesome. Out of Florida, run by a father and his sons and his wife out of South Africa.
Starting point is 00:45:40 Mark runs at this guy, Mark Ackerman. And this is strength training? It's strength training. I mean, they got plays. They got everything. They got dumbbells that have Geiger's on them. So when you set them down, it brings it back. So the amount, like, 20 pounds is center versus a lot of people put them upside down.
Starting point is 00:45:53 Like, my wife hates that. Like, I want my dumbbells to say it. Oh, I see. So the way, it always says the name. You see a little spinning Geiger in the middle. So you always see the number of the top. Oh, that's cool. They do all kinds of cool stuff for sure.
Starting point is 00:46:04 Yeah, they got weight plays that you can have polka dots on and whatever the hell you want. And then they bend their steel really innovatively and very creatively. So they're doing really phenomenal work. And then, of course, you got Panetta and Jim 80. Then you got all the basics and the regular lines matrix and life fitness and core, you know, etc. But right now, kids are coming in saying, I want to, I want to train on eight or ten different pieces for my pecks. I want to work on different shit.
Starting point is 00:46:29 I want the same damn piece my dad was used. I want something cool. And so you got to have a big ass, you know, call it power lifting area. And racks, you've got to have 10 racks in a club. And what's really cool is you put these power racks in it's women working out. I was just going to say. So it's nuts. I was just going to say when these gyms are putting them together, they're now looking at,
Starting point is 00:46:50 well, now women is 50% of the people using this. So you're going to see more hip thrust. You're going to see more. And they love the barbell stuff, is what I'm saying, which is really, really cool. Deadlifting, they're cleaning and jerkin. They're doing all kinds of shit. You're like, Jesus Christ, this is crazy. But that's, you know, kids today get after it.
Starting point is 00:47:06 They really are trained hard. And a lot of them came through sports programs, right? More kids are participating in sports. They're training hard through high school and college. They're coming out and they're finding the gym and they're pounding it. And it's fun to watch. One thing that I'm seeing just in our space in new media, because, you know, obviously this is what we work in.
Starting point is 00:47:22 And you start to see trends. kind of start in new media. And because selectorized strength training equipment has been around for a while, strength training's been relatively popular for a while. You're starting to see people look for gyms with equipment that you don't see so often anymore. Like there's that big hammer strength dinosaur leg press machine. I forgot what it was called. But like there were only 600 made because it took so much.
Starting point is 00:47:44 Now you've got people looking for them. Like I want to use this. This is like the best leg press ever view or the Nautilus pullover machine, which you just don't find him worth the chain. It doesn't even have the belt. It's got the dangerous chain. You can lose your finger on. Like, people are now like, I want to see this guy.
Starting point is 00:47:57 I can see value in bringing back some of these, you know, kind of vintage looking equipment. You're 100% right. They want something nobody else has, right? They wanted something unique. They want to post it on social media. They want to show how vascular they've become or how big their quads have gotten or whatever it is. They do a little bit of everything. And it's fun to watch.
Starting point is 00:48:14 But, you know, the cool thing is that people are recognizing that strength training is really important towards life and longevity. Yeah. Right. The GLP1 prescription, more often not by doctors, you need to do some. You have to. You have to go. Join a gym or do some resistance training at home because you're going to deplete your fat and your muscle mass could eventually get hammered as well once you burn through your fat. And so you see that happen all the time. And then, like you said before, you know, peptides. I've been in rooms now. Like, who's doing peptides? Like two people
Starting point is 00:48:46 raise their hand. Now it's starting to get to be eight to ten. And as soon as it's going to be 10 out of 10. So it's really interesting to watch what the young audience is pushing and what they're seeing as far as results. I just ran into Antoinette and she told me, she said, oh, you see Mark, you have to ask him, what's the future of group X? She's like, he's always hated group X. Is he going to eliminate it? Is it going to go out? He was like, what's your take on that? Well, first he's wrong. I love group X. I never hated it. We had so many classes. But a lot of people Cup Group X because when you came out of the pandemic, you know, breathing in a room with a lot of people, I can't do that. So you couldn't go to Orange Theory. You couldn't go to Soul Cycle. You couldn't
Starting point is 00:49:28 even do F-45. It's like, no, no, that's bad, right? But then people started recognizing, wait a minute, we all got head fake there. Yeah. It had nothing to do with spitting in the air and all that bullshit. So Group Fitness started making a comeback. And so certain classes are packed. You know, body pumps packed because they want to press weight in fitness. Zumba has never gone away. So throw a Zumba class in any hour you want. We're going to start doing Zumba two in the morning. It'll be packed. Everybody will show up. It won't change. Shaking it. And then Pilates is gone nuts, right? Pilates. If you don't have Pilates, it's like you're not in tune with the industry. So I think Group X will continue to grow and make a comeback. And it feels like a lot of
Starting point is 00:50:09 successful gyms you walk into. You have to have a decent number of women in there working out. Yeah. And Group X pulls a lot of women in. Still, yeah. Yeah. And just to point out to her that, she's wrong. When we started Crunch, right, Planet was our competitor, they had no Group X. And we said, we're going to put Group X in Crunch. Yeah. And so Crunch, that's the differentiator Crunch has. It's got 2,000 and 3,000 square foot.
Starting point is 00:50:32 And they got unique stuff, too. They were the first ones that do, like, the hanging from the straps and do all kinds of cool stuff. I remember going to the Crunch. They've been very innovative. You know, we had Donna Cyrus, who was at Crunch when we acquired it, was one of the big leaders and crazy stuff like, you know, stiletto, you know, work. Houts and other things that she kind of created that we took and put into our brand. Oh, yeah.
Starting point is 00:50:54 When you took over UFC, how long until you guys were really cranking? Like, how long did it take? What was that? What was the tipping point? Probably five years because we started a franchise. And what you don't realize is we're in like 42 countries, like in crazy places. Really? All over the world.
Starting point is 00:51:14 Adam flies all over. We're in the Middle East. We're growing like crazy in India. Wow. We just open a couple more in China. We're in every country. And it's growing from that standpoint because the brand is such a, you know, international. Well, that makes sense.
Starting point is 00:51:27 Yeah. And so you get a lot of people there. So we've almost focused less domestically and more globally. Which is kind of a reverse of your typical strategy. I mean, you're the one who came out with like the cluster idea, right? Of like you start with a gym here and then you go 15 miles at the road and go out versus going the going away. Is that because the UFC brand? Is that why?
Starting point is 00:51:47 Because UFC is so big. That's why you can get away and do that? That and it's a different kind of audience. It's a little bit bigger catchment area because of the mixed martial arts and the BJJ and the boxing. You bring people in, great instructors, and a lot of people come into that. And then we do kids programs, which is what's really cool.
Starting point is 00:52:05 So call it, you know, four or five years old to 12 or 13. You can go take classes like your normal martial arts classes, but these are mixed martial arts classes. You learn to do BJJ, mooie, tie, kickboxing, whatever you want. But the nice thing is you can train with mom and dad. Yeah. They can all come into class together. Where in a regular traditional gym, we would never let a five-year-old go into the gym.
Starting point is 00:52:26 Right, right. So the UFC has a different audience in the bigger catchment area, and they do a phenomenal work in the mixed martial arts communities. Does the Paramount deal affect you? Did Paramount with UFC? I mean, I'm curious to like... We think it helps, of course, right? Because now you have a much bigger audience in catchment, because anybody that subscribes
Starting point is 00:52:46 to Paramount Plus for $12.5 a month. month is able to watch a UFC fight where before pay-per-view was $100, $150. So in talking to Dana and everybody, we think it's definitely going to be super helpful. Yeah, that's why I was wondering if you would start doing like more commercial. My wife and I were just talking about the fights this weekend and she's like, I don't understand I don't feel like they don't, UFC doesn't promote the fights anymore. Well, that's hunt because they went to Paramount and they just gained all that audience. They don't need to do that to promote for it anymore.
Starting point is 00:53:13 Speaking of promoting and marketing because the space seems to, the marketing in general seems to be changing, you know, social media got big. Now AI is making ads. I feel like people want something authentic. How is marketing, has it changed since you've been doing this where you're really trying to get people in through? Like, what does it look like now? Yeah, it's great question. I mean, it's all about social media and the algorithms through the digital channel, right? So you could be hot as hell on Facebook one week and nothing the next. You've got to kind of crack the code. The genius behind that sitting behind me, Brian Calgary, he's like phenomenal. If you want to talk marketing, he could talk to you for hours. But,
Starting point is 00:53:48 reality is less direct mail, less TV, less radio, a lot of social, and then a lot of in-store, a lot of referral stuff. So we can get things in front of our members to reward them for recommending our facility to their friends or family. And that's where you kind of hit the ground. And then just some outreach, you've got to have some hustle. So as you know, you've got to get out in the community and create awareness because five blocks away, somebody may never know you have a gym there because they don't drive that way. So a lot of us just hand-to-hand too. But digital is probably the most important and you got to come to the social channels. You might find that Snapchat's crushing it this week for some reason. Then you slide over and, you know, YouTube is crazy. So you just
Starting point is 00:54:31 have to kind of see what the up and flow is. Any thoughts of collaborating similar to what you did back in the days with like a Magic Johnson gym? Like what's to stop you from collaborating with one of the largest health and fitness podcasts or one of the largest One of the largest. We could do it. Let's do it. I mean, seriously, like, I mean, I have no idea how successful that strategy was back in the days where you partner with a big name in sports like that and their names on it. And it's a collab, but 24-hour fitness is gym, but it's, you know, a Magic Johnson or whatever.
Starting point is 00:55:06 I mean, it seems like today's day and age celebrities are less the movie stars and the athletes and more YouTube stars, podcasts and, like, social media stars. What's to stop you from doing something like that? I mean, it's definitely on the list. I mean, I didn't come into 2-4 with the new team saying, hey, let's get back to her. They told me, we were getting a lot of phone calls from people who want to know if we could do something with you. And so it's something for us to think about. I know that Mark Wahlberg, as an example, is doing a cross-promotion with EOS. He's going to open up a couple of municipal gyms with them, which I'm excited to see.
Starting point is 00:55:40 And happy for Mark, too, a great guy. I think we'll probably do some things in time and be open-minded to what may be presented. to us. We'll see what comes. How did his run with F-45 do? Because I know he did some with F-45, too. Do you know if that was very successful or not? I think that they were on fire for a bit of time, and then they went public, and they got in some trouble because they're counting ended up not being what was reported, and their stock got pounded, and so they've been delisted, and I know Mark's no longer involved at all with that, and I think they're trying to come out of kind of a delisting to
Starting point is 00:56:16 kind of resurrect the brand, but I haven't heard who's going to get it, who's going to do it. Going back to 24, I mean, obviously you love what you do because you're always doing it. You do a great job. But going back to 24, is there like a different fire where you're like, oh, yeah, this is my kid. Let's make this happen. Yeah, it's kind of like the bones are there. So you get back and you meet people like, how long have you been here? I've been here 25 years.
Starting point is 00:56:38 I've been here 18 years. We were in El Cerrito this morning and the kid there says, I've been here 16 years Tuesday. I'm like, damn, that's awesome. So there's a lot of people that have been loyal and stuck around a long time, which is really cool. The clubs are very familiar to me. I walk in and it's the same build-out. Because back in the day, when we were building,
Starting point is 00:56:58 Mike Finney and I was sitting, I said, look, I want to build these clubs bulletproof where they can last a test of time because I don't want to come back and have to spend money again. And so I'm walking in these clubs, and there stood the test of time. The locker rooms look great.
Starting point is 00:57:09 The flooring is maintained. We put metal on the walls, if you remember. I remember that. All that sheet metal is still there. I'm like, the desk looks good. I go, holy shit, this thing work. You know, it lasted. They sure looks tired.
Starting point is 00:57:20 We need to remodel. And so we're in the middle. And I was able to get Mike Feeney to come back. And so he's come back to help again. And David Roth has led the initiatives down there at 2-4 right now. So the two of them are all over these remodels and new locations. So it'll be a lot of fun to spend a lot of money and see how the clubs react to all that we did. How about the careers in fitness, you know, going into,
Starting point is 00:57:45 fitness and making it your career. I mean, some of my best memories are working in the gyms. But even today, if you talk, I don't know if a lot of people even realize, like, I can have a career in the gym industry. Like, talk to that a little bit and maybe the opportunities for people. Yeah, it's great. I mean, great question. So, you know, I like you, I love being in the gym.
Starting point is 00:58:05 So, I mean, that's kind of like, I don't like being in the office. So I'm a field person. I'm always out talking, everybody hanging out, trying to get things done. If I walk in a club, what do you need? I'll make sure you get taken care of. but I love being in the field. And I think that the industry is so rewarding because you're kind of like part of the community.
Starting point is 00:58:20 You meet all your neighbors, everybody that works nearby, all the families. You get to know everybody. And then it can earn a lot of really good income. You know, depending on what position you're in, whether you get into personal training or sales or management, your upper mobility to start making north of six figures, mid-six figures is pretty cool.
Starting point is 00:58:39 And so it's a great business. It's a people business. I know that a lot of times when you talk to people now, they say kids don't have people skills anymore. They can't look in the eye. They're down on the phone. They aren't doing the things they do. This is a business that breaks you away from all that.
Starting point is 00:58:54 So if you met my kids, all my kids are looking in the eye. They can talk to you. They can hang out with you. You'll spend time with them. And there's a lot of their friends are the same. So I think this industry is going to start to attract a lot of these younger kids and they're going to find their home. Then they're going to find success.
Starting point is 00:59:10 And they're going to spin out and open their own companies. or they're going to ride along with guys like us to teach them the way and have a shit ton of fun. We were just talking about that because it's such a unique environment. Unless you've worked in a gym, it's really hard to kind of understand. Like you've got people showing up voluntarily to better themselves. So they kind of already in this mental state of like I'm in this growth mindset. Then people that work in gyms tend to love fitness. They tend to have better energy.
Starting point is 00:59:39 You got music in the background. I can't think of a more fun, kind of positive. You know, there's always, you know, places that maybe not so great. But generally speaking, it's one of the best. My niece just, I just got her over at UFC Gym by Oakridge over there. Don's running that club and, you know, me and Don go way back. And she just got a job at the front desk. And she's only 18.
Starting point is 01:00:00 And I'm telling her, I'm like, this is the best environment for you to just be in. It's such a great. But a lot of people don't realize that. They just have no idea. It's a great place to work. Well, I mean, we're doing some positive. It's healthy, right? And so it's not a negative.
Starting point is 01:00:13 This is where a lot of people are in trying to sell something that they really don't need. But I'll tell you a story while we're here just to give you an idea what the gym business can be like on a day. So when I was in my very first gym, back in the day, receptionist buzzed my office because you used to buzz the office and pick up the phone. So I pick up the phone. She goes, there's a guy up here who wants to see you. I'm like, okay, send him back. So the door opens up and in walks this guy, and it's Sonny Barger. Sonny Barker's ahead as the Hells Angels.
Starting point is 01:00:42 He's got two big boys with him. And at that time, he'd come out, and he had to use the microphone on your throat to talk. So he comes in to my office, sits down, and he goes, I've been wanting to talk. I don't want to imitate his voice. He's like, I've been watching you. I like what you're doing here.
Starting point is 01:00:55 I want to send my people in here to train. I want a great rate. I'm like, oh, yes, you're going to. What do you want? So we cut a deal. I think it was $300 a year. And he says, they're going to bring cash, and you're going to take care of them.
Starting point is 01:01:08 I said, yes, sir. And so out the door he goes. I started getting six to eight people a day. Three hundred bucks. I'm here to see Mark. Sonny sent me in. And, you know, could be bikers, could be girls, could be everybody. And that went on for a decade.
Starting point is 01:01:22 No way. Every manager in behind me. Like, Vinnie Farrell called me up. Sonny Barger's in the gym. What do I do? Like, take care of them. Three hundred bucks. That's it.
Starting point is 01:01:30 And so I built this relationship with him where he would come in maybe every six months and check in, how's it going? How's your business? You make a money, doing well. and it was like crazy. So I have thousands of stories like that where you meet some of the most amazing people when you're sitting in your gym
Starting point is 01:01:44 because everybody touches you at some point in the community. You're the perfect person who asks this, Mark. What makes a good general manager? You're running a club. What are the characteristics of somebody's going to run a successful club? Yeah, I mean, the great GMs have charisma, right? People want to follow them,
Starting point is 01:02:02 and they have attention to detail, and they care, right? They want their club to be clean. They want to be well maintained. They care about their people. You know, they got their back and they want to support them. And then they're driven, right? Generally, they're really driven. They want to make a good living and they want to grow and they want to excel.
Starting point is 01:02:20 Obviously, all the other things that you normally point to that they're bright and intuitive, you know, they've got street smarts and all that stuff. But generally, you can teach a lot of things to people. But at the end of the day, I was to say that charisma plays a pretty big role because the person who leads the environment, environment is one you want to follow. An observation that I've had just because I've been now the industry now over 20-something years. And some of the best salespeople I've ever met my entire life started selling gym memberships. And now these people went on to sell homes or cars or get into loans or entrepreneurs. And whatever field they go into, they're the best at what they do.
Starting point is 01:03:02 But they learned how to sell with gym memberships. Now, my theory is that, because I see this all the time. I'm like, okay, this is probably why. It's a fast sales cycle, so you're practicing constantly, and you're selling an idea. You're not selling some product. So somebody's got to walk out with this idea. So you've got to get good and you got to practice a lot. That's my theory.
Starting point is 01:03:22 What do you think? Yeah, I tell everybody that when they used to come to workforce, I used to always say, look, you know, one thing we're going to teach you to do is how to sell. Because you sell yourself every day in some way, and we're going to teach you how to sell yourself and be yourself. and that was always the way that we did the sales training. Reality is that, as we could talk forever, I run into so many people all over the place that had once touched us and worked for us.
Starting point is 01:03:48 There's a GM for an NFL team that I was having a meeting with, and when I left the room, he says, by the way, I want to thank you. I'm like, oh, you're welcome. No, no, I want to thank you because I put myself through college working for you as a personal training.
Starting point is 01:04:00 And then I got a job as an intern here, and now I'm the GM running this NFL team. And so you get stuff like that. But selling is super important, I think, for life. And it's a skill you need to learn. And if you're great at it, you always follow the best salespeople, right? They're just so charismatic. And the person that seems to have a Pied Piper ability to get people to go wherever they go.
Starting point is 01:04:21 It would be such a cool exercise. We do this sometimes. We reminisce of all the friends that we built working at 24 underneath you. And I mean, just between the three of us, we could probably count 20, people that are all like multi-millionaires that have gone on. It's just, it would be such a fun exercise to see how many of those people that are attached to you. You know, you're like the Kevin Bacon of fitness, you know.
Starting point is 01:04:44 Yeah, I appreciate that. I'll be food losing fancy day. No, it really, it feels like that, you know. I was telling a story to the staff. So we're 11 years. We've been doing this now. And 10 years in a row, we've been able to grow and out compete the prior year every single year. Last year was the first difficult year we had. And we're looking at numbers from the prior year.
Starting point is 01:05:09 And I'm with all the department heads and talking to them. And, you know, it's like, oh, this is going to be such a tough month. And I shared the story of what you did for the Hawaii month. You took a time of the year that was the worst time and flipped it on its head and it being, you know, for, I don't know how many decades it continued to be the biggest. When you think of, and at least the crunch UFC in 24, what are some? of the most proudest like business strategies that you've implemented when you look back that like that that has to i would think would be one of them that like that's so impressive to me no i think i think ancillary like bringing in retail personal training supplements i mean neil spruce and and he did apex
Starting point is 01:05:49 oh yeah so he's phenomenal so you get neal attached to you he helps the trainers become educated on how to help people understand how to fuel their body when they exercise it's really important so i think the answer later was really important. And then I think attention to detail inside the facility, right, from all components, the way you equip it, the way you design it. You know, Mike Feeney played a huge role in all that, and did a phenomenal job for us. And we sit there for hours and meetings to figure out that piece. And then the amenities you wanted, do you want a pool? Do you want a basketball court? Do you want a racquetball? Do you want a big group X room? How do you design your facility so it meets the community that you serve and how big do you need to be and all the nuances that come in? I mean, how big is
Starting point is 01:06:31 your damn parking lot because the parking lot often controlled the success of your business. If you had a hundred car parks, we're not going to be a high volume club. But if you had 400, you could be a very high volume club and do 2,500 to 3,000 workouts a day. When did you guys figure out that people would rather watch people working out than TV while doing cardio? Because that's like a big deal. No, you're right. When did you guys figure that?
Starting point is 01:06:54 How did you piece that? Because you're in the jam all the time? You're like, wait a minute. People like to watch. Well, I mean, you're in the gym. You kind of figured out. but we did this study and the most successful clubs that we had had mezzanines. Oh.
Starting point is 01:07:06 And I was like, holy shit. So we started building all our clubs with mesonines. And then everybody was like, yeah, I love sitting up and watch everybody work out. And I got TVs and that was the thing. And so even today I'm walking in a lot of clubs telling guys, you know why we built that mezzanine? No, why did you do that? And I walk them through because we did this focus group survey and study that our best successful clubs had mezzanines. And so that's how we started doing more of that.
Starting point is 01:07:29 kind of a two-tier. Even clubs that didn't have mezzanines like our San Ramon Club, I put like a catwalk in it. So I elevated it up, put a catwalk all the way across like 60,000 square foot facility, and then builds a little cardio area at the back. So you can look out, walk around. And that club was number one in the company for years and years and years if you ever been in San Ramon, you know, the corporate office and had that catwalk in the middle. I mean, that's just a big sense. Again, people don't realize that that that's a big deal. But Jim's back in the day, cardio didn't look at anything. It was TVs. And then that switched made a really, really big difference.
Starting point is 01:08:00 Are there anything else that you could think of? Like, okay, here's another one. Jims back in the day used to have rooms, free weight room, machine room, cardio room. Now it's like keep it all open. What made you guys figure that out? Was it just? Well, in the early days, you compartmentalize because people were intimidated. It's kind of like the UFC when we first started.
Starting point is 01:08:19 People walk in like, I don't want to go there because I'm going to get my face beat out. Like, no, we don't do any fighting here. We train. And then they go, oh, this is amazing. They bring their friends and family. But in the early days, you had a wall around the freeways because women wouldn't want to go in there. They'd look like, oh, no, I don't want to go with those big bodybuilder guys. And then the women wanted their own little section, and everything was kind of boxed.
Starting point is 01:08:39 And then you started to recognize that, wait a minute, women are now moving around. They're going to every area. Let's just open it up. And then it was a lot easier to reconfigure your club because you can pick up and move it. If you want to move your freeways to one area or select rise, you could do that word. When you compartmentalize, it was a little bit tougher to do it. And then mirrors played a big role, right? Yeah.
Starting point is 01:08:57 So where do you put the mirrors as you do your dumbbells and as you do your squat racks, et cetera, and how you do the placement of that was a big part of it too. Because when we compartmentalized, we had a lot of mirrors around the walls. When we opened it up, everything faced the outside of the building. And you had to run mirrors in the middle if you wanted people to be able to see themselves. How long have you been doing, what did you call the test gym that's by your house? How long have you been doing that for? Most of my career, I've been.
Starting point is 01:09:23 I did not know that. Yeah. Yeah. Yeah, like we did the UFC and conquered. The first one was right by my home. I lived in Lafayette at the time. I'm like, we're going to open up right by the house. And Jim lived there too.
Starting point is 01:09:32 Mike was close by. So that was our beta. And we basically tested that out forever and ever. I didn't realize you do that. One thing that I noticed, Mark, and you're the guy, again, the guy to ask, is, you know, there's gems that feel so dark. And then there's gyms that have natural light. And for me, it makes a big difference to feel like there's natural light coming in.
Starting point is 01:09:51 Is that something now that is being paid attention to? I think it's super important. I mean, I like a lot of glass, skylights, if I can get it. I think it's super important. Some of the clubs today are a lot of lighting, if you've noticed. They're putting in all kinds of disco lighting and crazy equipment, a lot of mirrors and a lot of shiny stuff. I think that the Gen Z crowd may like that.
Starting point is 01:10:11 Not for me. I mean, I don't want to come in and feel like I'm in Vegas, hanging out in my gym, but maybe once in a while. But, yeah, I think that light is really important. Natural light is really important. Why we didn't do a lot of basements, base, get offered basement all the time. We'll put you in a basement.
Starting point is 01:10:26 I'm not going there because you're going into a dungeon and people don't want to work out in a dungeon. They might grind, you know, you might get that lifter to go in there. But the female audience isn't going to drop down into that dungeon. It's not going to happen. No. Why, Mark, why haven't you retired? Why do you keep doing this?
Starting point is 01:10:41 You got all the money you want. You're successful. You can totally drop out and be like, whatever. Why not? I get that asked a bunch times. I mean, when I left crunch and I said, okay, I mean, maybe I'm just going to take a time out. I got a bunch of stuff all over the world that I'm still owning and operating in multiple countries.
Starting point is 01:10:58 I told my wife, I said, I get this opportunity with 24. And she's like, you should do it. She got excited. Like, what? Really? She goes, yeah, get that back. Oh, you got to do it. So she was behind me.
Starting point is 01:11:10 I was like, wow, okay. This is dangerous now. She's been the most happy. Like, you're out of the house. Get the out of here. Go do work. Get back. See it a few days and let me do my thing.
Starting point is 01:11:21 But yeah, she's been super supportive. And then I've got four kids between 17 and 24. And they were all young when I left the company, and they watched me build crunch. And they're all doing different things. None of them are in the fitness industry, so to speak. I got one in college, one in high school. My oldest son Mason's selling real estate in Dubai, of all places. Wow.
Starting point is 01:11:40 Oh, interesting. Really cool for him. And my daughter's doing with most girls these days, you know, go to do social media and modeling. She's been, if you look at Nike, she's all over Nike. They've been hired her like crazy. So she's been doing a lot of modeling and finished playing basketball, Cal. And she's kind of said, it's on my bucket list. I'm still young.
Starting point is 01:11:57 I'm 22. I want to do a little bit of modeling. But long story short, is now for them to maybe eventually get involved in the business and have a chance in their 20s like I do when I started to learn a little bit about fitness and see if it's something that some of them want to do. I feel like that would be the dream. The dream would be dad and be able to find a way to build something to where you guys can all stay connected and work together. That's awesome.
Starting point is 01:12:19 When you were scaling and growing like that and they were young, were you able, because I feel like you've also been a very present father, at least from afar, what it looks like. It looks like you get to go to a lot of games and you don't miss a lot. So the fact that you've been able to build these things and still be able to do that, how did you do that? Did you just, did you make a rule of yourself? Hey, when they get to a certain age, I'm going to do only this much. Or I'm going to, like, how did you structure? Yeah, no, great question. I mean, you know, when we, we sold in 05 and I kind of stepped out for a little bit before we built the other brands, you know, the kids.
Starting point is 01:12:49 you know, the kids were young and we got a couple more after that. And so I love being with my kids. And so I made it important as part of my DNA is that I'm going to be there for them first. And so I would work as hard as I could and then get home and be there for their games and take them places. So my son, my daughter, they played club sports. I took them all over the country. Wow. I would work on the phone and work on my computer and breaks. And I would talk to people, but I was always there with and traveling and hanging out and going into their games, making sure I didn't miss anything. I think this plays, I was asking you about loyalty earlier.
Starting point is 01:13:25 I think this might be one of the factors because people have said about you that you value their families. Whereas sometimes you work with people that are really driven, and it's like you've got to sacrifice your time with your kids. Whereas what I've heard from people is like, oh, no, he cares. He wants you to be with your family. Yeah, I mean, I'm a big family guy,
Starting point is 01:13:42 so I'm constantly asking how are your kids, how's your wife, how's your family, what's going in life, how are your parents. and somebody says, look, my boy's playing a soccer game on Friday. It's a state game. You're not working. Get the hell out of here. You know, go do what you need to do. And I think it's important.
Starting point is 01:13:55 That family's super important. You want to be good at work. You want to be great at home, right? And you want to be as good as you possibly can be in your community. So I'm always preaching that. Be great at home. That's super important because if you're balanced at home, you're kicking ass at work. If you're a mess at home, you're not kicking ass at work.
Starting point is 01:14:12 At work. I'm not going to work. Do you have a nemesis? Do you have somebody? you're like, oh yeah, I want to crush that company. I want to just out-compete that. Yeah, I mean, good question. I've had them over the years, and I felt like I did question, so I'm happy about that.
Starting point is 01:14:28 But right now, I'm friendly with everybody. I was on the phone with Jim Raleigh yesterday, and he probably hates me saying this, but, you know, Jim, you know, Jim's like a little bit uptight that I left crunch and ran over and bought 24. He's like, why the fuck did you do that? Oh, shit, man. That's my baby. Why can't I have it back? It's not fair to say why to do it.
Starting point is 01:14:49 But he said a lot of the, a lot of the crunch guys are like, how could Mark do that to you? How could he run over to 24? And Jim's like, well, you don't know Mark like I know Mark, right? And I said to him, I said, well, just let him know that we're not going to be $9.99. We're going to hopefully be a little bit higher pricing that they're going to look at us not as a direct competitor.
Starting point is 01:15:07 But let them all know that they piss me off. And he started laughing. I know. I know. So don't think they're going to open up next door to me. I'm not going to counter. We're going to build something right next to the one. I put them out of fucking business.
Starting point is 01:15:22 Be nice in the sandbox. Play nice and we'll play nice. Have you had, okay, have you had, again, have you come off so calm, cool? Have you done anything after a win, a conquer, a squash or someone? Like, what's, have you done something? Send a nice letter, bouquet of flowers. Have you done something to somebody who's done you like that? and then in business you got your, like, have you done something like that?
Starting point is 01:15:46 Yeah, I had a group call me three days, four days ago, just an example. And they have some clubs in Texas. They said, hey, there's a site that's 100 feet from one of your locations that the landlord says he can put us into. And we're thinking of going in there. And I just want to call you first out of courtesy to see what you would do if I did that. And I said, well, first you'd be my mortal enemy. Second, I would take my club in a remodel before you even started. construction. I'd lower my price to the ridiculous and I'd fucking hammer you and put you out of
Starting point is 01:16:17 business. He's like, okay, I'm not going there. But it's a fun competitive business. You're kind of competing against your brothers and sisters out there. And there's plenty of room for everybody. You just have to differentiate your product a little bit. And I think 24 has a very differentiated product from Crunch and Planet for sure. Ellie Fitness is starting to sell a lot of their boxes. Right now they're slowing down a little bit. He's moved towards a club studio. concept, which is around group exercise, high-end $200 a month-type product. So I think that we can all kind of differentiate and survive and do well. But I don't like when people fuck with me. I just have a tendency to love to compete. I've been competing my whole life and everything that I do,
Starting point is 01:17:00 whether it's through my kids, whether it's through business. So once you fire me up, I mean, I will not stop sleeping, thinking about it and basically just get after it. Which kids most like you. Oh, great question. I think they're all pretty similar. My oldest son is a badass. He's like he was a 6-5, 245-pound kid, just a big, big monster played football in college. My daughter's Uber competitive. I mean, she's cracking me up. She's like, hey, dad, I was in New York, modeling. I was doing some fashion week stuff, and I went down to Salt Core. And I got next to this gal who's in great shape, and we competed in the whole class. My third son's a big lifter. You'd love him. He's probably, you know, 6-1, 230-pound kid, massive lean.
Starting point is 01:17:47 And my last guy is probably the craziest of them all. He's in high school still, but he's a great athlete, very competitive. But I think they're all like me. They all have a fire. They've all competed in sports because I came through the sports channel like you guys did. I think that's how you learn how to compete. You know how to win, how to lose, how to deal with difficult people. Yeah.
Starting point is 01:18:05 And to overcome the odds. How putting in the time, energy, and effort shows you success. Yeah. And it's the same thing in life and in business. You've got to put the effort in to get there. And I think that that's part of what my kids have gone through. They've all been competing at very high levels as I pushed and pushed and coached and coached and tried to be there for them and see that engine run, I think is part of what makes
Starting point is 01:18:28 this country so great. Which one's most likely to have the business acumen? I mean, they all do. My daughter's very entrepreneurial. My oldest son's very entrepreneurial. My third guy's a brainiac, super smart. I mean, they have 4.4 Vagetatatorian type kid, great athlete. And my youngest guy's the, he's an assassin.
Starting point is 01:18:49 He's just, you know, because you're the fourth kid, you don't have to have a curfew anymore. We all of a sudden 10 p.m. curfew. This guy can go out to Tuna more. My wife doesn't care. And he's 6-3-190-pound athlete, good-looking kid that whatever he wants to do. He somehow seems to make it work. As an example, you know, he befriends Adam Sandman. Sandler. And during the pandemic, we spent a lot of time with the Sandler's. Adam's awesome. And he golfed with
Starting point is 01:19:19 Adam every day, because he's a really good golfer. And one day, Adam's like, hey, do you think your kid would want to be in a movie? I'm like, well, I don't know. You can ask him. He goes, well, ask him, because I got this role for him. And I'm like, okay. And so I asked him in Merrick, our youngest, is like, yeah, I'd be up for that. And so Adam's like, well, you got to, you got an audition for Netflix. I can't get you the job. I can get you in the door. So he auditions and they hire him. And he makes a movie. No shit. Samler. He's just that kid
Starting point is 01:19:45 that something always seems to happen for him. So when you say which one, I know, sometimes I think it might be him because he's the last one, but he's just kind of,
Starting point is 01:19:53 whatever he steps into, it just always seems to work. They all have the potential, though, it sounds like, yeah. When you look back, we're all fathers, what would you say
Starting point is 01:20:03 you and your wife did really, I mean, to have four kids that really turn out like that, that's really rare, especially for having a father who is built something as big as you have. It's really tough to juggle that much business success,
Starting point is 01:20:17 also that much family success. Like when you look back, what did you and your wife do really right? Well, I give her all the credit and she takes it. And she was present at all times with the kids. And she's a Colorado girl. She's all over. She's a great athlete, phenomenal shape. And she just focused on the kids and gave them everything she had every day and kept them, you know, again, in the guardrails, never got too far off the right or the left and made sure that they were really well balanced. And my job was to mentor, train, and develop, right? Which is what I do at work and what I do at home. I mean, I'm constantly with them. I'm not their best friend, but I'm going to push them, shove them. I'm going to make sure they've got their grades right.
Starting point is 01:20:59 They're doing their homework. I'm on top of all that stuff and engage with them on a daily basis. And then you just have to make sure that they have the right people around them. Yeah. Because sometimes they bring a friend into the friend group. It's like, that's not a good choice. You might want to rethink that particular. We were just talking about that before you walked in today. That's something that I've been dealing with quite a bit lately. But I'm curious to hear how you deal with that. And my wife's like they can't come to the house.
Starting point is 01:21:23 You can't go to their house. They're not part of your friend group. Sorry. Not going to happen. And she's done that a bunch of times. I'm like, I like that kid. No, this, this, this. Oh, I didn't know that.
Starting point is 01:21:32 Okay. Okay, that's, I got it. And so there's some of that. But, you know, the kids also see how hard you work, right? Which is another reason why I'm still working. And it's like I want them to know that I'm never going to retire. I'm going to bust my ass and you need to do the same. So they see me working hard and they're proud to see their dad working hard.
Starting point is 01:21:51 And then, you know, I've always got their back, whatever they need, whatever they want to do. No problem. We'll take care of it. We'll make it happen. Did you and your wife naturally fall into those roles or did you guys actually have like a sit-down conversation? I mean, how'd that unfold? Yeah, good question. I mean, my wife's a dominant personality.
Starting point is 01:22:07 So I pretty much fall in line behind her. You know, she's the smartest person in the household. So whatever she says goes, we'll have our spats here and there. But generally, she's been really, really good at fueling the kids, feeding them well, keeping them healthy, not getting them into the shit crap candy, all that. She's really, really healthy, feeding them as best she can and fueling them for success and then staying on top of them. But I think the two of us kind of figured out after a period of time where we needed to balance it out.
Starting point is 01:22:35 I was about education and sports. Yeah. And she was about everything else, you know, the way that they groomed, take care of room, the way they dress, they tire, how they talk to people. I remember a great story. We got invited to a dinner at George Clooney's house, the actor, and we came over. George, of course, at that time was not going to have kids, never get married, what his thing was, and knew him a little bit, nice guy. So we come to the house. Each one of my kids comes in, the door, because we brought up four of the kids, they're like, nice to meet you, Mr. Clooney, my name's Mason, my name's
Starting point is 01:23:11 Mia, my name is Maddox, my name's Merrick. They all introduced those. Merrick's probably like four years old at the time. And they all go through. And then we had a dinner that I had about 20 people. And George says, I just want to say that I had an observation tonight that the four master of kids walked in, they all looked me in the eye, they shook my hand, they said their name, they said my name. That's how I was raised.
Starting point is 01:23:32 If I could have four kids like that, I would have kids. That's great. That was badass. And I was like, you know, that's a pretty cool observation. And then they spent time talking to them. And one of the things he told them is that one of the keys of success that you're going to find his life is to be a good storyteller. If you can tell a good story, that's going to bode well for you. And if you get my four kids, they all tell pretty good stories.
Starting point is 01:23:53 They don't tell me all the good ones. You have some. But yeah, so things like that in life where opportunity presents itself and your kids can be around you and they can experience things. It rounds them. And it makes them hungry for more. Yeah. That's all. I have a speculation.
Starting point is 01:24:09 I'd love just your opinion on. when we're looking at like the landscape with tech and there's all speculations with AI and what it's doing. And one of them, you know, I heard Elon Musk say, you know, it's going to be a future of universal high income. And so you're going to have incredible efficiency and you're going to have machines and robots and AI doing all this work for us, which means you're going to have a lot of people who will have, I guess, resources, but not go to work.
Starting point is 01:24:38 For me, I feel like that's going to make fitness explode. It's going to make you fitness so big because you have all these people with all this time and where are you going to spend your time? You're going to want to go to the gym to become more fit, to meet with people, to work with people. So I feel like the potential there is massive. I agree 100%. I think that fitness is becoming more social, right? So it's like a social club.
Starting point is 01:24:59 It's not just a gym. It's a place where I can hang out, talk to people, meet people, do business, right? At the same time, look and feel better. So we've been doing that our entire life, but people are starting to. recognize that you guys are doing good work and this is something that's going to continue to bode well as we come through this whole AI period whatever that ends up being you know there's some people think that the 30% of the workforce is going to lose their jobs have to change career paths and maybe that'll happen but I think our industry is going to just excel yep so I think we're
Starting point is 01:25:30 in a good place and I'm feeling pretty good for all the folks that are getting after it last question I have for you related to the 24 acquisition will the financial side of it be public? Will we know, like, exactly what you acquire it for and all that? Will that be public? No, I mean, it's a private transaction. If we decided to go public one day, it might be, but for now, it's just, you know, myself and one partner. And we own it. We'll crush it. They'll let me run hard, and I'm kind of in charge, and it's all good. Got a great team there. Carl Samph's awesome. He's got great people around them. We just have to give them the tools for success and let them fly. And then Let them make a shit tonne more money.
Starting point is 01:26:12 You're a favorite location? Favorite 24 fitness location? Ooh. Yeah. Good question. I mean, if I go back to the old day, Sunnyvale was probably my favorite location. All that wood in there. Yeah.
Starting point is 01:26:25 That baby was a badass club. We did well there. And, you know, I can remember some of the staff. And we had a lot of fun, you know, lost a few people that have not with us anymore that used to work there. I ran that club. John Stewart worked for me. I was going to say, John lost John. Yeah.
Starting point is 01:26:39 John passed from Crohn's. disease. Yeah. But, you know, the human volcano, we used to call them. Yeah. If you remember right,
Starting point is 01:26:45 but that club was probably my favorite in the old days. In the modern era, I mean, it'd probably be between San Ramon and we opened a big box 100,000 square footer down in L.A. that was pretty damn cool.
Starting point is 01:26:57 Is that the one with the escalators that went up to it? Is that that one? No, that was Point Loma. Oh, Point Loma. That was one we used to get a lot of laughter from because of the escalator going into the gear. There were stairs,
Starting point is 01:27:07 you know, narrow the picture. Like, look at this. I used to go viral all the time We were going to kick out of it It's now a UFC gym actually Yeah That's right Well you know
Starting point is 01:27:17 Recently we heard the White House Say they're going to release The potential aliens that are real or whatever Oh yeah do you still think they're going to eat the fat ones first Aren't you? Please bring it through that It'll make you laugh Because
Starting point is 01:27:32 I kept all my shit from 24 hour Like in boxes And my wife like every year Can you get rid of this stuff in the garage I'm like, no, I'm keeping it. And I kept it, kept it, kept it. And so 20 years later, all of a sudden, 24 hour falls back in my lap. I'm like, see?
Starting point is 01:27:47 So I started opening stuff up and I had the alien shirts. No, you don't. I got a bunch of the originals. So I took it to the company. I gave it to Carl. So they made a new shirt. And it's basically the whole alien thing, but it says we're back. Oh, yeah.
Starting point is 01:28:00 And we're going to wear those. Oh, that's cool. That's awesome. Oh, that's pretty cool. But yeah, I have a bunch of the old ones and ton of stuff that we broke out all kinds of retail. I have a box in my garage with all my 24-hour awards. Awesome. Like a huge box with all of them.
Starting point is 01:28:14 My very first one, my name is misspelled. Never fails. No, never fails. Well, this was awesome. Yeah, yeah. Great time. I appreciate you coming on.
Starting point is 01:28:23 And, uh, you know, we, we're excited to watch it, man. Yes. We're excited. Appreciate it. You guys doing great work. Happy for you. Keep it rolling. If we can be helpful anyway, you let us know.
Starting point is 01:28:31 We will. But, uh, kick ass. Thank you, Mark. Thank you for listening to Mind Pump. If your goal is to build and shape your body, dramatically improve your body, dramatically improve your health and energy and maximize your overall performance, check out our discounted RGB Superbundle at Mind Pumpmedia.com.
Starting point is 01:28:47 The RGB Superbundle includes MAPS Anabolic, Maps Performance, and Maps Aesthetic, nine months of phased expert exercise programming designed by Sal, Adam, and Justin to systematically transform the way your body looks, feels, and performs. With detailed workout blueprints and over 200 videos, the RGB Superbundle is like to like having Sal Adam and Justin as your own personal trainers, but at a fraction of the price. The RGB Super Bundle has a full 30-day money-back guarantee, and you can get it now plus other valuable free resources at mindpumpmedia.com. If you enjoy this show, please share the love by leaving us a five-star rating and review on iTunes
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