FARGO — Planet Fitness is flexing its muscles in Fargo.
Local franchisee Baseline Fitness will soon open its third Planet Fitness in Fargo-Moorhead, a two-story facility with more than 30,000-square-feet in south Fargo that will be packed with state-of-the-art fitness equipment and amenities.
Scott Majkrzak, a North Dakota State University basketball alum, is CEO of Baseline Fitness. He said the goal is to get the Fargo facility at 5080 38th St. S. open between Christmas and New Year’s Day.
Since its start in 2009, Baseline has grown to 101 Planet Fitness locations with more than 1,500 employees across nine states: North Dakota, South Dakota, Minnesota, Iowa, Nebraska, Wisconsin, Illinois, Colorado, and California.
Anna Paige / The Forum
If all goes well, the Fargo-based firm will close the year with 105 Planet Fitness outlets (two more are being finished in the Twin Cities suburbs of Edina and Eden Prairie, and another in Denver, Colorado.)
“Long term, we have a vision of having more than 150 in three years and probably double the size of the company in the next five,” Majkrzak said.
The former Bison guard is pumped up about the company’s growth.
Anna Paige / The Forum
“We’re moving quick. It’s been fun and exciting and we’re not done yet,” Majkrzak said in a recent interview at Baseline’s south Fargo office.
“I’m super excited about that one. It is a state-of-the-art facility like we have not built before,” he said. “It’s really kind of our pride and joy of what we’ve built so far. We’re really just happy to bring it to a community that we’ve been a part of for all these years.”
The newest Fargo club will offer a wide variety of cardio and strength-training equipment. It will also have a large Black Card Spa, with massage chairs, hydromassage beds and loungers, tanning rooms, red light therapy, and a “wellness pod.”
Baseline Fitness opened its first Planet Fitness in 2009 in what had been the Royal Fork Buffet at 4325 13th Ave. S. About a year ago, that gym moved to a much-larger space at 5100 14th Ave. S., Fargo. The Moorhead gym is at 800 Holiday Drive, near the intersection of Interstate 94 and Eighth Street South.
Anna Paige / The Forum
The Forum sat down with Majkrzak to talk with him about his personal journey in business and as head of Baseline Fitness at the company’s south Fargo headquarters on Tuesday, Dec. 3.
Q: Where did you grow up?
A: I am from here. I was born in Fargo and grew up in West Fargo. I went to high school at West Fargo High School. I went to NDSU back in the late 90s and early 2000s – played basketball there. So, definitely ingrained, embedded in the community, which is great. I had a little stint out in California for a few years in the mid-2000s. We live in Horace now. The kids go to Horace High School, and we love it here.
Anna Paige / The Forum
Q: Is Planet Fitness your first franchise?
A: No, my first franchise was actually doing the Pancheros (Mexican Grill) with my brother (Steve Majkrzak). We had just gotten into that in 2007. However, at the time, I was in real estate and construction and development. So, the reason we got into franchising … my vision originally was we’d get into the real estate side and then we’d find operating concepts that we could fit into our real estate. So, Pancheros was first.
(Majkrzak said he is also a silent partner with his brother on Fargo McAlister’s Deli franchise, and they are adding a third franchise.)
“We, also with Steve and another partner, have gotten into the Crisp & Green brand out of Minneapolis.”
Anna Paige / The Forum
Q: Are you seeing a lot of demand for a place like Planet Fitness?
A: “We are. I think in general, there’s a big demand right now for health and wellness, and I think you can get it in multiple places. There’s a lot of great concepts. We fill a void in the market, I think, for kind of anybody and everybody. Our goal is to provide a workout environment for anyone to come into and get a workout, whether entry level or if they’ve been into fitness for a long time. We just want to make sure it’s a comfortable atmosphere that’s clean and enjoyable for all.”
Anna Paige / The Forum
Q: Fitness has been a lifelong passion for you, yes?
A: Sports for me has been a lifelong passion. So, as a byproduct of sports, fitness comes with that.
I found in the business world that doing deals is the closest thing to competitive sports that you can get to. I don’t think you can duplicate it. It brings the juices out from a competitive standpoint for me to be involved in business, but then also, just to continue to try and do my best at being active and having a good health and wellness balance.
Q: What has been the key to Baseline Fitness’s growth?
A: I think it’s a great concept. The idea to provide fitness at a high value and a low price point is fantastic. I’ve always loved the model from Day 1. Secondly, for us, to be able to grow as a company as we have – it’s great people. We’ve just got incredible people on our team. … In order to grow like we have, in addition to the support of our financial partners, and private equity partners, you really need good people. And we’ve got an amazing team that we’ve built over the years.”
Q: What is your business philosophy?
A: To surround myself with people that have like-minded ethics and values. I think there is nothing more important. I also think that with that, you need to have a competitive drive and mindset. And you have to be willing to fail fast.
Anna Paige / The Forum
Q: What do you mean by fail fast?
A: There are many, many times where you’re going to hit a road where something doesn’t work that you try, and rather than bang your head on the door over and over again trying to make it work, you need to recognize that it didn’t and move on to the next thing.
I’ve failed at many things and have had many bad ideas. And I think I’ve learned a while ago that if it wasn’t going to work, you need to move on to other things. … You can’t run through a brick wall.
Q: What has been the key to expanding Planet Fitness? Private equity?
A: Private equity gives us the ability to grow and expand. But I think more importantly, you have to have a clear and concise vision on how you are going to grow.
Anna Paige / The Forum
For us, we identified our growth strategy a while ago.
You have to align with your partners and you have to align with your team. … We’ve really done it through a combination of organic growth and acquisition growth. (Baseline Fitness acquired 40 of Planet Fitness outlets by buying out eight other franchisees. They’ve also built 61 gyms.)
We kind of like that mix. As we continue to grow and expand … our growth will consist of a mix of acquisitions and organic growth. … We’re definitely one of the largest (franchise groups).
Q: What are key lessons you’ve learned along the way?
A: You need to surround yourself with good people who allow you to get to size and scale. And you have to be willing to invest in those people.
And probably above all else for me, when it comes to the team, you need to recognize what you don’t do well. I surround myself with people who do it better than me. … I think that’s the biggest key: get good people around you, who do things better than you do.
