IFA Fitness Members Meet with Congressional Leaders on the GYMS Act

On December 8th, IFA’s Michael Layman and Haider Murtaza organized U.S. Senate meetings for IFA members to discuss topline issues affecting the fitness industry. IFA Members included Chuck Runyon, CEO and Co-Founder of Self Esteem Brands, and Katie Muehlenkamp, franchise owner of the Bar Method in Brooklyn, NY. IFA members were also joined by industry partners, Liz Clark, President and CEO of The Global Health & Fitness Association (IHRSA), Brett Ewer, Head of Government Relations of Crossfit, and Patrick Connolly of Velocity Public Affairs.

The group met with Sens. Mike Braun (R-IL), James Inhofe (R-OK), Susan Collins (R-ME), Amy Klobuchar (D-MN), Tim Scott (R-SC), Cindy Hyde Smith (R-MS), Dan Sullivan (R-AK), Bill Cassidy (R-LA), and Marsha Blackburn (R-TN).

Pictured left to right: Liz Clark, President and CEO of IHRSA, Sen. Susan Collins (R-ME), Katie Muehlenkamp, Bar Method franchise owner, and Chuck Runyon, CEO of Self Esteem Brands.

In particular, the group discussed the potential of a new relief package for the fitness industry. A survey conducted in July of this year showed that federal relief programs like the Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL) have not provided small gyms and fitness facilities with the necessary funds to combat the effects of the pandemic. According to the survey, existing federal relief programs have failed to help 63 percent of gym owners. Four in five gym owners (80 percent) say they are still struggling with the long-term financial impact from the COVID-19 pandemic. The nationwide survey also revealed that three-quarters of gym owners (75 percent) say their revenue and active members have fallen since before the pandemic and that two-thirds of gyms (64 percent) have been forced to go into additional debt, with an average of $75,000 in new debt for those gyms.

Most gyms derive a significant portion of their revenue from Q1 membership drives and the resurgence of COVID in the winter months has caused a sustained economic impact on gyms. The lack of federal government aid designed for the gym franchise business model has left gym owners without viable sources of capital to keep their doors open. At the end of Q2 of 2021, 1.4 million jobs in the industry have already been lost with a permanent closure rate of 22%. The industry comprises roughly 40,000 facilities, of which 80 percent are small businesses.

Fortunately, Sens. Tammy Duckworth (D-IL) and Jerry Moran (R-KS) introduced bipartisan legislation in the U.S. Senate, S.1613, the Gym Mitigation and Survival Act (GYMS Act), that would provide assistance to small and midsize fitness facilities across the country which are struggling to recover from state-ordered closures due to the COVID-19 pandemic. The legislation currently has 28 cosponsors and a companion legislation has been introduced in the U.S. House by Reps. Brian Fitzpatrick (R-PA) and Mike Quigley (D-IL) with 159 cosponsors.

IFA will continue to work with our fitness industry partners to ensure Congress provides additional federal relief for gyms and fitness facilities.