Established in 2010, Grand Fitness has grown to be among the top 10% of franchisees in the Planet Fitness system. The organization operates over 80 athletic facilities across New Jersey, Pennsylvania, Virginia, Florida, and California.

Grand Fitness has used the Oliver L.E. Soden Agency for risk management and insurance across its fitness facilities for the duration of the organization’s existence. The company’s corporate controller, Ira Warhaftig worked with the Soden Agency on various personal and professional initiatives since 2005. So when Ira joined Grand Fitness when it was founded in 2010, he brought the Soden Agency along with him.

“The main thing that has kept me with the Soden Agency is that I’m not a number in their book. Whenever I call, they know exactly who I am and what my business is. The same goes for other members of my team,” Ira said.

The Partnership: Sparking an Athletic Facility Insurance Relationship

What initiated Ira’s relationship with the Soden Agency was a chance meeting between him and Hal Soden, Jr., Principle at the Soden Agency. The pair met while serving on the board of directors for a community revitalization coalition.

Warhaftig first started working with the Soden Agency for personal insurance needs, and he was impressed with the proactive approach to customer service he received.

The relationship progressed to business insurance when Warhaftig, who worked as a controller at a marketing firm, was not happy with the company’s broker.

“We had a broker who would renew each year and move on. The broker was only reactive, and they would only contact us when it was time to renew our policies,” Ira said.

That’s when he introduced the Soden Agency to his team and eventually switched to the Soden Agency.

“The Soden Agency looked at all of our insurances and found us better policies at a cheaper price.”

The Solution: Ensuring Fitness Franchise Scalability through Proactive Risk Management

Ira eventually joined Grand Fitness as the corporate controller in 2010, and the new athletic facility franchise needed a risk management partner that could grow with the business and provide proactive solutions while saving both long-term and short-term costs for the company.

Ira suggested the Soden Agency provide risk management services for the athletic facility franchise after receiving top-notch service and risk management solutions in his previous role.

“Our first Planet Fitness location was in Florida. Hal and other people at the agency got their license in Florida because that is where our first location was. Then wherever we went, he made sure he was able to do business in that state and got licenses ahead of time.”

However, Ira’s team was most impressed with the Soden Agency’s genuine approach to managing risks while avoiding unnecessary costs for clients.

“When the price on one of my policies went up a little bit, the team jumped in quickly and offered to find another insurer for that policy. They found one offering the same coverage at a lower price,” Ira said.

Example: Risk Management and Tailored Insurance for Athletic Facilities

Over the years, the Soden Agency has provided tailored insurance policies that address the unique requirements of a large fitness franchise.

The athletic franchise’s tailored insurance policies include:

• Risk management through prevention
• Wind insurance
• Earthquake insurance
• Flood insurance
• Liability coverage
• Workers compensation
• Auto insurance
• Property insurance
• Business income coverage
• Improvements and betterment coverage
• Employment practices liability
• Common exclusions from other policies

The Results: A Long-Term Risk Management Relationship Built on Trust

The partnership between Grand Fitness and the Oliver L.E. Soden Agency exemplifies the value of a long-term, trust-based relationship.

Ira said liability insurance is one of the most important types of coverage Grand Fitness has, but the organization treats that as a last resort for the unthinkable. The Soden Agency works with Ira’s team to manage their risks and prevent liability claims before they happen.

“The roof leaked at one of our locations and nobody noticed it was leaking before it led to a larger problem. After that occurrence, the Soden Agency recommended a company that could put sensors all around the building that indicate the presence of moisture and alert staff before it becomes a huge $1 million problem. For a few hundred dollars a year, we avoid those expensive problems with sensors that were installed by a professional company. We’re also saving on insurance premiums by having the sensors installed,” Ira said.

When claims or risks arise, Ira emphasized the relief he feels when contacting the Soden Agency to address them. Ira said the Soden Agency handles all related paperwork and calls to reach the best outcome for Grand Fitness.

“Instead of calling the insurance company, I call the Soden Agency and they help me with everything I need to know and do. I can just quickly send an email or make a phone call, and everything is cool.”

Moving forward, Grand Fitness plans to continue using the Soden Agency for risk management as the athletic facility franchise continues to grow. Ira said the Soden Agency is constantly looking at industry trends and region-specific occurrences that affect the types and amount of coverage Grand Fitness has.

“If the Soden Agency finds out about different insurances that can potentially help us, I’m always willing to listen because I know they have our best interests at heart,” Ira said.