Episode #572: Building Hone Fitness-Jim Solomon's Urban Strategy and Lessons from Toronto's Fitness Scene

0:01 This is Pete Moore on Halo Talks. Your captain speaking. I am the founder and managing partner at Integrity Square and your host of Halo talks. 600 interviews and going. We've been around now for 15 and 1/2 years. We have been helping people like yourselves get capital, do mergers and acquisitions, consulting, strategic advice in the health, active lifestyle and outdoor helo sector. Now trying to help as many entrepreneurs as possible get to the next level, take that inflection point and be the force behind your growth. We are helping companies that have at. Least $3 million of EBITDA, around $10 million of revenue and we are positioned to help you get institutional growth capital or to negotiate deals with strategic partners. If you go to integritysq.com isq integritysq.com isq you can see our capabilities. Deck. Happy to set up a consultation at any time that is free of charge and we look forward to you helping solve obesity, loneliness and diabetes. And go Halo.

1:17 This is Pete Moore on Halo Talks nyc. I have the pleasure of being on location in Toronto outside of Isabella. We are here with Jim Solomon, founder of Hone Fitness and a good friend of Pete Moore and integrity square for 20 years. Jim, welcome to the show. Great to be with you, Pete. Awesome. So you've. You and I met back in the day when you were CEO of Crunch, correct? 98, I think. I think I was a member because I was friends with Roger. Roger, yeah, Roger was head of operations. He was my camp counselor back at Camp Wakanda. And then I joined the gym on 13th street around the corner from the Zeckendorf Towers. The real narrow and high vertical and like three, four floors and vertical. I think they were processing payroll out of there as well at the time. I think that's the. Then we moved to Union Square and all the offices and then you were a Converse. So you've been a brand guy for a while. I had been head of sales and marketing at Converse and had been in the athletic shoe business prior to coming in to run Crunch. Yeah, yeah. So as they say, once you get into the health club industry you never get out. So thanks for being another forward indicator of life works. I took a three year sabbatical in the motorcycle auction business in San Diego. But otherwise 98 to now, all but three years in the fitness business now. Yeah, I'm going on 26 years and four months.

2:49 The same. Yeah. You have seen a lot of different iterations of, of getting people healthy. You were more junior when you started. Yeah, I'm older than you. Yeah, well, I started as a senior Associate at Gold's. Right. And then, and then walked my way through the rest of the brands in the industry. Unfortunately I'm part of like the cause of a lot of Gold's Gym rebrandings. But if you got to make a living, you know, make a living somewhere. Got to, it's, that's a career. That's a career. So you and I, you know, met back when you were at Crunch. Obviously that deal successfully got done with you with Bally. Yep. Then I was able to be helpful in getting that back out of Bally with my friends at Angelo Gordon.

3:29 Yep. And you had moved on to work with Falcon Head, which for our listeners here was basically one of the first like Halo or health and sports funds. So talk about how that you and I were talking about them because that was run by a guy named David Morras who I had met. You know how small the financial world really is in New York is the owner of Crunch. Martin Franklin knew David just through families and being European and whatever. And when we put Crunch up, I, we were talking originally to Club Met and we were very far along with Club Med. I had gone to Paris and met with them. It was very far along. And then there was a crash. They crashed. Their Japanese business crashed and the stock tanked and they went out at the 11th hour. And Martin was the one who kind of generated the interest from Lee Hillman. Do you remember that, Hank? Yep. And Lee was doggedly loving it. And we did it quickly right prior to 9 11. That was like it closed right after 911 and Bally's took over. So that's the connection. But then to get to your thing, David at Falconhead was a sports IMG related

5:03 going after that kind of stuff, which was Crunch and looked at it. And then after we sold it to Bally's, I stayed in touch and then I went with Falcon Head out of the business for a while. So. So a little known history lesson for some of the people here is that David Morose used to have a, a fund. It was called Chase Capital Partners. Correct. And that was under Chase and Chemical Bank. Correct, Correct. And then kind of spun off to start Falcon Head. That's right. And a buddy who used to be in my business school class, Brian Crosby. I, I work with Brian. We never shared that. Yeah, it was one of my section mates back at Harvard Business School back in the day. So when I had started Integrity Square, I was looking to try and solidify myself with some, some deals. So I'm like, hey, you know, let me see if we can be helpful on Extreme. And I knew you. Yeah. To Crunch and that's kind of. Yeah. Things kind of evolved. Brian's a good guy and with, well, what's his name? That famous financier for a while before Falcon had Carl Icon. Carl Icon Associates. Yeah. I met that guy one time which was. Yeah, Brian's a good classic. Classic. Meeting with a hedge fund operator. Yes. So, you know, as, as you kind of looked at Crunch originally back in the day, you know, we're selling memberships. But you're also creating a brand. Yeah. You know, when you moved up here and did the deal with Extreme. Yeah. Xtreme was a very well known brand in the downtown, the Toronto DTA

6:35 as they call it. Right. So talk about the growth there and talk about your site selection back in the day. Yeah, yeah. So I had learned a lot about the city of New York, which is where we made a lot of money at Crunch. Right. We also had a gym in Chicago under the Hard Rock Cafe. We had San Francisco Tenderloin. You know, we were mostly urban. That's where I kind of got my feet wet on urban gyms. Extreme, when we bought it was only 4 Pete and they were suburban, more or less. And that's. I had this comfort level with the. City, which a lot of people don't have. No, it's tricky. It's a puzzle. These cities are puzzles. Right. But again, weaving it to you is Bally's had some gems here and they were about to go bankrupt at approached the CFO of Bally's and we bought 8, 6, 7 Bally's, a couple in the city. And that's got me going quicker. You know, it's much easier to buy than to go Greenfield. And that sped us up because these guys, these PE guys, they want to, you know, grow and sell.

7:52 Yeah, you mean, you mean they don't want to just wait for you to like negotiate with landlords over multiple years. To try to get a little bit that, that, that, that accelerated as well. And then that got me a little flavor. And then I added two green fields. Think about it. I was there six years. I only got two in the city open in six years. But linking it all together, I became a good aficionado of the city of Toronto, like New York. I tried to do a lot of things I had learned at Crunch and we then had 13 when we sold. You helped us sell it to Good life. City and suburbs. Right. A nice mix. Nice mix. I went to a management meeting with a company that I won't name and dad, their head of real estate, stand up in front of this private equity fund. And the guy said, we can select clubs just based on the software. Our software is so good on site selection that we can just basically look at that. We don't even have to visit the site. We know how good it is. And I went up to the guy afterwards because he was somewhat of a friend of mine. I said, don't ever say that again because this shit is way more complicated.

9:06 You're just looking at. Don't say that to an operator. Yeah, don't say it to an operator. You say it to a private equity guy who wants to lose money. Yeah, yeah. On the new site. And then they built a couple sites in Dallas that had great traffic because it looked like it was on high race highlight, but there's no exit. And it was an actual methadone clinic. So when you look at sites and you look at what you've curated here with honed and the pockets and the puzzles, I love this idea. I'm going to call it that. It's a puzzle. How much time does it. How much knowledge do you have? How much time do you spend walking the neighborhood, understanding what's going on? Just what you said to your buddy, you've got to live it, really literally live it. And you got to walk. And you gotta maybe have friends over the years. Like I have a girlfriend who lives right near one of the gyms I chose. I mean, these are neighborhoods you and I talked about. This is a neighborhood city here. Right? So, you know, we're in the gay village with the first one. We're in Koreatown, we're in Chinatown. We're in the Italian section of one of the gyms. We're in the Greek section on another gym. You gotta do this by neighborh. And then once you decide on the neighborhood, you gotta do some of the things that are logical with the subway system, signage, space. But you have to own a neighborhood when you're in a city like Toronto. Yeah. And then when you take a look

10:38 at a lot of companies that do big box rollouts or say, like, hey, my club needs to look a certain way and I need to get exact number square feet. I think back in the day with Crunch, I kind of learned as looking around and attending the clubs like, dude, these things may be all different shapes and sizes. And if you want to get into a neighborhood, you have to conform to what's available in that neighborhood. So talk about how you kind of lens that. That's an important point. Over the years I'd walked New York and I saw the planet two, three planets in New York City and they didn't look anything like a planet in Westchester County.

11:20 And it's impossible. It's impossible. Also with the rents you need, you gotta get a good rent. So immediately you're talking about needing basement space in a city like New York or Toronto. And then you don't want too much basement, you still need some sun. Right. So now you're combining the basement with some open area sun and everything's back to the word a puzzle. There are no two buildings alike in New York City or Toronto. There's no model other than I would say the driving models. The neighborhood and the rent. Yeah, right. The neighborhood and the rent.

12:00 So when you to put your hat on of like, hey, I'm a CEO and founder and I'm working for a private equity fund. And you go to that private equity fund and say, hey, I'm going to bring you opportunities. None of these opportunities are going to look the same and you're going to have to be comfortable or get comfortable. That what we just talked about about neighborhood box traffic flows, density, where things are going, what might be coming. In a gentrifying neighborhood, you gotta get comfortable with being uncomfortable. Yeah, I was really lucky, Pete, because my group Cornwall is very small and they're hedge fund too.

12:40 So these guys are used to risk and maybe not modeling an opportunity. And I'll say it, part two is my first one worked right. So that's always a good thing. Yeah, I have a feeling they would have, they would have closed the tents if I hadn't done well. So the first one, which you've seen was a big hit and it was really close to good lifes. Right. So they gained confidence that I was stealing share, doing well and I think I got them comfortable. That model is only, you know, brand space rent. Yeah, yeah. When you take a look at Bailey back, you know, 20 years ago, really like rewind the clocks. A lot of the Gold's gym operators I used to work with would say like, I'm going as close as I can to Bailey because I know that they're a publicly traded company. Right. They unfortunately have too much debt. Not, not the fault of any of the management team at the time. Yeah, they got too much debt, they got too much income deferred capex, they got too high interest payments and they just physically and financially cannot reinvest in the clubs. Just can't do it.

13:53 So they were like a target for knowing that the members Were not getting taken care of. When you take a look at a city like Toronto and you say, hey, I'm gonna go across the street from a good life or somebody who's legacy operator with a new product, you're definitely gonna take some share from them. But you're also saying like I'm betting on the neighborhood. I'm not betting on just like a. Percentage of their members completely. Right. First of all, here, good life is not ballets. Right. He's pretty well financed, he's got a nice brand, he's pretty strong. So within the comment of the neighborhood, it is a $3.2 million million dollar million people city. It's the fourth largest city in North America.

14:41 Yeah. It's huge and it's dense and it's young. It's young. So you can get that neighborhood. But I've learned you don't want to be too. You don't want to share too much. So you know, you need 1, 2k in the city away from a good life to maximize your business. You don't want to be a half a k away and share. Yeah. So you started the Hone brand. Maybe just give some background on where that name came from and then you know how you kind of grown it and you and I just went through the city because I'm up here watching some sports games. Yeah, yeah. Time to tour the locations. Yeah.

15:23 You seem to have like, you seem to have it pretty well kind of surrounded. Yeah, yeah. I had the benefit of back to the extreme experience. Right. So I knew which good extremes we had when we sold the good life. So again, what neighborhoods are good? Right. And. Well, let's take a step back. Hone was to focus, you know, Hone in focus. Yeah. So that's just something I came up with. And I like short, simple names. So. But now back to the driving force is there are neighborhoods here that are better than others. They're younger, there's less high rise. I don't like a lot of high rise because these guys have put better and better gyms in their high rise.

16:16 So I like these neighborhoods that are low high rise, that don't have gyms or homes. And I like busy streets, just like 101 retail. But then you gotta get the rent. Right. So now you're back to the basement and all this other stuff. But I had the roadmap from extreme. So I immediately looked at subway lines. Very important. Young and Bloor have the two big subway lines. So you're gonna do well if you're there. Not Too close to a good life. And then get the rent right, and then you choose a neighborhood, for instance, you haven't seen it, but I'm east in the Danforth, which is essentially the Bloor subway line, the Greek area, the Greek neighborhood. There is a good life there, but it was my second best extreme. That good life is the one I sold them. So I was going to that neighborhood as part of this gotcha. And I knew it was would be good. I knew it would be good. This is Pete Moore. I want to let you in on a little secret. There's this company called Promotion Vault. And what they do is they give. Out rewards from retailers that allow you to incentivize your members without having to do zero down and one month free or giving away shakes or giving away T shirts. What you want to do is build a rewards program that lasts, that people value

17:46 and that doesn't discount your own products and services. So here's the deal. There's something called Rewards Vault. The Rewards Vault is going to allow a member to set up their own profile. They are going to answer questions, you are going to get those answers. You're going to be able to target those members, and you're going to reward them inside your club, inside your spa, and outside of the club and outside of the spa to get them to become loyal, to get them to pay their monthly dues and to be rewarded properly for the actions. A lot of companies are cutting back on rewards. You shouldn't be. Promotion Vault, your answer? Trust me, this is real.

18:27 We are back with my good friend Jim Solomon, and we are talking everything related to the puzzle of Toronto, which is growing dense and very young. So, Jim, talk about the team that you put together here, because I met some of the people at the front desk and some of your operators and seemed like you. Sometimes you say, oh, I got lucky with getting a good team. And it's like you realize it's not luck. No, it isn't. But, you know, we talked about it. Toronto, I would think is one is not only big, but it's growing faster than Chicago. I see a lot of cranes here. That's usually exactly a lot of construction. A lot. It's always. It's tightened a bit on immigration with the what's happening in the world. But I think it was growing at a 10% clip every year. And a lot of these people are young, educated. They get in because they're educated, looking for opportunity. And I was able to capitalize on that. This all goes back 11 years where I Opened that first one you saw, which is sort of the 50 yard line of Toronto, young and Bloor. And there's a language school right near me. And all these young kids from a lot of them from South America, Venezuela actually just come into town, college educated, looking for work, looking to make a life here. After language school, were working out at my gym, you know, 20 somethings. And I

19:59 just got to talking to them, friendly. And then a couple of them seemed bright. Start at the front desk, then I'd open a second gym. I'd move that front desk guy to the. And now I'm probably, well, I'm 100% young immigrants not born here, they're from Vietnam, they're from Venezuela. The young lady you saw is from Colombia. They're all here to make a living and live a life that they weren't able to get where they're from. And like I said, I think I'm 70, 80%, at least almost 100 on management and front desks. Maybe some of the trainers are indigenous here.

20:50 And these kids, and I say kids because they're the age of my son Matthew, work like hell. They want to become general managers, they want to make money. They, some of them are open to training people outside of their front desk hours. Some of the front desk kids, the managers sometimes train people. I try to get them, you know, work because they want to work and they're industrious and I find them to be fantastic employees. And then, you know, from a standpoint of getting around the city and moving, you know, employees or members using the different clubs, how does that kind of play out here? Well, it's just like crunch. I think 20, 30% of the crunch people did the all access. 10 or 12 New York gyms, we have about the same, maybe 30% buy a membership where they can take a friend and use all six. It's very easy to get around because I'm on the subway lines here. The subway's by far the most efficient. But I'm also, if I'm not on the subway, subway Pete, I'm on a streetcar street and I do the free guests. So there's a lot of back and forth to the six gyms.

22:13 When you kind of look at your business model, I think if someone wants to say, what's the home business model? I say it's based on simplicity. It's based on, you know, not trying to like put any additional fees or fine print in there. You've done that purposely? I have. You've done bi weekly billing, which you Know, a lot of people in the US Are starting to do now. Yeah. You know, get some higher revenue per year, per member. Yeah. But just give us a little background on your pricing strategy, the reason why you're at no fees. Right. And how when you have no fees and you're not adding processing fees and you're not adding cancellation fees and things like that, how it might not necessarily impact your bottom line with like negative fee options. But at the same time, it's also, you might be able to hire better people. You might have less conflict at the front desk. Like, how does it, like, help the business? Yeah, I think it's important. I like it simple. I've always liked it simple at crunch extreme and now hone. I just think it's easier to sell. I had one membership for a number of years. Then I added the option of joining for committing for a year.

23:31 I never had that. Even that. I just had quit anytime. And you get all six clubs, you get a free guest. Here's my price. That simple. Then I think I'm still simple. But I added maybe five years ago, commit for a year and save some money. And that was a retention device, to be honest with you. And then a couple years ago, we had a lot of people coming back from the pandemic, and I was price sensitive because I'm a value guy, Pete. But I'm above Planet Fitness type of pricing. Right.

24:15 And I was a little sensitive. So I introduced a one club, no guest. Okay. So I have three options. It's really the same membership. Two memberships, either a guest or not a guest. Right. And then one is a year commitment. So we keep it simple there. I want it to be simple to understand, as you said, simple to explain. Simple. On the website, I sell a ton of people because my customers are so young. They're very comfortable clicking and joining. I think I'm at 80, 90% join online now. That's huge.

24:57 Huge. Still, that credit card and ach, how's it work up in Canada with ACH. Right here, it's a little more complicated. With the banks on ach, you can sign them up, but you can't at headquarters tap it or do it. You cannot get that money unless they come to the gym. If they owe you money, it has to be done at the gym, at credit card, you, you know, you can tap it a little later. They're saying at the beginning of each month they have to authorize. Oh, no, no, no, no. You can do the payroll. We use Twin Oaks. You can do that. But if it declines. You have a much more complication here. You cannot, you know, the consumer has to take the lead on that if it declines.

25:41 So when you started the business up here, post extreme with all this knowledge, if I was to take Honed and put it in New York, this would basically be like the equivalent between like a blink meets a crunch. Would that be the. Yeah, I think. Exactly. I think if it's anything, it's Blink Manhattan. Right. Where they're doing something a little different blink in Manhattan than they do in Queens or the Bronx. Right. A little more expensive. Right. So I'm pretty close to. Well, my spaces are a lot like Crunch, you know, the wood. Wood and beam and the cool areas, Brick and beam. But my offering is a lot like Blink Manhattan. Yeah. Yeah. And if you take, you know, Blink obviously went through some. Some hard times, mostly just related to debt. Yeah. They had on the balance sheet, and then they sold it to Pure Gym, which is coming into the US Market, and they're coming in pretty aggressively. You know, the one thing that's interesting about the model that you set up originally was there's no. There's no group X going on in there now. There's no. There's no kids club. Space is too precious. And it's also. But, like, down, like, 10 years ago, you kind of like, put this model in the ground, and now, like, the market's come, like, kind of come on. I think. I think it has. Well, back to what you said. You saw that one.

27:05 I knew Planet. I knew from a marketing standpoint, I didn't want to be planet. Right. How am I going to sell? I can't be planet. Right. So when I did that first gym, I think I was ahead of the time. I think I got eight squat racks in there. I had two areas of AstroTurf with the sleds and the ropes. And so I was going for the workout person, not the beginner, so to speak, where they, you know, 11 years ago, they were advertising. You know, we're for people that never belong to a gym. Right. Never have joined a gym. I went, okay, they'll own that. I'll go get. I'll go after good life people who use the gym, and I'll be half their price. You know, 11 years ago. And so I think I was early on the whole squat rack, dumbbells. It is strength, very strength. Heavy, which is where the market is today. Especially with. Yes. Kids are not, like, jonesing to get into, like, a Zumba class or Drupek's class. I haven't seen that. Nor are they dropping their kids off at the club. I mean the fact that they had kids care for so long in the health club industry is a little bit ridiculous when you think about, well, they're not going into like a time. There are no kids in the city. I was in a club chain the other day, I'm not going to name who it was, but they, I'm like, what are you doing with this 3,000 square feet? They're like, oh, it's kids club. How many, how many kids you got in here? Like, like, well there's like

28:35 33 kids that pay like 3, $5 a month. That's it. It's like 1% of like your demographic. They're the kids. Was easy to not do. But I'll tell you, I, you, you know the one you saw, there's a yoga studio across the street, right? There's seven Pilates studios within a half a K of me. You know, I'm not going to outdo that, right? You want authority on something if you're going to be the, if you're going to open up a standalone business. So I got the strength for a great price. Yeah, yeah, yeah. You know if somebody said to you, yeah, I'm going to drop ship you into like the equivalent of like a new Toronto. Yeah. And he has like 12 million US go get me six locations like that with these rents. Be fun. Yeah, it'll be fun. But how long would it take you. To like, oh my gosh, I'm telling what the landlords, you know, even in a place like Toronto, a lot of them want demolition clauses. I wasn't going to do that.

29:34 Right? I mean not doing, I'm not doing huge money, but I'm doing enough money. I'm just going to let these guys have a demo. So it takes a lot longer to get a landlord who won't do a demo clause. Right? Just for our listeners, let's just pause and give them like what a landlord is doing is one, they're going to give you some money for tenant improvement dollars. Correct. And they're also going to try to basically manage their opportunity by saying, hey look, I'll give you this money, I'll give you a 10 year lease. But if I get approved to put up 500 apartments here, I need a demolition clause that if I knock this place down, you gotta leave. Right? And maybe I'll compensate you something or maybe I'll compensate you nothing. Right. But I put the money in too and now they're demoing It, So I'm not gonna sign that. Right. So, so for all you, all you health club operators out there that are listening to this podcast, hopefully one you're understanding that real estate is a puzzle and you gotta invest the time and effort into figuring out where you wanna be long term. Right. But the second thing is like these lease agreements are extremely important because either an asset or liability. Correct. That's it.

30:43 It's a big time asset. One other thing, weaving back earlier neighborhoods in Toronto, those are individual landlords, they're not doing a lot of tips. So now I gotta do the ti. Definitely no demo clause, but also takes a long time. This is not a big time strip mall where they got, you know, we'll give you 30 bucks a square foot, etc. There's no real estate investment groups out here. These are individual guys that own a few buildings in the neighborhood. They're not gonna spend. I got no, got no TI on the first, first one.

31:23 This is Pete Moore. Here's the last tip for you of the podcast. We are partnered up with a company called higher dose. Higherdose.com they are the leader in workout recovery products, infrared technology, LED light masks, neck enhancers, and other products such as PEMF mats and sauna blankets. If you have not gotten on the workout recovery train yet, your time and your stop is now. You got to get these products in there before these workout recovery and spas end up saturating your market. Having your members walk out of the club and going into one of their locations for 200 bucks per month where they're paying 39 to you. Let's become an expert in workout recovery. If we are already an authority in workouts, Higher Dose, check it out. There's a wholesale code and we look.

32:18 Forward to helping you augment your products. And services to meet the demands of your members. And hey, let's get people happy, healthy and sweating. And the recovery should be just as good as the workout. So, you know, as you think about going into other markets around here, obviously the urban slant to what you're doing is really what hone's good at. That's what we're good at. Finding these new neighborhoods and then continuing down that path. Is there anything else? Like, are you looking at personal training is something that you maybe want to spend some more time thinking about? Yeah, that I think is a great opportunity being an individual operator. Jim Solomon. I think with six gyms, it's been a challenge for me in the pt. Right. I think if you're a bigger group and you have a big legion of people and you got processes and you got people back at extreme, we had a real process with a lot of people doing the thing. It takes a big investment, takes some upfront money. I just wasn't willing to do that. Back to your simplicity, I didn't do separate people selling training or anything because I didn't want to add a lot of expense. The one thing is that in Toronto. You know, if we roll back to. Extreme, there's a significant

33:50 amount of revenue, like 30, 40%, 30% of the business. And I think we did 80 mil. So that's a $25 million PT divided. By, you know, that's almost like, you know, it could be like 70, 80 grand per month per club. Yeah. You make 40 margin. 30, 40, 35 margin on 25 million bucks. That's a lot of money for a wall. So ideally, if you wanted to put that lever on and try that out again, that could be something at home. Big opportunity. I just have Learned over the 11 years, I'm personally keeping it simple because you gotta really be devoted personal training to get that kind of business. And what's going on in the, in the Toronto market before we close here on corporations, like, obviously there's people working from home, which from the neighborhood club. Probably benefits you because living clubs are good. You're living. I like touring clubs now.

34:47 The best part of my job is when I'm going around and I'm touring clubs, either whether I'm on, on assignment or whether I'm just going around, the clubs are usually full pretty much at all times. At least there's some people there. But people show up at 5, like at 2 o' clock in the afternoon, there's like 100 people. These people unemployed. I'm like, no, dude, they're just taking a work. They're taking it. But if you take a look at like the corporate market. Yeah. In Toronto, like, obviously there's a lot of guys that haven't returned to work. I think, yes, Ontario as a pension funds and like groups that are, that. Have backing for the government or saying they're coming back. Just like New York, they're coming back. Those businesses, those gyms that are near, in commercial areas have not come back as well as the living locations. But they are coming back.

35:38 They are coming back, but not to the extent I have one that's a little more commercial. It has not come back as well as the other five. Yeah, right, gotcha. Yeah. And then from a standpoint of, you know, living in the city, you Know one. You know, the subway seems to be key and I haven't been down there yet, but it seems like that's clean. Good subway. There's two lines. Right now they're building a third. Big. A big change to the city there. The one I mentioned to you, east west is Bloor Street. That's the street East West. Big subway line, used a lot. So if you're on Bloor as an operator, you have a good chance. If you can get the right rent and the right stuff, you're gonna do well because a lot of people are getting on that to the big vertical north south one called Yonge street, sort of like Broadway in our. Yeah.

36:35 And. And so they're connecting. One of the gyms is really close to that t there, the one we're near right now, and that's Yonge Street. And again, you're good if you get the right deal on one of those two lines, the young spokes, north, south also. And that's good. I have a gym off that subway line. And then Eglinton is a street up north of Bloor. And there's a. A new subway line being built east west, like the Bloor one. And that's supposed to be done in the next year or two. It's delayed.

37:17 But that will change the city because now Eglinton will become like Bloor, right? Yeah. That's where the growth. Yeah. Next phase, growth comes in. All right, man. Well, it's great to catch up with you. Thanks for the club tour yesterday. Pleasure. Good seeing you up here. Gotta work out in at one of them, so. Good. I did some peck flies and caught a Ranger game. Loss against the. Against the Maple Leafs. But it was good to see be in Toronto for Maple Leaf and Blue Jay win on the same night. Very good. Good to see you. Good to see you. Keep going, Halo, brother. Thanks. Let's see.