Editor’s note: When this article originally ran in ATN’s Fitness & Wellness Franchise Outlook Report, Sarah Luna served as Xponential Fitness president. She has since left the company

Xponential Fitness didn’t grow to become the largest global franchisor of boutique fitness and wellness brands, encapsulating over 3,000 locations, on a whim. Instead, the brand implements a detailed approach to franchising, simultaneously providing partners with the necessary guidance for success and adequate freedom to operate effectively in their specific markets.

“For us, it’s really about doing what we do well in each of the brands and the locations, owning that modality, and being the best within that particular market,” said Sarah Luna, the former president of Xponential Fitness. “There’s a ton of work, a ton of thought, that goes into it.”

While it may not be shocking to hear that one of the health and wellness industry’s largest brands invests significant time and energy into its franchising strategy, the broad nature of those efforts is rather singular. 

From using cutting-edge software to developing close connections with franchisees, Xponential covers all corners of the franchising game with its Club Pilates, CycleBar, StretchLab, BFT, Pure Barre, Rumble Boxing, YogaSix, and Lindora locations.

Foundations for Franchising 

Xponential does its homework before adding a new location to its network, or rather, it deploys tools that do it. With Buxton, a consumer technology software system, Xponential can determine whether a potential new location will succeed or not before putting pen to paper. 

“We run all of the data through Buxton and we do that in advance of purchasing a company and adding it to our portfolio,” Luna explained. “We want to know everything about the customers and the members that make that location successful. Next, we extrapolate that across the entire U.S. to understand how many other pockets of lookalike customers there are available and then what type of AUVs that produces for a franchisee.”

Xponential takes that data and determines what type of margin it will provide for franchisees and whether or not it’s scalable in certain locations. This all helps Xponential make informed investments and monitor them for years to come as well. 

“It’s that groundwork, even prior to jumping into a brand,” said Luna. “Then, once we have a brand underneath our roof, we’re constantly running that data through the Buxton system to see how customer cohorts have shifted, even to the level of having our marketing initiatives shift the type of customer that we’ve brought in.”

Relationships & Communication

From the application process all the way through to year 10, 20, or 40 of being a franchisee, Xponential also prioritizes communication with its partners. Doing so helps everyone involved understand where their responsibilities lie and relay growth. 

“Our take is that it’s a relationship business at the end of the day and that relationship starts prior to a franchisee becoming a franchisee,” Luna said. “We establish strong lines of communication and engagement so they know what decisions they ultimately get to make at the local level and which decisions we make as a franchisor. Franchisees can run their business, but it still makes sense and still is complimentary for the larger brand.”

Xponential partners are often delegated tasks that use their tighter pulse on their market to everyone’s advantage, such as acquiring marketing assets or securing promotions. Communication from the HQ level involves the usage of Xponential’s cutting-edge tools, including a one point sales system that identifies trends and communicates findings to partners for them to adapt to. 

“We’re able to see the red lights and the green lights and when things are starting to either accelerate or decelerate,” said Luna. “Then we give those KPIs to our franchisees so that they know they have a blood test, a litmus test, at the local level, and know what’s happening within their own business. They can raise their hand and tag in the corporate team, or vice versa and we can help them navigate the business.”

A Detailed Approach to Scaling 

While these advanced solutions and omnipresent communication have their place in spurring franchise success, simple concepts like a consistent feel and atmosphere remain important when scaling as well for Xponential. 

“It starts with the ambiance of the location,” said Luna, when asked how Xponential makes sure all its sites have the same energy beyond its flagship ones. “What does the floor look like, to the millwork and to the painting? That’s going to set a very particular tone. Same thing with the lighting and the smell. It’s tapping into all the different senses of a customer.”

This replication effort extends out to the staff as well. Xponential makes sure that its brands facilitate the same experience no matter where their buildings are and who’s working inside of them. 

Xponential coaches its franchise partners on what to look for when hiring trainers or instructors. While a keen understanding of what health or wellness modality is being facilitated helps, it’s whether or not someone possesses a strong drive that makes or breaks their candidacy. 

“We’re training the front desk employees to the instructors and making sure there’s continuing education,” said Luna. “You’re bottling up that excitement and the coaching so that the end customer, no matter if they’re in Waco, Texas or in Anchorage, Alaska, they’re getting that same experience.”

“They’re not necessarily looking for the most technical coach or instructor, but they’re looking for someone who has a type of enthusiasm, passion and excitement for the brand who can be taught the technique, various classes and class formats,” Luna explained. “It’s really about getting the ambience right, the location right, tapping into the customer senses, and then from there, making sure that you’re continuing to hire and deliver an incredible product each and every day.”

This article originally appeared in ATN’s Fitness & Wellness Franchise Outlook Report, which explores the essential questions that can help determine if a franchise aligns with your personal and professional aspirations. Download the free report.

The post Inside the Franchising Approach for Boutique Health & Wellness Leader Xponential Fitness appeared first on Athletech News.

Mike Gray is a fitness lifer. The current president and chief operating officer of Club Pilates franchisee Riser Fitness, Gray began his career in the summer between high school and college as a personal trainer at what would become 24 Hour Fitness. 

That term – “fitness lifer” – has taken on new meaning for Gray, who nearly died from unexpected complications from COVID-19 a few years ago.

In April 2021, Gray caught COVID, which initially caused flu-like symptoms, common for a generally healthy middle-aged man. A fitness enthusiast who didn’t smoke and rarely drank, Gray figured he’d shake off the virus in a few days or at most, weeks.

That wasn’t in the cards for Gray, who at the time was serving as president of Club Pilates, one of the world’s largest fitness brands with over 1,000 studios across the globe.

“One evening, my (blood oxygen) level dropped down to 83 and my temperature was at 106. I woke my fiance at the time (now wife) and said, ‘I need to get to the ER, I’m not doing well at all.’ So she drove me to the ER, and that’s all I remember until I woke up,” Gray tells Athletech News, recalling a night that would forever change his outlook on life and leadership. 

An Unthinkable Run-In With Death

After being rushed to the hospital, Gray was placed into a medically induced coma and strapped into an ECMO (Extracorporeal Membrane Oxygenation) machine, a life-support system used on patients suffering from severe heart and lung conditions. Placing patients on ECMO is rare – only around 500 hospitals worldwide carry the machines, according to the Mayo Clinic, and many COVID patients who received ECMO at the height of the pandemic didn’t live long beyond the treatment.

Gray was one of the lucky ones. 

Doctors still don’t fully understand exactly what happened to Gray to cause such serious damage to his lungs and heart, but they do know one thing: he’s lucky to be alive. 

“When I was in the hospital, my lungs had completely collapsed. I had zero lung capacity and was actually on a lung transplant list,” he says. “If one of the doctors didn’t administer the ECMO unit as an experiment to see if it would help me, I probably wouldn’t be here today. I had a very small percentage (chance) of living.”

Road to Recovery

Gray spent the next few months in intensive care and acute rehab, essentially re-learning how to walk, eat and live inside a body that had been severely weakened by an unknown ailment. (Gray even had to get heart surgery during his time in the ICU due to related complications).

Eventually, Gray recovered enough to return home, but he had to live with in-home nurses, oxygen tanks and physical therapy. Around that time, he returned part-time to Club Pilates, eager to get back to his normal life as president of one of the biggest brands in fitness. 

“I jumped back into work as soon as I physically could,” Gray says, noting this was important for him physically but even more so mentally. 

Gray’s colleagues at Club Pilates and throughout the brand’s parent company, Xponential Fitness, were excited to see him. 

“The reception from everyone at Xponential was overwhelming,” he recalls. “There were a lot of emotions; a lot of people thought they were going to lose me. People would say, ‘Thank God you’re alive, we can’t believe it.’ And they supported me in every way you could think of, down to helping me carry my water bottle. I was like, ‘Guys, I got this.’”

Gray kept going on his recovery, drawing inspiration, motivation and desire from his young son. More than three years since that fateful night in April 2021, Gray feels much better, but he’s still working to regain full health. 

“My lungs will never be 100%, but my heart’s still ticking and I’m off all my medications,” he reports. “I’m able to work out, go for a walk and ride a bike, the things most people can do. Am I doing what I did before? Not at all. But I’m very thankful for where I am today, and I’m not done yet. I’m still fighting.”

A New Chapter in Pilates

Professionally, Gray hasn’t missed a beat. After several years turning Club Pilates into a global powerhouse, he took a new position as president of the Xponential-owned Rumble Boxing, eager to help grow the young boxing fitness brand in the same way he’d grown Xponential’s Pilates concept.

But Gray quickly felt the itch to return to Pilates. In September, he was announced as the new president and chief operating officer of Riser Fitness, one of the world’s largest operators of Club Pilates studios. Riser has big plans to expand internationally, including in Mexico, and will count on Gray’s expertise along with $72 million in growth capital from Fortress Investment Group.

Gray is excited to be back in Pilates. He’s even more excited to be back inside a startup-like environment with Riser Fitness. 

“I saw what they were building, and it excited me because I enjoy working with people. I felt the bigger we got at Club Pilates, the less opportunity I had – as a franchisor – to help impact people,” Gray says of his motivation for joining Riser. “What excites me now is I’ve got a great group of employees who are hungry and have done really good work. I get to help elevate their career personally and professionally.”

The people part is important. For Gray, appreciating the people he works with more than the work itself is perhaps the most important and lasting mental change he’s experienced from his near-death experience. 

“At the end of the day, this is a job, and it’s gonna keep going with or without me,” he says. “This experience has made me realize how much impact people have on other people. The job is the job, and it was what I showed up to. But the people are what I really work for.”

He’s also learned to stop sweating the small stuff.

“My outlook has changed: the things that typically would have gotten me worked up rarely do nowadays,” Gray says. “And when I do get worked up – because I’m human – I’ve learned how to walk myself through it mentally and compose myself in a way that gets me back into a state of awareness.” 

The post For Longtime Club Pilates Exec Mike Gray, Fitness Is More Than a Job appeared first on Athletech News.

Tianna Strateman is a Pilates lifer. A former competitive dancer, Strateman fell in love with the modality at an early age while rehabbing from an injury and has been a practitioner ever since, later becoming a certified Pilates instructor. 

After earning a business degree from the University of Southern California and spending some time as an executive at another fitness and wellness company, Strateman joined Club Pilates in 2018 as the brand’s vice president of training and experience. 

Over the last six years, Club Pilates has grown from around 200 to more than 1,000 studios worldwide, becoming by far the biggest brand in the Pilates space and playing a critical role in the modality’s rise to fitness prominence. 

In April, Strateman was promoted to president of Club Pilates, tapped to lead the Xponential Fitness-owned brand as it eyes even more growth, especially internationally. 

Strateman sat down with Athletech News to discuss the rise of Club Pilates, her early priorities as president and why she believes Pilates is poised to continue dominating the boutique fitness market.  

The following conversation has been lightly edited for clarity and length.

Athletech News: Can you tell us about your background and what brought you to Club Pilates?

Tianna Strateman:  I was a competitive dancer when I was young, which is kind of the cliche – Pilates and dancers – that a lot of people used to think of historically. My dance teacher recommended Pilates because of its prehab and rehabilitative approach. At the time, I was doing Pilates at a physical therapy office because Pilates was generally only found in physical therapy offices or really small boutique studios. It was very different 25 years ago than it is today. I’ve been in love with the practice ever since. 

I think what brought me to Club Pilates was my background of having a business degree and my previous work experience, but also being a certified Pilates instructor, which I’ve been for more than 15 years now. That unique blend was perfect for Club Pilates. I joined in January 2018.

ATN: You’ve played a key role in Club Pilates’ impressive growth over the past six years. What’s allowed the brand to expand so quickly?

TS: When I started we had around 200 doors open. Today, we have over 1,000 in 12 countries and counting. It’s been a really amazing experience to be a part of that ride. 

While I can’t give away all our secret sauce, I would say the success of Club Pilates can be attributed to a number of factors, starting with our great franchisees. Their commitment and dedication to the brand and delivering an exceptional experience are truly pivotal to our success and growth. Second, the teams of instructors and staff at the studio level bring the experience to life every day to make Pilates accessible to “everyBODY,” as we like to say. Last would be the support provided by the Club Pilates team here at the corporate office, with the support of our parent company, Xponenential Fitness. Across the entirety of Club Pilates, the commitment we collectively have to deliver an incredible Pilates experience is something we don’t take for granted and continue to work toward every day. 

ATN: Pilates is hotter than ever, surpassing modalities like HIIT and indoor cycling and even threatening to top yoga. Why do you think Pilates has become so popular over the last few years?

TS: Timing is everything, although Pilates has been around for over 100 years since Joseph Pilates founded the practice. The growth and popularity are due to a lot of factors, but I think Club Pilates is a huge part of it since we have a presence in so many places. Our ethos and our belief is to make Pilates accessible to people who’ve never had the opportunity to try the modality for a variety of reasons, either because it was for private training and small boutique studios only, or offered every so often in a group setting in a big-box gym. 

I think once people try Pilates, whatever their individual goals are, the practice can be modified and adjusted to meet them where they’re at, whether they’re an athlete, recovering from injury or surgery, or just looking to be active and focus on longevity. I’ve been a practitioner for 25 years. Pilates has taken me from being a competitive athlete to recovering from injuries to being focused on just working out and being as healthy as I can be to pregnancy, postpartum, you name it. I can see it being a part of my life forever.

ATN: Pilates has historically been much more popular among women, but men are starting to become more interested in the practice. What’s the demographic breakdown of Club Pilates members? 

TS: I would say the majority of our members are still predominantly female, but we’ve seen that continue to shift over the years. We have people from all walks of life, which is part of our ethos of being an inclusive environment for people to try Pilates versus maybe the historical school where Pilates is for dancers or elite athletes only. 

We’re also seeing even younger people come and try Pilates now than we had before, so the demos are continuing to adjust. But generally, I would say 35 and above is typically what we see in our studios. 

ATN: In 2024, you took over as president of Club Pilates, which is the de facto CEO position. What are your key short and long-term goals for the brand?

TS: It’s been an honor to step into this role. I’m grateful to have this opportunity to lead this incredible brand and the amazing team here at the corporate office. Short term, my goal is to continue to support and develop our team to be the best they can be so that collectively we all can support our franchise partners, their staff and their instructors in delivering a great experience to all of our members in all of our studios. I’m always looking at how we can improve.

Our long-term mission is to continue to grow the brand into the household name around the world that we’re looking to become and to bring Pilates to more people, more communities and more markets that have never heard of Pilates or haven’t had the opportunity to try Pilates before.

ATN: Club Pilates is already such a big brand with over 1,000 studios in 12 countries. What are your expansion goals in the U.S. and abroad? 

TS: We stopped putting a number on it at this point, but we’re definitely not slowing down. There’s still room for growth in the U.S. – there’s such a strong demand for Club Pilates and the experience that we provide.

International expansion is definitely also a goal. We’re identifying and working with great master franchisees to bring that to life in various countries. There are some great areas in the works. I can’t speak to exactly where they are yet, but hopefully we can share more soon.

ATN: What fitness and wellness industry trends are you most excited about in 2024? Are there any trends that concern you?  

TS: I think what’s exciting is that people continue to prioritize their health and fitness and wellness, especially post-pandemic. People showing up at studios and wanting to have that in-person interaction – it’s exciting to see the communities that are built because of that. I also love that there’s a more holistic approach to fitness, health and wellness than ever before. Different companies doing a fantastic job and focusing on all the different pieces of that – nutrition, sleep, mental health, etc.

What concerns me is that there’s just so much information out there. We have more access to resources than ever, which is a good thing, but sometimes can be challenging to weave through all the information to hone in on one thing and not get overwhelmed by everything that’s out there. The little things – showing up every day and making a commitment to your fitness, your health and wellness, whatever that looks like for you – are most important to helping all of us live happier, healthier lives.

The post CEO Corner: Tianna Strateman on the Rise of Club Pilates  appeared first on Athletech News.

As breast cancer diagnoses continue to rise in the United States, global franchisor of health and wellness brands Xponential Fitness has announced a partnership with the American Cancer Society (ACS) to raise awareness and funds during National Breast Cancer Awareness Month this October.

According to the American Cancer Society, breast cancer has become the most diagnosed type of cancer among women, with an estimated 313,510 new cases expected in 2024. The collaboration between Xponential Fitness and ACS aims to support research, advocacy, and patient care, ensuring everyone has access to resources for prevention, detection, treatment, and survival of breast cancer.

Throughout October, Xponential Fitness will mobilize its diverse portfolio of fitness brands, which includes Club Pilates, Pure Barre, CycleBar, YogaSix, Rumble Boxing, and BFT, to offer donation-based classes at participating locations. Additionally, a percentage of sales from co-branded apparel will be donated to the ACS.

“At Xponential Fitness, we believe in the power of community and movement to uplift and support each other during life’s most challenging moments,” said Sarah Luna, president of Xponential Fitness.

“By partnering with the American Cancer Society, we’re raising funds crucial to the fight against breast cancer, while also empowering our members and teams to take part in this important cause. Together, we are helping to build a future where everyone has the resources and opportunity to overcome this disease.”

Importance of Physical Activity

The partnership not only aims to generate funds but also to promote the importance of physical activity for cancer fighters and survivors. Studies indicate that women who engage in regular physical exercise have a 10% to 20% lower risk of developing breast cancer compared to inactive women.

Xponential Fitness encourages its members to meet the recommended guidelines of 150 to 300 minutes of moderate-intensity aerobic activity or 75 to 100 minutes of vigorous activity each week, enhancing overall health and reducing the risk of chronic illnesses.

Patti Ferraro, a breast cancer survivor and CycleBar member, shared her inspiring story of resilience and community support. After her diagnosis in 2021, Ferraro underwent surgery, chemotherapy and radiation therapy. Throughout her journey, the CycleBar community provided unwavering support.

“CycleBar has been a constant source of strength throughout my breast cancer battle,” she stated. “When I was cleared to continue classes, it felt like coming home, and over three years later, the rides continue to be essential for my physical and mental recovery.”

The post Xponential Fitness Partners with American Cancer Society for Breast Cancer Awareness Month appeared first on Athletech News.

A reset is underway for boutique fitness and wellness franchisor Xponential Fitness as it settles in under new CEO Mark King and wrangles with residual effects stemming from a leadership change and regulatory inquiries. 

For the second quarter of 2024, Xponential’s total revenue decreased by $0.8 million (1%) to $76.5 million, down from $77.3 million in the prior-year period, which the franchisor says is primarily attributed to its strategic shift away from company-owned transition studios. The franchisor also posted a $13.7 million net loss or a loss of $0.29 per basic share.

Xponential is now adjusting its full-year 2024 guidance for gross new studios in the range of 500-520 (compared to a previous guidance of 540-560) and revenue of $310.0 million to $320.0 million versus a previous guidance of $340.0 million to $350.0 million.

“We saw some of the same retail softness that other consumer companies experienced during the second quarter,” chief financial officer John Meloun said. “When taken together with the effects of our leadership transition and previously announced regulatory investigations, it makes sense to temper elements of our prior outlook.”

XPOF shares fell around one percentage point on Thursday.

In May, the boutique fitness franchisor received a notice of an investigation by the United States Attorney’s Office (USAO) for the Central District of California. The notice followed an SEC investigation that Xponential announced late last year – around the same time Bloomberg reported some Pure Barre and Club Pilates franchisees were navigating significant financial losses. 

Moving forward, King told investors that Xponential will focus on its existing portfolio of fitness and wellness brands rather than pursuing additional acquisitions or divestitures – but he did note that this could change over time. Xponential divested from Row House and Stride, boutique fitness brands operating in the rowing and HIIT spaces, respectively, earlier this year.

“This will ensure that 100% of our management teams’ focus is on support and growth of our existing brands and franchisees,” King said on Xponential’s Q2 call with investors Thursday afternoon.

Not a True ‘Turnaround,’ CEO Says

The former Taco Bell CEO and Adidas president was appointed in June, succeeding interim CEO Brenda Morris, who took over following Xponential founder and former CEO Anthony Geisler’s departure in May.

King referenced the regulatory issues, stating that they’ve had an “understandable impact on the business,” but reiterated that they won’t materially impact Xponential’s multi-year goals.

Meloun didn’t shy away from the topic.

“While we had hoped this wouldn’t be the case, we are confronted with the reality where the business is facing some short-term disruption,” he said, adding that despite the distractions, total member growth and visits remain strong. 

Xponential is also shifting its focus away from AKT, a dance-based cardio fitness brand with eight studios that Meloun stated is winding down but won’t have a material impact on Xponential’s financials. He added that the partnership with Kinrgy, Julianne Hough’s dance and fitness platform, has been axed. Last December, the two had struck a deal to rebrand up to three AKT studios to Kinrgy.

Despite the less-than-rosy short-term outlook, King was clear that he doesn’t view Xponential in need of a “turnaround” but will heavily focus on franchisee development as one of its strategies.

“When I went to the Adidas business, it was very broken,” he said. “So it really was a turnaround, which – this is nothing like a turnaround…I came here because there was so much good about this business. The brands are great. The momentum is very positive and if you really look at the numbers of Q2 most of the big indicators are very positive.”

Full Steam Ahead on Expansion

Having managed multi-brands over his career, King sees international scalability for Xponential brands and said he’s looking forward to finding opportunities abroad.

He mentioned Body Fit Training (BFT) as one brand perfectly suited to grow internationally. The Australian-born BFT, a group strength training and conditioning brand, is currently set to expand in Scandinavia. Within ten years, 40-50 BFT studios are planned for Norway, Denmark and Sweden. 

Meloun added that Xponential has over 1,800 licenses sold and contractually obligated to open in North America, and over 1,000 master franchise obligations internationally. 

“This backlog of already-sold licenses at our current rate represents over five years of future studio openings globally,” he said.

Xponential sold 87 franchise licenses in the quarter (which Meloun said trended lower due to approval delays in Xponential’s annual Franchise Disclosure renewal cycle and elevated concerns in the franchise sales process) and opened 108 new studios – 89 in North America and 19 internationally.

The franchisor ended Q2 with 3,102 global open studios. There were 85 studio closures. 

“We previously shifted our strategy regarding studio closures and are no longer taking on any company-owned studios,” Meloun noted. “Rather, we are concentrating resources on helping franchisees identify and resolve issues as early as possible to improve operations and success within our system.”

The post Xponential Fitness Feels Effects of Investigation, CEO Change appeared first on Athletech News.

Anthony Geisler founded Xponential Fitness in 2017, building it into the world’s largest fitness and wellness franchisor. Under Geisler’s watch, Xponential acquired brands including Club Pilates, StretchLab and Pure Barre, growing them into household names across the globe. 

Earlier this year, Geisler resigned from his role as CEO of Xponential, telling Athletech News the timing was right for him to step aside. 

Geisler won’t be on the sidelines for long; he’s planning to stay in the fitness and wellness space, although he can’t yet publicly disclose his next move. 

Geisler sat down with Athletech News for an exclusive interview, speaking on his departure from Xponential and sharing his thoughts on the business of fitness franchising, the rise of GLP-1 weight-loss drugs, and the challenges and opportunities facing the industry in 2024 and beyond.

The following conversation has been lightly edited for clarity and length

Athletech News: We know there are still a lot of moving parts, but what can you say about your recent departure from Xponential?

Anthony Geisler: I’m proud of all that we built at Xponential Fitness, and I continue to wish the company well. The time had come for me to move on. 

ATN: Since leaving Xponential, how have you been spending your time?

AG: I’m balancing spending a lot of time with my family, staying fit and working – just like I have for many years.

ATN: You’re not the type of person to sit still. What’s next for you in your career? Are you planning to stay involved in the fitness and wellness industry? 

AG: Yes, absolutely. There’s a tremendous amount of opportunity in the fitness and wellness space, particularly in the area of technology. I’m excited about my next moves. 

ATN: We’ve seen so many new fitness and wellness franchise concepts pop up over the past few years. Is the market too saturated or is there still room for new concepts?

AG: The market is always going to have room for sound concepts. Does that mean that we’re going to see explosive growth of successful goat yoga or ‘boxilates’ studios? I don’t think so. However, there’s a lot of opportunity for concepts that have broad appeal to the large – and quickly growing – market of people who are focused on staying fit and eating right. 

ATN: There’s speculation that Solidcore is exploring a sale at a potential valuation of $750 million. Is such a large valuation justified? 

AG: Let me say a few things about this deal.  First, Solidcore has a great banker involved in the sale. Second, Pilates has massive upside. We saw this with (Xponential Fitness-owned) Club Pilates, which has more than ten times as many open locations as Solidcore – and Solidcore is the second largest player in the space. 

Third, although I’m partial to franchise models, I do believe that there’s a lot of room to grow in the Pilates space, especially for a differentiated concept like Solidcore. 

ATN: Do you expect to see a lot of M&A activity in the second half of 2024 and into 2025?

AG: No. M&A activity has been fairly light in recent years because of high interest rates. 

I’ve spent most of the last two decades looking at acquiring concepts and making M&A decisions – the underlying dynamics of those decisions have been dramatically changed by interest rate hikes over the last few years. It’s so much harder to pencil deals when the basis on your debt financing is several points higher. Your business strategy has to change as a result.  

Even if the Fed makes big moves in the coming months, I don’t expect that rates will move down enough to change these fundamentals.

ATN: What are the biggest headwinds facing the fitness and wellness industry right now?

AG: I see three major headwinds. First, interest rates are a major drag on M&A.  

Second, operators are finding it difficult to access quality real estate. Location is so incredibly important when it comes to launching and maintaining a successful fitness business. This has always been a challenge, and it will remain one for the foreseeable future. This is one area where it benefits to be a franchisee in a high-quality system. Top franchisors should have relationships with REITs (Real Estate Investment Trusts) across the country which allow their franchises to get the looks at quality real estate that others will not have. If you’re in the right system, this is a benefit of buying a franchise concept as opposed to starting your own. 

Third, we need access to a quality labor pool. This is true about any business, whether it’s running Google or running a gym. However, I think too many in our space take this lightly and do not invest in the highest quality talent possible. That is a big mistake.  

At the end of the day, our businesses rely on good rates, great locations and great people to be successful. 

ATN: What’s your opinion on the at-home fitness space? Can brands like Peloton, Tonal and Hydrow continue to survive or even thrive? 

 AG: There has always been a place for at-home concepts –  and there always will be. You can go back to the late Richard Simmons’ and Suzanne Somers’ video tapes to understand that some people will work out at home because it’s convenient or makes sense for their lives. 

However, outside of a global pandemic – when there was no choice but to be at home – these concepts are destined to be a small part of the overall market.

There’s a simple reason for this: It is very hard to build community digitally. People are social animals. They get better results and more satisfying workouts when they’re in the same room together and can create community. Their lives are enriched when they live them with other people, and that’s usually the case when it comes to how they work out.

ATN: What impact will GLP-1 weight-loss drugs have on the fitness and wellness industry? Could they create a new class of consumers for operators? 

AG: We don’t know how GLP-1s will be regulated or how many people will be on these medications, so it’s hard to assess how big an impact they’ll have on the market. 

That said, GLP-1s cause patients to burn 50 percent muscle mass. That is a huge issue that (fitness brands) need to address — and can help offset — with weight training. Of course, this ultimately will benefit the gym sector, particularly those that focus on weight training and building lean muscle mass.  

At some point, I think the American Medical Association and/or insurance providers will require patients to put a holistic plan in place surrounding the use of these medications. In the future, you will not be able to take the script without an approach to rebuilding the 50 percent of lean muscle mass that you will lose while on (GLP-1s) because if left unaddressed, this loss creates a whole host of other health issues.

ATN: What are your three fitness and wellness predictions for 2024 and beyond?

AG: First, we’ll see better technology enter the marketplace and make a significant impact in areas like point-of-sale and CRMs. You’ll see the integration of AI into customer management and other functions. The fitness and wellness spaces have been decades behind other sectors in the economy when it comes to technology and I think the gap is finally going to close. The success of businesses in this space will depend on it.  

Second, we’ll see an alignment between an increase in GLP-1s and individuals thinking holistically about their weight-loss and muscle-gain journeys. 

Third, we’ll see a growth in weight training, both as a modality on its own and as a feature added to other fitness concepts as people become educated about its benefits. This is certainly a trend we are seeing across many different concepts – and I think it is just the beginning. 

The post Former Xponential CEO Anthony Geisler Talks Fitness Franchising, Rise of GLP-1s appeared first on Athletech News.

In this “Fireside Chat,” video, Sarah Luna, President of Xponential Fitness, the largest global franchisor of boutique fitness and wellness brands, joins Athletech News Founder and CEO Edward Hertzman to discuss the brand’s goals and strategies.

Luna and Hertzman explore the different avenues Xponential has taken to make boutique fitness and wellness accessible to everyone, including its emphasis on digital tech, XPASS membership system and push into wellness. Xponential’s recent acquisition of Lindora and its franchise strategy are discussed as well.  Watch the full interview for expert commentary on the following:

• New moves to help franchisees
• Applying tech in compelling ways
• Reaching new audiences through strategic partnerships

Key Talking Points:

• (0:00 – 0:33) Introductions
• (0:33 – 1:52) Xponential’s goals for 2024
• (1:52 – 4:28) Tech’s role in making Xponential stand out
• (4:28 – 7:16) Upgrading and integrating XPASS
• (7:16-10:16) What Xponential looks for in partnerships
• (10:16-12:09) Changes as the brand gets into wellness
• (12:09-15:50) Upgrading the supply chain to better help franchisees
• (15:50-16:17) Wrap-up

The post Fireside Chat: Xponential’s Sarah Luna on Digital Tech & B2B Partnerships appeared first on Athletech News.

Yoga has had the greatest rise as a complementary health approach in the past two decades, with women twice as likely as men to participate in the ancient practice, according to a new data brief from the CDC that sheds light on who practices yoga — and why.

Using data from the 2022 NHIS, a survey conducted throughout the year by the National Center for Health Statistics, authors Nazik Elgaddal and Julie D. Weeks found that 16.9% of adults practiced yoga in the 12-month period studied.

Participation percentages were highest among women ages 18-44, Asian adults (22.5% compared to 19.3% of those white, non-Hispanic) and those with family incomes at 400% of the federal poverty level (FPL) or more (23.0% vs 10.4% among adults with family incomes less than 200% of the FPL).

Women were more than twice as likely to practice yoga as males (23.3% vs. 10.3%, respectively). However, among adults who practiced yoga to restore overall health ( 80.0%) there wasn’t a significant difference observed between men and women.

The age-adjusted percentage of adults who practiced yoga to treat or manage pain was 28.8%, with men (31.8%) more likely than women (27.5%) to practice yoga to treat or manage pain.

As for the meditation component, the findings revealed women (59.3%) were more likely than men (52.9%) to practice meditation as part of their yoga practice, with Asian (56.7%) and white (54.0%) adults less likely than “other and multiple races” (70.8%), Black (70.7%) and Hispanic (66.8%) adults to practice meditation as part of yoga.

Beyond the Studio

The practice of yoga — blending breath with movement — isn’t just found in studios and on-demand classes but at music festivals, the outdoors and even the workplace. As the data shows, there is a correlation between yoga and income, which many in the yoga community have worked to address — either with free online yoga classes or at community-focused events, such as the library.

One hotspot for free beach yoga with a gorgeous view overlooking the Pacific Ocean – Sunset Cliffs Natural Park in San Diego — has yoga instructors currently battling the city of San Diego after a municipal code was revised that targets vending regulations, although the instructors maintain their classes are free of charge.

Yoga Franchises Boom

Beyond serene landscapes, yoga has become an emerging franchise business, supported by the increased interest in low-impact fitness.

Boutique fitness and wellness franchisor Xponential Fitness counts YogaSix as its yoga staple within its portfolio of brands — with the franchise nabbing the #1 spot in the yoga category on Entrepreneur’s Franchise 500 list. Earlier this year, YogaSix, which offers heated and non-heated yoga classes, boot camp-style fitness classes and meditation, opened its 200th studio. 

CorePower Yoga, which offers traditional yoga classes along with heated, strength training and stretching-focused class types, counts over 220 locations across the U.S.

Functional fitness franchise F45 Training is also invested in yoga, marrying it with Pilates in the form of FS8, a 50-minute circuit concept which opened its flagship location in Austin, Texas. Additional studio openings in the U.S. are planned along with master franchise agreements to take FS8 into the U.K., Europe and South Korea.

“It’s no secret that the Pilates and yoga categories have experienced remarkable growth as consumer interest in these modalities has grown,” F45 chief operating officer Ryan Mayes has told Athletech News. “These categories are also quite fragmented, which creates a compelling opportunity for us to grow market share through two distinct and proven brands.”

The post Americans Love Yoga, Especially Women & High-Earners, CDC Finds appeared first on Athletech News.

Body Fit Training (BFT), a group strength and conditioning franchise owned by Xponential Fitness, has signed a master franchise agreement to expand in Scandinavia under Tage Flugeim, who was the first to bring Barry’s outside the United States.

Beginning August 1, Flugeim will turn his attention to BFT’s rollout across Scandinavia and open three flagship BFT studios in Oslo, Norway, Stockholm, Sweden, and Copenhagen, Denmark, within 12 months.

Once established, Flugeim and his team plan to build new partnerships and attract sub-franchisees to reach their goal of 20 studios in the first five years and 40 BFT studios across Scandinavia within ten years.

“BFT checked all the boxes for me due to the quality of the workouts, the unique approach to strength training sessions, the thoughtful programming, the emphasis on people, and the inviting, inclusive atmosphere of the studios,” Flugeim said. “When I delved deeper into BFT’s top-of-class franchising model and had the pleasure of meeting (director and CEO, International) Rich Burnet and (BFT founder) Cam Falloon, and hearing (his) story about how BFT was founded, I was convinced. I knew I had to bring BFT to Scandinavia.”

Scandinavian Fitness Boom

Flugeim believes BFT is an ideal match for the Scandinavian market, stating that after 15 years of growing Barry’s, he has seen that Nordic consumers appreciate international fitness brands. Plus, he adds that BFT’s “no-nonsense” approach aligns with the “Scandinavian mindset.”

BFT’s 50-minute, expert-led strength and conditioning workouts are performed in groups of up to 36 people and are split into eight-week training blocks, ensuring members can measure their progress along with the help of heart-rate tracking technology. Classes include a combination of compound weight lifting, such as deadlifts, bench presses and kettlebell swings, bodyweight movements like box jumps and pull-ups, and cardio, including running, cycling and rowing.

“Scandinavians have a strong health and fitness culture,” Flugeim said. “Over 20% of the population are members of a fitness studio. Our economy is, generally speaking, very good, and we are willing to pay for quality products. We look up to the U.S., U.K. and Australia, and introducing BFT’s culture, story and high-quality workouts to our region will be a perfect fit for Scandinavia.”

Earlier this year, BFT opened its 300th studio, in Barcelona, (with many more franchise agreements signed) while its first studios in Indonesia are slated to open in July. Later this month, BFT’s first Scotland studio will debut in Glasgow. 

BFT Eyes US, Canada

Under Xponential’s guidance, the group strength and conditioning franchise is also plotting a North American takeover, appointing franchising and former F45 Training executive Duncan Cork as its new president in April. 

“BFT truly sits in a unique space within the boutique fitness world,” Cork said of BFT’s workouts, adding that he believes could grow to more than 1,000 global locations.

The fitness franchise opened 30 studios in North America last year and has been averaging 4.5 to 4.8 visits per week per member, according to Cork.

“I’ve seen this kind of growth before,” Cork has told Athletech News, recalling his time at F45, where he served as an integral part of the functional fitness brand’s growth in the U.S. “This is an opportunity to get involved with a brand that’s right on the cusp of blowing up in the United States.”

Cork will now report to Mark King, who Xponential named as CEO on Monday. King, the former CEO of Taco Bell, replaces Xponential founder Anthony Geisler who left the fitness and wellness franchisor last month amid an investigation from the United States Attorney’s Office for the Central District of California.

The post BFT Plans Scandinavia Expansion in Latest Global Franchise Move appeared first on Athletech News.

While Lindora might be best known for GLP-1 drugs aimed at supporting metabolic health and weight loss, that’s not all the wellness franchise does.

The recently acquired Xponential Fitness brand is now offering free testosterone replacement therapy (TRT) initial exams and labs for male guests of Lindora members in a nod to Men’s Health Month. Family members, spouses, partners, or friends of members are all free to book consultations. 

“Hormone imbalances and deficits in men are not talked about enough, and testosterone replacement therapy can be a safe and effective solution for so many to improve mood, metabolism, quality of life and more,” said Dr. Amy Lee, chief medical advisor for Lindora. “We are excited to offer complimentary exams to referrals throughout June.”

The National Institute of Health estimates that 50% of men over the age of 80 are hypogonadal, meaning they don’t produce enough testosterone. Testosterone levels tend to start falling around age 30 for men. TRT therapy aims to combat that by replacing testosterone the body fails to produce. Doing so can increase a man’s quality of life, metabolism, libido, ability to gain muscle, athletic performance, recovery, sleep quality, energy, mood, mental focus and confidence.

Lindora’s TRT treatment begins with a phone screening to review symptoms and medical history. Once cleared, participants undergo a comprehensive blood panel in person at a Lindora site. That’s followed by a medical consultation and exam with a hormone replacement therapy (HRT) medical expert to discuss results and determine a treatment plan and medications.

Participants can schedule quarterly follow-ups to monitor progress and adjust medication if needed with a full membership starting at $229 per month. As part of this month’s promotion, Lindora will make $150 of store credit available to male referrals who join before June 30th.

Acquired by Xponential in late 2023, the California-based Lindora is gearing up to expand across the country. The brand recently inked multi-unit franchise agreements in areas such as Dallas, Boise, Idaho, Rochester, Buffalo, Atlanta, Chicago and Portland (Oregon).

Lindora is quickly attracting new franchisees from different industries and backgrounds to fuel this growth, due in large part to the booming wellness industry. 

The post Lindora Spotlights Men’s Health With Free Testosterone Exams appeared first on Athletech News.

Xponential Fitness is partnering with the American Cancer Society (ACS) for National Cancer Survivors Month this June. Throughout the month, the boutique fitness and wellness franchisor’s brands (Club Pilates, Pure Barre, StretchLab, CycleBar, YogaSix, Rumble Boxing, BFT and AKT) will offer donation-based classes and co-branded retail. 

Proceeds will go towards research, treatment and resources for cancer patients.

Xponential’s brands will also raise awareness for the ACS through social media channels and blog content as they spotlight cancer patients and survivors, and provide education this month.

“Fighting cancer is an incredibly important cause to the Xponential family,” Xponential Fitness president Sarah Luna said. “Thousands of our members and studio teams are impacted by this awful disease every year, and by combining efforts with a great organization like the American Cancer Society, we can make a positive difference in these people’s lives.”

To make a donation to the ACS through any of the Xponential brands, visit X-Out Cancer. 

Here is a list of Xponential Fitness brands participating this month and their planned initiatives:

CycleBar/AKT & Kinrgy: 

• CycleGives classes in support of the ACS at CycleBar locations
• Co-branded retail is available at CycleBar, AKT and KINRGY locations along with in-studio donations

Pure Barre: 

• Tuck for a Cause Donation Classes in studios
• June 15-23: Donation Week Double Points – members can complete a Donation Class and earn double class points
• Co-branded retail
• PR and blog focus on cancer survivors and the impact of Pure Barre’s partnership with the ACS

Rumble Boxing: 

• Donation Classes
• Co-branded retail in-studio
• Organic social efforts to support and promote Cancer Survivors Month

Club Pilates: 

• Pilates for Prevention (Donation Classes)
• Co-branded retail in-studio
• Organic social efforts to support and promote Cancer Survivor’s Month

YogaSix:

• Cancer Survivor Flow for a Cause Donation Classes (June 15 or June 16)
• Co-branded retail
• Social Posts

BFT:

• Lift For Survivors Donation Class (one day in June)
• Co-branded retail
• Social Posts

StretchLab:

• StretchLab studios are positioning themselves as “Proud supporters of ACS in honor of Survivor’s Month” with accompanying social posts and email posts
• Co-branded retail 

The post Xponential Fitness Brands Raise Funds for Cancer Research appeared first on Athletech News.

Indoor cycling brand CycleBar has launched a new Indoor Cycling Training Program, which has been accredited by the International Sports Sciences Association (ISSA), the National Academy of Sports Medicine (NASM), and the Athletics and Fitness Association of America (AFAA).

The accreditation allows the program to offer continuing education units (CEUs), making CycleBar the first boutique indoor cycling brand to achieve this milestone, according to the company. Other indoor cycling continuing education providers include Spinning, Schwinn, Keiser and many others; however, they don’t claim to have a boutique fitness focus.

Tevia Celli, CycleBar’s vice president of training and experience, stated that the new program aims to enhance the teaching skills of fitness coaches by offering a comprehensive cycling curriculum.

“With this recognition, our program will empower fitness coaches with the knowledge and skills needed to deliver exceptional experiences to our riders and set a new standard of quality and professionalism in the fitness industry,” Celli said.

Open to all fitness professionals, Celli said the program will also expand CycleBar’s reach and introduce the franchise brand to a broader group.

Donna Cennamano, CycleBar’s manager of training, led the development and accreditation process. The program met the rigorous standards set by ISSA, NASM, and AFAA to be recognized as a continuing education provider. This certification is crucial for fitness professionals looking to further their skills and credentials, offering 1.9 CEUs from NASM, 15 from AFAA, and 20 from ISSA.

The certification and ongoing education are vital for fitness professionals seeking to specialize in indoor cycling. It allows them to improve their teaching abilities and earn CEUs required for maintaining certifications and advancing their careers. The program’s comprehensive approach ensures instructors are well-equipped to engage and retain clients.

The program is priced at $400 and can be completed in three to five weeks, depending on the participant’s prior experience in indoor cycling instruction. Trainees should plan to spend about five hours per week mastering various aspects of teaching, including bike safety, equipment setup, technical cues, riding techniques and class programming.

The self-paced course, which is entirely online with the option of flexible scheduling, also includes training videos and applied learning exercises, which are essential to proving competency and comprehension. 

CycleBar was founded in 2004 and later acquired Xponential Fitness, which has grown the indoor cycling brand’s franchise footprint to 200-plus global locations.

The post CycleBar Launches Training Pathway for Indoor Cycling Instructors appeared first on Athletech News.

Xponential Fitness increased revenue by 12% in the first quarter of 2024 to $79.5 million, up from $70.7 million in the prior-year period, and is encouraged by the demand for Lindora, its most recent acquisition that provides GLP-1 weight-loss drugs and wellness therapies. 

“2024 is off to a strong start,” said Anthony Geisler, founder and CEO of Xponential Fitness. “Adjusted EBITDA margins in the first quarter expanded to 38% of revenue, fueled by continued growth in our studio footprint and leaner operating expenses.”

Despite the revenue jump, XPOF shares fell around 12% on Friday as quarterly earnings per share missed analysts’ estimates.

The boutique fitness and wellness franchisor sold 173 franchise licenses and opened 111 new studios in the quarter across its ten brands, including Club Pilates, Pure Barre and Stretch Lab.

There was a 17% year-over-year increase in total members (783,000) in North America and an 18% in-studio visit increase to 14.9 million, resulting in a North American system-wide sales of over $400 million, a 25% increase from Q1 2023. Xponential reported a net loss of $4.4 million, or a loss of $0.30 per basic share, compared to $15 million in the prior year period. 

All Eyes on Lindora 

Adding Lindora to Xponential’s portfolio of brands has allowed the franchisor to enter the growing metabolic health and wellness space, marking a departure from its fitness-related brands. Lindora’s 31 metabolic health clinics — the majority of which are currently in Southern California, with one in Washington — provide clients with weight loss medications, hormone replacement therapy, IVs, laser treatments, meal plans and more.

Since March, Xponential has sold nearly 40 Lindora licenses, attracting interest from both existing and new franchisee groups, as well as owners from various backgrounds — a point that Xponential says demonstrates Lindora’s widespread appeal as an investment opportunity. 

The brand will expand from the West Coast, entering new markets in Dallas, Boise, Idaho, Rochester, Buffalo, Atlanta, Chicago and Portland (Oregon) as it competes with Life Time’s Miora and Restore Hyper Wellness. 

Geisler told investors on Thursday’s earnings call that the Lindora deal has increased Xponential’s access to the broader health and wellness market. The metabolic health brand recently bulked up its leadership team in preparation for its growth. Some of the newer Lindora locations are expected to open later in Q4. 

“Buxton’s latest analysis illustrates our current TAM in the United States alone is approximately 8,400 studios,” Geisler said.

In addition to growing its metabolic health clinic locations, Xponential has several initiatives underway to improve Lindora’s service and product offerings and is currently expanding hormone replacement therapy and testosterone replacement therapy across its studios. The services are available through recurring memberships, subject to a prescription.

International Growth 

Xponential is also focused on scaling its international presence, opening its 400th international studio last month. The franchisor had onboarded Bob Kaufman late last year to drive its overseas expansion.

“We are starting to build a significant presence in select international markets, which will help drive consumer awareness and economies of scale,” Geisler said. “We have over 220 studios in Australia. In Japan, we now have 50 Club Pilates studios open.”

The post Xponential CEO Pleased With ‘Strong Start’ to ’24, Lindora Growth appeared first on Athletech News.

As the world’s largest boutique fitness and wellness franchisor, Xponential Fitness is no stranger to promising new business ventures in the health sector. The brand’s latest and most daring acquisition, Lindora, is already beginning to pay off as the metabolic health and weight loss markets explode.

Xponential purchased the leading provider of medically guided weight loss and metabolic health solutions in late 2023, marking the brand’s most significant step outside the traditional boutique fitness space and into the broader wellness arena. This diversification of Xponential’s portfolio has already laid the foundation for a lucrative future, including introducing new franchise owners into a growing pipeline.

A New Wave of Franchisees 

With metabolic health emerging as a new point of concentration in the fitness and wellness space, Xponential has been able to reel in Lindora franchise partners including former tech product specialists, consulting firm partners and actuaries, entrepreneurs, CEOs, and company founders. 

“Lindora has franchise agreements with owners from diverse backgrounds including technology, software development, real estate, marketing and sales, personal training, and finance,” said Lou DeFrancisco, Lindora President. “This broad adoption underscores the appeal of the investment opportunity, aligning with Xponential’s overarching network of owners.”

The Lindora team views the increased buzz around wellness as a driving force behind this phenomenon. Xponential’s documented history of taking brands to the next level is a contributing factor as well. The franchisor has grown 2017 acquisition StretchLab to 400+ studios after it had just three in 2018, for example.

DeFrancisco, who served as president of StretchLab during its early growth, sees some similarities between the assisted stretching franchise and Lindora.

“Similar to our launch of StretchLab, this diverse owner group all share a passion for health and wellness, and to make a difference in people’s lives and the communities they live in,” he said. 

“(Lindora) franchise owners see the value in the overall investment opportunity because of the increasing consumer demand for more holistic, integrated health and wellness services, the growing consumer awareness of the importance of longevity practices like improving one’s metabolic health, as well as the confidence in Xponential’s success in scaling boutique health and wellness brands while providing exceptional support,” DeFrancisco added. 

Lindora’s own name and the prestige it carries generate attraction as well. 

“Lindora has a very long and rich history in the marketplace with 50+ years of offering innovative services such as weight management programs, weight loss medications, hormone replacement therapy, IV hydration, and more,” noted DeFrancisco. “With 31 locations open, it has established itself as a trusted brand in the health and wellness industry improving many lives across millions of client visits.”

Lindora recently inked multi-unit license agreements in locations such as Dallas, Boise, Idaho, Rochester, Buffalo, Atlanta, Chicago and Portland (Oregon). It’s a strong next step for the brand, which already has 30 clinics open in Southern California and another in Washington.

Plenty of Room for Growth

While Xponential is already pleased with Lindora’s progress, there’s reason to believe this is just the tip of the iceberg. Holistic health is becoming a bigger and bigger draw every day, and Xponential is thrilled to have a horse in the race. 

The United States boasts the world’s largest wellness economy, valued at $1.8 trillion, according to a new report from The Global Wellness Institute (GWI) in partnership with the National Academy of Sports Medicine (NASM), suggesting Xponential’s bet on Lindora will age well. 

“The pandemic caused a shift in people’s awareness and demand for better overall health and wellness, and from that has come an expanded definition of what ‘health and wellness’ means for consumers and how it ties directly to longevity,” said DeFrancisco. “Healthy weight management is now widely understood as a core aspect of promoting longevity and overall metabolic health.”

As DeFrancisco noted, Lindora’s expansion comes as the weight loss industry in particular surges in popularity in the U.S. and across the world, including GLP-1 drugs as well as more holistic approaches to weight management. 

The brand just announced its first-ever “Countdown to Summer Challenge,” which should only fuel that fire. The initiative encourages members to enroll in a wellness membership and begin a 10-week weight loss challenge aimed at helping them reach a personal goal. Personalized nutritional coaching, meal plans, exercise recommendations and check-ins to track progress are all provided. 

“While Lindora offers other services, weight loss and management is the core offering, and given the projected global weight management industry is $400 billion, there is a huge opportunity to scale Lindora through franchising,” he added. “Given Lindora’s success over its 50+ year history as a medically guided provider, we see this as a unique consumer and franchisee value proposition.”

The post Franchisees Embrace Lindora, Xponential’s New Metabolic Health Brand appeared first on Athletech News.

Next Health, a Los Angeles-based health optimization and longevity center that established a franchise system last year, is already seeing the fruits of its labor, with plans to open 150-plus locations by the end of 2027. 

The longevity franchise reports it surpassed its growth targets, with 50 sold territories this month. Clinics are open in California, Hawaii and New York City, while Next Health will soon open its doors in Miami, Nashville, Dubai and Australia.

“Next Health marries the most advanced health optimization treatments with keen technological operations,” said Scott Svilich, Next Health’s chief operating officer. “The booming wellness economy is projected to surge 26% to $8.5 trillion by 2027, and Next Health is at the forefront, capturing a large percentage of that through new locations and technology.

Next Level Wellness

Next Health’s concept weaves together wellness therapies and advanced medical services, providing a white-glove service for consumers who seek not just anti-aging therapies, but prevention and regeneration.

Although Next Health offers clients services commonly found in competing longevity franchises (cryotherapy, IV and peptide therapy, vitamin shots and routine biomarker testing, targeted health programs for hormone and weight optimization and aesthetics services), Next Health takes it a step further, providing ozone therapy, an “Executive Physical” and therapeutic plasma exchange.

The Executive Physical, $14,500, is a comprehensive health assessment that examines 1,000 health and longevity markers with advanced bloodwork and takes clients through a TruAge test, a full-body MRI, a chest CT and InBody analysis to detect diseases and potential health concerns. Clients then receive personalized recommendations and participate in quarterly baseline tests.

Therapeutic Plasma Exchange, a $10,000 “oil change for your health” that is offered at Next Health’s Los Angeles location, refreshes a client’s plasma, removing particles that contribute to disease or aging.

“Our brand’s promise is, no matter where or how a customer engages with Next Health, they’ll have access to the latest and best wellness technology and treatments available,” Next Heath co-founders, Dr. Darshan Shah and Kevin Peake noted in a joint statement.

Longevity Franchises Boom

Longevity is an evolving, promising sector. While concerns have been raised about the financial barriers clinics may impose on many consumers and the role they will eventually play in the long-term traditional healthcare landscape, franchise brands such as Next Health continue to gain traction.

New Jersey-based Serotonin Centers is expanding in Chicago, with more locations to follow while Restore Hyper Wellness has said it plans to open 500 locations over the next several years.

Lindora, a metabolic health clinic recently acquired by Xponential Fitness, has already enjoyed a strong start to its franchising endeavors, announcing several multi-unit license agreements with plans to enter new markets across the U.S.

The post Next Health Eyes 150 Longevity Clinics by 2027 appeared first on Athletech News.

Europe is experiencing a fitness boom, with health and fitness center revenue and membership numbers topping pre-pandemic levels and 100 million European gym members predicted by 2030, according to a new report from EuropeActive and Deloitte.

European health and fitness center memberships grew to nearly 68 million in 2023, up from 62.9 million the year before. Revenues followed a similar trend, increasing by 14% to €31.8 billion ($33.8 billion) in 2023, an all-time high. The number of fitness clubs in Europe increased 1.4% to almost 65,000. 

The 2024 European Health & Fitness Market Report also found that the leading fitness operators in terms of membership for 2023 were Basic-Fit (3.8 million); RSG Group, owner of Gold’s Gym and others, (2.0 million); and PureGym (1.9 million).                  

Basic-Fit also scored the top ranking for revenue (€1,047 million), followed by David Lloyd (€854 million) and PureGym (€621 million). 

There was also strong deal-making activity among European brick-and-mortar health and fitness clubs, with 12 major mergers and acquisitions being completed in 2023, per the report.

US Fitness Leaders Make European Push

The projections are great news for American fitness brands looking to capitalize on Europe’s fitness surge.

Club Pilates, Xponential’s wildly successful franchise, has already gained ground in the European market, including signing a master franchisee to license a minimum of 75 Club Pilates studios in France over the next decade. Xponential’s Body Fit Training (BFT), a coach-led group strength and conditioning training franchise, has just opened a new Barcelona studio and also has a presence in the U.K.

Anytime Fitness, the big-box gym chain under the Self Esteem Brands umbrella, has its sights set on Europe (and elsewhere), with gyms expected to open across France and Italy.

Popular HIIT studio Barry’s is planning to open its doors to fitness enthusiasts in Barcelona this month as it brings its high-energy workout under red lights to more international markets.

The post European Gyms See Record Revenues, Strong Membership Growth appeared first on Athletech News.

Xponential Fitness’ entry into the market-disrupting metabolic health franchising space is off to a strong start, with the boutique fitness and wellness franchisor announcing a slew of multi-unit license deals to expand Lindora across the United States.

The metabolic health clinic has had a stronghold on the Southern California market with 30 locations (and one in Monroe, Washington) but will now enter new markets in Dallas, Boise, Idaho, Rochester, Buffalo, Atlanta, Chicago and Portland (Oregon), inking multi-unit license agreements in those markets.

Xponential acquired Lindora late last year, expanding beyond its core boutique fitness offerings such as Club Pilates and StretchLab. The chain of metabolic health clinics takes a holistic approach to wellness beyond GLP-1s, offering hormone replacement therapy, IV hydration, Zerona Z6 Cool Laser treatments and meal plans. The franchise brand’s chief medical advisor, Dr. Amy Lee, is triple-board certified in internal medicine, clinical nutrition and obesity medicine.

The franchise has attracted new owners from various industries, which Xponential says shows Lindora’s mass appeal as an investment opportunity and power as a franchise brand.

“We are thrilled to offer health-minded entrepreneurs the opportunity to become part of the Lindora family,” said Lou DeFrancisco, president of Lindora. “The brand’s proven approach to metabolic health and wellness, paired with the support and expertise of Xponential, will set our franchise partners up for success in delivering impactful solutions that empower individuals to live healthier lives while addressing the growing consumer demand for comprehensive health and wellness offerings.”

As it looks to scale Lindora, Xponential recently welcomed Martin Balcaitis, the former chief marketing officer of StretchLab and Body Fit Training (BFT) back to serve as senior vice president of operations for the metabolic health brand.

Wellness Wars?

Consumers may be shrinking in size, but the metabolic health, med spa and longevity space is rapidly growing. 

Lindora faces equally formidable competitors in brands like Restore Hyper Wellness, which plans to open hundreds of new locations over the next five years and provides similar therapies, including GLP-1s.  Serotonin Centers is also gaining ground, with 100 franchises open and in development. 

Last fall, luxury fitness and lifestyle operator Life Time launched Miora, a medical wellness and longevity clinic that will offer GLP-1s along with other services. Life Time founder and CEO Bahram Akradi calls the space a “huge opportunity” for the brand.

Life Time competitor Equinox just partnered with Functional Health, a longevity-focused health-tech startup, to offer personalized lab tests for members. The exclusive partnership will see expert Equinox trainers develop specialized programs for members based on their unique biological profiles.

Julia Klim, Equinox vice president of strategic partnerships, says the new collaboration reflects the brand’s commitment to healthspan and longevity services.

“This partnership represents a new era in personalized, performance-driven health, integrating the highest standards in personal training with cutting-edge research and data across nutrition and regeneration,” Klim said.

The post Lindora Inks Multi-Unit Franchise Deals Across US appeared first on Athletech News.

Xponential Fitness has lost a pair of longtime executives, although the boutique fitness and wellness franchisor has fortified the leadership team behind Lindora as it plans to scale the metabolic health brand it recently acquired.

John Kersh, who served as chief international development officer of Xponential Fitness and Xponential+ president Garrett Marshall both announced on LinkedIn that they are leaving their posts at the boutique fitness and wellness franchisor.

Kersh took to the career networking site to share the news and recognize his colleagues, writing, “After 6 years and master franchise agreements for multiple brands in more than 20 countries, I have decided to leave Xponential Fitness for a new and exciting opportunity.”

Marshall took a similar approach, thanking the wellness franchisor for an “awesome ride,” and posted a video recorded from his office on his last day with Xponential Fitness.

“It’s been a very rewarding journey over the last five years having the opportunity to work with some incredible leaders and great teammates,” he said before reflecting on the pandemic and major milestones, such as the company’s IPO.

“It’s been a difficult decision,” Marshall said, adding that he would reveal his upcoming plans in the near future.

The news follows Xponential’s recent divestiture from Stride Fitness, its treadmill-based interval training brand.

Lindora Bulks Up Exec Team

Although Kersh and Marshall have exited Xponential, the company is welcoming back Martin Balcaitis, former chief marketing officer of StretchLab and Body Fit Training (BFT). Balcaitis took to LinkedIn last week to announce his return as senior vice president of operations for Lindora, the metabolic health clinic recently acquired by Xponential.

Xponential made a bold move last year to buy Lindora, giving the franchisor a foothold in the wellness space with a chain of metabolic health clinics that provide weight loss medication like GLP-1s and non-invasive holistic wellness therapies. 

“Sometimes you have to leave the nest to realize where your home truly is,” Balcaitis wrote. “The opportunity to yet again grow a new brand and help small business owners bring wellness and weight loss services to their community is incredibly exciting. It feels fantastic to come back home to Xponential and be surrounded by talented individuals doing great work! Be on the lookout for a Lindora location near you soon!”

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Body Fit Training (BFT), the Xponential Fitness-owned group strength and conditioning brand, has named former F45 Training executive Duncan Cork as its new president as it gears up for North American expansion.

The global fitness brand just opened its 300th global studio, in Barcelona, a milestone that gives the Australia-born BFT a presence in nine countries including New Zealand, Singapore, the U.K., Hong Kong and the U.S.

In the States, BFT opened 30 studios last year and has hundreds of signed franchise agreements to develop new studios, according to the brand.

“Body Fit Training is best-in-class when it comes to strength training and boutique fitness, and I am looking forward to ushering in the brand’s next phase of growth and evolution as president,” said Cork, a franchising veteran and former F45 exec. “The importance and benefits of strength training and conditioning are being recognized in the industry, echoed by its growing popularity across the world.”

Cork replaces Lou DeFrancisco as BFT president. DeFrancisco, who served in the same role at StretchLab before joining BFT, will now become president of Lindora, Xponential’s most recent acquisition.

BFT’s 50-minute, science-based and coach-led classes are designed into eight-week progressive training blocks that combine strength training and conditioning work to deliver results in a group setting. The concept has been recognized for bringing gamified workouts to strength training using heart-rate tracking technology.

Xponential acquired the Australia-founded brand in 2021 and is looking to grow BFT into its next boutique fitness success story as strength training surges in popularity.

As Cork puts it, BFT represents the “gold standard” in its modality of fitness, and he is eager to grow the brand in the U.S. 

“Alongside our talented franchise partners and backed by Xponential, BFT is set to reach hundreds of thousands of new members and communities, building stronger, longer lives together,” Cork said.

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YogaSix knows no boundaries, both on the map and with its evolving workout programs. Fresh off its 200th global studio launch, the Xponential Fitness-owned yoga franchise has continued to enhance its class offerings.

Famous for modernizing yoga classes with ambient lighting, upbeat music, and temperature variations (heated and non-heated classes), YogaSix added strength training class Y6 Sculpt & Flow before later including the Y6 TRX class, tapping into the modality’s rising popularity, especially among women. 

“We were discussing the popularity of our sculpt and flow class that combines yoga, weights and cardio and wanted to add another option for members that was in a similar realm,” explained Lindsay Junk, YogaSix President. “Xponential already had a relationship with TRX, so we went to work to create a class that made use of their incredible equipment in a way yoga students typically aren’t exposed to. Our education department partnered with theirs to create a truly unique experience.”

Making Strength Accessible 

With the equipment for YogaSix’s strength training classes in all studios already, integrating in a TRX class was a seamless addition.  Equipment includes weights ranging from 3-15 pounds along with TRX straps, blocks, bolsters, and bands, and all studios built after 2021 have TRX mounts on their walls as well. 

TRX’s value as a partner cannot be overstated, both in terms of delivering equipment and even as a familiar entry point for some members new to the hybridization of yoga and strength training.

“Students getting the tour of the space often have a lot of questions about how these sorts of tools get used at a yoga studio, but we quickly sell them on the benefits of integrating strength training,” said Kelly Turner, YogaSix Vice President of Training & Experience. “They see the mount and the suspension anchor and get super curious about how they’ll be used, or if they’re familiar with TRX, they quickly want to get booked into one of the class options available.”

“We knew a big part of the population knew TRX and would be more comfortable coming to YogaSix with modalities they knew,” Junk added.

The Benefits of Yoga x Strength Training

Strength training’s surging popularity makes this an opportune decision from YogaSix. With new demographics flocking to the fitness modality, including women and older populations, the brand is equipping itself for this new age of health and wellness.

“Strength training is only going to increase in popularity,” Junk predicts. “In recent years, more and more women have stopped buying into the false notion that if they lift weights they will somehow get ‘bulky.’ Not true. Building muscle mass is a way to help the whole body and mind stay healthy, while also increasing metabolism and cardiovascular strength.”

Turner agrees, noting she’s seen more women take up strength training. 

“Now we hear a lot of chatter before and after class with women talking about what they see as some of the surprising benefits of strength-based classes… like the ability to carry their growing kids up the stairs,” Turner said. “There seems to be more women focused on getting strong, rather than just getting thin.”

YogaSix’s increased emphasis on strength training also promises to give members more from their workout experience. Oftentimes the health benefits from yoga are only one piece of the puzzle, argues Turner. Strength training can help complete it. 

“Some yoga students over-emphasize stretching, but without muscular stability, they are missing out on part of the equation,” she noted. “We see students who do our strength-focused classes start to achieve better form and unlock more advanced postures in their yoga journey. It will help our yoga students see gains in their yoga practice and add more value to their membership.” 

Attracting a Broader Range of Students

This expansion of YogaSix’s workout offerings will also assist franchise owners at the studio level. The new workouts will bring in new faces and ease them into additional YogaSix offerings, such as the company’s core practices.  

“A lot of people, especially those more comfortable in a gym setting, assume there is no place for them in a yoga studio; that yoga is boring and a waste of time,” said Turner. “So we get them through the door with a killer workout class like Y6 Sculpt & Flow that starts to expose them to some yoga to both warm up and cool down before the ass-kicking strength and cardio work in the majority of class.”

“That is often enough to wet their whistle to want to explore other yoga options,” noted Turner. 

If all goes well, YogaSix could soon begin to replace traditional gyms entirely for at least some members.

“We want YogaSix to be the only membership you need to have,” added Turner. “Sure, a lot of our members also do other modalities of fitness outside of  YogaSix, but since we rolled out Y6 Sculpt & Flow and then again after launching Y6 TRX, we’ve gotten great feedback that members feel like they can now cancel their gym membership because they get the full strength conditioning they’re looking for in our walls.”

Flexibility Is Key 

YogaSix only wants to expand on the adaptability shown by the inclusion of these strength-based workout classes. Junk and her colleagues remain on the lookout for what’s going to pick up traction next in the fitness sector. 

“Practicing yoga means staying flexible,” said Turner. “The entire corporate team is made up of people who not only love and practice yoga, but also just love fitness in general. So we keep our fingers on the pulse of what is happening. If we stayed super rigid to only doing things the way we’ve always done them, we’d be missing out on what modern science, kinesiology, and biomechanics is teaching us, as well as what our communities want, or need.”

YogaSix’s next addition to its arsenal of fitness offerings will be a more dedicated focus on private training program packages. Those enrolled will get more one-on-one instruction, whether that’s for traditional yoga classes, strength-focused programs, or one of YogaSix’s other class offerings.

“Our goal at YogaSix is to make yoga accessible to everyone,” affirmed Junk. “For me, that means continuing to successfully open studios in the territories we have sold. Right now we are the largest franchised yoga provider in the world. We are excited to continue our growth across the United States and internationally.”

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