ATN - Franchise Corner - Athletech News https://athletechnews.com/verticals/franchise-corner/ The Homepage of the Fitness & Wellness Industry Thu, 06 Mar 2025 19:22:40 +0000 en-US hourly 1 https://wordpress.org/?v=6.7.1 https://athletechnews.com/wp-content/uploads/2021/08/ATHLETECH-FAVICON-KNOCKOUT-LRG-48x48.png ATN - Franchise Corner - Athletech News https://athletechnews.com/verticals/franchise-corner/ 32 32 177284290 Inside the Franchising Approach for Boutique Health & Wellness Leader Xponential Fitness https://athletechnews.com/inside-the-franchising-approach-xponential-fitness/ Thu, 06 Mar 2025 19:22:28 +0000 https://athletechnews.com/?p=121802 Xponential Fitness uses tech, communication and aesthetic detail to establish franchising success 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…

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Xponential Fitness uses tech, communication and aesthetic detail to establish franchising success
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.”

Headshot of Sarah Luna
Sarah Luna (credit: Xponential Fitness)

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.”

men and women inside a yoga studio
credit: Xponential Fitness

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. 

man hits a boxing bag
credit: Xponential Fitness

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.

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Fitness Franchising by the Numbers: 10 Key Stats https://athletechnews.com/fitness-franchising-by-the-numbers-10-key-stats/ Mon, 03 Mar 2025 19:15:45 +0000 https://athletechnews.com/?p=121796 ATN aggregates key data and trends shaping the fast-growing fitness franchising industry The fitness franchise industry is experiencing robust growth, driven by consumer preferences and innovative business models. As health consciousness rises and workout habits shift, the sector shows promising opportunities. Recent data reveals several key trends shaping the future of fitness franchising. This article…

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ATN aggregates key data and trends shaping the fast-growing fitness franchising industry

The fitness franchise industry is experiencing robust growth, driven by consumer preferences and innovative business models. As health consciousness rises and workout habits shift, the sector shows promising opportunities. Recent data reveals several key trends shaping the future of fitness franchising.

  1. The number of franchise establishments in the U.S. grew by 2.2% in 2023, reaching 806,270 units, with a projected increase to 821,589 units in 2024. Americans spend an average of $286 per month on health and fitness-related activities and services (Franchise Clues).
  1. According to IBISWorld, fitness franchises saw a 4.9% annualized revenue growth over the past five years, reaching $2.9 billion. Projections indicate that revenue could increase at a 5.4% annualized rate to $3.7 billion as we approach 2025, with demand driven by a growing base of gym-goers, especially among baby boomers and younger generations (Guidant Financial).
  1. 73% of fitness franchises perform best in areas with median household incomes above $75,000 and population densities of at least 50,000 within a 5-mile radius (Franchise Times Market Analysis).
  1. The global fitness industry is projected to reach $115.6 billion by 2026, growing at a compound annual growth rate (CAGR) of 7.3% (Sharpsheets).
  1. About 89% of successful fitness franchises offer hybrid membership models combining in-person and digital services, up from 35% in 2019 (Fitness Industry Technology Council).
  1. In 2023, the total revenue generated by the U.S. franchising industry was estimated at $858.5 billion, with a forecast of $893.9 billion for 2024, indicating a steady growth trajectory (Franchise Clues).
  1. Recent fitness industry data shows a striking pattern in gym membership growth. While mid-range facilities charging $24-74 monthly saw modest success, the extremes of the market experienced the most dramatic expansion. According to the Health & Fitness Association, premium gyms ($75-99 monthly) enjoyed a robust 21% increase in memberships. Even more remarkable was the budget segment (under $25 monthly), which surged by 69%. Meanwhile, traditional mid-market health clubs posted a modest 2% growth.
  1. Average profit margins for fitness franchises range between 16.5% to 22.8%, with premium boutique concepts achieving higher margins up to 30% (FranData Industry Analysis).
  1. The average initial investment for a fitness franchise typically ranges between $250,000 and $500,000 depending on the brand, location, and size of the facility, with factors like franchise fees, leasehold improvements, equipment costs, and initial marketing expenses all contributing to the total amount needed to open a gym franchise (Franchise Business Review).
  1. The average time to achieve positive ROI for fitness franchises is 2.3 years, with low-overhead models reaching profitability in as little as 18 months. (Entrepreneur Magazine’s Franchise 500).

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.

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Scaling Wellness: A Perspire Sauna Studio Franchisee’s Journey to Success https://athletechnews.com/scaling-wellness-perspire-sauna-studio-franchisee/ Wed, 26 Feb 2025 18:11:13 +0000 https://athletechnews.com/?p=121788 Inspired by her journey in beating cancer, Maria Kirgan is all in on the power of infrared sauna and red light therapy For Maria Kirgan, offering health and wellness experiences is deeply personal. After spending 25 years in the software industry, grappling with the demands of travel and a high-stress career, she faced a life-altering…

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Inspired by her journey in beating cancer, Maria Kirgan is all in on the power of infrared sauna and red light therapy

For Maria Kirgan, offering health and wellness experiences is deeply personal. After spending 25 years in the software industry, grappling with the demands of travel and a high-stress career, she faced a life-altering diagnosis: breast cancer. This moment transformed her priorities, placing health and well-being at the forefront.

During her recovery, she discovered the transformative benefits of infrared sauna and red light therapy through Perspire Sauna Studio, which became a crucial part of her healing journey. Inspired by this personal experience, Kirgan decided to pivot her career and bring the same wellness opportunities to her community.

“Perspire has helped me to recover from a health crisis and it continues to help me relieve pain and stress daily,” says Kirgan. “I’m so grateful to be able to share the same healing to our community now.”

Maria Kirgan
Maria Kirgan, Perspire Sauna Studio franchisee (credit: Perspire Sauna Studio)

Driven by this passion, Kirgan now operates four successful Perspire Sauna Studio locations in California.

A Path to Success

Launching and scaling a business is no small feat, but Kirgan found immense support within the Perspire Sauna Studio franchise system. A key figure in her journey has been Katy Fetters, Vice President of Experience, whose hands-on approach made a significant impact.

“The training and support I received and still receive daily is unmatched,” Kirgan says. “Perspire brings a decade or more of operational experience and know-how, and Katy personally walked me through all of it.”

In 2024, Perspire Sauna Studio established its Experience Department to prioritize the guest experience and support franchisees in delivering top-tier service.

Fetters elaborates: “We work closely with franchisees like Maria by aligning on key standards, providing detailed education on how to execute effectively, and ensuring no gaps in their knowledge. Through hands-on training, operational guidelines, and continuous education, we set them up for success.”

Exceptional Customer Experience

For Kirgan, providing an outstanding customer experience is central to her business philosophy. “I think that offering a scientifically proven product wrapped in the best possible experience equals a win, and that’s what I set out to do every day,” she says.

With guidance from Fetters, Kirgan created a welcoming and rejuvenating environment for her clients.

“We established clear guest experience benchmarks, covering everything from the initial studio greeting to the upkeep of our state-of-the-art sauna rooms,” Fetters explains. “This consistency ensures that no matter which location a guest visits, they receive the same high-quality service.”

Katy Fetters
Katy Fetters, vice president of experience, Perspire Sauna Studio (credit: Perspire Sauna Studio)

To maintain and improve service quality, Perspire Sauna Studio employs data-driven tools such as net promoter scoring and secret shopper programs.

“These tools help franchisees gauge satisfaction levels, celebrate successes, and quickly address any issues,” says Fetters. “It’s all about continuous improvement and ensuring guests feel valued.”

Community Engagement & Strategic Partnerships

From the beginning, Kirgan understood the importance of community engagement. She forged partnerships with local gyms, fitness professionals and wellness centers to expand her reach and build strong relationships.

“Being part of the community is critical to our success,” Kirgan notes.“Everyone has been so welcoming and supportive, and I couldn’t ask for more.”

These collaborations, supported by Perspire Sauna Studio’s guidance, not only increased visibility but also fostered a sense of trust and loyalty among local residents. Fetters emphasizes that studios are more than just wellness centers – they’re sanctuaries.

“We create spaces where clients feel seen, heard and valued,” she says. “This personal connection fosters deep trust and loyalty, which is invaluable for both the community and the franchisee.”

Ongoing Communication & Tailored Support

Perspire Sauna Studio’s commitment to its franchisees goes beyond initial training. To ensure continuous improvement, the company recently launched a new digital platform designed to streamline communication and provide franchisees with easy access to updates, best practices and other resources.

“This platform keeps franchisees informed and engaged, ensuring they feel supported and connected to the larger Perspire community,” says Fetters.

Additionally, Perspire Sauna Studio relies on its Franchise Advisory Council and Marketing Advisory Council to gather feedback and implement system-wide improvements. Regular check-ins with Franchise Business Coaches provide personalized support, allowing franchisees to address unique challenges and optimize their operations.

“These one-on-one sessions are critical,” Fetters explains. “They allow us to dive deep into each location’s needs and offer tailored advice to help franchisees succeed.”

Scaling for Success

Kirgan’s dedication, paired with Perspire Sauna Studio’s support, allowed her to scale from a single studio to four thriving locations.

“From the onset, I knew I wanted to grow,” Kirgan explained. “Perspire’s proven operations and support made it possible to scale efficiently. They’ve nailed down the operational framework, so all I had to do was focus on executing and meeting goals to guarantee success.”

Her studios have consistently achieved impressive client retention and growth, fueled by positive word-of-mouth and high satisfaction rates.

“Every day, our members share how Perspire has changed their lives,” Kirgan says. “Hearing this is truly a gift and it’s what gives us purpose to do what we do each day.”

When asked what advice she’d give to first-time franchise owners, Kirgan didn’t hesitate with an answer, saying “It’s a scary decision to take that leap, but you’ll never know how much you love it until you do. My only regret is not doing it sooner. Perspire Sauna Studio has given me the tools to chart my own destiny, and the quality of life I’ve gained in doing so is immeasurable.”

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.

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Unscripted: SWTHZ’s Jamie Weeks on Contrast Therapy, Biz of Franchising https://athletechnews.com/unscripted-podcast-swthz-jamie-weeks/ Tue, 25 Feb 2025 13:13:47 +0000 https://athletechnews.com/?p=122286 Jamie Weeks joins the ATN podcast to offer his unique, unapologetic take on building a successful wellness franchise In the latest episode of Athletech News’ Unscripted podcast, Jamie Weeks, the founder and CEO of contrast therapy brand SWTHZ, joins co-hosts Edward Hertzman and Eric Malzone for a deep dive into the business of fitness and…

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Jamie Weeks joins the ATN podcast to offer his unique, unapologetic take on building a successful wellness franchise

In the latest episode of Athletech News’ Unscripted podcast, Jamie Weeks, the founder and CEO of contrast therapy brand SWTHZ, joins co-hosts Edward Hertzman and Eric Malzone for a deep dive into the business of fitness and wellness franchising. 

Weeks, Hertzman and Malzone discuss topics including the push and pull of corporate versus franchisee control, the benefits of running corporate-owned studios in a franchise model and how SWTHZ is pursuing growth in the emerging wellness category. Watch this episode of “Unscripted” for unfiltered takes on the following:

  • Approaching the franchisor-franchisee relationship as an entrepreneurial partnership 
  • Where fitness and wellness franchise brands tend to go wrong in their marketing and operations
  • Why sauna and cold plunge might be the key to making America healthy

Key Talking Points:

  • (0:00 – 5:59) Introductions and the concept of “whole-person wellness”
  • (5:59 – 10:24) Contrast therapy as a gateway into fitness and wellness
  • (10:24 – 14:26) Operational challenges in scaling a luxury wellness concept 
  • (14:26 – 22:05) Why choice is overrated in curating service offerings
  • (22:05 – 29:12) How Weeks approaches the business of franchising
  • (29:12 – 32:52) Defining success as an entrepreneur 

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CEO Corner: Fyzical’s Brian Belmont on the Art of Franchise Growth https://athletechnews.com/ceo-corner-fyzical-brian-belmont-franchise-growth-exclusive-interview/ Wed, 19 Feb 2025 17:23:49 +0000 https://athletechnews.com/?p=122213 A Marine Corps vet and former Planet Fitness exec, Belmont has grown Fyzical Therapy & Balance Centers from 170 locations to over 600  Fyzical Therapy & Balance Centers has emerged as one of the fastest-growing franchise brands across health, wellness and fitness, recently hitting 620 locations and earning a spot on Entrepreneur’s coveted “Franchise 500”…

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A Marine Corps vet and former Planet Fitness exec, Belmont has grown Fyzical Therapy & Balance Centers from 170 locations to over 600 

Fyzical Therapy & Balance Centers has emerged as one of the fastest-growing franchise brands across health, wellness and fitness, recently hitting 620 locations and earning a spot on Entrepreneur’s coveted “Franchise 500” list. 

Brian Belmont is responsible for much of that growth. Since joining Fyzical as its CEO in 2018, Belmont has helped the physical therapy franchise expand from around 170 locations to over 600 by prioritizing sound franchise economics and responsible yet aggressive growth. 

A former executive vice president at Quiznos and part of the C-suite leadership team that took Planet Fitness public in 2015, Belmont has taken his franchise learnings to Fyzical, which focuses on fall prevention and vestibular balance in addition to offering a full suite of traditional physical therapy and holistic wellness services. 

Belmont sat down with Athletech News to discuss what separates Fyzical from other physical therapy clinics across the United States, share his keys to franchising success and outline Fyzical’s plans for continued expansion. 

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

Athletech News: Can you tell us about your background and why you decided to join Fyzical in 2018?

Brian Belmont: I started my career in the Marine Corps for 10 years. In my early 30s, I joined Quiznos, which at that time was one of the fastest-growing franchise concepts in the U.S. We grew Quiznos to over 5,000 stores, and I went from national director to executive vice president of development and operations. From there, I went to Camp Bow Wow as chief operating officer. After that, I moved to Planet Fitness as chief operating officer, helping the company go public in 2015. 

So I’ve been lucky to have been with growth brands. When it comes to franchising, I look to see whether there’s a niche – a place in the market that no one else is addressing. For Fyzical, that’s balance and vestibular wellness. On top of that, our founder (Jim Abrams) is an iconic figure in franchising. All of that attracted me to Fyzical. When I got here, we were at about 170 stores. We’re at 620 today, so it’s been a pretty rewarding process. 

ATN: What separates Fyzical from a typical physical therapy clinic?

BB: Our founder realized that no one in academia – or in the market at all – was addressing falls and fall prevention. So he brought on Brian Werner (currently Fyzical’s national director of balance center development, education and training). We adopted his diagnostics as well as his clinical protocol and pushed that throughout our whole system. The reason we’re able to open a clinic in a market that has many, many PTs already is because no one (else) is addressing vestibular imbalance. There’s a huge demand in the market, and all we have to do is capture it. That’s number one. 

Number two is that we have great physical therapists. There’s something I call the “puppy mill” of physical therapy – treating a bunch of people at the same time. We don’t do that. We do individual, episodic, one-on-one care. Over time that creates a lifetime partner. You might have busted your shoulder, but sooner or later, you’re going to have something else that happens to you. You’re going to think of Fyzical because you had such a good experience when you were there. 

woman speaks with her PT during a physical therapy visit
credit: FYZICAL Therapy & Balance Centers

ATN: What’s the age range of a typical Fyzical client?

BB: We definitely skew older because of the fall prevention. But it varies by state. I’ve got a 24-year-old daughter who was a dancer, so she’s had a lot of hip and back issues. She became a Fyzical client because she needed that care. If you come to Southwest Florida, however, where demographics skew much older, our average age is probably 58 to 60. So it’s across the board.

ATN: Fyzical has more than tripled in size since you took over in 2018. What’s been the key to scaling the brand? 

BB: At the forefront of everything in franchising is whether a franchisee can make money. At the end of the day, it’s the economic model that solves it all. We provide the systems that help us grow, like business intelligence data, which allows franchisees to know whether they’re making money that day, and track their visits and referrals. Your operating systems need to be adapted system-wide and they need to be uniform within a franchise system. 

credit: FYZICAL Therapy & Balance Centers

ATN: As Fyzical continues to grow, what types of franchise owners are you targeting? 

BB: The best way to build wealth and create a strong brand in a franchise system is through multi-unit ownership, so over the last four or five years, we’ve come to prefer multi-unit operators. You get to a point with franchising where you have the luxury to super select.

We focus on folks who have either already been successful in a career as an executive or who’ve grown a couple of other brands and want another growth brand. We’ve got over 60 area reps who’ve bought anywhere from five to 10 units to grow over five to seven years. Most of our multi-unit owners partner with a physical therapist as a clinical lead.

ATN: What’s your pitch to franchisees about why they should choose Fyzical over other health, wellness and fitness concepts?

BB: Because no one else is doing what we do; there’s no one else in the market that can provide what we do for our patients. And If you want a growth brand, this is easily a brand that can reach a couple of thousand stores. We’re still under-penetrated: for instance, we have almost 80 stores in Florida, which has one of the lowest reimbursement rates in the U.S., and we’re successful there. There are markets like Seattle where we have just a handful of stores. So it’s pretty attractive.

man walks next to a PT during a physical therapy visit
credit: FYZICAL Therapy & Balance Centers

ATN: What are your long-term expansion goals for Fyzical? Could international expansion ever be in the cards?

BB: Based on regression studies, we can get to at least 3,000 over time, so we’re very confident. But it’ll be thoughtful growth. You can’t just grow for the sake of growth, you need to consider, “What’s the impact on an existing clinic? What’s the right market penetration?” However, we do want to continue gaining market share because that’s what keeps everyone behind us, not ahead of us. 

Internationally, there’s a great opportunity to go to Canada. It’s a completely different medical system – they call it physiotherapy – but it’s almost 50% cash-based. We’re exploring that right now. I also believe England or Australia could be good markets because their healthcare systems are similar (to Canada).


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Inside Pvolve Franchising: A Step-By-Step Explanation of the Brand’s Growth https://athletechnews.com/pvolve-franchise-growth-step-by-step/ Sun, 16 Feb 2025 13:23:00 +0000 https://athletechnews.com/?p=121812 Pvolve executives and franchisees explain the keys to the brand’s impressive franchising success    It’s getting more and more difficult to find corners of the country where functional fitness doesn’t have a market, in large part due to Pvolve. With 18 open locations and over 50 studios sold, all coming a little over a year since…

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Pvolve executives and franchisees explain the keys to the brand’s impressive franchising success   

It’s getting more and more difficult to find corners of the country where functional fitness doesn’t have a market, in large part due to Pvolve. With 18 open locations and over 50 studios sold, all coming a little over a year since the brand launched its first franchise location in San Diego, Pvolve’s rapid growth is undeniable and unparalleled. 

But just because this task of initial growth was accomplished in such a short period doesn’t mean it was simple or easy. Pvolve not only needed to pass a number of pre-launch tests during its initial franchise rollout stage, but several others mid-flight as the brand progressed to reach the heights it’s at today. 

Achieving Liftoff

It doesn’t take long for those partaking in functional fitness to understand its benefits. The modality helps individuals improve their physique, as well as their mobility, strength, and balance to enhance everyday life. However, a new-to-market fitness concept with unique equipment you’ve never seen before isn’t easily grasped. 

“In our earlier days, as an emerging brand, one of the biggest initial challenges in new markets during presale was low brand awareness,” said Jill Brand, Head of Brand at Pvolve. “Very few people had heard of Pvolve, and although the unique fitness modality was driving leads, these individuals weren’t ready to commit to buying a membership for a workout they’d never heard of or tried.”

Pvolve instructor teaches a class
credit: Pvolve

The message was clear — people needed to experience the workout firsthand. To that end,  the brand designed a robust presale marketing approach that educates the market and drives consumers to free trial classes as a way to lay the foundation first before trying to acquire new members. What’s more, the team moved away from a digital-first approach to an aggressive guerrilla strategy.  

“Rather than relying solely on digital marketing, franchisees are encouraged to actively connect with the community by participating in local events, collaborating with neighboring wellness businesses, and using those as opportunities to drive interest in trialing a class” said Brand. “These in-person strategies are essential to integrating Pvolve into the community and raising awareness for the workout and new studio opening.” 

In the time since its first round of franchisees launched, Pvolve has rounded these practices into a standard operating procedure for pop-ups that helps reel in memberships before satellite doors open. Pvolve HQ works with franchisees from the jump to help them better understand their markets and then launch customized presale campaigns, showcase the brand’s distinct fitness method and encourage more local engagement.

“We love the challenge of going into a new market that may not have otherwise heard of our method yet,” said Brand. “Our main goal is to educate our customers on our incredible method, how it’s different from everything else out there, and get prospective members to try a class and see for themselves.”

“Pvolve was an incredible partner throughout our presale journey,” added Caitlin Pettitt, Owner of Pvolve’s North Scottsdale location. “From providing comprehensive execution guides and best practice recommendations to offering hands-on support every day, their team was truly by our side. Weekly touch base meetings ensured we were always aligned and on track, helping us navigate each step with confidence. Thanks to their expertise, we feel fully prepared for a seamless and successful studio launch!”

Increasing Altitude

Pvolve doesn’t just send its franchisees off into the horizon after that initial stage either. It’s a good thing too, as the obstacles franchisees need to surpass once they get off the ground can be just as tricky to navigate. 

“The online/offline approach to marketing — combining digital marketing with active community engagement — establishes a strong foundation for long-term growth,” said Brand. “This early success creates momentum, but once your doors are open, you need to make sure you’re also focusing on member retention as well.”

wall at a Pvolve studio
credit: Pvolve

Pvolve has resources available to franchise owners to support retention efforts, including  exclusive member events, workout challenges, and brand partnerships that include special experiences and gifting. These all provide ongoing value, help reinforce members’ commitment, and encourage referrals. 

Updates from the Stratosphere 

Today, Pvolve is proud to report that its franchise locations are experiencing growth as the network itself continues to expand as well. The brand credits this to its strategic support and tailored sales and marketing approaches, backed by its best-in-class studio operations. 

“This comprehensive approach to marketing, sales and in-studio experience establishes a foundational lead and member base for ongoing member acquisition and retention,” said Brand. “We continue to see a steady increase in memberships, with monthly retention rates exceeding industry averages.”

women in Pvolve clothing smile for a group photo
credit: Pvolve

These positive takeaways are further supported by member feedback, which often includes the specific mentioning of Pvolve’s core principles when it comes to franchising. 

“Member feedback highlights their appreciation for the welcoming atmosphere and the transformative benefits of the Pvolve method, often noting that the community-first focus sets Pvolve apart from other fitness options,” Brand concluded. 
Boston-area fitness entrepreneurs and any functional fitness consumers in the area will be the next ones to benefit from Pvolve’s franchising methodology. It was confirmed to Athletech News that in the coming year, the state will welcome its first Pvolve location in either Wellesley, Needham, Newton, or Brookline. This is just behind a Santa Monica location, which opened in September, and a North Scottsdale one in November.

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.

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5 Ways to Fund Your Fitness Franchise Dream https://athletechnews.com/5-ways-fund-fitness-franchise-dream-athletech-news/ Wed, 12 Feb 2025 17:28:33 +0000 https://athletechnews.com/?p=121274 Opening a fitness franchise requires more than just passion for health and wellness — it demands smart financial planning and knowledge of available funding options. Whatever brand you’re considering aligning yourself with, understanding how to secure the right financing can mean the difference between breaking ground and breaking even.  Financing your first fitness franchise is…

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Opening a fitness franchise requires more than just passion for health and wellness — it demands smart financial planning and knowledge of available funding options. Whatever brand you’re considering aligning yourself with, understanding how to secure the right financing can mean the difference between breaking ground and breaking even. 

Financing your first fitness franchise is a pivotal step toward successful ownership. Understanding the available funding options and strategic tips can help you navigate this process effectively. Here’s a basic guide to get you started.

1. Small Business Administration (SBA) Loans

The SBA provides loan programs designed to help small business owners, including franchisees, access financing with favorable terms and reduced down payments. By partially guaranteeing the loan, the SBA lowers lender risk, making it a popular choice among first-time franchisees. The SBA 7(a) loan is one of the most commonly used programs for franchises, according to Guidant Financial, offering loans up to $5 million with terms up to 10 years for working capital and 25 years for real estate. Qualifying for an SBA loan generally requires a solid credit history and a comprehensive business plan detailing revenue projections, expenses, and growth potential.

2. Traditional Bank Loans

Conventional bank loans are another financing option that may be available to franchisees with strong credit, collateral and a detailed business plan. Banks often prefer lending to established franchises with strong brand recognition, as it lowers their risk. Interest rates and terms vary between banks, so franchisees are advised to shop around, comparing terms, interest rates, and repayment schedules. A well-prepared loan application, highlighting the brand’s industry performance and your business acumen, can increase your chances of securing a favorable loan (GoTeamUp).

3. Franchisor Financing Programs

Some fitness franchises offer in-house financing options or have partnerships with specific lenders to help new franchisees get started. These programs can cover initial franchise fees, equipment costs, and even real estate, depending on the franchise model. For instance, Snap Fitness provides its franchisees with customized financing options through partnerships with dedicated lenders, helping franchisees manage their start-up costs with greater ease. Franchise financing programs often come with flexible repayment schedules, enabling new owners to start generating revenue before repaying the loan fully.

4. Rollovers as Business Startups (ROBS)

ROBS allow entrepreneurs to leverage funds from their retirement accounts, such as a 401(k) or IRA, to invest in their business without incurring penalties or taxes. The process involves setting up a C Corporation, establishing a new retirement plan under this corporation, and rolling over existing retirement funds into it. This enables you to buy stock in the new company, essentially self-financing your franchise. 

While ROBS can be a beneficial option for those with significant retirement savings, the process requires strict compliance with IRS guidelines, making professional guidance essential to avoid complications.

5. Alternative Financing Options

For franchisees who may not qualify for traditional loans, alternative financing methods can offer a path forward, according to FM Consulting. Options include equipment financing, where the purchased equipment serves as collateral, and crowdfunding platforms that allow business owners to raise capital from a large pool of smaller investors. Equipment financing, in particular, is popular in the fitness industry due to the high cost of gym machines and technology. Crowdfunding may also work well for fitness franchises, especially those with a unique or community-focused mission that resonates with potential backers.

Tips for Securing Financing:

  • Develop a Comprehensive Business Plan: A detailed plan demonstrates your preparedness and the potential profitability of your franchise, instilling confidence in lenders.
  • Assess Your Financial Health: Ensure your credit score is strong and your financial records are in order, as these are critical factors for loan approval.
  • Consult Financial Advisors: Engage with professionals who specialize in franchise financing to guide you through the process and help identify the most suitable funding options.

By thoroughly researching and understanding these financing avenues, you can make informed decisions that align with your financial situation and business goals, setting a solid foundation for your fitness franchise venture.

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.

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Crunch Fitness Holds Top Spot, New Brands Land on Franchise 500 https://athletechnews.com/crunch-fitness-holds-top-spot-franchise-500/ Tue, 28 Jan 2025 14:00:00 +0000 https://athletechnews.com/?p=120412 Crunch is once again the top fitness/wellness franchise in North America, per “Entrepreneur.” Read on to see where other brands placed In many ways, franchising is the lifeblood of the fitness and wellness industry. And with the global wellness market projected to reach $9 trillion by 2028 and investors pouring money into scaling gyms, wellness…

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Crunch is once again the top fitness/wellness franchise in North America, per “Entrepreneur.” Read on to see where other brands placed

In many ways, franchising is the lifeblood of the fitness and wellness industry. And with the global wellness market projected to reach $9 trillion by 2028 and investors pouring money into scaling gyms, wellness centers and boutique fitness studios, the market shows no signs of slowing down. 

It should come as no surprise, then, that quite a few fitness and wellness brands made it on this year’s Entrepreneur Franchise 500 list, which ranks the top franchise brands in North America based on costs/fees, size/growth, franchisee support and brand strength. 

ATN breaks down where fitness and wellness brands ranked on the 2025 Entrepreneur Franchise 500 list, and highlights some key trends from this year’s rankings. 

5 Fitness & Wellness Brands Crack the Top 100

Crunch Fitness (#32) took the top spot among fitness and wellness brands for a second consecutive year, cementing its place as one of the industry’s blue-chip brands. The high-value, low-price (HVLP) gym brand continues to win with franchisees and consumers alike, now at over 500 locations and 3 million members

After Crunch, four other fitness and wellness brands cracked the top 100: The Joint Chiropractic (#54), Orangetheory Fitness (#73), Anytime Fitness (#82) and Hotworx (#95). 

Orangetheory and Anytime Fitness completed a merger last year, creating one of the industry’s biggest combined entities in Self Esteem Brands.  

Hotworx, meanwhile, has grown to over 700 locations since Stephen P. Smith founded the concept in 2017. The brand, which allows people to work out inside a 125-degree infrared sauna with virtual fitness instructors, has found success with franchisees from diverse business and personal backgrounds

two woman do yoga in a Hotworx sauna
credit: Hotworx

Big-Name Gym & Studio Brands Show Out

Crunch, Orangetheory and Anytime Fitness aren’t the only big-name fitness brands to show up on this year’s Franchise 500 list. 

Gold’s Gym (#160), F45 Training (#232), D1 Training (#390), Burn Boot Camp (#427) and Bodybar Pilates (#470) were all rewarded with spots. 

Xponential Fitness-owned brands also made their mark on this year’s list, with Club Pilates (#133), StretchLab (#228), Pure Barre (#375), Body Fit Training (BFT) (#482), Rumble Boxing (#492) and YogaSix (#496) all earning recognition. 

Not to be forgotten, Jazzercise (#392) also made this year’s list, proving that the classic dance fitness brand founded in 1969 still appeals to modern-day consumers.

People working out in gym
credit: F45 Training

From Massage to Chiropractic, Wellness Classics Gain Ground

While much attention is given to the emergence of new-age wellness, recovery and longevity centers, and for good reason – brands like Restore Hyper Wellness (#144), VIO Med Spa (#242), Gameday Men’s Health (#357) and 4Ever Young (#396) cracked this year’s list – tried-and-true wellness modalities are enjoying something of a resurgence. 

Four massage brands, two assisted stretching brands and two chiropractic brands found their way onto this year’s Franchise 500. 

Brands like The Joint Chiropractic, 100% Chiropractic (#170), StretchLab, Massage Envy (#265), Hand & Stone Massage and Facial Spa, (#297), The Now Massage (#306) and Stretch Zone (#485) are proving that classic concepts have staying power, even in the age of botox and GLP-1s

StretchLab opened its 500th studio late last year as the Xponential-owned brand continues to experience incredible growth since 2018, when it counted just three locations. 

100% Chiropractic, a brand founded by husband-and-wife duo Dr. Vanessa and Dr. Jason Helfrich, is doing its part to bring chiropractic offices into the 2020s by pairing back adjustments with health and longevity services. The brand currently operates over 120 locations, with offices in states stretching from New Jersey to California.

100% Chiropractic office with sign
credit: 100% Chiropractic

Every fitness & wellness brand on this year’s Entrepreneur Franchise 500 list: 

For more insights into the dynamic business of franchising, download ATN’s Fitness & Wellness Franchise Outlook Report 2024.

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How to Nail Your Soft Opening: A 7-Day Checklist for New Franchises https://athletechnews.com/how-to-nail-your-soft-opening-a-7-day-checklist-for-new-franchises/ Mon, 20 Jan 2025 22:28:29 +0000 https://athletechnews.com/?p=119917 A step-by-step soft opening plan to set your new franchise up for a grand debut A soft opening is a crucial step for any new fitness franchise, giving you and your team the chance to rehearse operations and ensure a positive experience for future members. By following a structured, 7-day checklist, you can create a…

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A step-by-step soft opening plan to set your new franchise up for a grand debut

A soft opening is a crucial step for any new fitness franchise, giving you and your team the chance to rehearse operations and ensure a positive experience for future members. By following a structured, 7-day checklist, you can create a low-pressure environment that sets you up for a grand opening that runs smoothly and leaves a great first impression. Here’s a day-by-day guide to help you execute a flawless soft opening.

How Franchise HQ Supports Your Soft Opening

Franchise headquarters (HQ) often plays a significant role in guiding new franchise locations through the soft opening process. They typically provide resources and support to ensure that each location aligns with the brand’s standards and operates smoothly from day one. Here’s how HQ might assist:

  • Guidelines and Checklists: Many franchises supply a standardized checklist, detailing tasks from setup to member onboarding to maintain brand consistency.
  • Marketing and Branding Support: HQ may offer templates for social media posts, email announcements, and in-gym signage, helping you generate interest while staying on-brand.
  • Training Support: HQ may send trainers to the new location or provide online training materials, ensuring staff members are well-prepared for a smooth soft opening.
  • Operational Standards: HQ may conduct an audit to verify that equipment, technology, and procedures meet brand standards, providing guidance on any necessary adjustments.
  • Feedback Collection: Many HQs gather feedback from new franchisees to refine their support materials and address location-specific challenges.

The following checklist is for general guidance. Always check with your franchise HQ first.

credit: Helena Lopes from Pexels

Day-by-Day Checklist

Day 1: Set Up the Space

Objective: Make sure every area of the gym is functional and appealing.

Tasks:

  1. Arrange Equipment: Set up cardio machines, weights, and any group fitness areas in a way that allows for easy movement and minimizes bottlenecks.
    • Example: Align treadmills and bikes in a row to encourage flow, or create clear signage for weight zones to guide member traffic.
  2. Reception and Check-in Area: Designate an intuitive check-in spot with member cards, POS systems, and a friendly welcome area.
    • Example: If you’re offering memberships with perks, have a display that showcases these benefits right at check-in to spark early interest.
  3. Ensure Cleanliness and Comfort: From locker rooms to rest areas, ensure everything is spotless and stocked with necessities.
    • Example: Place a small table with sample-sized items like protein bars or sports drinks in the entryway, inviting members to try.

Day 2: Run Staff Training Sessions

Objective: Prepare staff to handle customer service and operational tasks with ease.

Tasks:

  1. Customer Service Basics: Train staff to handle member inquiries, complaints, and frequently asked questions. Practice positive responses, active listening, and maintaining a welcoming demeanor.
    • Example: Role-play a common situation, such as a member asking about class availability, to ensure the team is prepared to answer promptly.
  2. Technology Training: Walk through each piece of technology, from the check-in system to scheduling software, so the team can work efficiently.
    • Example: Set up a mock check-in where staff take turns inputting a new member’s information or completing a transaction.
  3. Emergency Protocols: Review emergency procedures to prepare staff for any incidents, from equipment malfunction to medical issues.
    • Example: Practice a brief safety drill to demonstrate the fastest route to exits or the first-aid kit.
credit: Anna Tis | Pexels

Day 3: Test All Equipment and Technology

Objective: Avoid any technical or mechanical issues on opening day.

Tasks:

  1. Inspect Equipment: Test each machine to ensure proper function. Run through safety protocols for equipment that requires special instructions.
    • Example: Check the treadmill’s emergency stop and ensure rowers’ straps are securely fastened.
  2. Check Wi-Fi, Music and AV Systems: Make sure your Wi-Fi is accessible throughout the facility and that audio systems work without static or interruptions.
    • Example: Play a typical workout playlist over the speakers and adjust volume levels to suit each area, keeping cardio zones upbeat and quieter zones like stretching areas subdued.
  3. System Testing: Test check-in, member management and POS systems to avoid delays when members arrive.
    • Example: Have staff run mock transactions, such as purchasing a water bottle, to ensure the system processes payments correctly.

Day 4: Trial Run with Friends and Family

Objective: Simulate a real opening day with a friendly audience and gather feedback.

Tasks:

  1. Invite Close Friends and Family: Have them experience the gym as regular members, which gives them an opportunity to provide honest feedback.
    • Example: Encourage your guests to try a group class, and observe the flow from check-in to locker room and workout.
  2. Gather Feedback: Have feedback forms or a QR code survey at the exit for guests to fill out after their visit.
    • Example: Include questions about ease of check-in, cleanliness, comfort, and overall experience to pinpoint areas for improvement.
  3. Observe and Adjust: Take note of any bottlenecks or operational challenges. Are people gathering around one particular area? Are staff struggling with questions?
    • Example: If guests struggle to find water stations, consider adding signage or relocating stations.

Day 5: Gather Feedback and Make Adjustments

Objective: Act on the feedback to fine-tune operations before the public opening.

Tasks:

  1. Review Feedback Forms: Identify common themes or issues brought up by your test group.
    • Example: If several people mention that equipment is too close together, rearrange to create more space and comfort.
  2. Discuss with Staff: Hold a brief meeting with staff to discuss feedback and emphasize any adjustments that need to be made.
    • Example: If members found check-in slow, remind staff to greet guests warmly but keep the interaction concise.
  3. Implement Immediate Changes: Make small adjustments that can be fixed right away, like moving a piece of equipment or adjusting temperature.
    • Example: Add a self-service kiosk if the front desk had a long wait time during the trial run.

Day 6: Promote the Soft Opening Locally

Objective: Generate local interest and encourage a manageable crowd for the soft opening.

Tasks:

  1. Social Media Announcements: Post on local social media channels about the soft opening. Offer a discount or free day pass to attract walk-ins.
    • Example: Post a photo of the gym setup with a caption like, “Come try us out this weekend! Free day pass if you mention this post!”
  2. Connect with Local Businesses: Reach out to neighboring businesses for cross-promotion opportunities, such as a local cafe offering a post-workout snack.
    • Example: Partner with a smoothie shop to offer a discount coupon for gym visitors.
  3. Invite Community Members and Influencers: Send personal invites to local community leaders or fitness influencers who can spread the word.
    • Example: If a nearby yoga instructor has a large following, invite them to test out your facilities and share their experience.

Day 7: Host the Soft Opening

Objective: Open to the public and observe the real-time flow of operations.

Tasks:

  1. Welcome Members: Make the first interactions memorable by greeting each new member warmly and offering assistance.
    • Example: Have staff on hand to guide new members through check-in, give a brief tour, and answer questions.
  2. Monitor Operations: Observe how the gym functions with members present, from equipment use to locker room availability.
    • Example: Keep an eye on peak areas to gauge if you need more equipment or adjustments in traffic flow.
  3. Capture the Moment: Take photos and videos of members enjoying the space for future marketing.
    • Example: Snap candid shots of a class or someone working with a personal trainer (with permission) to use on social media.
  4. Gather Final Feedback: Encourage guests to share their experience and thank them for helping you launch the franchise.
    • Example: Have staff ask members to fill out a short exit survey about their experience that day.

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Crunch Fitness Group Acquires 5 Jersey Strong Clubs in NJ https://athletechnews.com/crunch-fitness-group-acquires-5-jersey-strong-clubs-in-nj/ Sat, 11 Jan 2025 00:19:27 +0000 https://athletechnews.com/?p=119284 The deal underscores ongoing consolidation in the gym space as large brands like Crunch gobble up smaller operators Crunch Fitness franchisee Fitness Holdings North America is strengthening its New Jersey presence by acquiring five locations from Jersey Strong Gym in Tinton Falls, Ocean Township, Wall Township, Freehold and Marlboro, giving the franchisee 14 gym locations in New Jersey and 51…

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The deal underscores ongoing consolidation in the gym space as large brands like Crunch gobble up smaller operators

Crunch Fitness franchisee Fitness Holdings North America is strengthening its New Jersey presence by acquiring five locations from Jersey Strong Gym in Tinton Falls, Ocean Township, Wall Township, Freehold and Marlboro, giving the franchisee 14 gym locations in New Jersey and 51 in the Northeast.

The deal marks one of the first fitness acquisitions of 2025, following a trend last year where several smaller fitness chains were absorbed by larger operators. It’s a strategy that analysts expect to continue in full force in the coming years, given the rapid success large gym operators have seen in driving expansion.

The facilities will become part of the Crunch Fitness brand and are set to undergo a $20 million upgrade, which includes renovations and new equipment. According to a post on social media, a Crunch Fitness banner has already been mounted over at least one former Jersey Strong Gym sign. Last summer, Jersey Strong closed its long-standing Red Bank location. The fitness operator, formerly known as Work Out World, now lists four active locations on its website: East Brunswick, Manalapan, Old Bridge and Robbinsville.

“Strengthening the Crunch Fitness presence in New Jersey demonstrates our commitment to bring seriously fun fitness to even more gymgoers in the Northeast,” Fitness Holdings North America CEO Mark Federico said. “This expansion marks a significant step in our New Jersey growth and beyond. We look forward to welcoming these gyms into our fitness family while transforming these locations into vibrant, welcoming, and engaging spaces.” 

The acquisition coincides with Crunch Fitness reaching the 3 million member milestone and announcing its Crunch 3.0 initiative, which includes aesthetic upgrades, new equipment and group fitness enhancements across clubs nationwide.

Crunch currently counts over 500 gyms worldwide.

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D1 Training Acquires Chicago Fitness Chain, Adds Former F45 Exec https://athletechnews.com/d1-training-strive-village-expansion/ Fri, 10 Jan 2025 17:53:01 +0000 https://athletechnews.com/?p=119217 By acquiring Strive Village, the fast-growing D1 is looking to build up its adult personal training business D1 Training has acquired Strive Village, a chain of private training facilities in the Chicago area, and hired former F45 executive Elliot Capner as the Nashville-based fitness brand looks to accelerate its national expansion efforts.  Founded in 2016…

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By acquiring Strive Village, the fast-growing D1 is looking to build up its adult personal training business

D1 Training has acquired Strive Village, a chain of private training facilities in the Chicago area, and hired former F45 executive Elliot Capner as the Nashville-based fitness brand looks to accelerate its national expansion efforts. 

Founded in 2016 by Cam Paulson, Strive Village is a four-location strength and conditioning brand that specializes in one-on-one and small group training sessions for adults. The brand is known for its community-oriented, intense approach to fitness and its athletic style of training featuring free weights, battle ropes, air bikes and sled pushes.

“We are incredibly excited to partner with Cam and his team,” D1 Training founder and CEO Will Bartholomew said of the deal. “Strive Village has built an exciting, results-driven brand and has an unparalleled reputation of success training athletes via their one-on-one, two-on-one, and small group model. We look forward to supporting Strive Village’s next stage of growth.”

D1 Eyes Adult Personal Training

Under Bartholomew, a former college football standout, D1 Training has become one of the biggest brands in fitness. The athletic training brand had 131 open locations with another 262 in development at the start of this year. D1 is primarily known for its strength and conditioning workouts for youth, college and pro athletes, but the brand also offers training programs for adults. 

With the acquisition of Strive, D1 intends to expand its adult training business. Bartholomew told Athletech News the brand is seeing increased demand from adults for personal and small group training, particularly around strength training. 

“A lot of (adults) are coming in wanting to do private one-on-one and semi-private small groups with one coach,” Bartholomew told ATN. “When you walk into a Strive Village, you’re going to get not just great coaching, they’re also going to bring the juice. That’s who we are; that’s our DNA.”

men work out at a Strive Village gym
credit: Strive Village

D1 Training doesn’t have any immediate plans to rebrand the Strive Village facilities; instead, the two brands will work together over the coming months to determine the best expansion strategy. 

Terms of the deal weren’t disclosed. 

A Major C-Suite Hire

D1 also gets a major boost with the hiring of Capner as its chief commercial officer. A former corporate lawyer, Capner has high-level fitness franchising experience, having served as the chief operating and chief commercial officer at F45 Training, executive director of Strong Pilates and as a consultant for Xponential Fitness and D1. 

“I’m thrilled to officially join the D1 Training HQ team,” Capner said. “Having consulted with D1 HQ for some time, what truly stands out to me is the remarkable quality of people and the deep-rooted values of the organization.”

“D1’s innovative approach to training and its rich history of transforming individuals of all ages into athletes is inspiring,” he added. “Countless college and pro athletes have come through the D1 system, which speaks volumes about the strength of this model.”

headshot of Elliot Capner
Elliot Capner (credit: D1 Training)

Capner figures to be key for D1 as it pursues more franchise expansion. During Capner’s time at F45, the functional fitness brand grew from around 100 studios to over 2,000 worldwide. 

“We’re thrilled to get a seasoned person like Elliot on the team,” Bartholomew said. “He brings a wealth of knowledge, fits our culture and has relationships that are going to continue to help us grow. “

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Crunch Fitness Unveils Massive Gym Redesign https://athletechnews.com/crunch-fitness-new-gym-design/ Wed, 08 Jan 2025 14:00:00 +0000 https://athletechnews.com/?p=118815 Crunch 3.0 will feature premium touches including a redesigned reception area, optional heated fitness studio and new recovery modalities Crunch Fitness, a leading high-value, low-price (HVLP) gym brand, has unveiled Crunch 3.0, an ambitious design template that will see Crunch gyms across the country get aesthetic improvements, new equipment and group fitness enhancements, among other…

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Crunch 3.0 will feature premium touches including a redesigned reception area, optional heated fitness studio and new recovery modalities

Crunch Fitness, a leading high-value, low-price (HVLP) gym brand, has unveiled Crunch 3.0, an ambitious design template that will see Crunch gyms across the country get aesthetic improvements, new equipment and group fitness enhancements, among other changes. 

Crunch 3.0 gyms will feature redesigned front desk, reception and lobby areas, along with improved group fitness studios, additional functional training areas with turf, more strength training equipment, a dedicated recovery studio and better personal training spaces. 

The new design comes as Crunch Fitness recently topped 3 million members with over 500 gyms worldwide. The fitness brand, founded in 1989 in New York City’s Greenwich Village neighborhood, has been on an expansion tear over the last several years, buoyed by well-capitalized franchisees and private equity backing

“After 35 years of success, we’re excited to reach three million members. This momentous achievement further cements Crunch’s leadership position in the high-value, low-price gym category,” Crunch CEO Jim Rowley said. “As we reflect on the past year, we are confident that we offer the most innovative fitness experience under one roof and the best gym membership value on the market.”

Inside a Crunch 3.0 Gym

Crunch 3.0 is modular, so franchise owners can choose which elements to place into their gyms, but highlights of the new design include:

  • Entry, Reception & Locker Room: Improved lighting and aesthetics; enhancements to the entry, front desk and reception areas; and modernized, upgraded locker rooms. 
  • Group Fitness: Revamped group fitness studios featuring updated color palettes, enhanced overhead lighting, backlit mirrors, a lit instructor platform and digital timers. Franchisees can add a hot studio to their club for heated group fitness classes including yoga, Pilates, barre, HIIT, mobility and core.
  • HIITZone & Personal Training: A second turf area for functional training along with an improved HIITZone, Crunch’s proprietary group fitness and personal training area. 
  • Strength Training Equipment: In line with the strength training surge, Crunch 3.0 gyms will feature additional free weights, strength training machines, resistance equipment and Olympic lifting platforms. 
  • Wellness, Recovery & Longevity: In-house Relax & Recover studio featuring Hyperice equipment, red light therapy and infrared sauna, along with a dedicated stretching area, dimmed lighting and soothing music. 
  • Team Member Experiences: A redesigned gym floor gives Crunch team members a more seamless flow from the front desk to personal training areas and a more prominent presence throughout the gym.
Olympic lifting platforms inside a Crunch Fitness gym
credit: Crunch Fitness

Crunch will unveil its first Crunch 3.0 gym in Plano, Texas, as part of a grand-opening celebration that will include prize giveaways and an appearance from Dallas Cowboys quarterback Dak Prescott, a Crunch franchise owner. 

After the Plano launch, Crunch plans to expand the new gym layout to other locations across the United States. All newly opened Crunch gyms will feature the Crunch 3.0 layout while existing locations can upgrade through a remodel program. 

Low-Price Gyms Up Their Game

The launch of Crunch 3.0 comes as HVLP gym brands continue to add premium equipment and experiences, challenging the fitness industry’s status quo. Low-price leader Planet Fitness is adding strength training equipment, while upstart HVLP brands including Chuze Fitness, EōS Fitness and Vasa Fitness have added services like infrared sauna, recovery rooms and boutique-style group classes

Crunch believes it’s got a leg up on the competition with Crunch 3.0. 

“With Crunch 3.0, the value we provide our members is truly unparalleled,” said Crunch chief operating officer Molly Long. “Between the lighting, music, equipment, group fitness studios and overall aesthetics, the most in-demand offerings are coming to life under one roof at Crunch 3.0. We’re evolving the physical format of our clubs to meet the members where they are and taking a leap forward from an experience standpoint.”

Crunch Fitness chief operating officer Molly Long
Crunch Fitness chief operating officer Molly Long (credit: Crunch Fitness)

Long believes Crunch offers the best value of any gym brand on the market, with memberships that start as low as $9.99/month (memberships can cost more depending on location and plan).

“We’re like a mall of fitness, but in a good way. We have these different boutique studios under a single roof, and they’re done in an incredibly high-quality way,” Long told Athletech News, referencing Crunch’s group fitness offerings. “People would have to pay hundreds of dollars (per month) at multiple boutique studios to come close to what they’re getting at Crunch.”

group fitness studio inside a Crunch Fitness gym
credit: Crunch Fitness

Long also pointed to Crunch’s new Relax & Recovery area, which was designed to help members escape the rigors of daily life – or the physical stresses of a hard workout.

“We’ve dramatically elevated our Relax and Recovery area to make it feel like a premium spa experience with great amenities,” she said. “It’s almost this little oasis inside of a club.”

sign inside a Crunch Fitness gym
credit: Crunch Fitness

Crunch 3.0 comes around seven years after Crunch 2.0, the gym brand’s original redesign that set the stage for the massive growth it experienced over the last several years. Expect the new Crunch 3.0 layout to last for a similar length of time. 

“Every world-class retailer is on a remodeling schedule – generally, it’s between five and eight years where you have a major overhaul in your design,” Long noted. ‘That’s probably the same trajectory we’re looking to follow.”

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Plus Fitness Eyes Gym Growth in UK, Asia https://athletechnews.com/plus-fitness-uk-asia-gym-growth/ Thu, 26 Dec 2024 22:16:14 +0000 https://athletechnews.com/?p=118431 The Viva Leisure-owned brand has inked deals to bring its 24/7 gym brand to the United Kingdom, Singapore and the Philippines Plus Fitness, an Australia-based 24/7 gym franchise, is going abroad once again. The brand has agreed to a master franchise agreement that will bring its gyms to the United Kingdom, including at least one…

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The Viva Leisure-owned brand has inked deals to bring its 24/7 gym brand to the United Kingdom, Singapore and the Philippines

Plus Fitness, an Australia-based 24/7 gym franchise, is going abroad once again. The brand has agreed to a master franchise agreement that will bring its gyms to the United Kingdom, including at least one in 2025. 

This move comes just weeks after Plus Fitness and its parent company Viva Leisure announced a similar deal to establish locations in Singapore and the Philippines. The initiatives stretch the brand’s reach to six geographical areas, having already established a presence in Australia, New Zealand and India.

“We’re excited to enter the U.K. market, which presents significant growth opportunities,” said Harry Konstantinou, CEO of Viva Leisure. “Our low-cost, high-reward franchise model will allow Plus Fitness to scale quickly and meet the growing demand for affordable fitness solutions.”

Viva Leisure oversees and operates several brands along with Plus Fitness including Club Lime, Club Pink, GroundUp, HIIT Republic and Psycle Life. It also recently helped fund Boutique Fitness Studios’ expansion in Australia and New Zealand

The franchise agreement for Plus Fitness in the U.K. spans 10 years and includes an option to tack on two additional 10-year terms. The fitness brand views the U.K. as a hotbed for success, stating that only 15% of the area’s population owns a gym membership. Its low-cost, high-reward franchise model also makes it an attractive opportunity for entrepreneurs. 

Plus Fitness was founded roughly 25 years ago, opening four branch locations before taking the franchising leap. It pivoted from featuring big-box gyms to smaller, lower-priced and 24/7 locations around 2009 and has been off and running ever since, now with over 200 sites.  

But Plus Fitness isn’t the only gym brand eyeing the U.K. The Gym Group, a high-value, low-price (HVLP) gym operator, plans to open 50 new sites over the next three years. The U.K.-based Gym Group already accelerated its growth from 32 locations in 2012 to 233 gyms as of March.

Fitness software provider Xplor Mariana Tek and equipment supplier REP Fitness also both made advances into Europe this past year as well.

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How MADabolic’s Strength-Based Interval Training Prepares Members for Long-Term Fitness https://athletechnews.com/madabolic-strength-based-interval-training/ Mon, 23 Dec 2024 16:51:05 +0000 https://athletechnews.com/?p=117780 MADabolic has an alternative approach to strength training that keeps members working out longer and living healthier MADabolic, the strength training fitness franchise, is all about playing the long game.  When most people approach a new fitness routine, they do so with aspirations of seeing immediate “gains” in the mirror. However, a workout regime with…

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MADabolic has an alternative approach to strength training that keeps members working out longer and living healthier

MADabolic, the strength training fitness franchise, is all about playing the long game. 

When most people approach a new fitness routine, they do so with aspirations of seeing immediate “gains” in the mirror. However, a workout regime with that mentality alone can inhibit meaningful outcomes. 

MADabolic strays from that norm, providing a uniquely scalable training experience that equips members with the tools to build their desired physique while also fostering durability, functionality and preparing them for a balanced lifestyle. 

“MADabolic’s training program is intentionally designed to build strength and long-term resilience,” said Kristi Wass, VP of Marketing at MADabolic. “While scalable enough to challenge former athletes and everyday fitness enthusiasts alike, we focus on building sustainable habits and training in a way that enhances everyday life. The purposeful programming keeps workouts engaging and effective over the long haul, and that consistency drives results.”

More Isn’t Better

In MADabolic’s eyes, many in the fitness industry need to redirect their attention. 

“Too often, cardio is overhyped and more is treated as better,” said Wass. “But effective training can be efficient. Each MADabolic workout is 50 minutes and includes five movements. The workout is designed to stimulate progression and results, enabling members to see continued growth over time.” 

woman works out on gymnastic rings
credit: MADabolic

The MADabolic protocol includes structured, strength-based programming. Rather than constantly introducing new exercises, the brand emphasizes variations on fundamental movement patterns and coaching clients to move well before building load. This, paired with the focus on time-based work intervals rather than number of reps, relays significant and sustainable fitness outcomes.

“Our view is rooted in basic fundamentals, but is in a sense countercultural,” said Wass. “Training to lift heavy things will make you stronger. You’ll find heavier kettlebells, dumbbells, and d-balls on our floor than you see in other group fitness concepts. Another distinct factor is how much our trainers focus on one-on-one coaching and quality of movement.”

Building Upward, Not Sideways

MADabolic encourages clients to strength train four days per week with the idea that results are born of ongoing adherence to a program that’s methodically structured toward a long-term goal.

woman lifts a dumbbell
credit: MADabolic

“Anyone can work through an arbitrary number of reps and random, flashy movements to break a sweat,” Wass explained. “We prefer to take the road that’s built to teach skills and provide long-lasting benefits.” 

What happens on our training floor enables clients to feel continuously challenged through varied intensities and functional movements, even after years of training with us,” Wass added. “People joke about how the more you progress, the harder the workout feels, and there’s actually some truth to it; there’s continued growth happening here.”

The Shift is Happening

MADabolic’s alternative approach is beginning to catch on. The proven benefits and popularity of strength training from a general standpoint are supporting it as well. 

“Strength training and fundamental movement patterns are becoming more widely recognized for their value,” said Wass. “Strength is in our DNA; it’s not something we’re layering in over the top of our core programming, so MADabolic is positioned to continue to build momentum as a broader audience continues to take interest in an exercise program that will help them get more out of life.”

Longevity, the fitness industry’s other hot commodity, also aligns with MADabolic’s approach to quality over quantity. The brand’s commitment to structured strength training reduces injury risk and sets users up to continue enjoying their workout regimen for years to come. 

man lifts a dumbbell
credit: MADabolic

“As more people seek sustainable fitness solutions that prioritize strength and promote long-term health, MADabolic is perfectly positioned to meet that demand,” said Wass. “The same core beliefs we were born from over a decade ago ring just as true now as they did then. As many other fitness and wellness concepts are grasping to add more to their offerings, we’re pleased to double down on the thing we’re great at: helping everyday people gain strength and age athletically.” 

MADabolic currently has 35 units open and operating today. Another 8-10 are expected to open before the end of the year and another 60+ units are in development. 

“Over the next 18 months, you can expect to see many more MADabolic locations open across the country, both in new markets and expanding in our current markets,” said Wass. “The future is bright for strength and for our brand.”

This article originally appeared in ATN’s Gym of the Future Report, which explores the technology, equipment and sustainable practices driving a new era of personalized fitness and wellness experiences. Download the free report.

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Watch Now: DISRUPT Business of Franchising Content https://athletechnews.com/disrupt-business-of-franchising-videos/ Wed, 18 Dec 2024 21:55:51 +0000 https://athletechnews.com/?p=117594 Catch up on any DISRUPT videos you missed (or want to re-watch), including insights on the ins and outs of fitness franchising Franchising remains the lifeblood of the fitness and wellness industry. As part of DISRUPT, Athletech News’ can’t-miss video series, we invited top brands, executives and experts to discuss all things franchising, including how…

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Catch up on any DISRUPT videos you missed (or want to re-watch), including insights on the ins and outs of fitness franchising

Franchising remains the lifeblood of the fitness and wellness industry.

As part of DISRUPT, Athletech News’ can’t-miss video series, we invited top brands, executives and experts to discuss all things franchising, including how to create a winning fitness and wellness franchise concept, how to scale your brand domestically and internationally, and what to watch for as the space evolves and adapts to new trends and consumer preferences.

Topics of discussion included how to attract high-quality franchisees, navigating the current fraught real estate market, and whether to expand internationally.

In case you missed any DISRUPT 2024 business of franchising videos, ATN is sharing them here for your viewing pleasure. Sit back, relax and enjoy the content!

Rebuilding a Giant: F45 CEO Tom Dowd Talks Turnaround

  • Tom Dowd, CEO, F45 Training Group (F45 Training, FS8 Pilates, VAURA Pilates)
  • Edward Hertzman, Athletech News

The Golden Touch: HQ’s Role in Scaling Culture & Community

  • Amber Burkk, COO, Burn Boot Camp
  • Sarah Luna, President, Xponential Fitness
  • Mike Tan, COO, SWTHZ
  • Brandon Cullen, Co-Founder and Chief Concept Officer, MADabolic
  • Moderated by Edward Hertzman, Athletech News

How To Take Your Franchise Brand Global: Licensing, Tech & More

  • Jonathan (JJ) Gantt, Co-CEO, Barry’s
  • Massi Sardi, VP of Partnerships, Wellhub
  • Christophe Collinet, Chief Commercial Officer, LifeFit Group
  • Ieuan Owen, Chief Revenue Officer, Xplor Technologies
  • Moderated by Edward Hertzman, Athletech News

From Broken to Bulletproof: How Corporate Best Practices Transform Franchise Real Estate

  • Jay Siano, Co-Founder and CEO, SABRE
  • Douglas Jerum, Principal, SABRE
  • Cody Patrick, Co-Founder and CEO, SWEAT440
  • Moderated by Edward Hertzman, Athletech News

A Behind The Scenes Understanding of The Business of Franchising

  • Jon Canarick, Managing Partner, North Castle Partners
  • Marc Magliacano, Managing Partner, L Catterton Flagship Fund
  • Robbie Shapiro, Managing Director, York Capital Management
  • Moderated by Rick Caro, President, Management Vision

Selling in a Crowded Market

  • Chris Appiah, Founder and CEO, The Sales Arms
  • Miya El-Masri, Co-Owner, The DRIPBaR San Angelo
  • Lisa Pantaleo, Studio Owner, barre3 Long Island City
  • Joshua El-Masri, Co-Owner, The DRIPBaR San Angelo
  • Alex Eliades, Director of Sales & Site Performance, The DRIPBaR
  • Moderated by Tricia Madden, Fit Pro Programming / IDEA World

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Consolidation Is Here To Stay in Fitness Franchising, Experts Say https://athletechnews.com/consolidation-fitness-franchising-disrupt/ Tue, 17 Dec 2024 22:16:44 +0000 https://athletechnews.com/?p=117982 This article is part of ATN’s DISRUPT 2024 video series, featuring can’t-miss conversations with the biggest executives in fitness and wellness. To watch DISRUPT content, click here Fitness franchising brings to mind images of independent owner-operators and small-business success. In the post-COVID world, though, the space might be better summed in a few words: “go big or go…

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This article is part of ATN’s DISRUPT 2024 video series, featuring can’t-miss conversations with the biggest executives in fitness and wellness. To watch DISRUPT content, click here

Fitness franchising brings to mind images of independent owner-operators and small-business success. In the post-COVID world, though, the space might be better summed in a few words: “go big or go home.”

During ATN’s DISRUPT video series, three leading investors in the fitness and wellness space – Jon Canarick of North Castle Partners, Marc Magliacano of L Catterton, and Robbie Shapiro of York Capital Management – gave their thoughts on the dynamics shaping the fitness franchising industry, including the rise of consolidation.

ATN breaks down key moments from their conversation, including why the trend of franchise consolidation might be here to stay, current market dynamics, and which fitness modalities are poised for growth in the years ahead. 

Large Franchise Groups Take Control

The fitness franchising space has been marked by consolidation since the COVID-19 pandemic, with large, cash-rich franchisee groups buying up smaller operators to create massive portfolios of gyms and studios. Crunch Fitness, Anytime Fitness and Planet Fitness have all seen private equity-backed franchise groups enter their systems in recent years, acquiring dozens of gyms in one pop

Investors expect to see this trend continue in the years ahead, especially since large franchise groups tend to see quick success in terms of expansion. 

“Consolidation is among us,” said L Catterton’s Magliacano, noting that generally, “large, sophisticated, franchisee groups perform very well.” 

“The data is just telling franchisors to help facilitate ongoing consolidation of their franchise groups,” he added.

The rise of so-called “HVLP 2.0” gyms could accelerate the consolidation trend in the years ahead. 

HVLP 2.0 gyms represent the next evolution of high-value, low-price gyms, offering premium amenity sets like group fitness classes, recovery services and top-shelf strength training equipment at monthly price points that are at or near traditional “HVLP 1.0” gym concepts like Planet Fitness

Crunch Fitness, Chuze Fitness, EōS Fitness and Vasa Fitness generally fall into the HVLP 2.0 category, although the definition is somewhat loose. Generally, HVLP 2.0  gyms are more expensive to build and maintain than HVLP 1.0 concepts, which can make it cost-prohibitive for individual franchisees to get in on the action. 

To control costs and logistics, many HVLP 2.0 brands opt to stay corporate-owned rather than sell franchises. North Castle Partners’ Canarick noted an interesting phenomenon  – virtually every major HVLP 2.0 brand is corporate-owned, with the exception of Crunch Fitness.

For Crunch, consolidating its gyms into the hands of a few large franchise groups offers a way to compete with the likes of Chuze, EōS and Vasa on the operational side while still tapping into the economic and expansionary benefits of a franchise model. 

“Where Crunch is evolving is to sort of lean into the fact that you do really need sophisticated management teams (and) more concentration of ownership. … So they sort of mimic, almost, the corporate-owned model,” Canarick said. 

sauna area inside a Chuze Fitness gym
Chuze, a leading HLVP 2.0 gym, offers amenities like infrared sauna (credit: Chuze Fitness)

A Tougher Market in General 

High-performing fitness brands are still able to obtain growth capital when the conditions are right, but overall, investors say the market is less receptive to franchising than it was before the pandemic. 

“The post-COVID world is very different for a whole host of reasons,” said York Capital Management’s Shapiro. “(The) pattern of daily life has changed, but also inflation and higher interest rates. So it’s a much more difficult operating environment today than it was five years ago.”

Besides macroeconomic factors, Magliacano noted that entrepreneurs are generally less interested in becoming fitness and wellness franchisees than they were before the pandemic, with COVID’s deleterious effects on the fitness industry still fresh in people’s minds.

“Today, trying to find franchisees that are ready, willing and able to lean in with their wallets is a very different proposition than it was pre-COVID,” he said. 

Canarick also pointed to the rise of at-home fitness during the pandemic as a factor that makes it more difficult for brick-and-mortar franchise brands to compete for investment dollars. While connected fitness brands like Peloton might be struggling financially, there’s no denying that at-home fitness is a bigger part of consumers’ exercise routines than it was pre-pandemic. 

“For all of the negatives around Peloton and all their struggles, they still have an enormous market share of daily workouts, much higher than it was before COVID,” Canarick said. 

Pilates, Strength Training Soar

It’s not all doom and gloom, though. The fitness and wellness industry is still generally growing, even if current macroeconomic conditions and lingering memories from the pandemic have created challenges for operators and investors. 

Asked which fitness modalities and concepts are poised for growth in the years ahead, investors pointed to some familiar trends. 

“I think, without question, the highest growth segment in boutique fitness is Pilates in its various forms, mostly machine-based Pilates,” Canarick said, adding that high-intensity interval training (HIIT) also “continues to be very successful.” 

Indoor cycling, on the other hand, is “a massive laggard” post-pandemic, he noted. 

women work out at a Natural Pilates studio
Reformer Pilates has become highly popular post-pandemic (credit: Natural Pilates)

Magliacano pointed to the rise of strength training in gyms, clubs and studios around the world. 

“When people say, ‘Follow the science,’ the science is saying strength is where you need to be,” he said. You want longevity, you want mobility in your older years? It is all about strength.”

On the flip side, “cardio-based concepts are going to struggle,” he said. 

Magliacano also expects to see tech and AI become a bigger part of the gym experience moving forward. This could be bad news for human personal trainers, he believes. 

“I think in the next 5, 10, years in the U.S., you’re going to see transformative changes within gyms, where technology and AI – and personalization of training programs – is going to take place,” he said. “Unfortunately, I believe that personal training from a human perspective will be under review, frankly, just to say it nicely.”

Shapiro pointed to the rise of wellness and recovery franchises, which offer services ranging from stretching and IV therapy to beauty services like Botox. 

“Anything that makes people feel better, feel younger, recover faster,” he said. ”There are huge demographic tailwinds with the aging population in the United States, so we’re very bullish on recovery services.”

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Planet Fitness Poised for Strong 2025, Analysts Say https://athletechnews.com/planet-fitness-poised-for-strong-year-strength-training-marketing/ Mon, 16 Dec 2024 22:20:52 +0000 https://athletechnews.com/?p=117892 New marketing tactics and a bigger focus on strength training equipment have analysts bullish on Planet Fitness’ future despite some headwinds Planet Fitness’ strategy under new CEO Colleen Keating is starting to take shape, and at least some analysts are confident the low-price gym giant will be able to reassert its dominance in 2025, buoyed…

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New marketing tactics and a bigger focus on strength training equipment have analysts bullish on Planet Fitness’ future despite some headwinds

Planet Fitness’ strategy under new CEO Colleen Keating is starting to take shape, and at least some analysts are confident the low-price gym giant will be able to reassert its dominance in 2025, buoyed by a revamped marketing plan and a shift to more strength training equipment. 

In an equity research report published Friday, analysts from TD Cowen expressed optimism in Planet Fitness’ future under Keating, who took over in June at a pivotal time for the high-value, low-price (HVLP) gym brand.

The analysts said they met with Planet Fitness’ executive team including Keating, chief financial officer Jay Stasz, retiring CFO Tom Fitzgerald, and vice president of investor relations Stacey Caravella, and that the meeting “re-affirmed our confidence” in the gym brand’s stock as a “buy” for 2025. 

“We expect changes around marketing, messaging, box lay outs, and franchise economics to reaccelerate openings, members, and comps growth,” the analysts wrote. “Progress will take time, but we expect a better 1Q, and are encouraged by the price transition.”

Just before Keating took over, Planet Fitness in May raised the price of its Classic Card membership from $10 per month to $15, its first price hike in nearly 30 years. 

Planet Fitness is still the largest gym chain in the United States with over 2,000 locations and around 20 million members, including a sizable Gen Z contingent. However, the brand is facing increased competition from low-price gyms including Crunch Fitness, EōS Fitness, Chuze Fitness and Vasa Fitness, which have won over a certain portion of the fitness population by offering amenities like group fitness classes, recovery services and premium strength training equipment at price points at or near Planet’s $15/month offering. 

Marketing to Gym-Goers

To fend off competition from those brands, Keating has made revamping Planet Fitness’ marketing strategy a top priority. This includes focusing on fitness over fluff, and positioning Planet as a brand for serious gym buffs

“We’re beginning the shift to communicating the high value of a Planet Fitness membership versus primarily focusing on our low price and using our marketing to demonstrate the breadth of high-quality top-tier equipment in our club,” Keating explained during a Q3 earnings call last month.

an image of the exterior of a Planet Fitness
credit: QualityHD/shutterstock.com

TD Cowen analysts noted that Planet Fitness execs are aligned on delivering a marketing message that’s focused on “getting people off the couch” and into the gym. In line with Keating’s comments, the brand will also focus on “dispelling the perception members can’t advance their fitness journey at its gyms,” the analysts wrote. 

New marketing tactics include touting the quality of Planet Fitness’ workout equipment, especially its strength training offerings. In a recent social media campaign, the brand compared its dumbbells to those of an “overpriced competitor gym,” noting that both pieces of equipment weigh the same and will get you the same results, but a Planet Fitness membership is cheaper. 

Similar marketing initiatives will be implemented this month and over the first quarter of 2025 across social media and on TV, the analysts said. They caution, however, that Planet Fitness is still searching for a new chief marketing officer, who will want to “put their stamp on the business,” so the brand’s marketing strategy could evolve.

Strength Training Shift

To match its new marketing ethos, Planet Fitness is also changing the look and feel inside of its gyms, notably by embracing strength training and cutting down on cardio. TD Cowen analysts noted that the brand is tweaking the layouts of its gym floors to include “a better mix of on-trend equipment.”

According to the report, Planet Fitness gyms around the country are gradually adding more strength training equipment, including free weights, and removing some cardio machines, eyeing a 50/50 split between the two modalities. That move follows industry trends as gym-goers, especially young people and women, flock to strength training.

“This should improve the member experience by increasing equipment relevance and reducing wait times,” the analysts wrote. 

women run on treadmills at a Planet Fitness gym
Rows of cardio machines may soon be a thing of the past at Planet Fitness gyms (credit: Planet Fitness)

In the long term, Planet Fitness execs are also looking to improve franchise economics to drive more gym openings in the years ahead. That includes lowering build-out costs for new gyms by around 10%, making it cheaper for franchisees to buy and maintain equipment, and increasing revenue through the Classic Card price increase, per the TD Cowen report.

Overall, the report is positive on Planet Fitness’ outlook ahead of a pivotal January –  the brand’s first with its new $15/month pricing structure. TD Cowen predicts that Planet will add around 1.1 million net members in the first quarter of 2025.

“We expect a strong 1Q, but net member growth could look different from prior years as it will be the first 1Q with a higher price point,” the analysts wrote. 

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How Crunch’s CR Fitness Created a Winning Personal Training Biz https://athletechnews.com/cr-fitness-crunch-franchisee-personal-training/ Fri, 06 Dec 2024 18:02:25 +0000 https://athletechnews.com/?p=117061 Led by Darrick Druce, CR Fitness’ personal training arm is outpacing gym industry standards CR Fitness Holdings has emerged as the largest and fastest-growing franchise group in the thriving Crunch Fitness system, recently topping 70 gyms as it eyes 100 clubs by 2026.  Crunch’s top franchisee is also a leader when it comes to personal…

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Led by Darrick Druce, CR Fitness’ personal training arm is outpacing gym industry standards

CR Fitness Holdings has emerged as the largest and fastest-growing franchise group in the thriving Crunch Fitness system, recently topping 70 gyms as it eyes 100 clubs by 2026. 

Crunch’s top franchisee is also a leader when it comes to personal training, outpacing gym industry standards when it comes to personal training revenue at its clubs. 

The leader of CR Fitness’ personal training business, vice president of personal training Darrick Druce, joined the company back in 2016 after spending time as a staffer for the Chicago Bulls, YMCA and LA Fitness. Over the last eight years, Druce has built CR Fitness’ personal training arm into one of the industry’s best.

Druce sat down with Athletech News to share how CR Fitness drives personal training revenue by taking a member-first approach, recruiting top talent and adapting to industry trends. 

Put ‘People Over Profit’

When Druce got to CR Fitness, his first focus wasn’t on driving personal training revenue (that would come later). Instead, he sought to create a culture that could thrive from gym to gym. 

“Industry experience taught me that people run our business,” he tells ATN. “So when we got here, the goal was, let’s prioritize people over profit.”

headshot of CR Fitness VP of personal training Darrick Druce
Darrick Druce (credit: Crunch/CR Fitness)

Druce says gyms must resist the temptation to turn personal training into a sales-first process, calling this an “old-school” way of thinking. Instead of aggressively pushing a personal training package at point-of-sale as soon as a member signs on the dotted line for a membership, gym staff should seek to build a relationship with the member, understanding their fitness goals and aspirations. 

“The reality is all members have goals,” Druce says. “(But) very few members have a plan that aligns with the goal.” 

If gym staff can build a rapport with the member, shelling out extra money on a personal training package becomes much more palatable – and more effective over the long run.  

“We’re trying to get them interested in the idea of taking a coach with them on their journey, and having guidance and mentorship along the way,” Druce adds.

woman meets for a personal training consultation at Crunch Fitness
credit: Crunch/CR Fitness

For CR Fitness, the strategy seems to be paying off. Druce reports that around 60% of the franchisee’s new members decide to purchase an introductory personal training session, called “CruchONE Kickoff.”  Of those who attend the kickoff session, around 42% opt to buy a longer-term personal training package. 

Be ‘Relentless’ in the Pursuit of Top Talent  

Personal training might be on the rise post-pandemic, but many big-box gyms are finding it more difficult to hire and retain quality staff due to competition from social media and lingering effects from COVID-era gym shutdowns. 

“We have to be relentless in our pursuit of the right talent,” Druce says.

CR Fitness is certainly relentless in its pursuit of quality personal trainers, scouring LinkedIn and sometimes doing tens of interviews just to hire the right candidate. Druce highlights the importance of hiring staff who embody CR Fitness’ member-first culture.

“We want talented people, but we want people who prioritize the member over themself,” he says. “It’s a selfless sacrifice. If we’re hiring managers who only care about how much they sell and their own personal paycheck, we probably hired the wrong person.”

woman works out on a strength training machine
credit: Crunch/CR Fitness

While CR Fitness is relentless in its recruitment of outside talent, it also hires from within. Druce notes that around 70% of personal trainers at CR Fitness-owned Crunch gyms started out as members.

This is an important recruiting tool for big-box gyms to leverage, he believes. 

“All of our members chose us over our competitors, which means they chose to spend their money here. They believe in who we are at CR fitness,” Druce says. “So if I’m meeting someone in the club who chose us, who looks the part, who seems confident on the floor, I strike up a conversation with them.”

After the right talent is identified, the CR Fitness team is confident its onboarding program is second to none in the industry. As part of the onboarding program, new trainer hires get coached by district managers at CR Fitness’ corporate office, learning the ins and outs of the business of personal training before they ever start training clients.

CR Fitness’ recruitment strategy seems to be paying off, with trainer retention metrics far above industry averages. 

“We only have a 4% (monthly) turnover rate right now, which is unheard of in the industry,” Druce notes. “I’ve been part of organizations before where they have over 100% turnover across 12-month timeframes.”

Adapt or Die: Embrace New Trends

CR Fitness’ personal training success speaks for itself, but the company isn’t resting on its laurels. Druce and his team are constantly evolving the program to account for new trends in fitness and technology. 

For example, the company has made its personal training program fully digital, allowing members to track their workouts and communicate with trainers from their phones when they’re outside of the club. 

“The reality is there are two main reasons that a client quits: lack of communication between them and their trainer, and lack of usage of their sessions,” Druce says. “If we can ensure that their session usage stays on track with what they purchase and that their trainer communicates well, we know that client’s going to stay long term, so we’ve doubled down on those two things.” 

Evolving includes embracing new ways of working out, including the global rise of strength training. CR Fitness has added more strength equipment to its Crunch gyms while scaling down on its cardio machine offerings. Personal trainers actively encourage members to include strength training in their routines.

“Whether it’s Phil Heath the bodybuilder walking through the door or Mrs. Jones, who’s working out for the first time in her 60s, we want to introduce them to free weights and strength training early,” Druce says. 

woman picks a barbell up off the ground next to her personal trainer
credit: Crunch/CR Fitness

CR Fitness is also embracing AI, using artificial intelligence to analyze data and help personal trainers decide when it’s the right time to reach out to clients to keep them engaged in their training journey. Personal trainers can also use AI to help design workout programs, if they choose. This can be especially beneficial for trainers with large client rosters, Druce notes. 

Overall, Druce believes CR Fitness’ early embrace of AI reflects the company’s entrepreneurial approach since day one.

“We’re willing to take risks,” he says. “I think in business, or anytime you’re an entrepreneur, you have to be willing to take risks. We’re not afraid to adapt because adaptability is what allows you to survive in any business.” 

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Orangetheory, Anytime Fitness Unveil Parent Company, Name New CEO https://athletechnews.com/orangetheory-anytime-fitness-purpose-brands/ Thu, 21 Nov 2024 14:00:00 +0000 https://athletechnews.com/?p=115893 Former Topgolf CEO Tom Leverton will lead Purpose Brands, a holding company comprising Orangetheory Fitness, Anytime Fitness and more The new company formed by the merger of Orangetheory Fitness and Anytime Fitness parent Self Esteem Brands officially has a name, Purpose Brands, along with a new CEO in former Topgolf chief executive Tom Leverton.  Purpose…

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Former Topgolf CEO Tom Leverton will lead Purpose Brands, a holding company comprising Orangetheory Fitness, Anytime Fitness and more

The new company formed by the merger of Orangetheory Fitness and Anytime Fitness parent Self Esteem Brands officially has a name, Purpose Brands, along with a new CEO in former Topgolf chief executive Tom Leverton. 

Purpose Brands will be headquartered in Boca Raton, Florida and Woodbury, Minnesota, according to an announcement made Thursday. The holding company includes boutique fitness giant Orangetheory and 24/7 gym franchise Anytime Fitness, along with The Bar Method, Basecamp/Sumhiit Fitness and Waxing the City, among other entities. 

Leverton, who most recently served as a partner at investment firm Pritzker Private Capital, will lead the new company as its first-ever CEO. A former engineer, Leverton had stints as the CEO of brands including Topgolf, Chuck. E Cheese parent CEC Entertainment and Omniflight, a provider of medical helicopters. Leverton will also serve on the Purpose Brands board of directors.

Leverton told Athletech News he decided to join Purpose Brands due to the strength of its flagship brands Orangetheory and Anytime Fitness, as well as his desire to create positive change through fitness and wellness. 

“Two of my formative experiences were in medical services. I was a biomedical engineer making neurovascular catheters and I was CEO of a medical helicopter business,” Leverton told ATN. “In both of those roles, we literally saved lives. Purpose Brands literally saves lives, and the lives we don’t save we’re making better through improved health, wellness and self esteem.” 

A Fitness Industry Giant

The creation of Purpose Brands comes after Orangetheory and Self Esteem Brands announced a merger of equals in February. The deal marked one of the biggest fitness industry consolidations in recent memory, with global powerhouses in Orangetheory and Anytime joining forces to essentially create a fitness and wellness supercompany.  

Purpose Brands now operates more than 7,000 locations, including over 1,500 Orangetheory studios and 5,000 Anytime Fitness gyms, serving over 6 million total members worldwide and doing around $3.7 billion in revenue. Nearly half of those locations are outside of the United States, with 50 countries and territories represented on seven continents. 

Purpose Brands logo
credit: Purpose Brands

Private equity firm Roark Capital, which previously invested in Orangetheory and Self Esteem Brands, will continue to support the combined company, the sides said. 

exterior shot of an Anytime Fitness gym
credit: Purpose Brands/Anytime Fitness

Orangetheory co-founder Dave Long and Self Esteem Brands co-founder Chuck Runyon told ATN they’d been discussing their brands joining forces for several years, and finally felt the timing was right earlier this year. They chose Purpose Brands as the company’s name in a nod to the important mission that fitness and wellness brands play in improving people’s health.

“Going back to the earliest conversations Dave Long and I had, we’ve always (had) very purpose-driven organizations,” Runyon said. “We believe in the power of better health for people around the world, and, of course, supporting small business owners with franchising. That shared purpose is what brought us together initially, and I think ultimately, what inspires our teams to come to work every day.”

Runyon and Long will serve on the Purpose Brands board of directors and will stay active in fitness industry circles, but Leverton will run the day-to-day as CEO. 

“We chose Tom given his track record of being purpose-driven, growth-orientated, and what I’d call long-term stakeholder focused,” Runyon said. “Every single company he worked for was better after he left. We’re excited to see where he takes the company.”

What’s Next for Purpose Brands?

Despite their already massive footprints, Leverton believes there’s plenty of room for Orangetheory and Anytime to continue expanding in the U.S. and abroad in the years ahead. Brands like The Bar Method, Basecamp/Sumhiit Fitness and Waxing the City could also be in line for expansion.

“There’s a tremendous amount of white space both domestically and internationally,” Leverton said, pointing to data that pegged the global wellness market’s value at $6.3 trillion in 2023 with a projected increase to $9 trillion by 2028

Besides driving more expansion, Leverton says Orangetheory and Anytime Fitness franchise owners can expect enhanced support and new resources across data analytics, operations, marketing and even science. 

“We’re going to be the largest health and wellness platform in the world with 7,000 locations, 50 countries, seven continents and more than 6 million members,” he said. “With that scale, we’re going to be able to deliver every possible tool to our franchisees so they can give their members the best health and wellness experience possible.”

Those benefits could include increased collaboration between Orangetheory and Anytime Fitness from a tech perspective, although nothing’s been confirmed yet on that front. Anytime made headlines last year when it became the first gym brand to partner with Apple Fitness+, while Orangetheory is known for using heart-rate tracking tech during workouts

Long, who co-founded Orangetheory in 2010 and grew it into one of the fitness industry’s biggest franchise brands as CEO, is excited for the next chapter under new leadership. 

“There’s just so much entrepreneurial energy at Purpose Brands,” Long said. “The focus is on how we make our franchisees successful (because) ultimately, they make our members and customers more successful. That’s the through line of this whole thing, that’s our North Star and that’s where our focus will be.”

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Discover Strength Eyes Growth With 30-Minute Workout Concept https://athletechnews.com/discover-strength-eyes-growth-30-minute-workout/ Fri, 15 Nov 2024 20:49:04 +0000 https://athletechnews.com/?p=115493 Founded by a former NFL strength coach, the Minnesota-based fitness franchise says science supports a less-is-more approach to lifting weights The fitness industry is doing strength training all wrong.  At least, that’s the belief of Luke Carlson, a former NFL strength and conditioning coach who founded Discover Strength, a fast-growing fitness franchise that’s eyeing 100…

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Founded by a former NFL strength coach, the Minnesota-based fitness franchise says science supports a less-is-more approach to lifting weights

The fitness industry is doing strength training all wrong. 

At least, that’s the belief of Luke Carlson, a former NFL strength and conditioning coach who founded Discover Strength, a fast-growing fitness franchise that’s eyeing 100 locations by the end of next year.

“The research says people are supposed to strength train twice per week, not four, five or six times per week,” Carlson tells Athletech News. “How long is a workout supposed to last? According to all the scientific evidence, 20 to 40 minutes.”

Carlson has built his entire brand around that research. Discover Strength members complete two 30-minute workouts per week, performing 10-12 exercises per session while covering every major muscle group. Only one set is performed per exercise, and members receive one-on-one guidance or work out in small groups under coach supervision.

Discover Strength workouts may be short, but they’re not necessarily sweet, with reps performed to the point of failure, or past it, while under strict control. 

“Every rep is performed slowly,” Carlson explains. “That’s the key: you’ve got to eliminate momentum. Lift (the weight) slowly, lower it slowly, and then you’ve got to go to momentary muscle failure, or beyond momentary muscle failure.” 

man works out on a shoulder press machine
credit: Discover Strength

Bringing Fitness Out of the ‘Stone Age’

Working out for only one hour per week seems to fly in the face of traditional wisdom on strength training, where time spent inside the gym is seen as a necessary sacrifice in order to achieve progress. 

Carlson calls that the “traditional mythology” around strength training. He believes it’s incumbent on the fitness industry to do a better job at prizing research over “bro science.”  

“That’s why our field is not respected in the same way a medical field would be respected, because we just make stuff up versus making clinical decisions based on scientific research,” he says. “I love our field, I’m not ripping our field, but we’re in the stone age.” 

In a bid to professionalize the industry, Discover Strength only employs coaches who are American College of Sports Medicine (ACSM)-certified exercise physiologists. This gives members peace of mind that they’re getting quality, science-backed advice, similar to a doctor’s office. 

“We don’t want a client to come to us because we have charming personalities, we have great physiques or we’re selling sex appeal in any way,” Carlson says. “We want them to be interested in us because of our expertise.” 

The Origins of Discover Strength

A one-time assistant strength and conditioning coach with the Minnesota Vikings, Carlson felt a calling to work in the fitness industry after completing a master’s degree in kinesiology. 

“People were just exercising in a way that was completely unreflective of all of this scientific research,” he recalls. “I said, ‘I’m going to spend the rest of my career bridging the gap between all this exercise science research and how people actually work out.” 

headshot of Discover Strength CEO Luke Carlson
Luke Carlson (credit: Discover Strength)

In 2006, he founded Discover Strength in Minnesota, pioneering the twice weekly, 30-minute workout concept that the brand has become known for. After opening several additional company-owned locations over the next decade-plus, Discover Strength began franchising in 2019. 

Today, the brand has 47 locations open or in development, including a strong presence in states including Minnesota, Arizona and Texas. Recent expansions include Chicago, while a Washington, D.C., location is coming soon. 

“By the end of next year we want to be at 100 units,” Carlson says, noting that franchise sales are strong. 

Riding the Strength Training Wave

Discover Strength’s growth can be attributed in large part to the incredible rise of strength training over the last few years. The modality has exploded in popularity since the pandemic, especially among women and older populations, who are increasingly ditching cardio machines for squat racks

The average Discover Strength member is between 45 and 62 years old, although the brand sees clients of all ages. Around 55% of members are female, a clear sign of strength training’s increased acceptance among the American population. 

Classes run around $60 for a one-on-one session and $40 for small-group training, although it can vary based on location and membership type. Carlson says the typical Discover Strength client spends between $300 and $400 per month, giving the brand healthy recurring revenue numbers that drive strong unit economics. 

Due to its relatively high pricing, Discover Strength usually sets up shop in more affluent neighborhoods. Still, Carlson sees plenty of runway for the brand in the years ahead, which could grow to as many as 1,000 locations in America if all goes well. 

“Size is not my primary driver, nor is it the driver for anyone on our leadership team – it’s the quality of the customer experience, the integrity of the workouts and the unit economics of the franchisee,” he says. “All that being said, 500 to 1,000 locations in the U.S. is very feasible.”

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