Sweat440 is no stranger to the story of the tortoise and the hare. While the high-intensity boutique fitness brand might have its members bouncing around like spring rabbits during workouts, it prefers a more strategic — steady approach when it comes to franchising, championed by the aforementioned reptilia. 

Coming out of the COVID-19 pandemic, Sweat440 made waves after stopping dead in its tracks with franchise sales. It was a move that required both patience and foresight.

“We took a good hard look at where we were and realized that to truly help our franchisees succeed, we needed to strengthen our corporate operations first,” recalled Matt Miller, Sweat440 Chief Brand Officer. “So, we made the tough decision to pause franchise sales for a bit. It wasn’t an easy choice, because we had no shortage of interest, but we knew it was the right one.”

With the time freed up by the pause, Sweat440 upgraded its in-studio training and support systems, acquired a marketing company to oversee new openings and brought in a new VP of Operations. These efforts collectively helped the brand better position itself for future success. 

The time is now, however, for Sweat440 to put its foot back on the gas. As the brand restarts its franchise sales, it’s beginning to reap additional rewards of its patience and strategic labor. 

Inside the Restart

In the time since Sweat440’s restart, the brand has partnered with a national commercial real estate company that makes site selections a smooth and swift process. Miller called it a “huge help” when trying to get new studios up and running. 

Sweat440 also teamed up with a project management company to lower costs and speed up opening processes. The brand brought in a national architect to ensure all new builds meet brand standards as well.

“Since we started selling franchises again, we’ve made some significant updates to help our operators thrive,” said Miller. “These partnerships, along with our robust training and marketing support, are making a real difference for both our existing and new franchisees.”

That comprehensive training takes place in-person for all franchisees and their studio managers. They’re supported as well with a fully designed support library and communications channel made available to them. Sweat440 also offers advanced analytics and performance tracking tools that give franchisees valuable insights into their business metrics.

“This data-driven approach helps them make informed decisions as they grow as well as to manage their teams,” said Miller. “We consistently analyze performance and quickly identify opportunities and then we know where to aim our efforts to achieve maximum success.”

Results Thus Far

There’s no shortage of evidence illustrating these efforts as profitable ones for Sweat440. Existing franchisees have been eager to open new locations following the restart, which the brand sees as a significant indicator of franchising success. 

Sweat440 reports that one current franchise group has added an additional 12 units in the wake of the restart. Another has committed to an additional 27 units. Membership sales and retention rates have been on the rise as well. 

“It’s really inspiring to see them so confident in the brand that they’re hungry to expand further,” said Miller. “After we enhanced our support systems, reporting and analytics and marketing strategies, several franchisees saw significant boosts in membership and retention rates. Their enthusiasm to sign on for additional studios is the greatest testament to how effective our refinements have been.”

Down the Pipeline

Exciting as it is for Sweat440 to see this much advancement out of the restart, the brand remains committed to the steadfast franchising approach that put it in this position to succeed in the first place. 

“We’re really excited about the future, but we’re also committed to growing responsibly,” said Miller. “Our plan is to continue providing top-notch education and support to our franchisees, ensuring that each new studio is set up for success.” 

“By focusing on quality over quantity, we believe we can maintain the momentum we’ve built while staying true to our core values and mission,” said Miller. “It’s all about finding that sweet spot between expanding our reach and making sure each franchisee feels supported and empowered.”

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

The post From Support to Scale: The Next Chapter in the Sweat440 Franchise Growth Story appeared first on Athletech News.

Having a sound real estate strategy can make or break a fitness franchise brand just as much as its concept, hiring the right coaches or choosing the right franchisees.

As part of ATN’s DISRUPT video series, commercial real estate experts Jay Siano and Douglas Jerum of SABRE sat down with SWEAT440 co-founder and CEO Cody Patrick and Athletech News founder and CEO Edward Hertzman to reveal key insights into building a scalable and successful fitness franchise real estate program. Their conversation features success stories from SWEAT440 and other industry leaders including Squeeze.

The post Watch Now: SABRE, SWEAT440 Execs Talk Fitness Franchise Real Estate appeared first on Athletech News.

The fitness industry has navigated a tumultuous few years marked by uncertainty and constant pivots. Over the past 12 months, it’s seemingly entered what could be called a “new normal.” Members returned in increasing numbers — sometimes in droves —  but with fundamentally shifted expectations.

Armed with a fresh perspective on health and wellness, today’s consumers demand more than what the industry has traditionally offered. The fitness landscape has been reshaped by these evolving needs, challenging operators to adapt in ways never seen before.

At the same time, the rapid evolution of technology and the rise of AI are revolutionizing the way businesses operate. And while these advancements present opportunities, they also bring new complexities and uncertainties for an industry already in flux.

To gain insight into this evolving environment, Athletech News spoke with three seasoned industry professionals – Matt Wright, VP of growth and development at Healthtrax Fitness & Wellness, Mark Fisher, owner of NYC’s Mark Fisher Fitness and Business for Unicorns and Cody Patrick, CEO of Sweat440. Together, they share their perspectives from the frontlines, shedding light on where the industry stands today and how 2025 may unfold.

The State of the Industry in 2024

When asked how they would describe the state of the industry, and if they consider 2024 a “comeback year” post-pandemic, these pros had some similar thoughts. 

“There has been an upward trajectory, and it was a solid year, but I’m not sure I would describe it as a comeback year from COVID,” said Fisher.

Wright takes it one step further, saying, “We can’t compare it to pre-COVID times. People are coming back with a much more holistic focus —  looking for mental health support, recovery and community, not just fitness. At the same time, we’re seeing a new generation of health-conscious individuals, as well as fewer ‘donators,’ the people who join and never show up.”

Patrick also observed continued growth throughout the year but pointed out seasonal dips. “2023 was more of the comeback year. 2024, for us, was a continuation of that growth,” he said. “While we saw ebbs and flows due to summer vacations and election-related spending slowdowns, overall, the trajectory has been positive.”

Key Trends in Fitness

Recovery continues to be the focus across the industry. Wright explained how this has shaped his approach.

“We’ve piloted cold plunges, added cryo beds, and invested in saunas and steam rooms,” he said. “These features are increasingly in demand, and we’re working to meet members’ needs strategically.”

Fisher echoed this trend while pointing to the emergence of recovery-focused studio brands. “I’m particularly interested in concepts like Othership, a chic ‘class-style’ spa, and Sweathouz (SWTHZ), an infrared sauna and cold plunge franchise,” he said. “However, further, questions remain as to whether this will be a trend with softening demand, or if this will become a permanent tentpole of consumer wellness behavior.”

For Patrick, he has been testing the waters at Sweat440. “We’re incorporating recovery lounges with compression and percussion therapies in some of our studios,” he shared. “This is a focus for the brand to test and implement throughout 2025.”

Strength training is also on the rise, according to Patrick. “We’ve always had a strong strength component, but we’ve increased it even more to meet demand,” he says. “Gamification has also become a key motivator for members, and we are seeing that as a significant motivator.”

Wright agreed, noting the impact of personal training. “Personal training departments are thriving, especially with the Boomer population wanting to stay healthy and active. People want to exercise more efficiently, so they’re hiring fitness professionals. It’s a shift toward a more personalized and guided fitness experience.”

The Role of Artificial Intelligence

Artificial intelligence (AI) continues to be a hot topic across industries, including fitness.

Patrick shared how AI is transforming their member’s journey. “While the core workouts aren’t really impacted by this, the customer journey and interaction most certainly are,” he explains. “We are looking to AI to optimize everything from customer communication to data analysis and predictive modeling.”

Meanwhile, Wright uses AI for optimization. “I see it as an assistant,” he explained. “It helps us optimize marketing, analyze brand performance, and allocate resources more effectively. But it will never replace the human touch or the need for personalization in fitness.”

Fisher offered a more tempered perspective. “I think much of the AI application in the gym space has been somewhat overhyped,” he said. “Yes, tools like ChatGPT can save time on content creation, but they still require a human touch to avoid sounding generic. Having said that, it’s fast-moving waters. With the sophistication increasing at breakneck speed, I anticipate we’ll continue to see booking and billing platforms integrate AI to provide insights to owners. And ideally, owners can use this deeper and more personalized understanding of behavior to drive more utilization and improve retention.”

Wellness, Longevity & Integration with Healthcare

As the focus on wellness and longevity grows, fitness operators are finding ways to adapt. Wright highlighted Healthtrax’s partnerships with healthcare providers.

“We’ve partnered with hospitals to create a seamless transition from physical therapy to the gym,” he said. “We are also plugged into medical weight loss initiatives and work with individuals to teach the importance of strength training and maintaining healthy eating habits. This affiliation with hospitals has been a big differentiator for us.”

Fisher pointed to the potential for gyms to play a larger role in personalized wellness. “As we head into 2025, the most competitive gyms and studios will win by supporting their members in the other 23 hours of the day,” he said. “Simply providing access to workouts is going to be more commoditized, as taking care of your health and fitness requires more than just workouts.  Whether that’s through add-on or integrated coaching services, the best performing gyms and studios will provide holistic coaching and serve as case workers who can connect clients and members with other resources.”

Challenges & Opportunities in 2025

As 2025 approaches, Patrick underscored the challenges of a saturated market.

“The challenge is cutting through the noise to show what makes you unique,” he said. “Clear differentiators and meaningful engagement will be key.”

Fisher remained optimistic about the future while acknowledging the competitive landscape.

“Consumer spending on fitness is growing, but it’s also getting more sophisticated,” he said. “From franchises to mom-and-pop independents, as the players improve, competition increases. For instance, in our corner of the market, small group personal training gyms have seen a modest but significant tick up in monthly churn over the last 2 years. To be clear, the class/session experience will still matter. But building relationships and coaching clients to results will command a premium and be the linchpin of retention.”

Wright offered another perspective, emphasizing the importance of innovation and team investment. “The opportunity for fitness operators is to invest in their teams — time off, benefits, 401(k)s, spousal support, resources for challenges and pay,” he said. “The reason we have turnover is we miss the opportunity to take care of team members.”

In the end, these pros agree that it ultimately boils down to servicing people, and their health needs, with Fisher saying, “The best-performing gyms and studios will focus on building relationships, providing holistic coaching, and integrating health and wellness into their offerings.”

The post Fitness in Flux: How 2024 Redefined & Set the Stage for 2025 appeared first on Athletech News.

The boutique fitness industry continues to experience impressive growth, with the global market projected to reach USD $79.66 billion by 2029, up from USD $48 billion in 2022. Brands are opting for fast and furious growth, rapidly opening doors, bringing on franchisees and selling hundreds of territories annually.

But one brand is taking a different approach.

Launched in 2017 by veteran fitness pros Cody Patrick and Matthew Miller, Sweat440 is distinguishing itself by opting for a more measured strategy with a franchise model that emphasizes calculated growth.

“There are a lot of good brands in the market, but they are rushing growth, and we want to be more pragmatic,” says Patrick.

With 23 locations and eight franchisees, Sweat440 took a 2-year pause on franchise sales to focus on successfully opening studios with the existing franchisees, and has only recently reopened the opportunity for further franchise expansion.

“Considering the implications of COVID, we wanted to make sure the market was stabilized to a point that we felt comfortable selling more units,” he says.

Patrick says the franchise model is unique in several other ways as well and highlights these key differentiators for Athletech News.

Open Book Franchising

Patrick says that their aim is to be transparent and straightforward for franchisees. “Often in this market, franchisees sign up without clarity around certain things,” he explains.

This clarity is evident in a few ways. For instance, the cost of equipment packages.

“Some brands nearly double the cost of equipment packages to make money on everything they can,” says Patrick. “Sweat440 keeps these costs straightforward to ensure franchisees aren’t burdened with expenses before they even open their doors.”

He also stresses the importance of training and support.

“In the rush to expand by rapidly gaining franchisees and adding locations, many brands overlook crucial details,” he said. “As a result, franchisees are often left to navigate challenges on their own, without adequate training or support. We see this as backward. Our goal is to set up our franchisees for success so that everyone benefits.” We leverage technology and of course good quality people to make this happen. 

A Royalty-Focused Approach

Sweat440 generates revenue primarily through royalties, minimizing additional fees or mark-ups.

“We try to keep start-up costs low,” Patrick explains. “Our focus is on royalties – the more money the franchisee makes, the more we benefit. It’s an ethical approach that we don’t see much of in the industry these days.”

When asked about the motivation for their approach, Patrick refers to their extensive experience in the industry.

“It goes back to who Matt and I are as people,” he says. “We’ve both been in this industry for a long time and are passionate about helping others. We’re committed to our franchisees’ success – they are people with families trying to build wealth and a legacy, and we work alongside them to make it happen.”

The Outcomes

Patrick emphasizes that their approach benefits the brand, franchisees, and the marketplace as a whole.

“When we have a high-quality franchisee who is fully supported by ownership – both financially and otherwise – they perform better, which in turn strengthens the brand,” he explains. “It just makes sense. Our franchisees know we are fully aligned and committed to achieving success together.”

This mutual support and alignment have had a significant impact. Patrick notes that many current franchisees have opted to purchase additional units (12 additional units signed by existing franchisees just last month), which he says speaks volumes about the trust and confidence within the network.

“When we reopened the franchise opportunity recently, it was the existing franchisees who were first in line,” he says. “This level of enthusiasm is great for the brand because it means experienced owners will be at the helm of new locations moving forward.”

To date, 12 additional units have been sold to existing franchisees, with another 35 to 40 in the pipeline.

Building the Foundation

Patrick highlights the importance of building solid relationships with prospective franchisees. He describes a thorough, step-by-step process where both parties evaluate each other to ensure a good fit.

“When we have an interested potential franchisee, we conduct a series of meetings during which we get to know each other,” he explains. “We assess their capabilities, discuss our expectations, and ensure there’s synergy. It’s essential that potential franchisees fully understand what they are committing to.” “We want to be very diligent in our franchisee selection both for their own protection as well as to protect the system as a whole.”

By taking the time to foster strong relationships and maintain open communication, Sweat440 ensures that new franchisees are well-prepared and aligned with the brand’s mission and values from the outset. He says this commitment to relationship-building lays the foundation for long-term success.

Further, Sweat440 is heavily involved in real estate decisions, always having the final say in location choices.

“While we rely on the franchisee to have local knowledge, we layer in demographic data and analysis to make sure we don’t let franchisees walk into poor decisions,” he says. “We work to minimize the risk by using analytics as much as possible.”

As the duo moves forward with their model, they do intend to speed things up, looking to double in size by 2025.

“Beyond that, I’d like to see fifty to 100 units per year for the next three to five years,” says Patrick. “We have been very patient, and believe that the market has stabilized, our model is solid and we are ready for measured growth.”

The post Future-Proofing Growth: Sweat440’s Vision for Expansion appeared first on Athletech News.

In this latest “Fireside Chat” video, Sweat440 CEO Cody Patrick and Chief Brand Officer Matt Miller join Athletech News Founder and CEO Edward Hertzman to discuss their brand’s goals and growth since its launch in 2018. Patrick and Miller also explain how Sweat440 stands out within the increasingly saturated boutique fitness industry and their specific ambitions in it. 

The three go on to examine the benefits of establishing convenience for consumers, integrating technology with staff and how Sweat440 and its franchisees can “win together.” Topics such as geographical franchising strategies and the importance of building a virtual community are touched on as well in this exclusive sit-down. 

Watch the full interview for expert commentary on the following:

• Establishing unique selling points
• Building franchisee and franchisor relationships
• Mindful tech integrations

Key talking points:

• (0:00 – 3:46) Sweat440’s purpose and origins 
• (3:46 – 6:00) What makes Sweat440 different
• (6:00 – 10:57) Economic benefits of accessibility
• (10:57 – 12:51) Staff structure evolution
• (12:51 – 16:55) Franchising breakdown
• (16:55 – 18:22) Growing amid COVID
• (18:22 – 21:09) Future outlook and wrap up

The post Fireside Chat: Matt Miller and Cody Patrick of Sweat440 on Franchise Growth and Future Vision appeared first on Athletech News.

Sweat440 squeezed into the packed boutique fitness studio market in 2018 with a disruptive business model that puts a new spin on accessibility and flexibility. With classes starting every ten minutes, the brand’s 40-minute workout takes the scheduling and time limitation barriers – the top reasons consumers cite for not working out – out of the equation.

Founded by professional trainers Matthew Miller and Cody Patrick, Sweat440 is a combination of cross-training, strength training and HIIT that plays out with a virtually led workout across four fitness stations, each lasting ten minutes in duration, with a new set of members joining the cohort every ten minutes. There are one to two coaches on the floor at all times to offer guidance and ensure correct form.

This ‘so simple it’s genius’ format combines the motivational mindset of small group training with the convenience of workout times that best fit each individual.

Allowing for significantly more members to come through the doors every day, the high turnover low overhead model screams profitability.

Franchisees See Massive Potential

Athletech News spoke with Sweat440 franchisee Nicholas Marco, who launched his Ocean Township, NJ, location in 2022, and a second New Jersey location just a few weeks ago.

“I originally tried Sweat440 while visiting friends in Miami,” says Marco. “It was a high energy, lively, sweaty, fun time and I was instantly hooked.”

Marco has been around franchises his whole life as his father, Physical Therapist John Marco, founded Hand & Stone Massage in 2004 and grew it to 600 locations in the U.S. and Canada. Marco himself came to own eleven locations, and a couple of years ago, decided to branch out into other brands.

“At this point in my life, I’m the guy who walks into every business and thinks, would this be a good investment? Is this something I’d want to own? After taking multiple Sweat440 classes during my visit to Miami, I was hooked and I had significant interest in buying into it.”

When asked what about the Sweat440 workout was so addicting to him, Marco explains:

“When you walk up to the door the music is already bumping and the dopamine starts to spike,” he notes. “You walk right into instant energy that’s a day-changer. You jump into the workout and with virtually no interruptions or breaks, you come out forty minutes later having done a total body, results-driven sweaty workout. What’s not to love?”

Saving Marriages & Spurring Profitability  

Of the every-10-minute start time concept, Marco says it’s genius.

“I have a set of new parents who told me – in these words – that Sweat440 saved their marriage,” he says. “The option of so many start times and the compact workouts allow both parents to get out of the house and exercise daily, while other gyms and studios just do not have that flexibility.”

Marco says he feels good about being part of an amazing concept and is happy he got into the Sweat440 brand early on.

“Coming in at this point, I hope to be able to have an impact on the brand’s trajectory,” he says. “That’s the kind of culture Cody and Matt want to foster as well – very collaborative.”

Another thing he’s excited about is the short runway to profitability.

 “We were profitable within the first two months, and the day we opened we had 275 members which is crazy,” he says. “We accommodate 200 to 400 members in and out of the doors daily and no other studio could support that.”

He attributes this to Miller and Patrick’s robust marketing approach, preparedness and guidance.

“I am pleasantly surprised to see how much support I am getting as a franchisee and the amount of marketing materials and guidance at this stage in the game,” Marco says. “This tells me that as the brand grows and more studio doors open the resources will continue to get better.”

And when he put the marketing to work, Marco says he could see the gyms in the surrounding area becoming more and more relevant with their marketing, a telltale sign that he was winning in the area.

He also says the business model makes ownership uncomplicated.

“With Hand & Stone we can have fifty employees at one spa,” he says. “With Sweat440 it’s easy to manage. There’s not even a phone in the studio, all calls go to a call center.”

In terms of his future vision as a Sweat440 franchisee, he sees big growth.

“I started by committing to three locations and I’m actively looking for my third spot,” he says. “I can see the brand taking over New Jersey and I want those studios to be mine. I also want to continue to be an advocate and voice for the brand overall.”

The post Sweat440 Flips the Script on Scheduling With Classes Every 10 Minutes appeared first on Athletech News.