TruFit Athletic Clubs, a Texas-based high-value, low-price (HVLP) gym chain, opened its 40th club and fourth Tennessee location, touting its “affordable luxury” approach to club memberships. 

The opening of the latest TruFit location in Murfreesboro, Tennesse, included a ribbon-cutting ceremony last month, with the TruFit executive team presenting a $1,500 check to Tennessee Alliance for Kids (TAK), a child welfare service provider.

The new TruFit Murfreesboro location boasts affordable access to amenities such as state-of-the-art equipment, fitness trainers, group fitness classes, a turf field, basketball court, a women-only workout area, childcare services, a sauna, HydroMassage and personalized wellness solutions. Virtual personal training is also available, and a TruFit app lets members book group classes, track progress and consult personal training plans.

In addition to its family-friendly approach with its childcare services, TruFit clubs also promote wellness to older children and teens with low-impact, non-spine-loading programs.

The HVLP brand offers tiered memberships (Basic, Essentials and Results+) starting at $10/month. It operates 36 locations in Texas and four in Tennessee.

NewSpring Mezzanine invested subordinated debt and equity in TruFit Clubs last fall, with the financial firm noting that fragmented gym markets in smaller, non-metro areas provide “ample opportunity” for TruFit.

“Through a data-driven approach to analyzing potential new markets, the company has wisely identified its next geographic area for expansion, and we’re excited to help this business reach new levels of growth,” said NewSpring Mezzanine general partner Anne Vazquez.

Last month, TruFit announced the promotion of Aaron McFarland to the position of COO. In a statement regarding his new role, McFarland noted that over the past two years, TruFit has experienced “explosive growth” with a 45% increase in its member base. 

“TruFit is establishing itself as a significant player in the fitness industry, and I am enthusiastic about enhancing our commitment to nurturing a stronger, more empowered community,” said.

The post TruFit Hits 40 Locations, Expands in Tennessee appeared first on Athletech News.

Value gyms may be a hit in the U.S. and Canada, but demand is also increasing across the pond. 

The Gym Group, a high-value, low-price (HVLP) gym operator in the U.K., just reported solid revenue growth of 18% in 2023, adding 850,000 members and opening six new gyms. The fitness brand, which was founded in 2007, says it plans to open 10-12 locations this year.

The fitness operator was recently declared one of the winners of the U.K.’s post-pandemic fitness industry boom for its accelerated growth from 32 locations in 2012 to its current 233 gyms.

“We have maintained positive momentum in revenue through the second half to deliver results that have offset cost inflation, in line with our guidance,” said CEO Will Orr. “With a strong start to 2024 and clear signs that demand for health and fitness has never been stronger, these are solid foundations on which to build our Next Chapter growth plan.”

Over the next three years, Orr says The Gym Group will accelerate “site rollout” and strengthen the performance of its core business. 

“There continues to be substantial headroom for low-cost gyms in the U.K., and we are fully focused on our aim of making high-value, low-cost fitness even more accessible for all,” he continued.

The Gym Group group offers gymgoers 24/7 access with contract-free memberships starting at £13.99/month. The gym offers fitness equipment and a variety of free fitness classes, including small group training, strength and conditioning, mind and body and cardio. Personal trainers are also available to create custom plans.

Like other low-price gyms such as Planet Fitness and Crunch, The Gym Group strives to cater to younger fitness consumers, welcoming members who are at least 16 years old and providing special discounts to college students.

Its approach appears to be working, with The Gym Group reporting that 92% of its members rated the brand four out of five and that more than 60 million member visits were made in 2023, with average visits increasing by 10% over the previous year.

Gyms Capitalize on UK Fitness Demand

The fitness club attributes the emergence of the HVLP gym market to “harsh economic times,” an increasingly competitive market and consumer demand for value. According to a factsheet on The Gym Group’s website, member surveys reveal that the club operator is attracting new fitness enthusiasts such as shift workers, students, retirees and those classified as low-income.

As The Gym Group plots its continued expansion, global gym franchise Anytime Fitness has also made headway in the U.K. with new gym openings, capitalizing on six vacant retail units — one of which was a former post office — in Loughton, Upminster, Brentwood, Leigh-on-Sea, Gerrards Cross and Wimbledon.

Although generally at a slightly higher membership price point than The Gym Group, Anytime Fitness sees the demand for fitness clubs in the U.K. and, at the same time, has been able to revive vacant spaces. 

“These new gyms have shown the ability of our sector to take on these high-footfall locations and give them a new lease of life as a facility that the local community can be proud of,” said Kieran Smith, senior property and relationships manager at Anytime Fitness U.K. “Despite the ongoing cost-of-living crisis, the demand for gym memberships hasn’t waned and this is being increasingly recognized by commercial landlords.”

PureGym, another U.K.-based gym brand, is taking a different approach and plans to bolster its presence in the U.S. and Canada under the Pure Fitness name, competing with the likes of stateside low-price, high-value fitness brands. Much like The Gym Group, the brand offers flexible 24/7 operating hours and a zero-contract membership model. 

The post The Gym Group Eyes Expansion as UK Fitness Market Heats Up appeared first on Athletech News.

Amped Fitness is arriving in the Lone Star State, set to open its first Texas location, in the Dallas-Fort Worth metro area, later this year. The DFW area continues to see a fitness and health boom, with Amped Fitness joining the likes of Lumin Fitness, City Cave Float & Wellness Center and Perspire Sauna.

The upcoming 38,000-square-foot Amped Fitness gym at 110 W. Campbell Road in Richardson, Texas, will be Amped’s 25th corporate-owned location, offering a contract-free experience that includes 24/7 access, cardio and strength equipment, instructor-led and virtual group classes, a women’s-only Babe Cave and a Functional Freedom Zone. A recovery space will also be available, with tanning, saunas and HydroMassage beds. 

Hailing from Florida, Amped Fitness, a chain of high-value, low-price (HVLP) clubs, prides itself on providing members with positive vibes underneath its blue mood lighting and special areas designed with fitness content creators in mind. And, unlike many other wallet-friendly fitness memberships, Amped offers childcare for children ages 1-12 — a benefit included in its VIP membership options in select clubs.

The brand recently opened its first Sapphire location in Fort Lauderdale, one of five in the southern region of Florida that is part of its corporate expansion. Sapphire spots take exclusivity a step further with luxury-style amenities, strict enforcement of an 18-and-over age policy and equipment from Core, Amped, Prime, Total Gym and Booty Builder. Amped Fitness also acquired three former YouFit gyms in Florida, rebranding them to its signature “anti-gym culture” look and feel.

As Amped Fitness continues to scale, the fitness club has named its first franchise partners, Matt and Kyana Carrico, who will expand Amped in the Indianapolis area this year. 

The low-cost, high-value fitness franchise will soon offer discounted founder’s rates and a free limited edition founder’s t-shirt during an upcoming two-day-only cyber sale, according to its Instagram page. Amped Fitness locations offer memberships starting at $9.99/month with a capped $26.99 VIP tier.

HVLP gyms have made their mark, especially among fitness consumers battling increasing costs at every turn, notably Gen Z and Millennials. Planet Fitness has seen strong growth among younger fitness enthusiasts, in part due to its High School Summer Pass program.  

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Orangetheory Fitness is merging with Self Esteem Brands, the parent company of Anytime Fitness, in an all-stock transaction, the sides announced Thursday. 

The “merger-of-equals” deal represents one of the biggest fitness industry consolidations in recent memory as Orangetheory, a highly popular boutique fitness brand, joins forces with Anytime Fitness, a big-box gym powerhouse with a presence across the globe.

The new, combined company will represent $3.5 billion in systemwide sales and around 7,000 franchise locations across 50 countries and territories spanning seven continents, the sides said. 

“From our simple beginnings in 2002 with the first Anytime Fitness club, we’ve enjoyed rapid growth worldwide thanks to both the power of small-business franchising and our mix of brands that meet ever-increasing demand for more holistic and personalized health and wellness services,” said Chuck Runyon, co-founder of Anytime Fitness and CEO of Self Esteem Brands.

“With this merger, we will enrich even more people around the world through franchising, community and the services they need – now and in the future – on their personal health and wellness journeys,” Runyon added.

Self Esteem Brands recently reported strong revenue growth and franchise sales for its 2023 fiscal year, led by Anytime Fitness, which counts over 5,000 global gym locations. SEB’s portfolio also includes boutique brands like Waxing the City, The Bar Method, Basecamp Fitness and Summit Fitness. 

For its part, Orangetheory has continued to expand nationwide and overseas, amassing over 1,500 franchised studios with a presence in all 50 states and 24 countries. The fitness franchise, which offers heart-rated-based group workouts spanning cardio and strength training, has become a cult favorite among boutique fitness enthusiasts. 

Both Orangetheory and Self Esteem Brands touted the deal’s ability to lead to “significant international scale” for their brands. Orangetheory recently announced significant expansion plans in London, while Self Esteem Brands is bringing Anytime Fitness locations to France and Austria.

“As we start a new chapter, Orangetheory will continue to build on our legacy of innovation and transformation,” said Dave Long, co-founder and CEO of Orangetheory. “Today, with this groundbreaking agreement, we are one step closer to setting a new benchmark for what it means to be a global leader in fitness, health and wellness.

No timeline was given for when the merger is expected to close.

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From professional sports teams to blockbuster film casts, the term “dream team” can be used to describe prestigious groups in a multitude of settings. But when it’s mentioned in the fitness and wellness industry, specifically in the southeast corner of the United States, CR Fitness comes to mind. 

With over 150 years of combined experience, competition and friendship, Crunch Fitness’ most successful franchise group stands alone in its makeup and level of success. 

“We’re highly driven individuals,” said Tony Scrimale, CEO at CR Fitness Holdings. “Every one of us raises the bar for each other. A lot of times you see people in the industry who are absentee owners or they get into the industry (only) because they have a passion for working out. We just want to win. We’re record-breaking people who are all-in on everything that we do.”

What CR Fitness has done is build out the most successful franchise group in all of Crunch Fitness, opening 17 locations across Florida, Georgia, North Carolina and Texas this past year alone to amass 62 clubs in total. Backed by private equity firm North Castle Partners, the franchise group recently announced plans to launch a Mega-Crunch club in Altamonte Springs, Florida, with 16 more locations set to open in 2024. By 2026, CR Fitness plans to own and operate 100 clubs.

Alongside Scrimale stands executive chairmen Vince Julien and Geoff Dyer. Jeff Dotson, chief financial officer, completes the “dream team.” How they all came together is equally impressive as what they’ve accomplished. 

Early Connections

Julien started in the fitness industry right after high school at around 18 years old. He was one of the first to recognize the growing market for women’s-only fitness and take advantage. He quickly established a go-to fitness center for women looking to exercise in a facility devoted to their unique needs. 

In 2011, Julien invested in his first Crunch with Dotson and Scrimale before teaming up with Dyer three years later, though the group had long been acquainted with each other by that point.

“I started in the business right out of high school, 17 or 18 years old,” said Julien. “When I was 24 or 25, I owned my first company called Shapes Total Fitness. I also started another company called Southside Athletic Clubs. I sold those clubs to Geoff Dyer, as they were trying to increase their footprint in Florida.”

Before Dyer joined CR Fitness as an executive chairman, he founded Lifestyle Family Fitness in 1982 with its first location in Lakeland, Florida. Under his leadership, Lifestyle grew to 55 fitness centers in Florida, North Carolina, Indiana and Ohio with about $135 million in annual revenue.

“We were competitors,” Dyer recalled of his early relationship with Julien. “But we weren’t directly competing. In fact, at one point, we actually did a promotion, gave away $1,000 in cash and split the leads up based on our territory, which was amazing. We continued that relationship, meeting every couple of weeks to guardedly share best practices. I learned a few things from him, and I think he learned a few things from me. That’s where the friendship began.”

After hearing of Crunch Fitness’ plans to get into franchising in early 2010 with an intent to create a nationwide high-value, low-price (HVLP) brand, which allied with what both Dyer and Julien hoped to achieve, the path forward became clear. They purchased rights to a few Florida locations and were off and running from there. 

Humble Beginnings

Julien, Dyer and Scrimale all started at the bottom of the food chain before rising to become sharks in the industry. Scrimale began his career at just 19 years old, selling club memberships and cleaning gyms. In 1997, he began working with Julien at Southside Athletic Clubs until it was sold to Dyer’s Lifestyle Family Fitness. By working with Julien and then Dyer, he received mentorship from each of his future executive chairmen and had a front-row view of this budding relationship that would one day serve as the foundation for CR Fitness’ success. 

“I was just an employee watching these guys and hearing the sidebar conversations,” Scrimale recalled. 

Not to be forgotten is Jeff Dotson, who rounds out the group as partner and chief financial officer of CR Fitness. He rose beside Julien, working as his financial arm for decades, first joining him at Shapes Total Fitness before coming on board with Scrimale in 2011.

“I worked for the accounting firm that represented Vince and his previous two partners,” Dotson recalled. “The greatest part of this group is that we’re very respectful of each other, and we’re very respectful of where our strong suits are, even though we all feel like we can step in and give each other input.”

Everyone Brings Something to the Table

While Dotson focuses on the financial side of things, he also takes on tasks that go beyond what a normal CFO role entails. Both he and Dyer keep a close eye on new sites, even going out into the field to do research. 

Julien oversees a variety of elements of the business, but keys in on the construction side of things and employee development. Scrimale heads the ship as CEO.

“We all have additional strengths that we take on as an ownership group,” Scrimale said. “If you have five point guards that are all talented in the same way, you’re not going to be able to tackle the game. We all offset each other. It’s a perfect synergy.”

That chemistry is rare not just in the fitness industry, but in all areas of business.

”We’re swift,” Scrimale said. “Anybody who has come into our company from another organization says that nobody can compete with our pace. We move fast on everything and we look at every opportunity.”

Blueprint for Franchising Success

Keeping one eye on their own line of gyms and another on the competition, all while keeping debt at a reasonable level and putting a strong focus on marketing, has combined to help the CR Fitness team find success.

With every five new gyms that CR Fitness adds, they make sure to go in and rebuild two existing ones. Equipment is always paid in full at the point of the sale when those new gyms are launched. The team spends well above industry averages in capital expenditures (CapEx) and is always adding new equipment to clubs, new amenities as they become available and frequently making repairs.

“When we started the first Crunch we made a commitment that we were constantly going to be in our clubs,” Scrimale said. “Geoff Dyer and I just went on site tours. If we passed a competitor I’d say, ‘Stop the car,’ and either Geoff or myself went in and got a quick tour of the club. It’s the same thing with our clubs. If we’re on a site tour and we see one of our clubs, we stop the car and we go in.”

This level of involvement gives CR Fitness a competitive advantage over other franchise groups, Scrimale believes.

“You have people that haven’t even visited some of their clubs,” he said. “There are competitors out there that are slowly lowering the bar and they don’t really know what’s going on within the organization. Personally, I cannot comprehend investing millions of dollars into a business, walking away and trusting somebody else to run it without inspecting it.”

The CR Fitness team also spends above industry standards when it comes to marketing.  They feel as if there’s no good in building out a great gym or remodeling existing clubs if it remains a best-kept secret, so spending is aggressive and consistent.

In terms of growth, the CR Fitness team adds 12 to 17 clubs a year without taking on any additional debt. With their goal of launching 100 clubs by 2026 well in sight, they’ve set 200 clubs as the next target. 

However, there are no plans to stop there. In accordance with the grit and willingness to go the extra mile which got them to where they are, the team preaches a continued desire to grow, not getting too caught up in the victories that might come along the way. 

“I’m the kind of guy that loves to have his back up against the wall a little bit,” Scrimale said. “I love having a challenge in front of me. I love doing something and every one of my partners is the same exact way. I think the growth is in front of us. I think that we have twice as far to grow. We’re just scratching the surface.”

The post How CR Fitness Became the Top Crunch Franchise Group appeared first on Athletech News.

Planet Fitness, inching closer to 20 million members and now with 2,575 store locations, reported that total revenue increased from the prior-year period by 1.4% to $285.1 million in its fourth quarter, and for fiscal 2023, its total revenue increased from the prior year by 14.4% to $1.1 billion.

In addition to its fourth quarter and 2023 earnings, Tom Fitzgerald, chief financial officer, has announced his intention to retire at the end of August. 

Providing its 2024 outlook, Planet Fitness expects revenue to increase in the 6%-7% range when compared to 2023, new equipment placement of approximately 120-130 in franchisee-owned locations and system-wide same-store sales in the 5% to 6% percentage range. 

Despite the strong numbers, Planet Fitness shares were down 3% on Thursday morning shortly after the earnings announcement.

The fitness franchisor and operator had kicked off a “New Growth Model” last year to support long-term store growth in the face of post-pandemic macroeconomic challenges, which interim CEO Craig Benson noted reduces capital requirements for owning and maintaining a PF franchise location with additional flexibility to build store portfolios. 

“While we believe that 2024 will be a transition year as our franchisees incorporate the changes into their growth plans, given our consistent and predictable asset-light model, we believe that we can deliver between 10 and 11 percent adjusted EBITDA growth, enabling us to generate significant cash flow to invest in the business and return capital to shareholders via our share repurchase program,” Benson said

“Importantly, we are expanding our total store opportunity to 5,000 in the U.S. based on the results of our recently completed third-party studies, up from the 4,000 total store opportunity we communicated at the time of our initial public offering in 2015,” he added.

Inside the Numbers

In the fourth quarter,  77 new Planet Fitness stores were opened and the fitness operator reported net income of $36.8 million, compared to $36.3 million in the prior-year period. Franchise segment revenue also increased $12.0 million or 13.9% to $98.2 million from $86.3 million in the prior-year period.

For fiscal year 2023, Planet Fitness reported net income was $147.0 million, compared to $110.5 million in the prior year. The fitness brand opened 165 new stores during the year. As for franchise segment revenue, Planet Fitness reports it increased $58.3 million or 17.7% to $387.9 million from $329.6 million in the prior-year period. 

Former CEO Departs Board

Benson has served as interim CEO following the sudden departure of former CEO Chris Rondeau last fall.

Rondeau recently resigned from the company’s board of directors, according to an SEC filing dated February 15. In part, it read that Rondeau didn’t serve on any board committees at the time of his resignation and that the company believes he resigned from the board due to “disagreements” with the company since his separation as CEO — such as the decision to terminate roughly 9% of PF headquarters-based employees this month, Benson’s role in managing Planet Fitness during its search for a permanent CEO and the board’s role in reviewing and approving decisions. 

In response, Planet Fitness wrote that it “respectfully disagrees with Mr. Rondeau’s views on these matters” and noted, “The board has momentum behind the search for a new CEO, and the board is encouraged by the progress to date.”

Last month, Planet Fitness launched a media network for advertisers to target its 18.5 million members, many of whom are Gen Z.

This story has been updated as Planet Fitness issued revised guidance regarding its same-store sales numbers.

The post Planet Fitness Grows Revenue but Warns of ‘Transition Year’ appeared first on Athletech News.

10 Fitness, a growing gym franchise, has announced a franchisee-focused partnership with iProv, a full-service marketing vendor specializing in results-driven marketing strategies.

The franchisee-supporting move sets 10 Fitness apart from other fitness franchises, the Arkansas-based brand says. According to 10 Fitness, the partnership marks “the first time a gym franchise has taken a proactive stance against the unnecessary spending and time loss in finding a marketing partner. “

10 Fitness notes that iProv delivers effective results, as seen with a consistent decrease in cost-per-acquisition and over half of 10 Fitness members now joining online.

“Our partnership with iProv is a testament to our commitment to the success of our franchisees,” said Eric Buckner, founder and CEO of 10 Fitness. “By providing expert marketing services that truly understand and reflect our brand, we’re ensuring that our franchisees don’t just survive, but thrive in today’s competitive landscape.”

As it plots its expansion beyond its thirteen clubs, 10 Fitness is seeking fitness franchise partners across the United States, hoping to attract them with its low royalty fees, a no-kickbacks policy and low-labor model, allowing clubs to have non-staffed operating hours.

HVLP Gyms Compete for Gen Z

Although traffic to major fitness operators may have fallen flat in January, high-value, low-price (HVLP) models such as 10 Fitness are resonating with Gen Z and Millennials looking for a cost-conscious facility with flexible hours. 

10 Fitness members have access to TrueCoach, InBody body mass scans and Myzone heart rate monitors, as well as premium weight rooms for strength training with power racks and free weights. Clubs also offer Cardio Cinema and popular in-person group fitness classes such as Zumba, boot camp, yoga and “Insanity.” On-demand classes and a “Level 10” team training membership are also available for additional accountability and support. 

Prospective 10 Fitness franchisees are expected to have a combined net worth of $2 million and liquid capital of $500,000.

The post 10 Fitness Launches Franchisee Marketing Strategy appeared first on Athletech News.

For Chuze Fitness CEO Cory Brightwell, running an elite consumer-focused business is a lifelong pursuit. 

Having watched his father, Charles Brightwell, grow and scale a successful restaurant chain between 1978 and 1995 along with business partner Ray Barshick, the younger Brightwell got an early appreciation for management and entrepreneurship. 

In 2008, a few years out of college, Brightwell teamed with childhood best friend Nick Barshick, their fathers, and Barshick family member Kris Peterson to create Chuze Fitness.

Chuze has become one of the fastest-growing high-value, low-price (HVLP) gym chains in the United States, currently operating 59 locations in California, Colorado, Arizona, New Mexico, Texas, Florida and Georgia. Despite its basic memberships costing only $10 per month, Chuze gyms are filled with state-of-the-art equipment, wellness and recovery amenities, and group exercise offerings. 

Beyond offering expansive physical spaces, Brightwell attributes Chuze’s impressive growth to being hyper-focused on the member experience, namely bringing a high level of “hospitality” to its gyms. 

“The gym industry is not seen as a hospitality industry,” Brightwell says. “That’s on us to fix.”

Brightwell spoke with Athletech News about Chuze’s quest to bring hospitality standards to the fitness industry, the brand’s 15-year expansion journey, and how big-box operators can build a winning fitness experience in the post-COVID environment. 

This conversation has been lightly edited for clarity and length.

Athletech News: What did you and your partners see in the fitness industry that inspired you to create Chuze Fitness? 

Cory Brightwell: Keep in mind this was over 15 years ago – the industry has come a long way since then – but the experiences we had when we walked into other facilities were pretty consistent, and pretty poor all around. We would walk in and wouldn’t really get welcomed or greeted by the person at the front desk. Nobody was focused on the member experience; everybody was focused on selling the membership and selling personal training. It seemed like a very used-car salesman experience. It really opened our eyes to what we thought was an opportunity. That opportunity was to bring hospitality to the fitness industry.

We committed to being the friendliest and cleanest gym. Those are basic things, but they’re really difficult to execute at a high standard day in and day out. We wanted to be known as the brand that knows its members’ names, that is spotless when members walk in, and where everybody feels welcome. That’s what we committed to back in 2008 when we opened our first location. I think we’ve certainly differentiated ourselves in those two categories, hospitality and cleanliness. 

ATN: What has Chuze’s growth trajectory and evolution been like since its founding in 2008?

CB: In our first four or five years, we grew nicely in San Diego and went over into Tucson, Arizona, and started working our way north in Orange County, California. The first 11 locations were more of the smaller, prototype 15,000 to 20,000 square foot box gyms. It wasn’t until our 12th and 13th locations that we really expanded the footprint to 35,000 to 40,000 square feet. We felt like we could not only continue to differentiate ourselves through our hospitality and our cleanliness, but with our value proposition. We’ve added new amenities like pools, Jacuzzis, steam rooms and saunas, kids clubs, group fitness studios, high intensity interval training studios, infrared yoga studios and recovery studios.

The bigger box really became our growth vehicle for the future. Over the last 15 years, we’ve gone from one location to 59, mostly through organic, new-build clubs, although we have acquired some companies. On average, our growth rate in terms of locations has been about 18% every year and membership has grown around 21% year over year. When you look at revenue, it’s been about a 25% compounded annual growth rate. We’re committed to responsible growth.

ATN: Why does Chuze prefer corporate-owned gyms over franchising?

CB: We actually did establish a franchise arm back in 2011, and we do have two franchise locations. It was a strategy earlier in our existence to help protect our home market. However, we knew that’s not how we wanted to grow, at least for now, and so we’ve been focused on corporate growth.

There are some great franchises out there, but for us, we don’t want to lose control of the standard of execution. I’m not saying we won’t eventually explore that avenue, but for now, we like keeping things in-house so we can ensure from a quality-control standpoint that the experience we’re delivering to our members never slips.

ATN: How big can the Chuze footprint become with corporate-owned gym locations?

CB: It’s really dependent on how well we continue to execute. I would estimate that our goal is to open anywhere from five to 10 locations per year for the next three to five years. So hopefully in five to 10 years, we’re getting close to 100 locations. 

Acquisitions are another factor in our growth. Some of the new builds are less attractive in today’s environment because of construction costs and supply chain delays, so acquisitions are looking more appealing. Fortunately, with the network that we’ve built over the years, we have a lot of great relationships with operators who have 10, 20 or 30 locations that may be looking to retire or hand off to a good operator that’s going to take care of their brand and take care of their employees.

ATN: Speaking of acquisitions, Chuze recently acquired 16 Bailey’s Health & Fitness locations in Florida and Georgia. How did that deal come about?

CB: That really happened because of the relationship I have with David Bailey, the founder of Bailey’s. I’m part of REX Roundtables, which is a group of operators across the country. I’ve known David for almost nine years now, and we’ve done a lot of collaboration and have spent a lot of time at each other’s clubs and in each other’s markets. He and his brothers had been running Bailey’s for 35 years, and I think that after making it through COVID and surviving that, it was an opportunity and time for them to capitalize on the fruits of their labor. 

There was a good fit in terms of culture –  they were running a really healthy business – and it was also a great opportunity to give us a nice footprint on the East Coast.

ATN: Is Chuze looking to expand into any other areas of the country?

CB: We’re constantly looking and exploring new market opportunities. The good news is with the recent acquisitions in El Paso, Texas (Chuze acquired EP Fitness in 2022) and Florida, plus our existing geographic base through California, New Mexico, Colorado and Arizona, we’ve got a lot of white space to grow in our existing geographies. That’s probably where most of our growth in the near term will be focused, with new markets probably coming up in maybe the next three to five years.

ATN: What are the biggest challenges and opportunities for gym chains like Chuze in the post-COVID environment?

CB: The post-COVID world has certainly hit most operators on the operating cost side. Labor costs and minimum-wage inflation are really out of control, so operators are having to get creative on how they deliver a good experience and make things more automated within their facilities. There’s a big opportunity to leverage technology to find ways to mitigate labor costs while hopefully still having a human presence in facilities.

It’s also about finding ways to value-engineer the way we’re building our facilities, since construction costs are inflated from pre-COVID numbers and may not come back down. We want to build our facilities with premium finishes and build them to be bulletproof so they can sustain a lot of use. However, you’ve got to figure out how to do it without breaking the bank. I think the operators that can figure out that equation are going to be successful.

Another big opportunity is building bigger free-weight areas because free-weight equipment is cheaper than cardio equipment. If you’re allocating more square footage to your free weights or your functional training, generally the per-square-foot cost to build that part of the facility out is less than the cardio square footage or even some of the boutique-studio offerings that many operators have. We’re finding creative ways to give our members what they really want, including more access to strength training and free weight training. 

The post CEO Corner: Chuze Fitness, Cory Brightwell Use ‘Hospitality’ To Drive Growth appeared first on Athletech News.

Crunch Fitness has appointed Chequan Lewis as president of its high-value, low-price (HVLP) fitness empire, while its CEO of franchising, Ben Midgley, will transition to Crunch’s board of directors.

The C-suite moves come as Crunch enjoys a high growth phase, closing in on three million members while being on pace to have over 500 club locations this year. The “No Judgements” gym brand recently secured the top fitness franchise spot on Entrepreneur’s 2024 Franchise 500 list and 29th spot overall.

Lewis, a Howard University and Harvard Law School graduate, joins Crunch Fitness after serving as the chief operating officer and first chief equity officer of Pizza Hut. In his new role, he will direct operations for owned and franchised businesses, and develop growth strategies while working with Crunch executives and franchise owners. The new Crunch president is also a former business litigator and Presidential Leadership Scholar.

“I’m fired up to join the Crunch team on our journey to deliver legendary experiences for our Members, Gym Teams, and Franchisees,” Lewis said. “As a lifelong fitness enthusiast with a passion for franchising, coming to Crunch feels like a homecoming. I’m excited to grow the Crunch legend alongside a talented team and a committed franchise network.”

Fast Franchise Growth

Jim Rowley, CEO of Crunch Worldwide, remarked that Chequan’s strategic mindset and proven track record will bring Crunch to new heights — on top of recently sharing with Athletech News that 2024 will be the biggest year yet for the fitness franchise, with plans to increase its growth rate by 20 to 25%.

”Chequan brings a wealth of experience and has delivered tremendous results in his previous roles,” Rowley said. “We look forward to working together to build on the strong foundation at Crunch and drive our company’s success into the future.”

Midgley will settle into his new role on Crunch’s board of directors in mid-March while remaining  “integral in franchisee relations,” according to the fitness franchise. Under Midgley’s leadership since 2009, Rowley noted that Crunch has grown to become a leading fitness franchise and one of the fastest-growing brands in the space.

“With Ben joining the board, our franchise partners will continue to have a dedicated advocate and liaison to represent their needs across Crunch’s business strategies,” Rowley said. “This is the right move at the right time as we gear up for even greater growth in 2024 and beyond.”

Big Demand for Big Box Gyms

There is no doubt that boutique fitness has had a significant impact on fitness consumers in the post-pandemic era, allowing them to tap into specific training modalities of their choosing and participate in group fitness sessions, but big box gyms have been flexing their muscles, showing the timeless strength of the standard gym experience. 

Planet Fitness, which just launched its own media network, is nearing 20 million members and has introduced a new growth model for franchisees, believing it can hit 4,000 stores in time. Anytime Fitness is also experiencing demand and recently scored a win by partnering with Apple to boost member engagement. 

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Planet Fitness is stepping up its advertising game. The “Judgment Free” gym franchise announced the launch of its PF Media Network. The project will operate as a multi-channel advertising solution, linking advertisers to Planet Fitness members both in-club and digitally across multiple channels with an intent to drive awareness and sales.

“We are thrilled to evolve our advertising solutions to provide agency teams, media buyers, and brands the opportunity to reach our more than 18 million Planet Fitness members,” said Sherrill Kaplan, chief digital officer at Planet Fitness. “Our member base represents a cross-section of the U.S. population across 2,400 clubs, skewing towards Gen Z and Millennials, which our advertising partners are eager to serve in dynamic and efficient ways.”

The PF Media Network’s content will filter into three different channels: in-club media, digital audiences and affiliate campaigns. 

• In-Club Media: Advertisers get the opportunity to reach Planet Fitness’ active and physically present members, communicating through TVs located throughout the gym, in its PF Black Card Spa and inside locker rooms.

• Digital Audiences: Permitting advertisers to reach Planet Fitness members via connected television, programmatic and social media outlets. This is accomplished through partnerships with LiveRamp, a leading data collaboration platform. 

• Affiliate Campaigns: The PF Media Network invites advertisers already participating in digital and in-club advertising opportunities to complement their outreach methods via email and the Planet Fitness app. Visible ad placement in these highly populated platforms promises to expand advertising partner conversion. 

Planet Fitness isn’t the first business to head down this advertising path, fitness or otherwise. Other non-retail companies who’ve recently moved to utilize their in-person and digital whereabouts with consumers include United Airlines, Uber and Lyft, according to Retail TouchPoints. Several gym chains have also run their own in-house advertising programs.

Now boasting over 18.5 million members, the most of any gym chain, Planet Fitness already represents one of the fastest-growing and most popular fitness brands in the industry. The franchise has found a winning formula in terms of targeting Gen-Z with its pricing, hours and culture. Applying the PF Media Network to that vast audience could mean even more growth is on the horizon.

This article has been updated with additional information on in-house advertising programs.

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Planet Fitness interim CEO Craig Benson has been steadfast in addressing inflationary pressures and a challenging economic landscape since taking the helm of the high-value, low-price (HVLP) fitness franchise after the abrupt departure of former CEO Chris Rondeau last September.

Following a successful Q3 2023, Benson, a Planet Fitness board member and franchisee, and CFO Tom Fitzgerald shed light on the brand’s new franchise growth strategy during this month’s ICR Conference 2024.

New Franchise Growth Model

Benson said the fitness franchise has been “overwhelmed” by the number of Planet Fitness franchisees interested in the new growth model, which includes extending the Area Development Agreement (ADA) from ten years to twelve, relaxing the remodel requirements from ten to twelve years, and adjusting the re-equips to six to seven years from five to seven years.

“It doesn’t sound like a lot, but these are big capital investments,” Benson said.

As for how quickly the new growth model can impact development in 2024-2026, Benson seemed to urge patience.

“It changed,” he said. “It used to be six to nine months to do a club. It’s now 12 to 14 for a number of reasons.” Among the reasons, he cited bureaucracy at the local level to get permits and difficulty finding retail space.

“Inflation has changed a lot,” Benson added. “And in new construction especially — inflation has been hard. In addition, interest rates have gone up, so borrowing to satisfy the higher demands for cost and building is a double whammy.”

He indicated that Planet Fitness is looking to partner with “bigger landlords” to become privy to opportunities. 

“We need to find space, especially, and part of the new growth model is using our scale,” Benson said.

Fitzgerald added that “2024 is probably more of a transition year” for Planet Fitness, although he noted that overall, the team has “made a meaningful stride” without significantly impacting P&L.

Exploring a Price Increase

Although the Planet Fitness Black Card has seen price increases over the years, now settling at $24.99 a month, the basic-entry White Card has remained at $10/month for the past 30 years — another area Planet Fitness is looking to adjust.

“$10 is not what it used to be 30 years ago, so we’re now experimenting with different price levels with the entry-level classic (White) card,” said Benson.

Planet Fitness is currently testing three White Card price points ($12.99/$15/$14.99/month) in 100 clubs, each with a matching control group.  One test was implemented in New York last month, with new members signing up for a White Card at $14.99/month.

“Our pricing is different because our pricing isn’t one and done, our pricing is ongoing,” Benson noted. “So you join and hopefully stay for a long period of time — so it’s not just getting people to join…The trick is also getting them to stay.”

A Hit with Gen Z

Planet Fitness is closing in on 20 million members, with its low-cost, high-value fitness franchise winning over scores of Gen Z and millennial fitness enthusiasts who have found a cost-conscious and inclusive gym environment.  

“We’re not necessarily trying to steal members from other concepts because only about 20% of the US belongs to a gym,” Fitzgerald said. “We’re really trying to get the 80% who don’t belong to a gym to start their journey.”

Millennial membership numbers have increased steadily as young consumers are exposed to more advertisements and as Planet Fitness builds more stores, he added.

The continued momentum with Gen Z has the “Judgement Free Zone” fitness franchise confident in its long-term growth.

“We feel strongly that the number will be north of 4,000 store opportunities in the US,” Fitzgerald said.

The Ozempic Effect

Benson also touched on the rising popularity of weight-loss drugs, noting that he sees the burgeoning market working to the benefit of Planet Fitness.

“I find people that are on these drugs are more cognizant of what they eat, and they’re also more cognizant of what they do for exercise,” Benson said.

While other fitness operators are churning out add-ons (some of which are related to weight-loss medication) Benson underscores the simplicity of the Planet Fitness model. 

“You can’t be great at everything, and you have to focus on the things that you can be good at and really exploit the heck out of them,” he said. “That’s the model Planet has had for a really long time, and we don’t plan on changing that. Complexity adds challenges.”

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PureGym, a U.K.-based brand and the second-largest fitness operator in Europe, is planning to expand its high-value, low-price (HVLP) fitness franchise within the U.S. and Canada under the Pure Fitness name, touting its flexible 24/7 operating hours and zero-contract membership. 

The PureGym brand has teamed with RCS Real Estate Advisors to bolster its North American presence, looking to scale beyond its current three Pure Fitness locations in the Washington, D.C. metropolitan area.

The gym franchise’s mission is to become one of the largest fitness operators as it seeks qualified franchisees for all U.S. markets, tapping RCS for its expertise in navigating complex commercial real estate matters and experience in site selection and lease negotiation. 

“Pure Fitness is proud to partner with RCS Real Estate Advisors to facilitate our ambitious venture into North America,” said James Hathaway, group international strategy and franchising director at Pure Fitness. He added that the firm’s proven track record in retail real estate strategy aligns perfectly with the brand’s plans for expansion. 

“This collaboration will create a solid growth plan as we expand our presence in the North American market,” Hathaway continued. “With increased awareness around health, well-being and the role fitness plays in a happier and more fulfilling life, we are thrilled to be able to help individuals achieve their fitness goals.”

A potential competitor to the likes of Planet Fitness and Crunch Fitness in America, Pure Fitness offers traditional gym equipment, fixed-resistance and free weights, and instructor-led cardio, sculpt and tone, mind and body, and functional fitness classes. Personal trainers are also available, along with digital classes. 

Since launching in the U.K. in 2008, PureGym has amassed over 1.9 million members across 595 clubs in the U.K., Denmark, Switzerland, U.S., Saudi Arabia and UAE. 

Moe Puri, vice president at RCS Real Estate Advisors, noted that the RCS team is committed to identifying ideal locations and franchising opportunities to drive Pure Fitness forward in the North American market.

“It is our aim to make the Pure Fitness experience readily accessible to new customers, as well as ensure that communities across the U.S. and Canada can benefit from the brand’s holistic ethos,” Puri said.

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Planet Fitness is winning over consumers as the low-price, high-value fitness franchise nears 20 million members, according to its year-end operational metrics. As of December 31, 2023, the “Judgement Free” fitness franchise grew its membership to approximately 18.7 million members, an increase of 1.7 million since the end of 2022.

Full-year system-wide same-store sales climbed by 8.7 percent in 2023, with Planet Fitness equipping 135 new franchised sites and opening 165 new Planet Fitness stores, including 18 corporate-owned locations, bringing system-wide total stores to 2,575.

“We are pleased to have delivered another strong year of member growth, demonstrating important momentum for our business, and continued recovery from the impact of COVID interruptions,” said Craig Benson, interim Planet Fitness CEO. “Our new growth model, which reduces the capital requirements for opening and operating a Planet Fitness location, underscores our focus on utilizing a disciplined, data-driven approach to improving store level returns.”

Winning With Gen Z

The fitness franchise, famed for its annual Near Year’s Eve in Times Square branding, has laid the groundwork to entice Gen Z fitness enthusiasts, leveraging its budget-friendly prices, flexible hours and inclusive environment. The popular High School Summer Pass program, which grants free gym access to teens in the summer months, has also continued to see increased participation as it builds brand loyalty with the younger segment.

In addition to making The Morning Consult’s top ten list of brands resonating with Gen Z, Planet Fitness kicked off 2024 with another Gen Z-grabbing move, collaborating with Grammy award-winning rapper Megan Thee Stallion for a new ad campaign and exclusive, co-branded merchandise.

Dubbed “Mother Fitness,” Megan Thee Stallion stars in a punchy 30-second promo to save gym goers from negative gym cultures with toxic instructors and “fitspo fakes” before transporting them to the positive vibes of a Planet Fitness gym. 

CEO Search Ongoing

Benson, who replaced former Planet Fitness CEO Chris Rondeau, added that the search for a new CEO is underway. Rondeau was shockingly ousted from Planet Fitness in September with Benson, a Planet Fitness franchisee and board member, taking the temporary reins. The departure took Rondeau by surprise, but also investors — with Planet Fitness shares tanking in response before rebounding upon encouraging Q3 2023 results.

“The board is focused on finding a leader they believe will guide us in capturing the growth opportunities that lie ahead,” Benson said.

Benson had touched on the fitness operator’s new growth model in a November 2023 earnings call, indicating that Planet Fitness has been exploring a price increase in the search for a “sweet spot” in member pricing. As the interim CEO pointed out to investors, Planet Fitness hadn’t raised the cost of its $10 classic card in 30 years. As for reducing capital requirements to open and operate a PF franchise, Benson said it was time to become creative and leverage the size of Planet Fitness, especially as the inflationary environment is likely to linger.

Planet Fitness will discuss its metrics in a fireside chat at the ICR Conference on Tuesday, January 9, 2024. The fitness franchise releases its full fiscal year 2023 results and 2024 outlook on February 22, 2024.

The post Planet Fitness Nears 20 Million Members Amid Strong Growth appeared first on Athletech News.

Fresh off the Times Square stage following the first performance of 2024, rapper Megan Thee Stallion is collaborating with popular low-price, high-value fitness franchise Planet Fitness for a new campaign and exclusive, co-branded merchandise.

Crowned the “Mother Fitness” by Planet Fitness, the Grammy award-winning performer stars in a 30-second promo telling a tale of an alarming gym landscape filled with toxic instructors and “fitspo fakes” before appearing in a purple cloud to rescue gym goers and transporting them to the “Judgement Free Zone” of Planet Fitness.

The youth-focused marketing move comes as the fitness industry awaits to discover who will take over the reins at Planet Fitness, which interim CEO Craig Benson is currently steering. A board member and Planet Fitness franchisee, Benson was appointed after the sudden ousting of former CEO Chris Rondeau in September.

Aside from the initial promotional push, Planet Fitness is planning an integrated marketing campaign that includes advertising, commercial spots, an AR filter, limited-edition co-branded merchandise and free in-app Planet Fitness workouts inspired by Megan Thee Stallion. 

“Working out is such an important part of my routine, so this partnership with Planet Fitness genuinely embodies my personal values,” said Megan Thee Stallion. “We want to encourage everyone to prioritize their physical and mental health heading into the New Year, so they can reach new heights in 2024 and continue to grow into the best version of themselves.”

All proceeds from the Planet Fitness x Megan Thee Stallion co-branded merch (available online at the Planet Fitness website) will go towards the Pete & Thomas Foundation, a non-profit founded by the performer that assists underserved communities. Dubbed ‘Thee Judgement Free Collection,’ the line includes ‘Big Fitness Energy’ crew neck sweatshirts, bucket hats, ‘Real Hot Girl Fit’ water bottles and stickers. 

“Music plays a huge role in any fitness routine, so Planet Fitness is thrilled to be teaming up with Megan Thee Stallion to break down the barriers of fitness, help everyone focus on their fitness journeys, the ‘Judgement Free’ way, and channel their Big Fitness Energy,” said Jamie Medeiros, chief brand officer at Planet Fitness. “Megan Thee Stallion celebrates all the values of Planet Fitness through her dedication to physical and mental wellness, plus her powerful message of body positivity, which makes her an incredible partner for our brand.”

The fitness franchise is also promoting a limited-time offer until January 12 to join its “hassle-free” environment for $0.24 down and no commitment — an interesting deal, considering the fitness operator has been exploring a price increase.

Planet Fitness recently found itself on The Morning Consult’s top ten list of brands resonating with Gen Z, with one of its young members-turned-trainers noting that it’s not just the gym chain’s budget-friendly membership price that is attracting young fitness enthusiasts but its active presence on social media, flexible hours and friendly and inclusive atmosphere. 

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Amped Fitness, a Florida-based gym chain, is touting that its ample fitness amenities and offerings align with 2024’s top health and wellness trends. Known for its positive gym ethos, blue mood lighting and content-friendly areas designed for fitness content creators, Amped Fitness recently opened its first Sapphire location in Fort Lauderdale, Florida. 

The location marks one of five new Amped Fitness gyms in the southern region of the Sunshine State that is part of the brand’s corporate expansion.

Amped Fitness’s Sapphire spots offer sparkling new facilities with luxury-style amenities and a touch of exclusivity that ensures the comfort of its members. Along with its Fort Lauderdale location’s grand opening, Amped Fitness plans to launch Sapphire facilities in Sarasota, Tampa, Plantation and Daytona Beach. 

Guests at Sapphire locations can expect strict enforcement of an 18-and-over- age policy and state-of-the-art equipment from Core, Amped, Prime, Total Gym, Booty Builder and specialty machines such as the Reverse Hyper Extension, Standing Abductor and Horizontal Leg Press. Other amenities include instructor-led and virtual group classes, a recovery zone, tanning, saunas, a women’s only Babe Cave and a Functional Freedom Zone.

“We are stoked to continue our Florida takeover with these 5 new locations,” said Travis Labazzo, CEO of Amped Fitness.

Aligned With 2024 Trends

As for its in-gym offerings and recognizing the popularity of group fitness and hybrid workout options, Amped Fitness re-introduced its popular AX3 Group Training this year for VIP members to access free HIIT and strength training classes. Members can also work out in the Functional Freedom Zone, an open turf area with fitness equipment and accessories or work with one of the certified personal trainers for a results-driven and time-efficient 30-minute training session.

The fitness franchise has also begun focusing on promoting a mind-body connection, with the addition of yoga classes that integrate deep breathing and meditation and a fun dance fitness experience with Zumba. Virtual on-demand classes are also available to satisfy members who prefer a hybrid approach to fitness.  

Post-workout, Amped Fitness members can head to the Recovery Zone to use massage guns, enjoy HydroMassage beds and CryoLounge+ chairs from WellnessSpacee Brands, Normatec Boots from Hyperice, or use a Body Composition Scanner to keep themselves on track to meet their health goals.

Aside from scaling in Florida and its two locations in Alabama, Amped Fitness is headed to Indiana in the new year, a result of its first franchise partnership with Matt and Kyana Carrico. 

The low-cost, high-value fitness franchise offers 24/7 access for a no-contract monthly base membership price of $9.99 with a capped $26.99 VIP tier, providing flexibility and affordability — ideal for busy consumers in a challenging economic landscape.

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Vasa Fitness, a high-value, low-price gym brand, is opening its first club in Omaha, Nebraska, with an additional club slated to open in Lincoln in the second half of 2024. The new Nebraska clubs join the club operator’s existing footprint in Colorado, Utah, Oklahoma, Arizona, Indiana, Illinois and Wisconsin.

Vasa Fitness is inviting fitness enthusiasts to its grand opening of the nearly 60,000-square-foot club, located at 14445 West Center Rd. on January 13 starting at 8 a.m. The club will celebrate by offering complimentary one-day passes, giveaways, gym tours and free workouts.

A spokesperson for Vasa Fitness confirmed to Athletech News that in addition to Omaha and Lincoln, the fitness operator will also open new clubs in Wheaton, Illinois, Lehi, Utah, and launch new locations in Colorado Springs, Colorado, Oswego, Illinois and North Brook, Illinois, in 2024.

“Next year, Vasa will be bringing its new Studio Flow infrared yoga to approximately 25-30 of its existing clubs. Studio Flow started as a pilot in Westminster, Colorado, and has developed into a very popular fitness product,” the spokesperson said, adding that re-investing in existing clubs to bring “on-trend fitness” offerings for its members is a key differentiator for the brand.

Vasa Fitness offers boutique-style studio offerings with HIIT-themed Studio Red classes, group fitness and personal training. Studio Flow’s mind/body yoga experience featuring dedicated infrared panels for each guest to heat the body is part of the brand’s Studio membership, which includes unlimited access to all Vasa amenities for $39.99 a month. For those opting for a more traditional gym experience, Vasa Fitness has exercise machines, free weights and steam and sauna spaces.

“Expanding our thriving fitness community to Nebraska is extremely exciting for all of us at Vasa,” said Rich Nelsen, Vasa Fitness CEO. “Vasa’s goal is to build and nurture fitness communities where all types of people at all stages in their fitness journey can come to get healthy and happy and have the opportunity to be social and connect with others in a meaningful way. We believe we have a lot to offer the local Omaha community and hope to expand our presence in years to come.”

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