Gyms Archives - Athletech News https://athletechnews.com/tag/gyms/ The Homepage of the Fitness & Wellness Industry Fri, 22 Mar 2024 22:45:45 +0000 en-US hourly 1 https://wordpress.org/?v=6.4.3 https://athletechnews.com/wp-content/uploads/2021/08/ATHLETECH-FAVICON-KNOCKOUT-LRG-48x48.png Gyms Archives - Athletech News https://athletechnews.com/tag/gyms/ 32 32 177284290 Anytime Fitness Has Big Plans for Dubai, Middle East https://athletechnews.com/anytime-fitness-dubai/ Fri, 22 Mar 2024 22:15:24 +0000 https://athletechnews.com/?p=104222 The gym franchise is set to open many clubs in the United Arab Emirates, where Dubai is emerging as a fitness hotspot Anytime Fitness is headed to Dubai, opening its first club in the Middle East hotspot later this year. It will be the first of many Anytime Fitness clubs opening in the United Arab…

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The gym franchise is set to open many clubs in the United Arab Emirates, where Dubai is emerging as a fitness hotspot

Anytime Fitness is headed to Dubai, opening its first club in the Middle East hotspot later this year. It will be the first of many Anytime Fitness clubs opening in the United Arab Emirates (UAE) over the next eight years following a master franchise agreement signed in the region.

It’s more good news for the gym franchise, which earned bragging rights after securing a deal with Apple, making Anytime the tech giant’s first gym partner.

Behind the gym’s upcoming growth in the region is an investment group led by Dr. Mark Mobius, a new master franchisee announced by Self Esteem Brands, Anytime’s parent company, which recently announced plans to merge with Orangetheory Fitness.

“Being a long-time member of Anytime Fitness and having used the clubs around the world makes this investment a natural for me,” Mobius said. 

He will be joined by fellow investor John Ninia to grow Anytime Fitness, along with Ben Matute and Richmond Sy, two Anytime Fitness Philippines franchise operators. Matute and Sy will relocate to Dubai to launch Anytime Fitness UAE and open clubs across the country over the next eight years.

credit: Self Esteem Brands

Anytime’s Global Push

Sander van den Born, Self Esteem Brands’ executive vice president of international, remarked that the UAE is at the “top of the list” when the health and wellness-focused company looks at regions that can capture strong growth.

The Self Esteem Brands executive also noted the “wider recognition of health and wellness initiatives” across the Middle East region, making the fitness operator’s entry into the market ideal.

With the addition of the UAE, Anytime Fitness will operate in more than 40 countries and territories. The gym franchise recently announced plans to enter France, among other international moves.

In the U.S., Anytime Fitness will scale its footprint with the help of Omega Fitness, which was acquired by Seattle-based private equity firm Rainier Partners last year.

Dubai Emerges as ‘Fitness Capital

If it seems there’s been an advanced push for fitness and wellness in the UAE recently, there has. Dubai, in particular, has been called the “fitness capital” of the region by fitness industry veteran Jack Thomas, co-founder of The Fit Guide, an international rating system that anonymously evaluates fitness and health clubs.

Dubai’s cosmopolitan vibe has anchored the UAE city’s fitness services market with a $700 million value, and it is on track to cross the billion-dollar mark, according to Ken Research’s findings last month.

Ahead of the curve, Barry’s opened a studio in the business district of Dubai in 2017, while F45 Training and Mayweather Boxing, among other fitness concepts, have also settled into the city. 

For its part, the UAE issued a ‘National Strategy for Well-Being 2031’ as it plans to make the region a “world leader in quality of life” by promoting healthy and active lifestyles and positive mental health. 

Dubai’s wellness retreats are second to none; the city is gearing up for a tourism boom this year, with rejuvenation seekers flocking to the lavish region and its high-end “healing hotels” offering an abundance of therapies and services, such as IV drips, salt caves, saunas and more.

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Fireside Chat: Echelon CEO Lou Lentine on the Art of Fitness Supply & Design https://athletechnews.com/fireside-chat-echelon-arch-amenities-group-fitness-supply-design/ Thu, 21 Mar 2024 20:45:20 +0000 https://athletechnews.com/?p=104172 Lentine and Arch Amenities Group VP/Development Danny Dulkin join ATN’s video series to discuss how their companies work together to build a winning gym environment Lou Lentine, founder and CEO of Echelon, a leading manufacturer of connected fitness equipment, and Danny Dulkin, Vice President of Development at Arch Amenities Group, which creates bespoke wellness spaces,…

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Lentine and Arch Amenities Group VP/Development Danny Dulkin join ATN’s video series to discuss how their companies work together to build a winning gym environment

Lou Lentine, founder and CEO of Echelon, a leading manufacturer of connected fitness equipment, and Danny Dulkin, Vice President of Development at Arch Amenities Group, which creates bespoke wellness spaces, join Athletech News Founder and CEO Edward Hertzman in this exclusive “Fireside Chat” interview. 

Lentine and Dulkin explain how their companies work together to build the best possible gym environment as equipment supplier and designer, respectively, following industry trends and capitalizing on their strong relationship. Alongside Hertzman, the Echelon and Arch execs dive into concepts such as the rise of strength training, getting the most out of a gym space and what lies ahead for the fitness industry.  

Watch the full interview here for expert commentary on the following:

  • What makes a successful fitness supplier and designer relationship in 2024
  • How to give gym members what they want while maximizing real estate
  • The future of fitness from multiple industry perspectives

Key Talking Points

(0:00 – 0:55) Introductions

(0:55 – 2:07 ) How fitness facility layouts have evolved

(2:07 – 3:55) Designing products to meet new layout demands

(3:55 – 6:10) Foundations for the Arch and Echelon partnership

(6:10 – 9:09) Addressing strength training’s popularity from a supplier and design side

(9:09 – 10:17) Importance of acoustics in gym design

(10:17 – 13:44) Space management both with gyms layout and equipment

(13:44 – 16:49) Connected rooms and increasing retention

(16:49 – 18:39) Incorporating wellness and recovery into modern gym floors

(18:39 – 20:40) Things to look forward to in the rest of 2024 

(20:40 – 23:04) Why gyms will never be dead

(23:04 – 24:07) Wrap Up

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TruFit Hits 40 Locations, Expands in Tennessee https://athletechnews.com/trufit-athletic-clubs-expansion/ Thu, 21 Mar 2024 01:47:00 +0000 https://athletechnews.com/?p=104163 The Texas-based HVLP gym chain has experienced a 45% increase in its member base over the past two years and is flush with new growth capital 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…

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The Texas-based HVLP gym chain has experienced a 45% increase in its member base over the past two years and is flush with new growth capital

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.

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The Gym Group Eyes Expansion as UK Fitness Market Heats Up https://athletechnews.com/gym-group-uk-fitness-market/ Fri, 15 Mar 2024 23:11:57 +0000 https://athletechnews.com/?p=104027 Similar to the States, the United Kingdom is experiencing a post-pandemic fitness boom, with low-price gyms seeing the biggest surge 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…

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Similar to the States, the United Kingdom is experiencing a post-pandemic fitness boom, with low-price gyms seeing the biggest surge

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. 

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Amped Fitness Enters Texas as HVLP Gym Keeps Expanding https://athletechnews.com/amped-fitness-enters-texas/ Wed, 13 Mar 2024 18:30:00 +0000 https://athletechnews.com/?p=103928 The low-price gym chain known for its blue mood lighting and long list of amenities has built a burgeoning portfolio of clubs in Florida 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…

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The low-price gym chain known for its blue mood lighting and long list of amenities has built a burgeoning portfolio of clubs in Florida

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.

Ax3 group fitness class at Amped (credit: Amped Fitness)

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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Equinox Locations Add Aescape, a Fully Automated Massage Bed https://athletechnews.com/equinox-adds-aescape-fully-automated-massage-bed/ Wed, 13 Mar 2024 13:46:16 +0000 https://athletechnews.com/?p=103909 As Aescape looks to disrupt the massage industry with robotic arms, Equinox members in NYC will gain access to a premium recovery tool Aescape has launched its whitespace innovation: the first commercially available, fully automated massage experience. The company also announced a partnership with luxury lifestyle and fitness operator Equinox, debuting its massage tables in…

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As Aescape looks to disrupt the massage industry with robotic arms, Equinox members in NYC will gain access to a premium recovery tool

Aescape has launched its whitespace innovation: the first commercially available, fully automated massage experience. The company also announced a partnership with luxury lifestyle and fitness operator Equinox, debuting its massage tables in select locations across New York City this spring.

Backed by $80 million in funding, Aescape aims to increase the efficiency and effectiveness of massages through advanced technology. .

“Aescape aims to make massage an accessible, regular part of rest and recovery, no longer reserved for indulgence or injury,” said Eric Litman, Founder and CEO. “Working alongside massage therapists over the last seven years, we’ve honed our technology to ensure it caters to diverse body types and lifestyles. It’s designed for anyone looking to book last-minute, or looking for control over their massage when therapists aren’t always available.” 

The technology is a fully automated, artificial intelligence-driven massage table. It scans the user’s body and generates over one million 3D data points to accurately map a user’s body on the table.

Using the 3D scan, the tool identifies key points on the body for a targeted massage. Aescape includes a touchscreen underneath the massage table that users can control to identify pressure points, target areas and music selections. The experience is also customizable—the platform can remember user preferences for future massages.  

Equinox Embraces Recovery

At Equinox, anyone can experience Aescape for $60 for 30 minutes, which will also include a free day pass to the gym for non-members. Beginning in June, the technology will be made available in ten locations in New York City. 

“We’re relentlessly focused on how we can help our community of high-performing individuals live better, healthier lives,” said James Gu, senior director, Equinox Spa. “As we continue to innovate with science-backed preparation and recovery modalities and new technologies, we are excited to offer Aescape. This personalized and accessible format will help our members further integrate recovery into their fitness routines.”

credit: Aescape

Disrupting the Massage Market

Litman is joined on the Aescape executive team by Sam Bowen, who worked in hardware at Amazon; Becca Valle, who worked in global marketing at Meta, Airbnb, and the New York Knicks; and Alex Linde, who worked in product at Uber, eBay, and Yahoo!

To develop the product, the Aescape team worked with thousands of individuals to develop a solution that caters to all body types and needs. By working with everyone from casual gym-goers to athletes, the company created a solution it says can cater to all audiences. 

credit: Aescape

The massage therapy market is valued at around $19 billion, and recovery solutions have never seemed more popular, including in gyms and fitness facilities as a value-add or premium membership service. The industry, which is also facing a shortage of therapists, is primed for disruption. Aescape offers an always-available, consistent massage, and aims to drive value for spas, hotels and wellness centers. 

Aescape is launching an early access program for New Yorkers, inviting participants to be among the first to try out the futuristic massage experience while providing feedback to refine the service further. The company is also actively seeking new partnerships. 

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Equinox Secures $1.8B for Loans, Club Expansion https://athletechnews.com/equinox-secures-1-8b-for-loans-club-expansion/ Mon, 11 Mar 2024 15:48:11 +0000 https://athletechnews.com/?p=103821 Fueled by record revenue growth and member engagement, the upscale brand is eyeing physical expansion and new programs Luxury lifestyle and health club operator Equinox has secured approximately $1.8 billion in new capital to refinance maturing loans, fund general corporate purposes and build new clubs. The brand also secured a new revolving credit facility from…

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Fueled by record revenue growth and member engagement, the upscale brand is eyeing physical expansion and new programs

Luxury lifestyle and health club operator Equinox has secured approximately $1.8 billion in new capital to refinance maturing loans, fund general corporate purposes and build new clubs. The brand also secured a new revolving credit facility from Goldman Sachs, Morgan Stanley and J.P. Morgan.

Equinox reported a 27% revenue increase in 2023 and a record-high member engagement. In addition to its 107 global clubs, the brand has a pipeline of 25-plus new locations in the works across major markets while Equinox continues to explore domestic and international opportunities. 

“We are seeing record performance in revenue growth and member engagement, which demonstrates our position as the global leader in high-performance luxury lifestyle,” said Harvey Spevak, executive chairman and managing partner of Equinox Group, which also encompasses Equinox Hotels, SoulCycle, Blink Fitness and E by Equinox. 

Member engagement may be at an all-time high due in part to Equinox Circle, a member perks program that debuted last year and is rich with top-of-the-line brand partners such as Oura, Bezel, Thorne, Provenance and Blade.

“These new strategic investments from a group of world-class partners that share our vision for the Equinox brand will empower us to accelerate further growth through new club openings and new innovative offerings, as well as by scaling the Equinox luxury experience,” Spevak added.

The financing includes capital from a mix of new and existing investors led by Sixth Street and Silver Lake and includes investments from Ares Management, HPS Investment Partners, L Catterton and the principals of the Related Companies.

The luxury lifestyle and fitness brand bulked up its staff, hiring 5,000 fitness coaches as Equinox members expressed continued interest in personal training services. Similarly, Equinox is listening to the needs of its clients on weight loss medications such as Ozempic and Wegovy — or those who are interested in using GLP-1s, rolling out a personal training program designed for those on weight-loss drugs.

“The drugs work so well, but we felt like something really important was missing for our clients on them,” Equinox club coach Michael Crandall said of the new program. “Weight loss interventions should always be done with a training program to get the best results.”

Crandall is leading the new program, following Equinox’s introduction of a Health Advisory Board featuring medical and wellness experts designed to support the Equinox Fitness Training Institute, which offers accredited curriculum and board certification for performance coaches.

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Orangetheory, Self Esteem Brands Merge in Major Fitness Deal https://athletechnews.com/orangetheory-self-esteem-brands-merge/ Fri, 01 Mar 2024 01:06:31 +0000 https://athletechnews.com/?p=103568 The parent company of Anytime Fitness joins forces with Orangetheory in a deal that creates a global wellness giant 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…

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The parent company of Anytime Fitness joins forces with Orangetheory in a deal that creates a global wellness giant

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. 

Anytime Fitness (credit: Self Esteem Brands)

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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How CR Fitness Became the Top Crunch Franchise Group https://athletechnews.com/cr-fitness-crunch-franchise-group-profile-exclusive/ Tue, 27 Feb 2024 20:18:36 +0000 https://athletechnews.com/?p=103446 Together for a decade, the CR Fitness team’s story is one of relationships, perseverance and a deep-rooted commitment to building top-quality gyms 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…

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Together for a decade, the CR Fitness team’s story is one of relationships, perseverance and a deep-rooted commitment to building top-quality gyms

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.”

Tony Scrimale (credit: CR Fitness)

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. 

credit: CR Fitness

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.

credit: CR Fitness

“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.”

credit: CR Fitness

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.”

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Planet Fitness Grows Revenue but Warns of ‘Transition Year’ https://athletechnews.com/planet-fitness-grows-revenue-but-warns-of-transition-year/ Thu, 22 Feb 2024 16:35:29 +0000 https://athletechnews.com/?p=103319 The popular gym chain continues to grow membership and revenue but is facing executive upheaval and some uncertainty over new business plans 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…

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The popular gym chain continues to grow membership and revenue but is facing executive upheaval and some uncertainty over new business plans

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.

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Watch Now: Crunch Fitness CEO Jim Rowley Joins ATN ‘Unscripted’ Podcast https://athletechnews.com/crunch-fitness-ceo-jim-rowley-atn-unscripted-podcast/ Wed, 21 Feb 2024 13:30:00 +0000 https://athletechnews.com/?p=103231 Rowley shares his candid thoughts on Crunch’s recent growth and future, along with takes on the fitness industry as a whole Jim Rowley, Crunch Fitness worldwide CEO, joins the show in the latest episode of ATN “Unscripted.” A 30-plus year fitness industry vet, Rowley oversees day-to-day operations, development, franchising and marketing for Crunch’s 410-plus locations.…

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Rowley shares his candid thoughts on Crunch’s recent growth and future, along with takes on the fitness industry as a whole

Jim Rowley, Crunch Fitness worldwide CEO, joins the show in the latest episode of ATN “Unscripted.” A 30-plus year fitness industry vet, Rowley oversees day-to-day operations, development, franchising and marketing for Crunch’s 410-plus locations. He also proudly served as a United States Marine for eight years.

“Unscripted” co-hosts Edward Hertzman, Athletech News’ founder and CEO, and Eric Malzone join Rowley to discuss Crunch’s future amid the rapidly evolving fitness and wellness industry. Topics such as what Crunch looks for in its franchise partners, the place of GLP-1 weight-loss drugs in fitness and the decline – but also possible resurgence – of cardio are all explored. 

Watch this episode of “Unscripted” for unfiltered takes on the following:

  • How gyms can get the most out of each month of the year
  • Why there’s still no shortcuts in fitness, even with science
  • Crunch’s future goals and ambitions

Key Talking Points:

(0:00 – 0:47) Introductions

(0:47 – 1:55) Crunch Fitness’ wins in 2023

(1:55 – 5:24) Applying different strategies in different months

(5:24 – 9:55) Staying focused internally amidst the noise from competitors 

(9:55 – 20:31) There’s no quick substitute for hard work in the gym

(20:31 – 22:09) Evolution at Crunch 

(22:09 – 28:05) Following what’s trending while staying ready for shifts

(28:05 – 30:32) Crunch’s goals for 2024

(30:32 – 33:22) Who’s an ideal franchisee for Crunch?

(33:22 – 35:00) Crunch’s real estate involvement from the top

(35:00 – 40:26) Getting involved in the recovery space

(40:26 – 49:36) Final thoughts

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10 Fitness Launches Franchisee Marketing Strategy https://athletechnews.com/10-fitness-launches-franchisee-marketing-strategy/ Tue, 20 Feb 2024 21:00:32 +0000 https://athletechnews.com/?p=103238 The Arkansas-based brand says its partnership with iProv marks a new way of approaching marketing for gym franchises 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.…

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The Arkansas-based brand says its partnership with iProv marks a new way of approaching marketing for gym franchises

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.

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CEO Corner: Chuze Fitness, Cory Brightwell Use ‘Hospitality’ To Drive Growth https://athletechnews.com/ceo-corner-chuze-fitness-cory-brightwell-exclusive-interview/ Thu, 15 Feb 2024 00:05:07 +0000 https://athletechnews.com/?p=103137 Chuze has become one of the fastest-growing high-value, low-price (HVLP) gym chains in the U.S., currently operating 59 locations 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…

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Chuze has become one of the fastest-growing high-value, low-price (HVLP) gym chains in the U.S., currently operating 59 locations

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. 

credit: Chuze Fitness

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.

credit: Chuze Fitness

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.

credit: Chuze Fitness

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.

credit: Chuze Fitness

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. 

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Could a Slow January for Gyms Spell Trouble? https://athletechnews.com/could-a-slow-january-for-gyms-spell-trouble/ Tue, 13 Feb 2024 20:02:51 +0000 https://athletechnews.com/?p=103079 Foot traffic to major fitness operators like Planet Fitness flattened in what is typically a busy month for gyms and studios January typically brings a surge in fitness and health resolutions, with gyms bustling with new members and those recommitting. However, foot traffic to ten major fitness operators fell flat last month, with analysts attributing…

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Foot traffic to major fitness operators like Planet Fitness flattened in what is typically a busy month for gyms and studios

January typically brings a surge in fitness and health resolutions, with gyms bustling with new members and those recommitting. However, foot traffic to ten major fitness operators fell flat last month, with analysts attributing the decline to unfavorable weather conditions nationwide and increasing competition.

Placer.ai, a software company leveraging location intelligence such as anonymous cell data, examined traffic to leading fitness operators Planet Fitness, Xponential Fitness, Equinox, Crunch Fitness, F45 Training, Anytime Fitness, 24 Hour Fitness, Gold’s Gym, Fitness International and Ultimate Fitness Group.

Citing findings from the analysis, Bloomberg suggests that the sluggish start could indicate a challenging year ahead for fitness operators, with traffic having flattened from January 2023. In contrast, visits had risen more than 40% in each of the last two years at Equinox, Planet Fitness and Xponential Fitness, according to the publication. 

Planet Fitness, the largest listed fitness chain, typically adds roughly 400,000 members in January, and according to Bloomberg, is on track for its “second-worst quarterly sales growth since 2021.” The fitness operator has an earnings call scheduled for next week and has been transparent about exploring a price increase for its basic-entry White Card, which has remained at $10 per month for the last 30 years.

“$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,” confirmed interim Planet Fitness CEO Craig Benson last month at the 2024 ICR Conference.

The fitness operator has been testing three White Card price points ($12.99/$15/$14.99/month) in 100 clubs, each with a matching control group. 

Intentions of a price increase may have led Planet Fitness to take a hit with its signup numbers, suggests Bloomberg, reporting that the fitness chain began advertising its standard $10/month promotion in mid-January. The publication cited a note from Stifel analyst Chris O’Cull: “We believe this was an indication the advertising campaign was not producing the desired results.”

Editor’s note: Planet Fitness told Athletech News it began its planned $10-per-month promotion in late December 2023, not January 2024 as originally reported by Bloomberg

Still, the big box fitness giant recently launched a media network for advertisers and is nearing 20 million members as it’s on a mission to continue attracting Gen Z and Millennials with its inclusive approach and budget-friendly prices. 

Xponential, a leading boutique fitness franchisor now pushing into the weight-loss medication market, touted increased membership numbers, studio visits and sales growth in 2023 during its participation at the ICR 2024 Conference and the Jefferies Winter Consumer Summit last month.

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Crunch Fitness Taps Pizza Hut Exec To Drive Franchise Growth https://athletechnews.com/crunch-fitness-names-chequan-lewis-president/ Mon, 12 Feb 2024 21:18:52 +0000 https://athletechnews.com/?p=103026 Crunch Fitness has named Chequan Lewis president as the fitness franchise eyes its “biggest year” yet 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…

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Crunch Fitness has named Chequan Lewis president as the fitness franchise eyes its “biggest year” yet

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.

Chequan Lewis (credit: Crunch Fitness)

“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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Xplor Acquires Membr, Expanding Gym Software Biz https://athletechnews.com/xplor-acquires-membr-gym-software/ Fri, 02 Feb 2024 00:02:48 +0000 https://athletechnews.com/?p=102773 With Membr in the fold, Xplor plans to accelerate the development of Xplor Gym, its software solution for gyms and health clubs Xplor Technologies is expanding its software push into the big-box gym and health club space. The global supplier of tech-based tools, embedded payments and commerce-accelerating programs for everyday businesses has acquired Membr, a…

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With Membr in the fold, Xplor plans to accelerate the development of Xplor Gym, its software solution for gyms and health clubs

Xplor Technologies is expanding its software push into the big-box gym and health club space. The global supplier of tech-based tools, embedded payments and commerce-accelerating programs for everyday businesses has acquired Membr, a top management software platform for gyms and health clubs.

With the Membr acquisition, Xplor will enhance and expand Xplor Gym, its software offering for gyms and health clubs. It’s a major step taking Xplor beyond the boutique studio arena where the company has already made a name for itself with Mariana Tek

Xplor Gym serves as a platform for member and client relationship management, booking, operations, and reporting. It also supplies members with a native mobile app. 

“Our decision to acquire Membr reflects our commitment to providing best-in-class solutions to gyms and health clubs across the globe,” said Ieuan Owen, chief revenue officer, fitness and wellbeing, at Xplor. “Membr is a fast-growing, highly competitive gym management solution, proven and trusted by premium fitness brands.”

“As our new Xplor Gym solution, we will accelerate product development and investment, and grow our global footprint as our mutual customers enter new markets,” Owen added.

Ieuan Owen (credit: Xplor Technologies)

With over 2,000 gyms in 25 countries and four continents already trusting Membr to support their day-to-day operations, Xplor is reeling in a major fitness industry player.

Jack Malin and Dave Rushton founded Membr in 2015. It quickly rose to prominence, attracting industry giants such as Anytime Fitness, Life Fitness and JD gyms. Malin will remain the company’s CEO and lead the Membr team as they report to Xplor. 

“We are thrilled to have joined Xplor Technologies as a trusted growth platform for multi-market gyms and health clubs,” Malin said. “Whether a gym operates in Tokyo, London, Chicago or Sydney, our promise to customers remains the same. Intuitive software, exceptional service, and an experienced global team that will help you scale your business and deliver a consistently engaging experience in all the markets you operate in.” 

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Fitness Brands Make Their Mark on Franchise 500 List https://athletechnews.com/fitness-brands-make-their-mark-on-franchise-500-list/ Thu, 01 Feb 2024 01:04:49 +0000 https://athletechnews.com/?p=102719 Crunch Fitness was crowned the ultimate fitness franchise of 2024 by “Entrepreneur,” but many brands earned a spot in the annual ranking As fitness and wellness continue to rack up consumer interest and spending, several franchises have made Entrepreneur’s 2024 Franchise 500 Ranking list, with Crunch Fitness taking the top spot among fitness brands and…

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Crunch Fitness was crowned the ultimate fitness franchise of 2024 by “Entrepreneur,” but many brands earned a spot in the annual ranking

As fitness and wellness continue to rack up consumer interest and spending, several franchises have made Entrepreneur’s 2024 Franchise 500 Ranking list, with Crunch Fitness taking the top spot among fitness brands and several Xponential Fitness brands also securing a place. 

Aside from flexing the power of the health and fitness franchise industry, Entrepreneur’s list reveals the strength of the franchise system and the lure of franchising as a lucrative business model for both budding and established entrepreneurs. 

The publication then evaluated the franchisors based on associated costs and fees, support, size and growth and brand strength.

Three Fitness Franchises Crack Top 100 

Three fitness centers/studios broke into the top hundred on the list, with Crunch Fitness (#29) taking the top spot in the category. 

The popular fitness franchise has been working on an aggressive expansion plan, while one top Michigan-based Crunch Fitness franchisee recently announced plans to open as many as 75 Crunch Fitness gyms with the support of a private equity firm.  

Following Crunch was Anytime Fitness (#77), which inked a deal with Apple Fitness+ to offer the service to its members. There are also growth plans in the works, as Omega Fitness, the second largest Anytime Fitness franchisee in the U.S., was acquired by a private equity firm late last year.

Heart-rate-based boutique fitness franchise Orangetheory Fitness secured the #96 spot. The fitness franchise has developed a loyal following and is now eyeing the U.K. as the “cornerstone” of its international growth strategy. Orangetheory recently forged a deal to acquire and expand its London studios

Xponential Brands Make Their Mark

Club Pilates ranked at #202, securing the top Pilates fitness franchise title. Regarded as the most well-known and successful of Xponential’s eleven brands, the franchise has been targeting expansion in Europe. Xponential also saw Pure Barre rank on the list at #224, as the brand sees strong demand in Japan as well as North America.

Notably, only one assisted stretching franchise made the top 500 list: StretchLab, which ranked at #356. Another Xponential-backed fitness franchise, StretchLab, opened an assisted stretching location every three days last year

Xponential’s CycleBar also took the single indoor cycling franchise spot at #411. Similarly, only one yoga franchise cracked the top ten — Xponential’s YogaSix at #472. The boutique yoga franchise has grown across the U.S. and even at sea, with a presence on Princess Cruises. 

From Boutique to Big Box

Entrepreneur’s 2024 Franchise 500 Ranking list also highlighted the top contenders in specific fitness and wellness spaces. As demand for personal training continues to grow, The Exercise Coach, a personal training franchise, took the top spot in the category at #159. 

A fitness pioneer, Gold’s Gym took the #176 spot. The long-standing fitness powerhouse brand bolstered its leadership last year with the appointment of two co-CEOs.

Burn Boot Camp (#319) also made the list as the only camp-style fitness concept. A fast-growing 45-minute fitness franchise, Burn Boot Camp offers personal training in a small group setting, ensuring clients get focused attention with its results-driven sessions. 

Mayweather Boxing + Fitness took the top boxing and functional training spot at #357, while RockBox Fitness, a growing boxing, kickboxing and functional strength training franchise, grabbed #499 on the list.

D1 Training, an athletic training franchise with 100-plus facilities, also made the list at #446. Focusing on family workouts, group training and the untapped market of scholastic training, the D1 Training franchise plans to open 50 locations while another 100 are in development.

Wellness Brands Start To Emerge

In an era where busy consumers are looking for non-invasive treatments that promote longevity, energy and a feeling of overall wellness, wellness therapy and supplement franchises are set to flourish. 

Infrared sauna and red light therapy franchisors had strong representation with Perspire Sauna Studio taking the #336 spot. The franchise has been enjoying the “wellness boom,” especially as it zeros in on the Texas market.

Anti-aging and other wellness modalities such as IV therapy, cryotherapy and peptides were honored with Prime IV Hydration & Wellness following at #389. The wellness franchise operates in over 30 states and has been significantly expanding in Arizona.

A complete list of the health and wellness franchises that made Entrepreneur’s 2024 Franchise 500 can be found here

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Self Esteem Brands Shares 5 Keys to Franchise Success  https://athletechnews.com/self-esteem-brands-shares-5-keys-to-franchise-success/ Wed, 31 Jan 2024 17:00:00 +0000 https://athletechnews.com/?p=102780 Anytime Fitness’ parent company offers advice for prospective franchisees looking to build a thriving gym or studio  Self Esteem Brands’ portfolio spans a wide range of fitness and wellness concepts, which include Anytime Fitness, Basecamp Fitness, The Bar Method and Waxing the City. The company attributes its continued success to the hard work of its…

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Anytime Fitness’ parent company offers advice for prospective franchisees looking to build a thriving gym or studio 

Self Esteem Brands’ portfolio spans a wide range of fitness and wellness concepts, which include Anytime Fitness, Basecamp Fitness, The Bar Method and Waxing the City. The company attributes its continued success to the hard work of its many franchisees. 

Whether they’re part of a mega brand like the 5,000-plus Anytime Fitness locations or an emerging concept like the 22-studio Basecamp model, Self Esteem Brands is equally committed to providing these entrepreneurs with the tools and support they need to win. 

“We own some of the parts of helping them to go from never owning a business perhaps all the way to being a successful business owner in a successful franchise, regardless of which brand it is,” Nick Herrild, president – studio division, Waxing the City, told Athletech News.

Ultimately though, it’s up to the franchisees to use those resources to build their businesses. 

Here, Herrild and Stacy Anderson, global brand president, Anytime Fitness, share their tips for finding success as a fitness franchisee. 

Know Your ‘Why’

Business ownership can be challenging no matter what industry you enter and fitness is no different. What gets you through the tough times, Anderson said, is a genuine love for the space. 

“Ultimately, it comes back to a values alignment. We talk about people, purpose, profits and play here,” Anderson said. “We care about franchisees that have purpose, that care about what they’re doing. You could go into a QSR and probably make more money than you would with a fitness franchise. We care about people that want to improve the health of the community.”

Stacy Anderson (credit: Self Esteem Brands)

In her experience, franchisees who align with this mindset are better positioned to achieve their business goals. 

Select the Right Brand

Once you’re sure a career in fitness or wellness is for you, the next step is to find the brand and leadership team that best match your working style and needs. Every franchisor operates differently and each offers a different level and type of support. Anderson advises that prospective franchisees really tune into what makes a specific franchisor tick.

“I think it’s really important to understand their relationship with the franchisor and whether or not they have open dialogue, what that culture is like, if it’s a high-performance culture. You should get a sense of who you’re working with because ultimately, you’re business partners and it’s a symbiotic relationship,” Anderson said. “You should get to know the people and feel confident in who they are. And if you don’t, that should be a warning sign that maybe that isn’t the right fit for you.” 

Look for a team that has your best interests at heart and sees you as more than a revenue generator, she added.

Be Coachable

Look for a brand that has enough experience to provide you with a playbook for success—and be prepared to follow it. 

“It’s on us as a franchisor to help a franchisee build baseline skills and to be able to figure out their financial acumen and to help them become business operators. And so, we look for owners that are willing to be coachable and follow the system, and that’s a broad diverse range of people,” Herrild said. “If we say, ‘Hey, the best way to do this is to add two cups of flour,’ and you add three, you’re making it real hard for yourself, and you don’t need to do that.”

Nick Herrild (credit: Self Esteem Brands)

One of the main advantages of opening a fitness franchise is there is a business model already in place. Herrild said it’s counterproductive to ignore it.

Tap Into Your Support System

The franchise business model comes with a built-in community made up of both cohorts and consultants. Herrild and Anderson said franchisees that flourish are often the ones that capitalize on the wisdom of both the franchisor and their fellow business owners. 

“When you have tough times, the great news about being in a franchise is you can look up and talk to your franchise business consultants. We’re here as kind of your support network” Anderson said.

“I also think that franchisees who become part of that franchise community in a positive way, use the resources [and] help new franchisees once they become more experienced, build a culture,” Herrild added.

Don’t forget to lean into that ecosystem when you face a challenge. Chances are it’s not unique to your location and others may have advice that can help.

Be Self Aware

It’s really important to know your strengths and the areas that might present more of a challenge for you personally. This self-awareness will help you select the right brand as well as build a team that speaks to all of the needs of your business. 

“This is a service business and if you don’t happen to be (customer service oriented) as a franchisee, then you hire somebody who is. You can teach just about anyone to run a gym or a HITT franchise, but you can’t teach them to be people people generally.” Anderson said, by way of example.

To achieve success, you’ll either need to bring or hire all of the skills, talents and traits your fitness franchise will need to excel.

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Arkansas’ 10 Fitness Plots National Franchise Expansion https://athletechnews.com/arkansas-10-fitness-plots-national-franchise-expansion/ Wed, 31 Jan 2024 16:00:00 +0000 https://athletechnews.com/?p=102729 The gym chain touts low royalty fees and features the ability to have non–staffed operating hours, reducing labor costs Little Rock, Arkansas-based gym chain 10 Fitness is going national as it seeks fitness franchise partners to expand beyond its thirteen clubs in its home state and Springfield, Missouri. The fitness club offers franchisees flexible operating…

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The gym chain touts low royalty fees and features the ability to have non–staffed operating hours, reducing labor costs

Little Rock, Arkansas-based gym chain 10 Fitness is going national as it seeks fitness franchise partners to expand beyond its thirteen clubs in its home state and Springfield, Missouri.

The fitness club offers franchisees flexible operating hours, the potential for absentee ownership and support in finding expert fitness trainers. On the financial side, 10 Fitness touts a low monthly royalty fee, a no-kickbacks policy, and a member support system enabling 10 Fitness members to check in during non-staffed hours or register new clients at any time.

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

“We invite passionate entrepreneurs to seize this opportunity to make a mark in the fitness industry,” says Eric Buckner, CEO and founder of 10 Fitness. “Join us in our mission to provide exceptional fitness experiences while enjoying the freedom and support that come with being a 10 Fitness franchisee.”

10 Fitness members get access to results-driven tools such as TrueCoach, In-Body body mass scans and Myzone heart rate monitors. The fitness brand also offers premium weight rooms for strength training with power racks and free weights. 

Cardio Cinema is also available, as well as in-person group fitness classes such as Zumba, boot camp, yoga, “Insanity,” on-demand classes for those who can’t make it to the gym, and a “Level 10” team training membership for accountability and support. 

10 Fitness is currently running a promotion to become a member for just ten cents. 

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Planet Fitness Launches Media Network for Advertisers https://athletechnews.com/planet-fitness-launches-media-network-for-advertisers/ Tue, 30 Jan 2024 22:41:09 +0000 https://athletechnews.com/?p=102611 The popular fitness franchisor is looking to bring advertisers directly to its 18.5 million members, including many Gen Z-ers 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…

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The popular fitness franchisor is looking to bring advertisers directly to its 18.5 million members, including many Gen Z-ers

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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