Fitness Franchise Archives - Athletech News https://athletechnews.com/tag/fitness-franchise/ The Homepage of the Fitness & Wellness Industry Thu, 26 Dec 2024 22:16:15 +0000 en-US hourly 1 https://wordpress.org/?v=6.6.1 https://athletechnews.com/wp-content/uploads/2021/08/ATHLETECH-FAVICON-KNOCKOUT-LRG-48x48.png Fitness Franchise Archives - Athletech News https://athletechnews.com/tag/fitness-franchise/ 32 32 177284290 Plus Fitness Eyes Gym Growth in UK, Asia https://athletechnews.com/plus-fitness-uk-asia-gym-growth/ Thu, 26 Dec 2024 22:16:14 +0000 https://athletechnews.com/?p=118431 The Viva Leisure-owned brand has inked deals to bring its 24/7 gym brand to the United Kingdom, Singapore and the Philippines Plus Fitness, an Australia-based 24/7 gym franchise, is going abroad once again. The brand has agreed to a master franchise agreement that will bring its gyms to the United Kingdom, including at least one…

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

More Isn’t Better

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

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

woman works out on gymnastic rings
credit: MADabolic

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

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

Building Upward, Not Sideways

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

woman lifts a dumbbell
credit: MADabolic

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

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

The Shift is Happening

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

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

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

man lifts a dumbbell
credit: MADabolic

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

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

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

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

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

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

Franchising remains the lifeblood of the fitness and wellness industry.

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

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

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

Rebuilding a Giant: F45 CEO Tom Dowd Talks Turnaround

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

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

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

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

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

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

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

A Behind The Scenes Understanding of The Business of Franchising

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

Selling in a Crowded Market

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

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

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

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

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

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

Large Franchise Groups Take Control

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

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

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

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

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

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

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

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

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

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

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

A Tougher Market in General 

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

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

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

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

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

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

Pilates, Strength Training Soar

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

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

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

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

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

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

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

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

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

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

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

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

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New Year, New Risks: Are You Covered? https://athletechnews.com/new-year-new-risks-are-you-covered/ Fri, 13 Dec 2024 16:36:15 +0000 https://athletechnews.com/?p=117583 An insurance pro breaks down must-have coverages and why fitness businesses should review their policies now As personal trainers and fitness instructors prepare for the new year, taking stock of their insurance coverage is a critical step toward safeguarding their businesses. Whether leading online classes, training clients in homes, or working in varied locations, evolving…

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An insurance pro breaks down must-have coverages and why fitness businesses should review their policies now

As personal trainers and fitness instructors prepare for the new year, taking stock of their insurance coverage is a critical step toward safeguarding their businesses. Whether leading online classes, training clients in homes, or working in varied locations, evolving risks require a solid plan for risk management.

“For fitness professionals, there are two coverages that are key to protecting your business: general liability and professional liability,” says JoAnne Hammer, CIC, program manager at Insurance Canopy. “While these two coverages may be purchased separately, the best protection comes when these coverages are combined in the same policy. This helps improve claim processing time and will reduce your cost for insurance.”

Hammer encourages fitness professionals to close out 2024 with an insurance audit, and prepare as best as possible for the New Year. 

The Risks Fitness Professionals Face

Fitness professionals encounter unique challenges that can lead to costly claims. As new exercise formats and equipment are introduced, the potential for injuries increases. According to Insurance Canopy’s internal data, the top claims filed by personal trainers include:

  • Slips, trips and falls (50%): A $62,059 claim covered after a client tripped over a BOSU ball during group training and required shoulder surgery.
  • Damage to personal gear and equipment (25%): A $2,000 claim covered after a student accidentally knocked over a cabinet, damaging streaming and lighting equipment.
  • Professional errors (15%): A $61,045 negligence claim covered after a trainer failed to accommodate a client’s medical history, resulting in injury and hospitalization.

Beyond these risks, Hammer highlights an often-overlooked area of coverage for fitness professionals who work in varied environments.

“One coverage that fitness trainers may not consider is Inland Marine, or coverage for your tools and equipment,” she explains.

“Many insurance companies offer a coverage called Business Personal Property, which only covers your tools and equipment that are located at your place of business. If you train at a variety of locations and bring your equipment with you, this coverage will not cover losses to your equipment when it is away from your main location. Inland Marine coverage goes where you do to more fully protect your investment in your training equipment.”

Staying Ahead of Industry Growth

The fitness industry has undergone significant changes in recent years, with trainers adapting to new formats and environments that require more professional education. According to Insurance Canopy’s data:

  • The number of online instructors has grown 20% since 2021, reflecting a steady rise in virtual training.
  • Trainers increasingly teach in diverse settings, such as community centers, public spaces, and senior living facilities, which add layers of risk.
  • Fitness injuries occur at a rate of approximately 1.8 injuries per 1,000 training hours, underscoring the importance of liability waivers and adequate coverage.

“We monitor insurance trends, competitors and industry trends to make certain that we are providing a top-of-the-line insurance product at the best price possible,” Hammer says. “By monitoring trends in the fitness industry, we can make certain that new training techniques are covered in your insurance policy coverage, keeping your policy as up to date as your workouts.”

As fitness professionals adapt to industry changes—whether expanding into virtual training or operating in diverse locations—insurance needs are evolving too. Conducting a thorough review of your policies is a practical step to mitigate risks and ensure your business remains resilient in the face of unforeseen challenges.

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F45 Partners with Magic Johnson to Promote Fitness Among Youth https://athletechnews.com/f45-partners-with-magic-johnson-to-promote-fitness-among-youth/ Wed, 11 Dec 2024 18:58:00 +0000 https://athletechnews.com/?p=117410 F45 Training and Magic Johnson Enterprises join forces to help over 4,000 kids in underserved communities F45 Training has partnered with Magic Johnson Enterprises (MJE), founded by former professional basketball player and entrepreneur Earvin “Magic” Johnson, to promote health and fitness among children and teens. The collaboration aims to encourage lifelong habits of physical activity…

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F45 Training and Magic Johnson Enterprises join forces to help over 4,000 kids in underserved communities

F45 Training has partnered with Magic Johnson Enterprises (MJE), founded by former professional basketball player and entrepreneur Earvin “Magic” Johnson, to promote health and fitness among children and teens. The collaboration aims to encourage lifelong habits of physical activity and well-being by distributing more than 4,000 F45 Fit Kits to youth in underserved communities across the United States.

Tom Dowd, CEO of F45 Training, emphasized the importance of introducing healthy lifestyles at an early age. “At F45 Training, our goal is for members to feel better and more confident about their fitness journey. However, we also believe in instilling healthy habits early on, especially for those who may not have access to gyms or at-home options,” said Dowd. “This partnership with Magic Johnson Enterprises marks a significant milestone as we donate over 4,000 Fit Kits, and we look forward to impacting even more lives.”

The F45 Fit Kits include fitness equipment such as jump ropes, agility ladders, and cones, designed for engaging, age-appropriate workouts that promote flexibility, strength, and coordination. The kits will be distributed to various organizations, including the LA Dodgers Foundation, The Washington Spirit, The Washington Commanders, The Boys & Girls Club of Burbank, Greater Washington and Whittier, and the Crenshaw YMCA.

Magic Johnson, Chairman and CEO of Magic Johnson Enterprises, highlighted the shared mission of both organizations. “Partnering with F45 Training is the perfect way to provide kids in underserved communities with the tools and programs needed to reach their fitness goals,” Johnson said. “Through this initiative, we aim to inspire young people to develop good habits that will carry them into adulthood.”

The partnership focuses on several key goals:

  • Promoting Healthier Habits: Providing tools to help children embrace physical activity and mental well-being as lifelong priorities.
  • Strengthening Communities: Collaborating with local organizations to ensure equitable access to fitness resources.
  • Inspiring the Next Generation: Encouraging youth to set personal health and fitness goals.

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Fitness in Flux: How 2024 Redefined & Set the Stage for 2025 https://athletechnews.com/fitness-in-flux-how-2024-redefined-set-the-stage-for-2025/ Fri, 06 Dec 2024 22:44:39 +0000 https://athletechnews.com/?p=117097 As consumer demands shift, 2024 is laying the groundwork for a more innovative and personalized fitness landscape in 2025 The fitness industry has navigated a tumultuous few years marked by uncertainty and constant pivots. Over the past 12 months, it’s seemingly entered what could be called a “new normal.” Members returned in increasing numbers —…

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As consumer demands shift, 2024 is laying the groundwork for a more innovative and personalized fitness landscape in 2025

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

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

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

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

The State of the Industry in 2024

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

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

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

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

credit: RicardoImagen

Key Trends in Fitness

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

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

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

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

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

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

hand touching AI sign

The Role of Artificial Intelligence

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

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

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

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

Wellness, Longevity & Integration with Healthcare

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

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

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

credit: Prathan Chorruangsak

Challenges & Opportunities in 2025

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

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

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

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

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

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

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

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

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

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

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

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

Put ‘People Over Profit’

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

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

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

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

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

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

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

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

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

Be ‘Relentless’ in the Pursuit of Top Talent  

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

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

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

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

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

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

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

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

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

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

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

Adapt or Die: Embrace New Trends

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

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

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

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

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

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

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

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

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

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TPG Explores $1.5B+ Sale of Crunch Fitness Per Report https://athletechnews.com/tpg-explores-1-5b-sale-of-crunch-fitness-per-report/ Thu, 05 Dec 2024 18:04:43 +0000 https://athletechnews.com/?p=116958 The sale of the “No Judgments” HVLP leader could take place in the first half of 2025, according to sources Private equity firm TPG is mulling a potential sale of high-value, low-price (HVLP) fitness leader Crunch Fitness that could value the gym operator at more than $1.5 billion, according to Reuters. The budget-friendly gym operator…

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The sale of the “No Judgments” HVLP leader could take place in the first half of 2025, according to sources

Private equity firm TPG is mulling a potential sale of high-value, low-price (HVLP) fitness leader Crunch Fitness that could value the gym operator at more than $1.5 billion, according to Reuters.

The budget-friendly gym operator counts soccer star and Bioniq investor Cristiano Ronaldo, Dallas Cowboys quarterback Dak Prescott, and, most recently, LA Clippers shooting guard James Harden among its franchise owners.

TPG is reportedly working with investment firm Jefferies on the sales process, which could occur in the first half of 2025, anonymous sources close to the matter told the publication. Those familiar with the potential deal say Crunch’s acquirers may include other private equity firms.

Crunch was acquired by TPG in 2019 in a transaction that included the HVLP operator’s “Signature” facilities and its global franchising business for an undisclosed amount.

Crunch Looks to Crush 2025

In an exclusive interview with Athletech News in August, Crunch Fitness CEO Jim Rowley shared that the “No Judgments” gym operator is ready to dominate the HVLP space in 2025.

“We’re at this place in the Crunch history, where we’re 35 years old as a company, 15 years old as a franchise company, and we’re meeting great milestones, but it’s also time for us to level up and create a distinction between ourselves and the competition,” Rowley said.

It’s been an impressive year for the brand, which has opened more than one new club per week on average—a pace Rowley expects Crunch to top in the coming year.

Crunch also bolstered its executive team in recent months, appointing former Pizza Hut executive Chequan Lewis as president and former Xponential Fitness international development chief John Kersh as its managing director of international development.

The gym leader is also set to gain ground in Canada, with Crunch Canada, an Ontario-based Crunch Fitness franchisee, securing an investment from Trive Capital and 808 Capital Partners this month.

The Strength of Fitness

While private equity remains bullish on big-box gyms like Crunch and Planet Fitness, smaller-footprint operators like Anytime Fitness are increasingly seen as attractive targets, according to some experts. Boutique fitness also appears strong, as L Catterton acquired a majority stake in Pilates-inspired fitness brand Solidcore this fall — a standout in the booming Pilates sector for its decision not to adopt a franchise model. The strength-focused workout brand has just become the first retail tenant in an upcoming luxury residential building in Durham, North Carolina.

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Orangetheory Expands with New Studios in U.S. and Saudi Arabia https://athletechnews.com/orangetheory-expands-with-new-studios-in-u-s-and-saudi-arabia/ Wed, 04 Dec 2024 21:11:10 +0000 https://athletechnews.com/?p=116900 The heart rate-based interval training franchise, now under Purpose Brands, is capping off a milestone year Orangetheory Fitness has added four new studios to its growing footprint, opening locations in Brooklyn and Howard Beach, New York, Westlake, Florida, and Saudi Arabia. The domestic Orangetheory studios are all led by multi-unit franchise partners. Orangetheory’s new Saudi…

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The heart rate-based interval training franchise, now under Purpose Brands, is capping off a milestone year

Orangetheory Fitness has added four new studios to its growing footprint, opening locations in Brooklyn and Howard Beach, New York, Westlake, Florida, and Saudi Arabia.

The domestic Orangetheory studios are all led by multi-unit franchise partners. Orangetheory’s new Saudi Arabia studio, located in Narjis, is the heart rate-based interval training brand’s seventh studio in the country.

“These new studios represent our commitment to creating more opportunities for people to prioritize their health and wellness, no matter their fitness goals or motivations,” Orangetheory co-founder and CEO Dave Long said. “At Orangetheory, we believe that every reason is the right reason to move, and we’re driven to help people live longer, more vibrant lives through innovative, science-backed fitness experiences.”

an image of Orangetheory members working out
Credit: Orangetheory Fitness

Orangetheory is wrapping up a major year, having struck a deal with Anytime Fitness parent Self Esteem Brands in a merger of equals. The two have unveiled a new name — Purpose Brands —  which is led by former Topgolf CEO Tom Leverton and will be headquartered in both Boca Raton, Florida and Woodbury, Minnesota.

The GCC has emerged as a thriving hub for fitness and wellness brands, with Saudi Arabia standing out as one to watch, according to the Health and Fitness Association’s 2024 Global Report.

Equinox is opening a high-end luxury wellness resort in Saudi Arabia, while cost-conscious gym operator GymNation continues to expand in the Middle East after opening six sites in Saudi Arabia this year. GymNation plans to open 20-30 new gyms in markets such as Kuwait, Bahrain and Qatar in the next 12 months and envisions over 100 locations across the GCC region, according to GymNation founder and CEO Loren Holland.

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GymGuyz Founder on Why Human Connection Always Wins https://athletechnews.com/gymguyz-founder-interview/ Wed, 04 Dec 2024 16:40:17 +0000 https://athletechnews.com/?p=116863 Athletech News caught up with Josh York, the founder and CEO of mobile personal fitness franchise GymGuyz on his industry-disrupting formula for success and what’s next At a time when convenience is king, GymGuyz is leading the charge in transforming the fitness industry with a fresh approach. The in-home and on-site personal training franchise is…

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Athletech News caught up with Josh York, the founder and CEO of mobile personal fitness franchise GymGuyz on his industry-disrupting formula for success and what’s next

At a time when convenience is king, GymGuyz is leading the charge in transforming the fitness industry with a fresh approach. The in-home and on-site personal training franchise is disrupting traditional gym models with its mobile method —  meeting clients on their own time at the location of their choice — and is prioritizing human connection and accountability.

If you haven’t seen a GymGuyz van in your neighborhood yet, you will soon. Athletech News caught up with founder and CEO Josh York on what’s in store for the fitness franchise in 2025 and beyond.

The Art of Convenience 

“Convenience will continue to rule the world, and that’s not going anywhere,” York says.

It’s at the heart of GymGuyz, which has remained agile at a time when brick-and-mortar-based businesses have wrangled with securing costly real estate.

GymGuyz clients can easily book a personal trainer to meet them anywhere—at home, the office, a local park, or even virtually. The trainers offer one-on-one sessions or can lead a small group, while also offering customizable plans. Businesses have also enlisted the services of GymGuyz to bring fitness services to employees at schools, hospitals, and more.

Credit: GymGuyz

“Ninety percent of people who have a gym membership don’t go,” he continues. “Treadmills become the most amazing clothing racks. Apps don’t work…AI — it’s not going to happen. People need human interaction and accountability, and some of the most successful gym models out there are based on you not going to the gym. Who’s going to cancel for $10, $20 a month? It’s more like psychological play and they’re still unhappy — they still want to lose weight or become stronger, or be able to play with their kids for a longer time and build up their endurance — whatever their goals may be — and we’re able to do that.”

York points out that GymGuyz clients are consistent, training and stretching two to seven days a week.

“We have businesses using our services seven, eight hours a day, five, six days a week,” he says. “I call it aggressive recurring revenue. But at the end of the day, everything’s about convenience, and that’s why we’re continuing to dominate and disrupt the entire fitness industry.”

Food for Thought 

Part of what gives York such valuable insight is his own experience as a trainer, with a deep understanding of the highs and lows.

“When I started this from day one, I always knew that it was very hard for clients to come,” he says. “Clients would never show up. They would sometimes show up late, or they couldn’t make the session. The whole idea came when one client said to me, ‘I wish you could come to my house. I don’t have any equipment,’ and I was like, wow, no one’s ever professionalized that concept. No one’s ever franchised it. I’m going to do it.”

a smiling image of GymGuyz CEO and founder Josh York
Josh York/Credit: GymGuyz

He also offers advice to personal trainers who may feel uneasy about advancing technology in the fitness industry, particularly with the rise of artificial intelligence designed to hyper-personalize workout programs.

“It will never happen,” he says. “I used to be mentored by a very good friend of mine, and he used to say not to chase shiny objects. AI — it looks like a shiny object, but it’s not going to last very long. You need human interaction.”

York also doesn’t hold back on the practicality of scaling as a personal trainer.

“You cannot be doing (personal training) when you’re 60 years old, 70 years old,” he says. “You could, but do you really want to be? I love training my life, but I knew that I had to be able to make money when I was sleeping.”

GymGuyz, he says, offers a career path for fitness professionals and has led to numerous opportunities for team members. The model also allows franchise partners to break into the booming fitness industry with a low investment cost and a relatively quick launch.

“You start as a part-time trainer, you go to full-time training, go to a territory manager, an area manager, a GM… and we have many scenarios where people literally not even having to put money up – their hard work, the sweat equity they put into their business – they’re getting partial ownership within that franchise,” he explains. “Then I have some owners that have actually gone into business with their team members and opened new franchises. So you can really be a trainer and have a career within our organization, which you really can’t do in many places.”

What’s Ahead for GymGuyz

The personal fitness franchise is gearing up to launch a new food partnership and is looking to open additional locations in the Florida, Illinois, Texas, California, Seattle, and Nevada markets. Open territory is available in the Carolinas.

“Boston’s another big market,” York says. “2025 is going to be a massive, very exciting year for us.”

Having franchise partners with the right mindset is imperative to the brand, York says, sharing that GymGuyz is mindful of finding suitable franchisees.

an image of a GymGuyz personal trainer assisting a client during a workout
credit: GymGuyz

“This is not a one-day-a-week thing; it’s not a two-day week thing. It’s an everyday thing,” he says. “And when you do that, and you continue to stack small wins over and over and over again, eventually you have an incredible business. I always make it very clear: we don’t sell franchises; we award them. We’re looking for the right people. It’s very important.”

While GymGuyz plans to add more services for its clients, one of its major strategic initiatives going into the new year is to continue adding more revenue streams for its franchisees. 

Earlier this fall, GymGuyz unveiled GG Drive at its eighth annual Recharge Convention in Cancun — a data platform that allows franchisees to boost their business and discover insights across areas like leads, sales funnels, client interactions, cash collections, fitness package utilization rates and digital marketing efforts.

GymGuyz also introduced assisted stretching services for its clients — a service that has become quite popular in the pursuit of wellness.

“Stretching has been huge. It’s going really well, and it’s continuing to scale and grow,” York says, noting that GymGuyz’s assisted stretching services provide a more private experience compared to brick-and-mortar locations where clients share a room with others.

Long term, GymGuyz plans to service the entire U.S. and scale its international footprint. But York appears most excited about the number of lives GymGuyz will change.

“As I like to say, it’s great to make a living. It’s much better to make a difference,” he says. “And that’s what we do. We help people. We make a difference. We make change in the community, and that’s going to continue to keep growing.”

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Strava Fitness Report Highlights Trends Around Social Workouts, Recovery & Gear https://athletechnews.com/strava-2024-fitness-report-highlights-trends/ Wed, 04 Dec 2024 13:00:00 +0000 https://athletechnews.com/?p=116639 The social fitness app’s report highlights the biggest fitness trends of 2024, and what to expect in 2025 With over 135 million users and billions of logged activities, Strava highlights key fitness trends across the world. The Strava 2024 Year in Sport report highlights these trends, providing a comprehensive overview of the current fitness landscape.…

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The social fitness app’s report highlights the biggest fitness trends of 2024, and what to expect in 2025

With over 135 million users and billions of logged activities, Strava highlights key fitness trends across the world. The Strava 2024 Year in Sport report highlights these trends, providing a comprehensive overview of the current fitness landscape.

credit: Strava

Social Fitness on the Rise

In 2024, group activities became more popular than ever. Running led the way, with a 59% increase in running clubs and an 18% rise in group runs of 10 or more participants. Walking clubs saw a 52% growth. Sixty-six percent of Gen Z users reported making new friends through fitness groups, while 55% said that social interaction was their main reason for participating. One in five Gen Z respondents also met dates through group activities, underscoring a new role for fitness.

Credit: Strava

Balance & Recovery

The report also shows a trend toward more sustainable workout practices. The median activity length was 53 minutes, with most participants favoring shorter sessions. Among amateur Strava users, those who cross-trained were 10% more likely to meet their goals. Marathon trainees also recorded rest days for over half of their training cycles.

Overcoming Fitness Barriers

Strava’s data also highlighted barriers to fitness like schedule flexibility, particularly for women. Despite these challenges, women increased their participation, with an 11% rise in cycling and a 25% growth in weight training uploads. Women were also more likely than men to earn Strava Segment crowns, signaling strong performance trends.

Generational differences were evident in fitness goals. Gen Z participants prioritized mental health, while older generations focused on longevity. Boomers consistently recorded the highest weekly distances in running and cycling.

Gear Trends of 2024

The report also revealed gear preferences among users. Nike Pegasus topped the list of running shoes, while Garmin dominated tracking devices. Carbon fiber-plated shoes gained popularity, and featured in 44% of marathons logged, a 14% increase from 2023.

credit: Strava

Generational differences extended to workout apparel. Gen Z favored coordinated outfits and oversized T-shirts, while older users preferred functional, understated attire. Black remained the most popular color for workout gear, with blue showing signs of increased preference for 2025.

Strava’s 2024 Year in Sport report underscores a broader cultural shift toward sustainable and social fitness practices, setting the stage for continued fitness growth and inclusivity in 2025.

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End-of-Year Checklist: Must-Dos for Fitness Business Owners https://athletechnews.com/end-of-year-checklist-must-dos-for-fitness-business-owners/ Wed, 04 Dec 2024 10:39:00 +0000 https://athletechnews.com/?p=116838 Practical advice from industry veteran Debbie Bellenger on reviewing memberships, planning promotions and streamlining operations As 2024 winds down, fitness studio and gym owners are at a critical moment to reflect on the past year and strategize for a strong start to 2025. While the hustle and bustle of January may feel just around the…

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Practical advice from industry veteran Debbie Bellenger on reviewing memberships, planning promotions and streamlining operations

As 2024 winds down, fitness studio and gym owners are at a critical moment to reflect on the past year and strategize for a strong start to 2025. While the hustle and bustle of January may feel just around the corner, December offers a unique opportunity to pause, evaluate and prepare for success in the year ahead.

To help business owners make the most of this transitional period, Athletech News turned to Debbie Bellenger, a seasoned wellness leader and consultant with decades of industry expertise.

With a career spanning leadership roles in healthcare systems, YMCAs and corporate wellness programs, Bellenger has earned numerous accolades, including a Fellowship from Medical Fitness Association, the 2023 Marla Richmond Educator of the Year Award from the Medical Fitness Association and the 2017 IDEA World Program Director of the Year. Through her consultancy, DB Fitness and Wellness Solutions LLC, she focuses on operational excellence, long-term resilience and delivering measurable value in wellness initiatives.

Here, Bellenger shares her expert insights on how fitness operators can close out 2024 with purpose and step confidently into 2025.

Debbie Bellenger, DB Fitness and Wellness Solutions LLC

Top Priorities for December

When asked about the most crucial tasks for fitness business owners to prioritize in December, Bellenger highlights three key focus areas.

First, she stresses conducting a comprehensive review of 2024 financials. 

“Look at trends, missed goals and identify opportunities for improvement,” she says. “This analysis not only helps owners understand what worked and what didn’t but also provides a foundation for building realistic budgets for the upcoming year.”

Next, she emphasizes the importance of assessing member needs. “Conducting an annual member survey is essential to gauge satisfaction and uncover areas for growth,” Bellenger advises. “This is the time to ask members about their experiences, identify wins and pinpoint future needs for programs, products, and services.”

Finally, she encourages gym owners to celebrate their successes. “Host a year-end celebration —- a holiday party that leans into social fitness can be a great way to bring members together,” she suggests. “Use this event to showcase new offerings for 2025 and create a sense of excitement.”

The Value of Membership Data

Membership data is a goldmine of insights, particularly at year-end. However, Bellenger emphasizes that regular monitoring throughout the year is even more critical.

“Year-end data is important, but monthly reviews of key metrics like new membership units, retention rates, and attrition rates are even more valuable,” she explains. “This ensures there are no surprises when December rolls around.”

Analyzing year-over-year trends and ancillary revenue streams can also reveal new opportunities. For instance, underperforming programs might indicate areas where adjustments are needed. “Data tells the story of your business,” Bellenger adds. “Use it to make informed decisions and refine your approach.”

credit: Africa Images from Canva

Maximizing December’s Potential

Many gym owners fall into the trap of assuming December will be a slow month, but Bellenger advises against this mindset.

“Expecting volumes to drop in December is a common mistake,” she says. Instead, she suggests leveraging the holiday season to build momentum with creative initiatives like wellness challenges, free day passes and open houses.

“Be creative in securing more of the market over the holiday season,” she says. “January is too late to start building traction.”

Operational Efficiencies to Implement

Streamlining operations as the year ends can help gym owners reduce costs and improve member satisfaction. Bellenger recommends these practical steps:

  • Adjust class schedules and operating hours during the holidays to reflect attendance patterns and save staff hours.
  • Encourage members to bring their own mats and towels to promote hygiene and reduce overhead costs.
  • Invest in energy-efficient lighting for long-term savings.
  • Partner with local businesses to offer member discounts on workout essentials like water bottles and apparel, eliminating the need for clubs to stock inventory.

“These small adjustments can lead to significant savings and efficiency gains,” Bellenger notes.

Goal-Setting for 2025

Goal-setting is an essential part of year-end planning, and Bellenger encourages fitness operators to approach this task strategically.

“Look at financial performance from years prior to the pandemic and during the pandemic to create the best future casting,” she suggests.

Breaking budgets into minimum, mid, and maximum scenarios for each line item can help owners prepare for a range of outcomes.

In addition to financial planning, Bellenger highlights the importance of tapping into local markets. “Start with your existing members who own businesses or are involved in local organizations,” she says. “There’s often a lot of low-hanging fruit within your immediate circle of influence.”

Final Advice

To stay ahead of industry trends, Bellenger advises gym owners to invest in ongoing education. “Do your homework and stay informed,” she says. “Attend webinars, conferences and maintain professional memberships to keep up with broader trends like hybrid fitness, wellness integrations and technology adoption.”

As 2024 wraps up, Bellenger leaves fitness operators with a powerful reminder: “Plan for success, not surprises. The work you do in December sets the tone for 2025.”

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Texas Fitness Scene to Welcome 13th Pvolve Studio https://athletechnews.com/texas-fitness-scene-to-welcome-13th-pvolve-studio/ Tue, 03 Dec 2024 20:50:46 +0000 https://athletechnews.com/?p=116815 The functional fitness franchise is opening its 13th studio in the Lone Star State as the Jennifer Aniston-approved fitness method continues its U.S. expansion Pvolve, the functional fitness franchise with the star power of Jennifer Aniston, is opening a new studio in San Antonio, marking its 13th studio in Texas. Restaurant industry veteran Rachel Neal…

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The functional fitness franchise is opening its 13th studio in the Lone Star State as the Jennifer Aniston-approved fitness method continues its U.S. expansion

Pvolve, the functional fitness franchise with the star power of Jennifer Aniston, is opening a new studio in San Antonio, marking its 13th studio in Texas.

Restaurant industry veteran Rachel Neal is spearheading the new Pvolve studio in the Lone Star state, having first experienced the benefits of the Pvolve method as a client before becoming a franchise partner.

“Pvolve stood out to me because I noticed that it enhanced my daily life,” Neal said. “I saw the potential that it has to transform how people live, work, and play based on my own experience and knew that I wanted to bring the brand to my community.”

Jennifer Aniston for Pvolve
Credit: Pvolve

The fitness brand now has more than 50 studios in development across the U.S. and is just getting started in San Antonio, with five additional territories available for new locations. Other target growth areas include Dallas, Charlotte and West Palm. The functional fitness franchise is also headed to the Louisville area of Kentucky and Boston and opened a studio in Santa Monica earlier this fall.

“Pvolve has been expanding its franchise footprint at a record rate over the last 12 months, and San Antonio was a natural target for us given the strong community of active, health-oriented individuals,” Pvolve president Julie Cartwright said. “We are thrilled to welcome Rachel Neal as a Pvolve franchisee. As a respected business owner in San Antonio, Rachel has built strong connections within her community through her previous ventures. Her deep commitment to the community, paired with her genuine passion for health, fitness and personal transformation with Pvolve, make her the perfect person to lead this exciting new studio location.”

In addition to its ever-growing in-person studio experience, Pvolve offers an at-home streaming membership with unlimited access to thousands of live and on-demand classes and sells equipment bundles.

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Fitness Franchise Fitstop Taps Hapana to Expand in U.S. https://athletechnews.com/fitness-franchise-fitstop-taps-hapana-to-expand-in-u-s/ Mon, 02 Dec 2024 16:20:47 +0000 https://athletechnews.com/?p=116704 Fitstop, a functional fitness franchise hailing from Australia, has teamed with the fit tech solutions provider to fuel its growth in the States Fitstop, an Australia-based functional fitness franchise with 153 locations, has partnered with studio management software leader Hapana to support its expansion into the U.S., building on its locations in Pennsylvania and California.…

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Fitstop, a functional fitness franchise hailing from Australia, has teamed with the fit tech solutions provider to fuel its growth in the States

Fitstop, an Australia-based functional fitness franchise with 153 locations, has partnered with studio management software leader Hapana to support its expansion into the U.S., building on its locations in Pennsylvania and California.

Founded in 2013, Fitstop has a presence in Australia, New Zealand and Singapore and offers performance-based workout programs in a personalized group setting that blends strength, metabolic conditioning and endurance.

According to Fitstop CEO and co-founder Pete Hull, the collaboration with Hapana will enhance the digital experience for members, with Hapana’s software-as-service technology driving the Fitstop mobile app, location operations and lead generation efforts.

a girl lifting weights during a Fitstop class
credit: Fitstop

“We needed a platform that could match our pace and vision, and Hapana’s technology provides the infrastructure and flexibility we need to deliver an exceptional member experience at every location—both in and out of the gym,” Hull explained. “Hapana’s support will help us bring the home of functional fitness to more people; especially as strength and resistance training booms across the industry.”

Hapana’s technology has powered several global fitness brands, including Xponential’s BFT (Body Fit Training) and Club Pilates, as well as KX Pilates, Gold’s Gym, Strong Pilates, UFC Gym, F45, FS8, Vaura, and Air Locker Training. Notably, Hapana raised $17 million this year led by Australian venture capital firms OIF Ventures and Bailador in part to support its expansion plans in the Asia-Pacific (APAC) region and the U.S.

“Fitstop’s remarkable growth is among the fastest we’ve ever seen in the industry,” Hapana CEO Jarron Aizen said. “As they look to break into the U.S. market, we’re excited to provide the platform and technology needed for the next phase of scaling. At Hapana, we always say that we’re ‘for the ambitious only,’ and Fitstop is the embodiment of ambition – proving that with a bold vision comes radical success.”

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Achieve Sustainable Success with the Fitness Founders Virtual Summit 2024 https://athletechnews.com/achieve-sustainable-success-with-the-fitness-founders-virtual-summit-2024/ Wed, 27 Nov 2024 18:57:43 +0000 https://athletechnews.com/?p=116517 Peek behind the curtain of the fitness industry’s top studios as proven leaders unveil strategies for real success As fitness fans, we all know how transformative wellness can be. The high-energy workouts and the sense of community are truly inspiring. But let’s be real: Turning that passion into a thriving, sustainable business is a constant…

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Peek behind the curtain of the fitness industry’s top studios as proven leaders unveil strategies for real success

As fitness fans, we all know how transformative wellness can be. The high-energy workouts and the sense of community are truly inspiring. But let’s be real: Turning that passion into a thriving, sustainable business is a constant uphill battle for boutique studio owners.

“Wellness businesses often don’t value themselves enough,” says Priya Singh, the Head of the Fitness Founders community. “They offer amazing experiences but struggle with the nitty-gritty business stuff — sales, marketing, operations. We’re on a mission to change that narrative, once and for all.”

The wellness industry desperately needs a reboot. While the demand for fitness keeps growing, studio owners increasingly feel like complete outsiders in their own spaces. They’re still determining their true worth and massive impact on their communities.

But the Fitness Founders movement is here to empower and help these studio owners get their place at the industry’s top.

First in the Industry

Picture this: on December 5th, 2024, the Fitness Founders Virtual Summit will bring together nine of the industry’s top titans to share their proven, battle-tested blueprints for success.

“This isn’t your typical motivational conference filled with lofty theories,” Singh explains. “We’re arming boutique owners with the practical, implementable systems they need to grow their businesses holistically.”

Unlike events that focus solely on inspiration, the Fitness Founders Summit prioritizes hands-on learning and immediate application. Attendees will dive into interactive workshops, live business teardowns, and personalized feedback sessions led by nine expert speakers.

“These aren’t just gurus giving away simple advice — they’re actively running and working with successful, modern fitness businesses,” Singh notes. “Their insights immediately apply to the day-to-day challenges our attendees face.”

But perhaps the most unique part? The personalized business reviews. During select sessions, you can sign up for a live evaluation of your brand, website, or marketing strategy by the industry titans.

“This isn’t just another event where you sit back and take notes,” Singh affirms. “We’re providing boutique owners with tangible, customized feedback they can use to transform every area of their operations.”

One-Stop Community for Fitness Studio Owners

At the heart of the Fitness Founders movement is a deep desire to cultivate a thriving, supportive community for boutique wellness entrepreneurs. By fostering authentic connections, sharing unfiltered stories, and providing transformative resources, the team empowers studio owners to reach new heights.

“Our mission is to help these incredible business leaders feel confident in their value and proud of the life-changing experiences they provide,” Singh declares. “When they finally command the respect they deserve, the entire industry will benefit.”

The Fitness Founders Virtual Summit is just the beginning, too. Singh and her crew are building an expansive content, coaching, and community ecosystem to support boutique studios year-round.

“We understand the unique challenges these fitness entrepreneurs face daily,” Singh says. “From finding the right marketing strategies to maximizing their profitability, there are many moving pieces to running a successful fitness business.”

That’s why the Fitness Founders team is curating a comprehensive suite of resources beyond the summit. This includes an industry-leading podcast featuring raw, unfiltered conversations with top experts and comprehensive guides covering everything from sales frameworks to website optimization.

Perhaps most importantly, the Fitness Founders community provides boutique owners with a supportive, collaborative network from which to learn and grow.

“Too often, studio owners feel like they’re struggling in isolation,” Singh explains. “We’re building a space where they can come together, share their stories, and draw inspiration from each other’s victories.”

Whether it’s regional meetups, virtual masterminds, or specialized training programs, the Fitness Founders ecosystem is designed to empower boutique entrepreneurs at every stage of their journey.

“Our goal is to be the one-stop shop for everything these leaders need to succeed,” Singh affirms. “From the practical tools to the community support, we’re arming them with everything they require to transform their businesses and cement their rightful place in the industry.”

So, if you’re a boutique studio owner ready to rewrite the narrative and unlock your true potential, mark your calendar for December 5th, 2024. You can grab your chance at the Fitness Founders Virtual Summit to lead the wellness revolution – and the Fitness Founders community will be with you every step of the way. 

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Empowering Gyms to Deliver Proactive Wellbeing https://athletechnews.com/empowering-gyms-to-deliver-proactive-wellbeing/ Wed, 27 Nov 2024 13:30:00 +0000 https://athletechnews.com/?p=116104 Keyspan’s cutting-edge health optimization transforms fitness studios into wellness hubs, enhancing retention, revenue and member wellbeing For fitness studio owners striving to rise above the competition, the path forward lies in offering more than just traditional fitness. It’s about delivering a comprehensive wellness experience that empowers members to not only get fit but to live…

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Keyspan’s cutting-edge health optimization transforms fitness studios into wellness hubs, enhancing retention, revenue and member wellbeing

For fitness studio owners striving to rise above the competition, the path forward lies in offering more than just traditional fitness. It’s about delivering a comprehensive wellness experience that empowers members to not only get fit but to live longer, healthier lives while reducing the risk of chronic diseases. If you’re looking to deliver this deeper level of care and truly differentiate your offering, there’s a solution designed to help you do just that.

Keyspan is a health optimization service leveraging AI and human expertise to make lasting health both achievable and sustainable. Research clearly shows that proactive health interventions significantly extend not just lifespan but health span — the years of life spent in optimal health.  Studies published in the BMJ emphasize that personalized nutrition and lifestyle interventions can help prevent chronic conditions like heart disease, stroke, type 2 diabetes, and cancer. This evidence-based approach is exactly what Keyspan delivers.

With a methodology rooted in the latest scientific research, Keyspan tests and analyzes 25 biomarkers for men and 27 for women to identify potential health risks long before they manifest. The service includes personalized coaching, customized monthly supplements based on lab results, and daily monitoring to help individuals take control of their health.

Fitness facilities need to be more than fitness providers now and going forward in order to help members reach their full potential, increase health span and live longer lives,” says Nate Taylor, Keyspan’s Founder & CEO. “Keyspan unlocks the ability to do so with a science-based approach and uber-personalized programs led by skilled functional health experts who assist with lifestyle, nutrition, supplementation and fitness.”

One facility that’s reaping the benefits of this revolutionary service is CrossFit Central in Austin, Texas. Athletech spoke with owner Carey Kepler, who shares a similar vision for her community. “I look at it as healthcare versus sick care, and I want to provide our community with the best options to be healthy and well as they age,” Kepler explains.

Upon being introduced to Keyspan, Kepler knew she had found the perfect partner. “With Keyspan, we have the opportunity to develop wellness inside the gym atmosphere – to become an overarching wellness center for our clients,” she says.

credit: Keyspan | CrossFit Central Austin

Keyspan’s Personalized Wellness Approach

To ensure the program aligned with her community, Kepler decided to test the service herself.

“It was so easy,” says Kepler. “They came to the facility, drew my blood, and within days, I had a detailed panel available through the app. My personal coach then spent a lot of time going over each biomarker, interpreting the information and laying out actionable items I can put into place.”

Research highlights the effectiveness of personalized coaching in fitness settings. A study published in the Journal of Medical Internet Research found that tailored digital coaching interventions significantly increased physical activity levels, proving the power of personalized guidance in driving healthier habits. For Kepler, this rang true. “The coach provided specific suggestions to ensure I’m getting the micronutrients I need, like adding more almonds and dandelion tea to my diet,” she explains. “These were things I’d never think of, but they’re enhancing my nutrition in a meaningful way.”

Kepler also found tremendous value in the tailored monthly supplements.

“I had stopped taking supplements—not knowing exactly what I needed—but with the lab results and the coaching in place, I now have a clear plan for what nutrients I can get from food as well as supplements designed specifically for me. I’m really feeling a difference.”

Carey Kepler, owner, CrossFit Central

Bringing Health Optimization to the CrossFit Central Community

Kepler’s experience reinforced her desire to bring Keyspan to her members and she says the onboarding process was seamless.

“Keyspan was able to step right in without a big overhead, which is amazing for a small business,” she said. “We didn’t have to do all the work. They worked with us to develop our own unique website and provided us with all the marketing and sales tools to introduce the service to members.”

Members at CrossFit Central have already seen transformative results. One member discovered a prediabetic condition, while others identified thyroid conditions like Hashimoto’s disease. Armed with this information, they could adjust their fitness and nutrition routines and work with healthcare professionals to improve their health.

“This knowledge also empowers our coaches to work in a more personalized way with members,” she adds.

Driving Retention and Revenue Through Personalized Health

Offering comprehensive wellness services, including personalized nutrition and lifestyle coaching like Keyspan, has been proven to boost member retention and revenue for fitness centers.

 A study in the International Journal of Sport Management, Recreation & Tourism found that fitness centers providing a holistic approach to health, encompassing nutrition and lifestyle services, experienced higher member satisfaction and retention rates. In fact, offering nutritional counseling services alone can increase gym member retention by 15%.

Kepler is certainly seeing this play out.

“We are a community where everyone is marching toward optimizing wellness,” Kepler says. “And now we can offer this community the ability to dive deeper into their health to ultimately live longer and avoid chronic disease. This is quite a resource and so good for us in terms of retention.”

CrossFit Central is also able to monetize the service for the gym itself, and provide kickbacks to coaches as they refer the opportunity to individuals.

Further, the program is attracting interest beyond the immediate community.

“Members are sharing their experience with friends and family and that’s great,” she says. “You don’t have to be a member to take part in it, but at the same time, it’s a great promotional tool for us. People are poking around to find out more.”

Kepler also believes that Keyspan is helping to foster a stronger, healthier community. “When people start seeing improvements and know they’re getting their blood work done in another 6 months, it motivates them to work toward better health,” she says. “Keyspan offers all the tools to do so.”

And finally — having opened in 2005 and as one of the first 50 CrossFit affiliates –  Kepler sees this as an opportunity to act as an example to others. “This allows us to be leaders, showing other gyms and CrossFit boxes that we all can work together to really help our clients develop health and wellness on a deeper level,” she says. “In the end, it’s about making the world healthier – one person at a time.”

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Tracy Anderson Talks Fitness Method, Franchising Goals    https://athletechnews.com/tracy-anderson-fitness-method-franchising-goals-disrupt/ Tue, 26 Nov 2024 23:20:33 +0000 https://athletechnews.com/?p=116508 This article is part of ATN’s DISRUPT 2024 video series, featuring can’t-miss conversations with the biggest executives in fitness and wellness. To watch DISRUPT content, click here Tracy Anderson might be best known for her early work training celebrities like Gwyneth Paltrow and Jennifer Lopez, but she’s not resting on those laurels.  Speaking during ATN’s DISRUPT 2024 video…

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

Tracy Anderson might be best known for her early work training celebrities like Gwyneth Paltrow and Jennifer Lopez, but she’s not resting on those laurels. 

Speaking during ATN’s DISRUPT 2024 video series, Anderson, founder of the Tracy Anderson Method, explained that she wants her current work in fitness and wellness to speak for itself. 

“They’re amazing people, amazing women and they did so much to raise the awareness for my life’s work – and I have immense amounts of gratitude for that,” Anderson said of her affiliation with celebrities. “But my work is much deeper than that.”

Despite her massive social media following, Anderson prefers to avoid celebrity-driven marketing, which has long been popular in fitness.

“Where I sit today is, ‘I won’t participate in those conversations,’” she said. “You’ll never see me posting with a celebrity client or using any … sort of consumeristic commodity to play games with people’s well-being.”

headshot of Tracy Anderson
credit: Tracy Anderson

During DISRUPT, Anderson sat down with Athletech News founder and CEO Edward Hertzman to share her unique approach to the business of fitness, including what makes the Tracy Anderson Method distinct from other workout concepts, her thoughts on the podcasting industry and her plans for brick-and-mortar studio expansion. 

What Is the Tracy Anderson Method?

While Anderson might’ve risen to fame by training the likes of Paltrow and J Lo, these days she’s also known for the Tracy Anderson Method, a comprehensive fitness routine centered around high-rep, low-weight exercises that also incorporates elements of mat Pilates, dance cardio and other functional movement elements. 

Anderson said the method was developed based on the results of a five-year study she conducted over 20 years ago, which measured 150 different women to find their ideal fitness routines. 

“My mission was never to start a brand or a business or to be entrepreneurial,” Anderson said of her early days in the fitness industry. “It was to help us in our human experience be closer to our bodies and … understand what we can and can’t control in them.”

Today, the Tracy Anderson Method is practiced at studios in New York, Los Angeles, London and Madrid. It’s also available online through a subscription.

For Anderson, the method is about more than just fitness. 

“I’m interested in a much more holistic picture,” she said. “I really believe you cannot separate the physical body from the intellectual, spiritual, emotional – you can’t separate these aspects of yourself.”

Interior of a Tracy Anderson Method Studio (credit: Tracy Anderson)

“I think people fear what I do in a lot of ways, because they’re like, ‘No, I need to go and just lift a weight,” she added. “And I’m like, ‘It’s fine. Go lift a weight, (but) you’ll never, ever experience what I experience in my body.’”

On the Podcast Experiment

On her business philosophy, Anderson noted that she’s quick to pivot away from things that don’t fit into her core values, no matter how lucrative they could become. 

She launched a podcast, “The Longevity Game with Tracy Anderson,” in January, but realized that the podcasting game wasn’t exactly what she had in mind. 

“I’ll say yes for a bit for anything, but I’ll be very fast to change anything that doesn’t feel like it’s worth my time,” Anderson said. “I started interviewing people, and … I couldn’t wait to get off. I was like, ‘I’m just letting you spiel your spiel to my audience that I care so deeply about, and I don’t believe in it.’ I didn’t want to be a platform that just needed to find guest after guest.”

Anderson still releases episodes of the podcast periodically, but only with guests whose message she personally endorses. 

“If I’m publishing a podcast, it’s like, ‘Oh gosh, pay attention. She likes this person,’” she said. 

On Franchise Expansion

Anderson also touched on her expansion plans for Tracy Anderson Method Studios, which recently began franchising to drive more growth. 

Anderson explained that she was against expanding the brand through franchising for a long time but finally came around to the idea, urged by demand from her Tracy Anderson Method community members and encouragement from her attorney, who felt strongly that it was the right business move. 

The first franchised Tracy Anderson Method Studios are set to open in Miami (two upcoming locations) and Bozeman, Montana. 

While Anderson will pursue franchise expansion, don’t expect to see Tracy Anderson Method studios in every town and city in the U.S. – the brand will be highly selective about the markets it chooses to enter and the franchisees with whom it chooses to partner. 

“We’re only approving people who really love my life’s work and have found a closer relationship with themselves through it,” Anderson said. “They undeniably know why it’s special, why it’s unique and why it has its place in the market.”

After a call with the franchise group bringing the Miami studios to life, Anderson is excited about the future.

“I’m so excited for the communities that are going to get these incredible people who are taking on the big, huge step of being business owners, and they’re bringing my method forward to their markets,” she said. 

To watch Anderson’s interview in full, click here.

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Private Equity Sees Big Future for Anytime Fitness https://athletechnews.com/private-equity-sees-big-future-for-anytime-fitness/ Tue, 26 Nov 2024 15:59:17 +0000 https://athletechnews.com/?p=116244 Anytime’s ability to win in small markets gives it an edge over other gym brands, some investors and operators believe Private equity money has flooded into big-box gyms since the pandemic, but the smart money could be headed to clubs that occupy a smaller physical footprint.  Rainier Partners, a Seattle-based private equity firm that invests…

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Anytime’s ability to win in small markets gives it an edge over other gym brands, some investors and operators believe

Private equity money has flooded into big-box gyms since the pandemic, but the smart money could be headed to clubs that occupy a smaller physical footprint. 

Rainier Partners, a Seattle-based private equity firm that invests in lower middle-market services businesses, has identified 24/7 gym brand Anytime Fitness as a prime target for investment and expansion. 

“There are a lot of towns (in the United States) that deserve an Anytime Fitness but don’t have one,” Rainier vice president Jonathan Lo tells Athletech News. 

Size Matters: The Case for Anytime Expansion 

While Anytime Fitness already has over 2,000 gym locations in the U.S., Lo believes there’s significantly more room for growth, particularly in smaller towns and cities across America. 

According to Lo, Anytime is better positioned to succeed in small markets than big-box gym brands like Planet Fitness, Crunch Fitness and LA Fitness, which typically require anywhere from 20,000 to 40,000 square feet to operate. 

An Anytime Fitness gym, by contrast, typically takes up between 4,000 and 6,500 square feet. Smaller size translates to lower upfront and overhead costs, meaning franchise owners don’t need to sign up as many members to make their location profitable. 

“We’ve found that Anytime can do quite well in smaller markets,” Lo says, defining those markets as towns with trade areas as low as 20,000 to 30,000 people. “To support a Planet Fitness, you need anywhere from 5,000 to 10,000 members to make the math work right to support the rent and build-out costs. Our typical gym has 500 to 1,000 members.”

woman works out on a cable machine at Anytime Fitness
credit: Purpose Brands/Anytime Fitness

In November 2023, Rainier acquired Omega Fitness Holdings, one of the largest Anytime franchise groups in the U.S., announcing plans to grow Omega’s portfolio of gyms. In September, the Rainier-backed Omega acquired 21 Anytime gyms in Wisconsin amid steady expansion.

In the 12 months since the acquisition, Omega has grown its Anytime Fitness portfolio from 64 gyms to over 120, establishing a presence in California, Florida, Illinois, Minnesota and Wisconsin.

Rainier and Omega are eyeing even more growth in the years to come. 

“We feel confident in getting to at least a couple hundred gyms over the next few years,” Lo says, adding that that expansion will include opening new clubs from the ground up and strategic acquisitions.

A System That’s Ripe for Consolidation

While opening new gyms is enticing – and profitable – the Rainier and Omega teams also see plenty of opportunity to acquire existing Anytime locations and bring them under the Omega portfolio. 

Pedro Belmontes, the chief operating officer at Omega, notes that around 70% of Anytime Fitness locations in the U.S. are single-unit operated, meaning the owner of that gym owns only one location. As of 2023, around 90% of Anytime franchisees owned three locations or less.

That makes the system “deeply fragmented,” Belmontes says, meaning there’s plenty of opportunity for large franchise groups like Omega to come in, acquire gyms and streamline business practices. 

“When you have a deeply fragmented system, you get Taco Bell in the ‘90s,” Belmontes says, alluding to the fast-food chain’s growth trajectory. “As an investor, you have a unique opportunity to roll up those single unit operators and standardize operations.”

For Omega and Rainier, standardizing operations also means injecting new capital into older Anytime Fitness gyms to make them more appealing to modern consumers, particularly Gen Z. 

“We’re buying a lot of gyms that could use a refresh or an improvement,” Lo notes. “We think it’s an interesting opportunity to reinvest in our gyms, making them better and providing a better experience to the consumer. In return, we get a stickier customer base that loves to come into the gym.”

Interior of an Anytime Fitness gym
credit: Purpose Brands/Anytime Fitness

Investors being interested in franchised gym brands isn’t anything new. Private equity money has flooded into fitness franchises since the pandemic, but much of it has gone to high-value, low-price (HVLP) gym concepts like Planet Fitness and Crunch. 

Lo and Belmontes believe smaller-sized gym brands like Anytime Fitness are a better bet, at least in 2024. They point to Anytime’s competitive advantage as the dominant player in the “mid-market, small-box” gym space, giving it a buffer from high levels of competition in the big-box world, which includes brands like Planet and Crunch on the HVLP side and LA Fitness, 24 Hour Fitness and Gold’s Gym on the slightly more expensive end of the spectrum. 

Anytime Fitness might be a true diamond in the rough – dispute being seemingly underappreciated by investors, it’s one of the biggest fitness brands in the world with over 5,000 locations worldwide, and it figures to have access to even more resources following a merger with Orangetheory Fitness

“It almost feels like Planet Fitness a decade ago before private equity got (there),” Lo says of Anytime Fitness, noting the relative lack of gyms in the system owned by private equity. “There’s 2,000-plus gyms that aren’t private equity-owned that we could potentially go after in the United States and over 5,000 globally.”

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EoS Fitness Plots Greater Atlanta Expansion https://athletechnews.com/eos-fitness-plots-greater-atlanta-expansion/ Mon, 25 Nov 2024 20:43:23 +0000 https://athletechnews.com/?p=116179 The growth in Georgia will drive the HVLP fitness operator’s plans to open 250+ gyms nationwide by 2030 High-value, low-price (HVLP) fitness operator EoS Fitness plans to open more than 50 gyms across Georgia over the next decade, with the first locations set to open by 2027. The amenity-rich fitness brand has over 175 locations…

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The growth in Georgia will drive the HVLP fitness operator’s plans to open 250+ gyms nationwide by 2030

High-value, low-price (HVLP) fitness operator EoS Fitness plans to open more than 50 gyms across Georgia over the next decade, with the first locations set to open by 2027. The amenity-rich fitness brand has over 175 locations in Arizona, California, Florida, Texas and Utah open or in the works. Next year, EoS Fitness plans to open more than 30 gyms.

The announcement comes as HVLP fitness brands and their budget-friendly price points have resonated with fitness consumers in the U.S. and overseas.

“Atlanta is the third fastest growing metropolitan area in the U.S., and venturing here represents a key milestone in our long-term vision for EoS,” EoS Fitness CEO Rich Drengberg said. “Building on our dynamic reach across the West and Southwest, we are making bold strides in the East with more gyms in Florida and new locations coming soon to Georgia. Our continued progress underscores our dedication to making fitness accessible to more and more people as we revolutionize the standards for fitness and wellness.”

The future Atlanta-area EoS Fitness clubs will offer certified personal trainers, strength and cardio equipment, functional training turf areas, fitness programs like Booty Builder Lab and Fitness Unchained and popular wellness therapies such as cryotherapy, cold plunges and infrared saunas.

“Our gyms deliver a premium experience at an affordable price and we’re excited to introduce EoS to fitness enthusiasts across the Atlanta market,” EoS Fitness chief growth officer Dave Reiseman said. “As we continue to grow both in Atlanta and around the country, we’re also focused on making a positive impact in the communities we serve. Whether it’s by offering new careers in fitness or giving back to local charities, changing lives through fitness is part of our mission here at EoS.”

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