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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A studio’s success fundamentally depends on sales. Without a solid membership funnel, there’s no business to sustain. However, as an owner, your passion likely lies in helping people become healthier, fitter, and live longer – not in managing sales. That’s where the challenge begins.

You may decide to hire a person or a team to handle customer acquisition and retention, and this can work well – until it doesn’t. Finding the right person who is both affordable and capable of representing your brand while successfully driving sales can be difficult. Even if you find someone who fits, there’s no guarantee they’ll stay. When they leave for another opportunity, you’re back to square one, interviewing, hiring, and training, often caught in an endless cycle.

How can you effectively run and scale your business under these conditions?

Outsourcing your sales might be the solution you need.

The Sales Arms is a virtual business management consulting firm specializing in sales and marketing. The company supports fitness and wellness businesses with lead management, sales strategies, and client communication, aiming to streamline processes and increase revenue. Since its launch in 2019, The Sales Arms has achieved a 92% success rate in consistent month-over-month growth for its clients.

While some owners may hesitate to hire a remote sales team, there are some very compelling reasons to consider it. Athletech News spoke with Chris Appiah, founder of The Sales Arms, to explore them.

1. Access to Experienced Sales Professionals

If you’ve tried to hire a great local salesperson with fitness or wellness experience who is affordable, you know it can feel like searching for a needle in a haystack. That’s where The Sales Arms comes in.

“Our team consists of fully vetted fitness and wellness professionals with years of experience nurturing prospects and closing sales,” says Appiah. “With today’s technology, these individuals don’t need to be on-site to effectively funnel and nurture leads.”

Appiah further elaborates on the workforce challenges.

“The talent pool for this position seems to be shrinking,” he explains. “Often, operators end up hiring entry-level people and training them, which defeats the purpose of freeing up their time. We come in as fully experienced professionals to do the job.”

2. Protection from Turnover

It’s a well-known reality: front-of-house staff at fitness studios and gyms often face high turnover rates.

“Employees get sick,” says Appiah. “They change careers or go back to school, and the operator is left scrambling to start over. Outsourcing eliminates this colossal pain point. We don’t call in sick.”

Appiah also emphasizes the importance of maintaining consistency.

“There is something to be said about knowing that no part of the nurturing process will fall through the cracks,” he says. “Consistency in approach, execution, and branding is essential, and maintaining a steady process is key to achieving sales success.”

3. Cost Efficiencies

The average salary for a fitness manager ranges from $40,000 to $60,000, but Appiah maintains that The Sales Arms can deliver better results for less.

“Our services are customizable to meet the gym or studio’s specific needs and won’t exceed the cost of hiring a full-time sales manager,” he says.

Another important consideration is the level and type of output.

“With The Sales Arms, you get multiple people working on your business,” he explains. “You have a lead salesperson on the front end, reaching out to leads and following up, and on the back end, you have a rep pushing older leads to the top of the funnel, re-engaging old members, and more. Most of our clients get three individuals for the price of less than one. That’s really powerful.”

4. Scale Your Business

Opening multiple locations has its own set of challenges, of course. Appiah says that working with a virtual team ensures a unified approach and streamlined execution across all locations.

“Every studio has different nuances and a slightly different culture because of the team working within that studio,” says Appiah. “You may have a manager who naturally excels at operations and efficiencies in one location and a people-person in another, which leaves you to figure out how to best fill in the gaps. Outsourcing allows you to bring the same set of skills to all locations every day, saving time and headaches while keeping the brand fully intact.”

5. Accountability

One area of concern for owners and operators when it comes to outsourcing sales is accountability. Without boots on the ground and face-to-face interaction, how will you keep abreast of the progress and daily work? Appiah addresses this concern in several ways.

“First, we do all of our work within our client’s database of choice – whether that be Mindbody or Marianta Tek, etc. Our staff is well-versed in all platforms, allowing us to integrate seamlessly as part of your team,” he explains.

“Second, we have a private Slack channel for real-time communication, so it’s as if our team is in your studio every day from open to close,” he says.

“And third, we conduct monthly – or sometimes weekly – check-in meetings with our clients to review progress, address needs, and set priorities.”

Additionally, there’s a comprehensive onboarding process covering branding, sales training, and more, ensuring the remote team is fully prepared to operate effectively in all areas.

Outsourcing sales might not be the first thing that comes to mind when thinking about growing your fitness studio, but in the end, it could be the smartest move you make. Tapping into a team of seasoned professionals to help mitigate the challenges of turnover, reduce costs, and ensure a consistent approach across multiple locations could be the key to unlocking the full potential of your studio.

The post Why Outsourcing Sales Could be the Best Decision You’ll Ever Make appeared first on Athletech News.

Following lowered studio openings and revenue guidance for 2024, boutique fitness and wellness franchisor Xponential Fitness has entered into a seventh amendment to its existing financing agreement from April 2021 with Wilmington Trust, National Association, according to a filing with the Securities and Exchange Commission dated Aug. 23.

The agreement provides Xponential Fitness with additional term loans of $25 million — funds that will be used for general corporate purposes, including working capital, lease liabilities, and legal expenses “arising from previously disclosed regulatory matters.”

The franchisor has amassed a portfolio of brands over the years, including Club Pilates, Pure Barre, StretchLab, BFT and added metabolic health clinic Lindora last year. 

The filing was signed by Xponential CFO John Meloun, who has served in his role since 2018. Meloun noted the franchisor’s retail softness, leadership transition and regulatory investigations on Xponential’s Q2 earnings call last month, stating that the circumstances led to tempering Xpof’s prior outlook.

Meloun was forthright regarding “short-term” disruptions that Xponential has been facing in light of an ongoing investigation by the United States Attorney’s Office for the Central District of California. The notice was received by Xpof in May and followed an SEC investigation that the franchisor had announced late last year — around the same time Bloomberg reported some Pure Barre and Club Pilates franchisees were navigating considerable financial losses. 

In June, the leading boutique fitness and wellness franchisor welcomed a new CEO, Mark King — formerly Taco Bell’s CEO and president of Adidas. King succeeds Brenda Morris, who served as interim CEO following founder and former CEO Anthony Geisler’s swift departure in May.

King told investors last month that Xponential has been streamlining its operations and focusing on its existing portfolio of brands and franchisees. The franchisor had divested from Row House and Stride, a rowing and HIIT concept, respectively, earlier this year. It was also recently announced that Xponential would wind down AKT, a dance-based cardio brand with eight studios. A previous deal that Xponential forged with Kinrgy, Julianne Hough’s dance and fitness platform, has also been terminated — a deal that would have rebranded up to three AKT studios to Kinrgy.

King was adamant, however, that despite the current challenges, Xponential is on solid footing and will focus on franchisee development and further international opportunities.  

“When I went to the Adidas business, it was very broken,” King said last month. “So it really was a turnaround, which – this is nothing like a turnaround … I came here because there was so much good about this business. The brands are great. The momentum is very positive, and if you really look at the numbers of Q2, most of the big indicators are very positive.”

Lindora – which offers GLP-1 weight loss medication services and hormone replacement therapy – is set to expand nationwide beyond its West Coast roots, with some locations slated to open in Q4.

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