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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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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Basic-Fit, one of Europe’s fastest-growing gym chains with 1,570 clubs, has given some insight into its franchise plans for 2025.

The high-value, low-price (HVLP) Dutch gym operator demonstrated continued strong growth in its Q3 2024 financials, with revenue climbing 17% year-over-year to €892 million for the first nine months. Memberships also rose 13%, reaching 4.2 million compared to 3.71 million in the same period last year.

Basic-Fit reaffirmed its plans to launch a franchise platform in 2025 in its report, noting that it sees “great opportunities” with the franchise business opening up possibilities to expand to new countries. The HVLP operator — which has a presence in the Netherlands, Belgium, Luxembourg, France, Spain and Germany — revealed it is in discussions with several promising (and experienced) franchisee partners and anticipates opening its first Basic-Fit franchise clubs next year.

“The first nine months of the year developed according to plan with continued strong growth in revenue and memberships,” Basic-Fit CEO Rene Moos said. “We are well on track to reach our year-end targets and empower an ever-growing number of individuals to embrace a healthier lifestyle. In France, membership growth trends have been improving on the back of the continued investments in the quality of our clubs and longer opening hours. We will continue to improve our offering in France, offering massage chairs in all clubs and further increasing opening hours.”

Basic-Fit offers members premium equipment from Matrix and Technogym, group and virtual classes, personal training and recovery amenities.

The European fitness scene has experienced a boom, according to a 2024 European Health & Fitness Market Report highlighting the growth ofBasic-Fit, but also PureGym and Gold’s Gym owner RSG Group.

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Crunch Canada, an Ontario-based Crunch Fitness franchisee, has secured an investment from Trive Capital and 808 Capital Partners. 

It’s Trive Capital’s second investment in Crunch Fitness, following its June backing of JF Fitness of North America, a Virginia-headquartered Crunch Fitness franchisee.

“We are excited to team up with Trive and 808, who share our vision for delivering an exceptional fitness offering for our members,” Crunch Canada CEO Wesley Hodgson said. “Our new partnership and collaboration present a unique opportunity to enhance our capabilities, expand our leadership team, and execute on several near-term growth opportunities, including new club development and select acquisitions.”

Trive Capital managing director Jared Reyes noted that Trive is impressed with Crunch Canada’s track record of opening and operating clubs. As it stands, Crunch Canada is the country’s designated master franchise, with 19 corporate-owned gyms and 13 franchised gyms.

“We see significant opportunity in the Canadian market to expand the company’s footprint and membership base,” he added.

Chequan Lewis, who was appointed Crunch Fitness president earlier this year, says the company is thrilled to see Trive and 808’s continued investment in Crunch.

“We value their support of Crunch Canada as Wes and the team continue their club development plan and strategically deliver Crunch’s unique fitness experience to a much broader base of consumers in Canada,” Lewis said. 

In an interview with Athletech News this summer, Crunch Fitness CEO Jim Rowley shared that the high-value, low-priced fitness franchise has had significant attraction from the Middle East, Asia-Pacific, Western Europe and South America markets, but emphasized that the Crunch brand is “electric” in Canada.

“The North American fitness sector continues to demonstrate strong fundamentals as consumers increasingly prioritize health and wellness, and new age groups enter the gym industry,” Trive Capital partner Shravan Thadani said. “Crunch remains well positioned to capture additional share within the broader industry given its attractive, high amenity offering at a compelling membership price.”

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Two new Crunch Fitness locations are set to open this holiday season in Greenfield and Waukesha, Wisconsin, with additional sites planned for Brookfield and Hales Corner early next year.

JEM Wellness Brands, a health and wellness franchise concept operator, is leading the expansion in the Milwaukee area.

To celebrate the openings, Crunch Fitness is hosting several holiday events, including the CRUNCHmas Tree Scavenger Hunt, where participants can search for hidden orange CRUNCHmas trees around town for a chance to win a free year of a VIP Crunch membership. Other promotions include $1 membership sign-ups, first-month-free specials, fitness challenges and themed classes.

“We are extremely excited to introduce the Crunch experience to Milwaukee residents for the first time,” Crunch Fitness district manager Monica Pinter said. “Our approach is about more than just fitness – it’s about creating a community where people feel empowered, motivated, and, most importantly, have fun. Our team is here to help everyone, whether they are a seasoned athlete or just beginning their fitness journey, to make this holiday season the happiest and healthiest ever.”

The new Greenfield and Waukesha Crunch locations will feature Olympic lifting platforms, a Functional Training Ground, HIIT, yoga and dance fitness classes, personal training, a relax and recovery room featuring HydroMassage beds, human touch massage, cryotherapy beds, infrared sauna and tanning.

Crunch’s Hales Corners gym will offer The Ride, an instructor-led cycling class, while Crunch’s Brookfield location will feature a lap pool. Both Brookfield and Greenfield will offer Kid’s Crunch programs.

The popular gym chain averaged more than one new club opening per week this year and plans to exceed those numbers 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,” Crunch CEO Jim Rowley told Athletech News in an exclusive interview this summer.

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Luxury country club operator Life Time and premium boutique fitness franchise Orangetheory are demonstrating strong performance in the high-end fitness sector, despite a growing interest in budget-friendly gyms.

The findings were illustrated in a new report from Placer.ai, a software company leveraging location intelligence and foot traffic insights. 

Overall, the report highlights that the fitness industry continues to thrive and although many consumers are reducing discretionary spending, a significant amount view gym memberships as an “essential indulgence.” 

Here are some highlights from Placer.ai’s report.

Investing in the Member Experience Pays Off for Life Time

Headed by CEO Bahram Akradi, Life Time has a loyal and highly engaged member base, with 86% of its Q2 2024 visits stemming from frequent visitors (such as those who visit the gym at least four times a month). By comparison, value gyms saw 78.3% of similar visits. 

The luxury country club operator has steadily invested in creating a rich experience for its members, from pickleball to personal training, and raised its revenue guidance in August.  

In the second quarter of the year, Life Time saw foot traffic increase by 5.4%, while Orangetheory saw a 7.8% boost compared to 2023. 

Orangetheory is Advancing Tech for Personalized Experience 

For its part, Orangetheory experienced a higher share of casual visits, which Placer.ai attributes to the boutique fitness franchisor’s class pack offering that can be used over a longer period of time. The heart rate-based interval training fitness giant merged with Self Esteem Brands, the parent company of Anytime Fitness, in a major deal earlier this year. 

Unsurprisingly, Life Time and Orangetheory were more likely than budget-friendly gyms to attract those earning $150K+ in Q2. At the same time, value gyms were more apt to draw in fitness enthusiasts with household incomes below $100K. Still, those earning between $100K and $150K are almost as likely to visit a value-focused gym operator, according to Placer.ai’s findings — which is welcome news to high-value, low-price (HVLP) operators. 

Known for its tech-forward approach and integration of wearables, Orangetheory is focusing on providing an ultra-personalized member experience. The boutique fitness franchisor’s co-founder and CEO Dave Long told Athletech News that Orangetheory is working towards enhancing its proprietary technology to offer more prescriptive fitness experiences.

“In our Orange 60 classes, for example, we’ve fine-tuned technology’s role in our heart rate-based interval training, fueling each member’s performance in the studio,” Long told ATN, adding that the brand is also eyeing connected strength equipment and personalized training recommendations through Orangetheory’s mobile app.

The Future of Fitness Looks Bright 

While Orangetheory and Life Time enjoy solid footing, all told, it appears there’s enough fitness pie for everyone. HVLP giants like Crunch Fitness and Planet Fitness continue to entice Gen Z fitness consumers with value pricing and a slew of amenities. Meanwhile, emerging brands such as Chuze Fitness and Retro Fitness have begun charting their expansion plans for the coming years.

One outlier in the booming HVLP space is Equinox-owned Blink Fitness. After voluntarily filing for bankruptcy late this summer, Blink quickly found a stalking horse in U.K.’s PureGym. Considered one of Europe’s top fitness operators, PureGym’s subsidiary Pinnacle US Holdings made a move to acquire the affordable gym brand’s corporate operations and a substantial portion of its locations, primarily in New York and New Jersey. The deal is subject to court approval.

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Retro Fitness has a goal to open 500 health clubs in 50 black and brown communities across the U.S. over the next five years, following its Project LIFT initiative, which received a significant investment from BlackRock Impact Opportunities in 2022. 

Retro Fitness Embarks on Renovations

It’s been a busy year for the Florida-based Retro Fitness. In addition to its growth endeavors, the HVLP fitness chain kicked off a brand transformation that includes club renovations that usher in a more modern vibe.

Andrew Alfano, Retro Fitness CEO and former Starbucks exec, said the gym brand is pleased with the feedback regarding its fitness clubs’ new look and feel – which he refers to as a “maturing” of Retro Fitness and has led to new opportunities.

“We believe the transformation of the brand is just part of what has attracted area developers and investors to Retro Fitness,” Alfano said, adding that the brand is fielding a significant amount of interest from other industries – specifically the restaurant space.

“We are proud that our investment in Retro Fitness on behalf of our clients has benefitted communities in Texas, Florida and New York, and are pleased to continue supporting the company and Project LIFT through this next stage of growth,” BlackRock Impact Opportunities managing director Joseph Acevedo said.

International Goals

Beyond its domestic growth goals, Alfano told Athletech News in an exclusive interview earlier this summer that he believes Retro Fitness will eventually have over 1,000 gyms across the nation along with international locations.

He also pointed out the HVLP fitness brand’s amenities and offerings.

“Not only do we have everything that the boutiques offer with classes, we also have personal training, a smoothie bar and a retail pro shop,” Alfano shared. “We have massage chairs and red light therapy because we understand that recovery is extremely important to members today.”

HVLP in the Headlines

HVLP gym brands have been generating headlines as of late. Planet Fitness named a new CEO, and in August, Equinox-owned Blink Fitness filed for bankruptcy. The fitness brand is now in talks with U.K. gym giant PureGym to purchase a substantial portion of its gym locations in New York and New Jersey. 

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From experiential events to membership perks, brands are discovering that a little bit goes a long way in generating buzz and creating loyal customers — especially with Gen Z, who love wellness, a good deal, and an exclusive invite to a social-media-worthy event.

And athleisure giant Lululemon is paying attention, bolstering its complimentary membership program with special members–only perks in “move,” “fuel” and “restore” categories, which were announced last month on social media.

It’s the latest move from the brand designed to generate enthusiasm, having recently cut its full-year guidance due partly to slumping sales in the women’s category and a disastrous Breezethrough leggings launch that resulted in Lulu pulling the new leggings from the market to retool its design.

As part of its go-forward strategy, Lululemon CEO Calvin McDonald recently told investors that increasing brand awareness remains a priority, highlighting a successful and exclusive members-only weekend held at Peloton Studios in New York City earlier this summer, featuring live classes and a 5K run.

McDonald pointed to some of Lulu’s newest partnerships, noting that early feedback has been “very positive” for its member partner perks program, which sees Lululemon teaming with 12 brands to offer special discounts and offers.

“These strategies illustrate just a few of the ways we engage with our guests beyond a simple purchase transaction by offering exclusive experiences and benefits and helping them feel their best, all of which drives and deepens loyalty,” McDonald said.

A statement on the athleisure brand’s website explains that partners were carefully selected based on their ability to enhance members’ daily lives and offer products or services that support well-being.

Lululemon’s partner perks range from fitness to wellness and include a bevy of trendy, well-known brands:

• AG1 – 10 free travel packs, a welcome kit and a special All Day Essentials Belt Bag
• Barry’s – 10% off any single-class pack
• ClassPass – a free, one-month trial with 53 credits
• Erewhon – 15% off one order
• Hyperice – 20% off the Hypervolt Go 2, and 15% off all other products
• La La Land – 50% off the Lulu Latte
• Life Time – no specific deal is mentioned yet; for now, there is just an option to learn more about the premium fitness country club operator
• Methodology – 25% off your first order, and then 15% off orders
• Oura – six months of an Oura membership
• Peloton – 60 day free trial to Peloton App or App+
• Supergoop – 10% off on the first three orders
• Sweetgreen – $5 off the first purchase

Will Perks Pay Off?

Earlier this year, boutique fitness brand Solidcore announced Core Collective, a program that includes exclusive perks for members from brand partners such as Liquid I.V., Milk Makeup, Daily Harvest, Celsius, Care/of and Heyday.

24 Hour Fitness recently launched FitPerks, where members of the fitness chain can earn points from activities such as classes, coaching or check-ins on the 24 Hour Fitness app. The points can be redeemed for partner discounts on gym merchandise, local restaurants, concerts and sports tickets, hotels and resorts.

“We want to build as much motivation into using the gym as we possibly can and having an incentive structure is a great way to give that nudge we all need,” 24 Hour Fitness chief technology and digital officer Debbie Fiorella said. “Our members are at the heart of everything we do, and this program is designed to reward them for their hard work and commitment towards their fitness goals.”

High-value, low-priced (HVLP) fitness chain Crunch Fitness has also developed an extensive perks program for its members across a variety of categories. Meanwhile, Planet Fitness continues to add to its members-only deals with its PF Perks Program. The fitness franchisor returned its PerksFest earlier this summer with deals for Headspace, Crocs, Garmin, GNC and more.

New Planet Fitness CEO Colleen Keating referenced the perks program and its ongoing success during the fitness franchisor’s Q2 earnings call last month.

“One of the other things, I think, that’s relevant in the hospitality background versus what we’re endeavoring to do at Planet Fitness is the opportunity to extend the experience outside the four walls of the club through our app, through loyalty programs and partnerships and even our perks program,” Keating said. “We just had a great month in June with perks utilization. So, there’s an opportunity for us to really leverage our very broad membership base and our high app utilization through partnerships and bringing additional offerings to our members that they value even outside the four walls of the gym.”

Member discounts aren’t reserved just for cost-sensitive consumers – last year, Equinox unveiled a new-level membership program, Equinox Circle, offering deals on helicopter commutes, a dedicated concierge for purchasing luxury watches and more.

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