More Consolidation Is Coming to Franchised Fitness Systems
Private equity drives consolidation trends across fitness franchises, influencing unit growth and acquisitions.
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Fitness franchising is experiencing notable consolidation as private equity investment accelerates. Recent acquisitions, such as Flynn Group's purchase of 98 Planet Fitness locations and Fitness Ventures' acquisition of 22 Crunch Fitness units, highlight growing opportunities for franchisees to consider strategic exits or expansions.
Why It Matters
This trend may compress available territories for multi-unit operators as investment increases competition, while also providing potential avenues for efficiency and scale in operations.
The fitness franchise sector is experiencing significant consolidation driven by increased private equity investment and franchisee mergers. Recent notable acquisitions include Flynn Group's purchase of Grand Fitness Partners, encompassing 98 Planet Fitness locations, and Fitness Ventures’ acquisition of 22 Crunch Fitness units, which positions it as the leading operator in that brand.
As private equity firms inject capital into the fitness industry, opportunities for franchisees to buy and sell businesses are expanding. Aaron Muccino, a relationship manager at Citizens Bank, highlighted during the Fitness Finance & Growth Conference that franchise owners should consider exiting their investments under three market conditions: when new developments are fully funded by commercial banks, when the brand’s market value is high and attracts a favorable multiple, and when immediate equity is available from these developments. Muccino emphasized the importance of acting quickly to maximize returns at this potential peak of the market.
In parallel, Jeff Nash, co-CEO of Riser Fitness, which currently operates over 110 Club Pilates locations and plans for 127 new studios, indicated a preference for de novo growth while recognizing the strategic advantage of acquiring existing locations in regions where brand presence is weak. He stated, “I’d rather buy three or four and then go around it,” acknowledging the benefits of establishing a robust footprint before expanding further.
