Global Franchise Issue 10.1

As the global fitness industry evolves, so do the strategies for successful franchise growth. Traditionally, corporate leadership has guided expansion, providing systems, technology, and marketing support. But atWorld Gym, we see a shift: franchisees who have mastered the system locally may be the key to greater global success. Could this franchisee-led model become the future of global fitness franchising? Franchisees operate on the front lines, managing day-to-day operations, engaging with members, and adapting to market needs. Their firsthand experience allows them to implement strategies that work in real-world conditions. By leveraging the expertise of top- performing franchisees,World Gym prioritizes local operational excellence and brand understanding over top-down mandates. Successful franchisees understand what drives memberships, retention, and profitability.When they lead expansion efforts, they bring practical, proven strategies to new markets, helping locations thrive from day one. This approach ensures that each gym is not only operationally sound but also aligned with local consumer behavior. Today’s fitness consumers expect seamless digital experiences. Franchisees are uniquely positioned to implement and refineWorld Gym’s tech-driven infrastructure, ensuring it meets real-world needs. By giving franchisees a greater role, we accelerate adoption, refine best practices, and create a more adaptable global network. Franchisee-driven growth also fosters collaboration. Data-sharing among franchisees helps identify trends, streamline operations, and enhance member experiences. Instead of a rigid corporate model, this strategy allowsWorld Gym to scale dynamically, maintaining quality and consistency worldwide. For existing and prospective franchisees, this shift presents new opportunities. A franchisee-led growth model encourages mentorship, allowing new investors to learn from those who have already built successful locations. This peer-to-peer support enhances success rates and strengthens the brand as a whole. Additionally, this model encourages innovation. Franchisees who are actively shaping expansion have a vested interest in improving systems and services, ensuringWorld Gym remains competitive in a rapidly evolving industry. Could franchisee-led expansion become the industry standard? At World Gym, we believe it’s the future. As fitness trends shift, the brands that empower their franchisees will be the ones that thrive. The future of franchising isn’t just about corporate strategy – it’s about elevating those who know the business best and giving them the tools to lead the way. GOING GLOBAL? START LOCAL When, in 2024, the Canadian Franchise Association (CFA) team chose its theme for the 2025 National Convention, we didn’t knowwhat theworldwould look like in a few short months. The Convention’s theme, Our Community, Our Purpose: Stronger Together, turned out to be highly prescient. Today, we find ourselves in a time of economic uncertainty and shifting international relations. Despite these challenges, the franchising community truly is stronger when we come together. Our strength is in community, and the franchisee-franchisor relationship inherent to the business model. Franchising has always been a resilient industry. We saw it in 2008 when, amid the job losses of the Great Recession, business ownership through franchising stayed strong. We saw it in 2020, when throughout the COVID-19 pandemic franchise systems were able to adapt their business models and disseminate information and creative solutions through their networks, to ride out closures and supply chain challenges. And we’re seeing it now. The 2025 Canadian Franchise Industry Economic Outlook report commissioned by the CFA in partnership with the Canadian Centre for Economic Analysis (CANCEA) projected that the franchise industry’s contribution to Canada’s GDPwould reach $120 billion in 2025; in reality, it actually exceeded that number, reaching $128.4 billion. This year’s forecast projects that franchising in Canada will continue to grow in 2025 – up 3.8%, to become an industry worth $133.3 billion! Franchising remains the 12th largest industry in the country, employing nearly two million Canadians. These projections are good news, but they’re hardly a surprise. We see the strength and resiliency in franchising every day through our members, who are committed to franchise excellence and learning and growing together. That’s why we launched the Look for the Logo campaign, aimed at those considering franchising or an investment in a system. CFAmember brands display their membership through our logo, denoting that they are a valuable part of our community and meet the high standards of CFAmembership, including signing on to our Code of Ethics. Through economic challenges, it’s important for franchise systems to stay the course – to assess data critically and then determine how to respond before reacting. The most successful systems are looking Stronger together In uncertain times, Canada’s franchise sector is proving its strength through unity, growth, and global collaboration. CFA President & CEO Sherry McNeil shares why working together is the smartest move. If you want to scale your fitness brand worldwide, don’t overlook the power of local franchisees. World Gym International CEO John Caraccio shares how they’re powering the brand’s sustainable growth. 52 GLOBAL FRANCHISE Issue 10.1