Global Franchise Issue 10.1

wo major fitness franchise deals announced in April 2025 sent a clear message across the fitness industry: the M&A landscape is heating up again – and this time, it’s not about distressed assets or hasty exits, it’s about strategic bets on high-performing, scalable brands with wide appeal. Crunch Fitness andWorkout Anytime, two fast-growing fitness franchises, each announced headline- making transactions that illustrate where the sector is heading: larger markets, deeper investments, and a focus on resilient, value-driven models. Crunch Fitness, the high-energy gym chain known for its “No Judgments” philosophy, secured a majority investment from private equity giant Leonard Green & Partners (LGP). LGP acquired the stake fromTPG Growth, marking a key shift in ownership after a five-year run that saw Crunch double its unit count, add 2.1 million members, and surpass 500 gyms globally. The brand was also recently named #1 in the fitness category in Entrepreneur’s Franchise 500® for the second consecutive year. “This is an exciting new chapter for Crunch,” said Jim Rowley, CEO of Crunch Fitness. “Leonard Green & Partners has a phenomenal track record of success and investing in consumer brands, and we’re confident their strategic insight and operational expertise will only continue to accelerate our growth while staying true to our core values.” For LGP, Crunch represents a stable bet with proven fundamentals. “What Crunch has accomplished in the past five years is truly unprecedented,” said John Danhakl, Managing Partner at LGP. “Crunch’s powerful business fundamentals and distinctive member experience make it an ideal fit for our portfolio.” Meanwhile,Workout Anytime, a budget-conscious, 24/7 gym concept, has taken a different – but equally impactful – route with Jerry Pugh, the brand’s largest franchisee, acquiring the entire business and stepping in as CEO. The Atlanta-based brand, which operates over 200 clubs across the U.S., is now positioned for accelerated growth under a leader who understands the brand from the ground up. “I am truly honored to step into this leadership role,” said Pugh. “As a longtime franchisee, I’ve witnessed the incredible impact Workout Anytime has on communities and its potential for growth. I’m excited to build on this strong foundation and work alongside our franchisees to explore new opportunities, elevate member experiences and drive the brand to greater success.” The transaction was backed by Skyline Global Partners and Peninsula Capital Partners, with M&A process support from Private Capital Advisors. According to co-founder Steven Strickland, “Jerry’s journey from franchisee to CEO is a testament to his dedication and vision. His leadership will undoubtedly propelWorkout Anytime to new heights.” Reading the signals: why now? The important takeaway here is that these are not isolated moves. They signal a new wave of consolidation and private equity interest, particularly in brands with wide total addressable markets (TAMs). According to Zach Fishman, franchise PR and marketing expert and investor, the recent activity marks a shift away from reactive consolidation toward strategic scaling. “As I predicted earlier this year, there’s bound to be a lot of deal activity within the beauty, fitness, health and wellness space on the horizon,” he comments. “These deals here are both ‘upward- trending’ deals for healthy businesses looking to take a step up the ‘PE ladder,’ not the consolidation-centric deals I figured would consume the deal landscape.” His prediction? “More roll-ups within the ‘BFHW’ space are coming. Blood is in the water here.” Fishman believes that value-oriented models like Crunch and Workout Anytime are more attractive to investors than boutique brands due to saturation and questionable unit economics among T “With discretionary spending looking likely to take a dip in the short-term, will brands sit on the sidelines for another year or get out before things (potentially) get really ugly?” 62 GLOBAL FRANCHISE Issue 10.1