Global Franchise 9.2 - Issue 56

Trends to watch In an era where convenience and accessibility are key, fitness franchising is driving trends that integrate tech and flexible membership options Smart technology Fitness franchises are leveraging AI and wearable technology to create highly personalized workout plans and wellness routines. With apps and digital platforms tracking everything from your steps to your recovery, these tailored experiences not only boost member retention but also make fitness more accessible and results-driven than ever before. Holistic wellness The future of fitness franchising goes beyond just physical workouts. Forward-looking brands are expanding into holistic wellness, offering services like mental health support, nutrition guidance, and recovery therapies. This comprehensive approach aligns with consumers’ growing desire to address both their physical and mental well-being in a single space. Virtual coaching As fitness becomes more tech-integrated, virtual coaching and hybrid memberships (combining in-person and digital workouts) are becoming standard. Franchises that offer seamless access to trainers and workout classes both online and in the gymwill thrive, especially as members seek flexibility in how they maintain their fitness routines. are leveraging clinical research into new and existing holistic modalities, proving the value of personalization and technology in delivering real results. “Where boutique fitness brands may once have been seen as bougie and ineffective, the franchise model is making such concepts more accessible, shifting that narrative, and advancing the field as a whole,” Smith adds. “Round-the-clock accessibility at our locations is a standout feature in the boutique fitness industry, offering significant value to members managing busy professional and personal lives. Additionally, in an era when many consumers are looking to save time and money, HOTWORX provides a unique advantage. Our combination of infrared sauna therapy and on-demand workout classes typically requires multiple memberships from different brands. Here, members can achieve the benefits of a 90-minute workout plus recovery in as little as 15 minutes.” Investment opportunities For investors, fitness franchises present a compelling opportunity, offering a blend of stable recurring revenue and the potential for significant growth, especially as health and wellness continue to be top consumer priorities globally. The market is set to expand significantly, with projections indicating a $231 billion valuation by 2027 (McKinsey), driven by factors such as growing awareness of health and fitness, the proliferation of digital fitness solutions, and the increasing demand for personalized, holistic wellness services. Brands like Anytime Fitness, Lift Brands, Snap Fitness, Body20, HOTWORX, and Xponential Fitness are well- positioned to capitalize on these trends, offering diverse investment opportunities across multiple geographies and market segments. Investors are drawn to these brands not just for their strong track records but also for their innovative approaches to member engagement, digital integration, and global expansion. However, as always, there are challenges in this competitive marketplace. “Consumers are being inundated with new fitness franchise concepts on what often seems like a weekly basis; many of which are staking their claim with often proprietary modalities with benefits that can’t be obtained as effectively or effortlessly anywhere else,” points out Smith. “That reality is posing two significant challenges to the fitness franchise industry. For one, competition in the space is becoming more heated than ever, and as a result, securing/retaining new members has become far more of a challenge than in years past. And second, those members want to see proper validation behind the modalities they’re spending their hard-earned dollars on – they want to see results for their efforts.” But as the fitness industry continues to evolve, it still presents a lucrative opportunity for savvy investors.Whether it’s leveraging digital tools, expanding into new markets, or catering to the growing demand for personalized and holistic wellness solutions, the future of fitness franchising looks incredibly bright. Brands that embrace technology, prioritize holistic wellness, and offer personalized experiences will not only survive but thrive, setting new standards for what it means to be a leader in this dynamic industry. For franchisees, the opportunity lies in partnering with brands that are at the forefront of innovation.With the right support, training, and market positioning, fitness franchising can be a profitable venture, offering the chance to be part of an industry that contributes positively to promoting global health and wellness. “For franchisees, the opportunity lies in partnering with brands that are at the forefront of innovation” Snap Fitness, Lift Brands 46 GLOBAL FRANCHISE Issue 9.2 Ana lys i s | FEATURE