US-based Xponential Fitness, a curator of boutique fitness brands, has signed a development deal with Fitness International, LLC, operator of LA Fitness and City Sports Club.
The agreement will see Fitness International add Xponential brands to at least 350 of its locations over five years as LA Fitness and City Sports Club franchisees have the opportunity to open an Xponential brand studio inside their exclusive territories.
A lower average unit revenue is expected in comparison to standalone sites, but the deal ensures that studio development time and buildout costs will be less than a traditional standalone studio, and franchisees will benefit from lower marketing fund fees, no initial franchise fees, and reduced operating costs.
Anthony Geisler, CEO of Xponential Fitness, said “We are pleased to enter into an exclusive development agreement with Fitness International to further our mission of making boutique fitness accessible to everyone, increasing our total addressable market, and providing expansion opportunities to our franchisees.”
Jill Grueling, president of club operations of Fitness International, said “Xponential will bring additional high-quality fitness experiences to our members. We are confident their boutique fitness brands will provide an excellent complement to our members’ existing workout routines.”
Fitness International is one of the fastest-growing health club chains in the US with more than 700 locations across 27 US states and Canada.
Development of Xponential Fitness brand studios within Fitness International locations is expected to begin in the first quarter of 2022.
The four year old Xponential Fitness business was founded in 2017 and today manages 10 boutique fitness brands across north America, and through master franchise or international expansion agreements in 10 countries.
Its portfolio includes Club Pilates, CycleBar, StretchLab and Rumble, which have launched in Australia. Recently it signed a deal with Aussie brand BFT.
