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Case Study


Powerhouse fitness holding company launches global growth strategy with Club Pilates and CycleBar

Powerhouse fitness holding company launches global growth strategy with Club Pilates and CycleBar

As consumers continue to seek community-based fitness concepts that provide an outstanding fitness experience in a convenient and effective way, one powerhouse holding company is capitalizing on the trend – both domestically and internationally. Established in 2017 to bring the best of boutique fitness brands together under one roof, Xponential Fitness has quickly become the leading curator of some of the strongest brands in the fitness industry.

After its formation, the company started out on its path to dominance by bringing well-known brands under its leadership including Club Pilates, the nation’s largest and fastest-growing Pilates franchise, and CycleBar, the only premium indoor cycling franchise. Following the acquisition of these two established concepts, Xponential Fitness brought on its two smaller, yet market-leading brands, L.A.-based StretchLab, a concept offering assisted stretching services and most recently, Row House, a powerful and effective low-impact cardio rowing concept, focused on comradery and performance. The housing of these brands under one holding company is the first step in CEO Anthony Geisler’s long-term plan to solidify continued growth both domestically and internationally for each concept. Club Pilates and CycleBar are the two largest brands in Geisler’s portfolio. Club Pilates has 350 studios open and 750 sold, while CycleBar has 125 studios open and 350 sold.

In its relatively short lifespan, Xponential Fitness has seen some significant milestones including the acquisition of its first four brands, in addition to the execution of an organizational chart including key individuals to help expedite the purchase and expansion of each brand – both domestically and internationally. With each new concept, a team is formed to support its franchise partners, starting with a President, CMO, Real Estate Director and Construction Project Manager at its core. For its brands ready for international expansion, CycleBar and Club Pilates, an experienced international team has been brought in.

Successful strategies

Xponential Fitness’ international team is led by industry veterans with proven experience expanding U.S.-based fitness brands internationally, including CEO Anthony Geisler who built LA Boxing into the largest boxing, kickboxing and mixed martial arts fitness concept in the country. John Kersh, who was instrumental in growing Anytime Fitness into the largest fitness franchise in the world, has also joined the team as Chief International Development Officer. Xponential Fitness is now looking to replicate these successful strategies by offering entrepreneurs from across the globe the opportunity to build a portfolio of category-leading U.S. boutique fitness concepts, including CycleBar, Club Pilates, StretchLab, Row House and future brands in all parts of the world.

Xponential Fitness plans to significantly grow their portfolio of brands internationally through a master franchise strategy. Backed by partner TPG Growth, the middle market and growth equity platform of alternative asset firm TPG, Xponential Fitness not only has the leadership team, but also the financial capabilities to assist international Master Franchisees in their quest to develop Xponential Fitness brands overseas.

“What we are creating at Xponential Fitness is revolutionary and has never been done before in the fitness industry,” said Geisler. “With enormous consumer demand around the globe for healthier, more active lifestyles in a customized and convenient setting, we are in a perfect position to capitalize and subsequently dominate the market.”

Go global

The global expansion initiative kicked off with a master franchise agreement for CycleBar with entrepreneur Oliver Chipp, who expects to open at least 30 studios in the United Kingdom over the next five years. The first U.K. CycleBar is set to debut in London by June 2018. Quickly following CycleBar’s unveiling in the U.K., Club Pilates will open its first Vancouver Canadian location – making it the second Xponential brand to go global.

To help expand its global footprint, Xponential Fitness is seeking entrepreneurs who not only possess adequate capital to build out multiple locations, but just as importantly understand the vision and potential growth of the brand. Master Franchisees have a wide range of options: with Xponential Fitness and can choose to sign on to develop one or multiple brands under the Xponential Fitness portfolio. The company is specifically looking to develop its brands in Europe, Asia, Australia, Africa and Latin America, but is open to additional countries, depending on the market demand and partner.

With its experienced corporate team helping Master Franchisees replicate its proven U.S. systems abroad, Xponential Fitness offers international entrepreneurs the chance to successfully develop some of America’s hottest boutique fitness concepts all over the globe.

Name of franchise: CycleBar
Established: 2004
Number of franchised outlets: 125
Location of units: North America, Dubai, Canada and United Kingdom (June 2018)
Minimum required capital: Access to investment capital of at least US$ 1,000,000 (Master Franchisee)
Access to investment capital of at least US$ 750,000 (Area Developer)
Contact: john@xponential.com
URL: https://cyclebarfranchise.com/

Name of franchise: Club Pilates
Established: 2007
Number of franchised outlets: 350
Location of units: North America, Canada (May 2018)
Minimum required capital: Access to investment capital of at least US $1,000,000 (Master Franchisee)
Access to investment capital of at least US $750,000 (Area Developer)
Contact: john@xponential.com
URL: http://www.clubpilatesfranchise.com/

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