Xponential Fitness has announced the signing of a sizeable strategic agreement with LA Fitness and City Sports Club to add Xponential’s brands to over 500 locations. The agreement specifies a minimum of 350 franchised locations, but aims to reach over 500.
This new agreement allows Xponential Fitness to offer existing franchisees in LA Fitness or City Sports Club locations to open an Xponential branded studio in their existing location. A membership to one of Xponential’s brands will be available to gymgoers for an additional fee.
Studio development time and buildout costs of these locations will be less than those of a traditional standalone studio, and existing franchise partners will have an opportunity to drive additional revenues while operating these locations free of initial franchise fees and lower marketing fund fees.
“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,” said Anthony Geisler, CEO of Xponential Fitness, Inc.
“This provides a unique opportunity for franchisees to increase their reach and overall revenue generation within their protected territories. We look forward to delivering best-in-class boutique fitness to the LA Fitness and City Sports Club communities.”
“We are proud to welcome Xponential brand studios to our LA Fitness and City Sports Club locations,” said Jill Grueling, president, club operations of Fitness International.
“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.”
Development of the first studios will begin in the first quarter of 2022 and is not expected to have an immediate impact on revenues during the current calendar year.
Xponential Fitness have been on a path of growth this year after acquiring the boxing fitness brand, Rumble, and redesigning its studios to create the in-person experience for its in-home customers on its GO platform.