Crunch Fitness Secures Strategic Investment From PE Firm
The investment marks an exciting new chapter for the HVLP fitness franchisor, Crunch Fitness CEO says
Crunch Fitness has received a strategic investment from Leonard Green & Partners, a private equity firm that has acquired a majority stake in the fitness franchisor from TPG Growth and Crunch’s minority shareholders.
Since TPG’s initial investment in 2019, Crunch has added more than 2.1 million members—a 176% increase—and opened 275 new locations. The brand now boasts over three million members and more than 500 clubs globally.
“This is an exciting new chapter for Crunch,” Crunch Fitness CEO Jim Rowley said. “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.”
That growth will soon extend to India, where Crunch Fitness has signed a master franchise agreement that will bring at least 75 gyms to the country in the coming years.
“We’re incredibly grateful to TPG for being an exceptional partner over the past five-plus years,” Rowley added. “Their support and commitment—especially during the challenges of the pandemic—helped drive our transformation and rapid expansion. We also want to thank our amazing franchisees whose passion and entrepreneurial spirit have been the driving force behind our success and our incredible team members who continuously strive to provide legendary experiences across every Crunch gym.”
One Crunch Fitness franchise group, CR Fitness, just acquired nine 24 Hour Fitness gyms in the Miami and Orlando area, which will be rebranded and outfitted with Crunch’s new 3.0 design template. Another successful group, The Undefeated Tribe, has partnered with NNI Construction for 50+ locations for build-outs, renovations and expansions for new and existing gyms.
“What Crunch has accomplished in the past five years is truly unprecedented,” Leonard Green & Partners managing partner John Danhakl said. “We are excited to support the brand’s continued evolution alongside a strong leadership team and franchise network. Crunch’s powerful business fundamentals and distinctive member experience make it an ideal fit for our portfolio.”