Flynn Group Adds Planet Fitness to Franchise Mega Portfolio
The world’s largest franchise operator is entering the fitness space, and its expansion may not stop with Planet Fitness
Flynn Restaurant Group, the largest franchise operator in the world, has gained a significant stake in the fitness franchise world through the acquisition of Alder Partners, LLC, which operates 37 Planet Fitness locations in Georgia and Massachusetts.
The franchise operator also rebranded to Flynn Group, dropping “Restaurant” from its name.
“For a company that knows big deals, this is a BIG DEAL,” posted Jacqueline Lee, VP of general counsel at Flynn, on LinkedIn.
Flynn Group Pushes Into Fitness
It’s a major move for Flynn, which has traditionally maintained a presence in the restaurant sector since 1999, with a portfolio that includes Applebee’s, Taco Bell, Panera Bread, Arby’s, Pizza Hut and Wendy’s.
“We’re incredibly excited to enter a new sector and, with it, our third chapter of growth at Flynn,” Greg Flynn, founder, chairman and CEO of Flynn Group, said in a statement. He describes the push into the fitness industry as Flynn’s third chapter.
“Chapter three will layer on two new growth channels – international restaurants and adjacent, consumer-facing franchised businesses – such as fitness – to our core domestic restaurant business,” Flynn said. “We are eager to accelerate growth across all channels and to bring our full capabilities to bear to drive even more value for our franchise systems and customers alike.”
The Titan franchise operator picked the consumer fitness industry as its major focus when looking to grow its portfolio, impressed by Alder Partners’ success in the Atlanta and Boston markets.
The deal will see Flynn Group continue to grow with new club development and “follow-on acquisitions,” the franchise group said, and Alder’s management team will run the business under Flynn Group.
“You’d be hard pressed to find a more respected and dedicated franchisee in the Planet Fitness system than Alder,” Flynn said. “Under Stan DeMartinis’ leadership, Alder grew its Planet Fitness portfolio to 37 clubs, and did so without wavering from its core values, which are lock step with our own. We are excited to have found such a great partner to enter the Planet Fitness brand and we are looking forward to an outstanding partnership.”
The Road Ahead for Planet Fitness
Flynn Group is expected to open three additional Planet Fitness clubs in the next four months.
While Flynn is encouraged by the growing consumer fitness sector and the strength of Planet Fitness, the franchisee brand itself is still letting the dust settle from its unexpected ousting of CEO Chris Rondeau. The shocking move by the low-cost, high-value fitness franchise blindsided not only Rondeau but Planet Fitness employees and investors, causing shares of PLNT to drop nearly 20%.
Planet Fitness, with Craig Benson as its current interim CEO, is expected to release its Q3 earnings next week.
