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Xponential Expanding into LA Fitness, City Sports Club

Xponential Expanding into LA Fitness, City Sports Club

The company will bring its boutique fitness brand to over 500 locations in the US.

Xponential Fitness, the largest boutique fitness franchisor and curator of ten fitness brands, has announced an exclusive development agreement with Fitness International, the operator of LA Fitness and City Sports Club. The agreement includes a development of over 350 franchised locations over five years, bringing Xponential’s brands to over 500 locations. The expansion will start in the first quarter of 2022.

The deal will allow existing franchisees to open an Xponential studio within their facilities and have reduced operating costs. The newly added boutique brand will be available to current gym members for an additional fee. The fitness company says that the development time and buildout costs will be less than a standalone space, and franchise partners won’t have initial 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.”

Xponential Fitness just announced strong third-quarter results, with net revenues of $40.9 million and visitation rates increasing. In a recent conference call, Geisler was confident that people are returning to the gym.

“Brick-and-mortar gyms are back, and boutique fitness customers are excited to return to in-person fitness across our growing franchised studio base,” Geisler said.

The company opened 68 new studios and sold 248 franchise licenses compared to 50 in 2020’s third quarter. Geisler noted that he was thrilled with the continued momentum of Xponential. 

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“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.”

This fall, Xponential acquired Body Fit Training, an Australian functional fitness franchise. Xponential plans to grow the company in the US and Canada with the $44 million acquisition. The company had a debut on Wall Street this summer after it delayed IPO plans in 2020 due to the pandemic.

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