🍟 2/10/2022 – All In On Fitness Franchises

One Twitter Thread:

Zac Pennington: Acquiring Anytime Fitness’s

Zac Pennington is a multi-unit franchise owner of Anytime Fitness. This thread gives incredible insight into his strategy when acquiring underperforming locations.

Through equipment upgrades that cost ~$50k, doubling membership rates, and adding a $35 bi-annual club enhancement fee, he’s able to earn 100% of the acquisition cost on a location within 18 months.🤯

For his full tactical breakdown, read the thread here.

One Podcast:

Tony Robbins: OrangeTheory’s Rise to the Top

When this episode was recorded in March 2019, OrangeTheory had 1,100 locations worldwide and had done $1B in revenue in the last year alone. Not too shabby for a company that was founded in 2010 😅.

The conversation dives into the early days of the founder, Ellen Latham, who’s creativity and gritty mindset led to the break-through creation of OrangeTheory.

Listen to the ~30 minute episode here.

One Franchise Breakdown:


Fast Facts


  • Founded in 2016, franchising since 2020
  • Based in Florida; 6 locations open as of 2022
  • A boutique fitness franchise that offers 30 minute group workouts led by 3-4 trainers

Fees + Investment

  • Royalty: 6% of gross sales
  • Brand Fund: 1.5% of gross sales
  • Franchise Fee: $40,000
  • Initial investment: $155,500 – $369,500

Financial Performance

  • The below information contains P&L statements for the year 2020 from 3 affiliate locations
  • Cape Coral opened March 2019, College Park opened September 2016, while Golf Coast opened September 2017

The Wolf’s Take 🍟

Look – the high end of the investment for P-Fit is $370k, and one of the locations that first opened in 2019 produced over $500,000 in adjusted net income in 2020. It’s a small sample size, but numbers like that scream one word for an emerging franchise: POTENTIAL 🤑

And beyond the individual franchise, I love the category..

Boutique fitness had a HELL of a decade from 2010-2020. This time-frame saw brands like OrangeTheory and F45 get founded AND pass the 1,000 unit mark, while dozens of others grew to 300-500+ locations (Club Pilates, Burn Boot Camp, Crunch, 9Round, etc.)

While I don’t expect it to be as lucrative heading toward 2030, fitness is still an area that will produce many winning concepts relative to other industries. The early signs have already pointed in this direction as we’ve (slowly) emerged from covid. Public companies like Planet Fitness are seeing it’s stock reach new ATH’s, while stay-at home fitness companies like Peloton are heading in the opposite direction 📉.

A big reason? Community. Yes, working out on a Peloton is fun and you can track yourself against your friends and thousands of other Peloton users. But nothing can replace the camaraderie and connections that develop from in-real-life workouts, with trainers that are ACTUALLY 3 feet from you i.e. not inside an iPad.

For this reason I’m bullish on the category of fitness for another decade, and think a rising tide lifts all boats, especially for concepts with great unit economic profiles like P-Fit.


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