🍟 4/25/2022 – Xponential Fitness 🤝 Lululemon
Xponential Fitness Lululemon
Xponential Fitness announced they’re teaming up with lululemon to create original fitness content for Mirror, the smart home-gym company lulu acquired for $500M.
The deal involves 4 of Xponential’s 10 brands – AKT, Pure Barre, Rumble, and YogaSix.
Each brand will provide workouts for Mirror starting with a launch in Fall 2022.
The Wolf’s Take
Great partnerships are a win-win, meaning both sides receive close to equal amounts of value from it.
From the outside looking in, this looks like a great partnership:
- 4 of Xponential’s brands get in front of tens of thousands (and counting) of Mirror owners
- Mirror can provide top quality content in a variety of fitness niches to their customers
Why Should You Care?
For an aspiring franchise owner, picking the right brand for you is the most important task at hand.
This partnership flexes the benefits of brands that are attached to larger holding companies like Xponential.
For example, AKT and Rumble have maybe ~50 combined total studios open at the moment? In the grand scheme of franchises, those are tiny footprints relative to other boutique fitness companies.
On their own, they don’t have the leverage to secure a deal like this with a company of Lululemon’s stature. But as part of Xponential Fitness, they have strength in numbers with 2,100+ studios open across the portfolio of 10 brands.
Again, picking the right brand for you is most important, regardless of whether or not it’s apart of a greater franchise holding company. But keep in mind the potential benefits a greater platform can bring brands!
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- Founded: 1958
- Units Open: 16,588
- Investment Range: $367K – $2.1M
- Average Revenue per Location: ~$940,000
Did you know?
In 1994, Pizza Hut and The Santa Cruz Operation created PizzaNet, a program to accept orders through the internet. The site is still up and running, and as you can see, it was definitely ahead of it’s time.
FRANCHISE OF THE DAY
- Founded in 1988, franchising since 2007
- Based in Kentucky; 48+ locations open
- A college planning services franchise
Fees + Investment
- Royalty: 8%
- Brand Fund: 2%
- Franchise Fee: $39,200
- Initial Investment: $45,950 – $63,450
- The below table presents historical data for the 42 franchised outlets that were open for all 2020, the 29 outlets open for all of 2019, and the 20 outlets open for all of 2018
The Wolf’s Take
I crunched the numbers for 2019 to make it easier on you – the average revenue for 29 reporting franchisees that year was $105,170, with an average of 3.8 years in business.
When I look at Class 101, I see a low-cost franchise that could be on the right side of a developing trend…
College is Expensive
In fact, it’s outpacing the cost of living. Until something changes, anyone going to college needs to think long and hard about their finances, so that more kids aren’t graduating with degrees that hardly pay off the cost to get it.
Class 101 can be a lifeline for families sending kids to colleges, as their franchisees offer help with enrollment and financial planning.
Via one-on-one sessions with students, the brands ultimate goal is to help students get into better colleges and qualify for higher amounts of scholarships and financial aid.
Speaking of holding companies, Class 101 was just acquired by Unleashed Brands.
This will allow the franchise to leverage more support and strategic resources, but also synergies from Unleashed’s other franchise brands that offer non-competitive services to Class 101’s ideal customer base – such as Snapology, The Little Gym, and Premier Martial Arts!
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