In researching this year’s "Top 20 Global Franchise" rankings, Melissa Rodriguez, market research advisor at the Health & Fitness Association, found some surprising data.
For example, Curves, at one time a powerhouse in the U.S., growing to 7,877 locations in 2005, now has just 367 outlets domestically. In terms of the big-name players, it’s nearly an afterthought in this country.
"Yet, Curves is number three overall on our top 20 by number of units," Rodriguez notes. "That’s because the franchisor has nearly 2,000 units in Japan." Coincidentally, Curves entered the Japanese market in 2005.
One core trend represented in the top 20 is recovery and wellness, with brands like HOTWORX (#13), StretchLab (#14), and StretchZone (#17) making the cut.
"HOTWORX also speaks to the technology side," she adds. "Workouts are delivered virtually in an infrared (IFR) studio box—sort of like an infrared box—so the conditioning benefits are combined with those of a sauna. Like HOTWORX, Lava Hot Yoga (#15) utilizes IFR during its sessions."
We still see the global legacy brands in the top five: Anytime Fitness, Planet Fitness, Curves, F45, and Orangetheory Fitness, with the 24-hour concept helping to fuel their international expansion.
While about 75% of the top 20 are based in the U.S., we’re seeing more great concepts come out of Australia.
"Look at F45 (#4)," says Rodriguez. "And Xponential’s BFT. It’s interesting that both started there, but are now thriving with headquarters in the U.S.”
In addition, HVLP brands continue to thrive.
"Although we see low-cost operators like Planet Fitness (#2) and Crunch (#16) on the list, the concept has a more significant presence in the industry than what appears on our list," she adds. "It’s also important to keep in mind [that] several leading low-cost operators are chains, so they wouldn’t appear on a top franchise list."
Also, 24-hour clubs like Anytime Fitness and Snap Fitness have a significant global presence in North America, APAC, Europe, Latin America, and the Middle East.
