The boutique franchises disrupting the fitness industry

At the start of the year, TeamUp shared the 10 trends set to rock the fitness industry. One of those trends was that franchises fitness would set a new standard for unprecedented growth. It’s fair to say there is a lot of exciting activity going on in the franchise world at the moment. According to the Global Wellness Institute, the global wellness economy market is set to reach 8.47 trillion USD by 2027. 

As competition increases, facilities are looking for ways to stand out from the crowd, strengthen their offering, and develop new services that elevate the member experience.

The top boutique franchises to watch in 2024 and why

We spoke to various founders and managers at different centers who are really breaking the mold and disrupting fitness as we know it. Read on to learn about their innovative approach is helping grow their business from strength to strength.

Pumping up the fun with gamification

Motivation plays a huge part in appealing to customers and greatly influences participation levels. BHOUT has developed a recipe to keep people motivated, engaged, and healthy by combining combat sports, strength training, and gamification. CEO and Co-Founder Mauro Frota explains: "Exercising is not natural for us humans. We usually give up on our efforts after a couple of months because we are simply not motivated to do so. Retention and repetition are easier if the environment around you–music, lights, communication with the coach–are built to nudge you and drive momentum. It’s not about working out, it’s about having fun while getting healthier. By applying concepts of psychology, nudging, and game design, we’ve engineered an experience, powered by the first punching bag with a brain, that’s highly motivating and addictive, challenging the churn numbers that the fitness industry so often sees."

Lumin Fitness offers a unique AI-powered fitness experience that utilizes elements of gamification to reduce perceived exertion, making each workout fun, fast, and high functioning. Ann Marie Barbour, Business Development, says: “80% of the U.S. population doesn’t have a gym or studio membership, but 58% of them want to work out. When we started Lumin, we knew it would be attractive to fitness-minded Gen Z and Millennials – from the wall-to-wall immersive LED screens to the gamified workouts and the personalization of your music and in-ear AI trainer.

We’ve found the appeal to be much broader than that, as our experience removes a lot of the intimidation factors around fitness. 75% of our members at Lumin Fitness are people that were never members of gyms before. Our studio is dark, there are no mirrors, you have your own individual station, and all feedback and form correction is delivered in your ear so no one is called out publicly. Movements are shown throughout the workout and are easy to modify. There’s always a coach on the floor to assist members and answer questions, and the technology also allows our coaches to focus on building community and creating an even more personalized experience for each member.”

Our studio is dark with no mirrors. You have your own individual station, and all feedback and form correction is delivered in your ear so no one is called out publicly.

- Ann Marie Barbour, Lumin Fitness

Understanding age is just a number

As we read above, everyone wants to look and feel better—no matter how old they are. Understanding the unique characteristics and challenges of diverse age groups is the key to success in the ever-changing fitness landscape. Pilates in particular is renowned for its ability to improve strength, flexibility, and posture for everyone who practices regularly.

As Christine Dang, General Manager at BASI Pilates, notes, “BASI Pilates is making significant contributions to our community's health and wellness in several ways. Classes and programs cater to individuals of all ages and fitness levels. By encouraging regular physical activity, BASI Pilates helps community members enhance their overall physical health and well-being. Pilates not only benefits the body but also the mind. The focus on breathing, concentration, and mindfulness during Pilates sessions promotes mental clarity, reduces stress levels, and enhances overall mental well-being."

Pilates can also be coupled with other services to provide further health benefits. Allison Beardsley, Founder of Red Light Method and Club Pilates, the most successful Pilates chain worldwide, explains: "Red Light Method delivers premium fitness and wellness experiences through medical grade (the only FDA-cleared device in U.S.) red light therapy body contouring treatments. These typically cost $200-$400 a single 25-minute treatment. Our members do unlimited treatments with power plate, Pilates reformer* (at participating locations), and far-infrared sauna for $199 a month. The value, experience, and results are exceptional! We add so much crazy life changing value in a smart systematic way that it’s a win-win for franchise owners and members."

Offering increased convenience and choice 

When it comes to their health and well-being, more consumers are beginning to realize the importance of taking good care of themselves. Many of them are looking to enjoy multiple offerings under one roof, meaning many facilities need to up their game and offer a wider range of services spanning fitness, recovery, and even relaxation therapies to keep up with demand—and the competition.

As Diego Guimarães, CEO & Founder of INFINITY, beyond fitness, puts it: “‘Wellness’ and ‘longevity’ are now buzzwords in the fitness industry. Since INFINITY, beyond fitness’ conceptualization in 2020, we have had in mind that our business model should revolve around getting people healthier so they can live longer and avoid the diseases that come with bad health-style habits. That's why we combined training, nutritional guidance, recovery, and community support under one roof."

‘Wellness’ and ‘longevity’ are now buzzwords in the fitness industry. Business models should revolve around getting people healthier so they can live longer and avoid the diseases that come with bad health-style habits.

- Diego Guimarães, INFINITY, beyond fitness

Kathleen Ferguson, CEO and Founder of Coach 360, adds: "Today's customer is focused on a holistic approach to their health, fitness, and wellness programs. They are looking for ways to not only address their fitness needs and goals, but rather a 360 degree approach to optimize their health. We are seeing a rise in education opportunities for the coach community to address these needs, while also seeing an increase in boutique health, fitness, and wellness offerings within the club and franchise space. We are seeing an emergence of wellness and recovery offerings and hybrid formats to address the growing consumer demand."

Providing options for effective time management

Holding down a full-time job means many aspiring gym-goers struggle to maintain their fitness routine. Safe Sweat saw an opportunity in the market to cater to multitaskers and developed a plan to consistently deliver premium experiences via the micro gym. The beauty of it is it’s not like a regular gym or studio. Instead, it offers clients the possibility to enjoy wider availability to work out at a time that suits them.

Co-Founder and CEO Emre Ozgur says: "I think the majority of the population of the world don’t exercise as part of their daily life. Unfortunately, now we have a younger generation heading for a scary future when it comes to health and wellness because they're moving less and they're eating worse foods combined with more social media use. You have a world that’s becoming very anxious because there are a lot of fake images, fake videos, and on social media people post the best of everyone. It's not the reality. We need to talk about the mental health benefits. You sleep better, you feel better, you move better, you're happier and that you can see within your first workout.

We came up with the concept of a studio fitness center with individual rooms for privacy. We have a clean facility, individual rooms, air purification each round, and we clean and sanitize between every session, but isn’t that how it should be anyways? That’s the bare minimum. We call it Safe Sweat because we want people to feel safe to be themselves. Maybe a gym is too big, there’s too many people, it’s too crowded, takes too much time and is loud, overwhelming, and they don’t feel comfortable.

There are a ton of people out there that feel like they need a place where they can just do what they’re comfortable with, and they’re not finding that solution. That’s why fortunately out here we’ve been growing now that the word’s getting out about our new offering. People are coming as they are, all shapes, sizes, colors, and preferences and they just feel safe to do what they want.

We have members that dance in between sets and sing while they work out or take a phone call or cry, or they just stretch. We have mothers that can bring in their babies because there's nowhere else for them. They're sick and tired of being cooped up all day and here they can actually take care of themselves with their baby right by their side. Our members are getting quicker workouts, because they don't have to look for equipment or wait for equipment. Everything is there for them. They're getting more functional workouts. There's no pressure to perform. They're coming more often, which in turn is creating better retention as well as better long term results."

There are a ton of people out there that feel like they need a place where they can just do what they’re comfortable with, and they’re not finding that solution. We’ve been growing now. People are coming as they are, all shapes, sizes, colors, and preferences and they just feel safe to do what they want.

- Safe Sweat, Emre Ozgur

Consistency is key

While exercising plays a key role in living a healthy life, Brandon Cullen, Co-founder and Chief Concept Officer at MADABOLIC, is a big believer in building consistent habits, particularly around strength training: “Cardio may keep you alive, but strength training allows you to thrive. When establishing the building blocks for longevity, people need to prioritize strength as the base of their pyramid.”

He favors getting back to basics over fancy new fads that don’t produce long-lasting results: “Instead of chasing after the latest fitness trend or constantly trying to alter our DNA, we value the power of simplicity - strength bias workouts and high-level coaching. There is overwhelming power in a training regimen that hinges on consistency and repetition. While the concept of variety may seem fun, we know for a scientific fact that it's highly overrated, and design our workouts accordingly. When it comes to strength, structure, and accountability, I believe MADABOLIC is the best in the industry.”

For Anna Martens, COO of barr3, fitness and wellness is a lifestyle that you need to adopt and not something you feel obligated to do: "The market is really exploding into this broader identification of people who are not only seeking fitness but really seeking wellness. Barr3 has been at the center.  We lean into isometric holds small range movements, and adopted cardio strength building and mindfulness through an existing barre class to deliver clients really what they need in a one class program.

We have felt really well positioned because we are in the long game of fitness. We believe it's more important that you get up every day and commit to yourself. Fitness is part of something that you wanna do versus something you have to do. We want it to be part of your everyday and something you enjoy.

The community is really key to our business because it also is what drives accountability. We rely on the strength of the individual owner who's super passionate about the product. Those passionate owners are what creates the local community for the new studio. As a franchise, we really focus our time and energy on the product, meaning the class and training we offer. We have an incredible training process to support instructors to deliver a phenomenal class through our mentors' certification process and education. Owning and really controlling that is key because a client comes in the door and yes, it's important that they love the people there, but what's most important is that they get a great class taught by an phenomenal instructor. That is what we as a franchise really want to preserve. 

The other key is understanding what metrics are really important to a successful business. In fitness, it's more how many new clients do you have? Who do you have on membership versus class packages? And really leaning into the numbers because that provides you long range insights into the health of your business."

Our incredible training process supports instructors to deliver a phenomenal class through our mentors' certification process. Owning and controlling that is key because it ensures clients get a great class taught by an phenomenal instructor.

- Anna Martens, barr3

Thinking outside the box

It's no easy feat, but finding something completely unique in the fitness industry can really cement your popularity. Becky Cerroni, President and COO of Go Saga at LYMBR says: "Within fitness and wellness, there is a lot of space for recovery. We've seen cryotherapy and different types of restorative therapies come into the market. There's still a lot of space for what I call kind of pre-physical therapy which is essentially what assistive stretch is. Providing people with both a restorative experience and also the ability to increase flexibility so they can continue doing the things they love.

Assistive stretch is living between physical therapy and massage. Our training program is double the number of hours as the national average or competitor. It's really important to understand that you have a therapist treating you who has a depth of knowledge that's far beyond what you're gonna see in the market, then they can prescribe the number of times you need to come, the areas you need to work on, etc., and you really can't do that unless you have a very knowledgeable provider. 

I actually find amazing, coming from fitness, that LYMBR is the only brand that offers stretches in a chair. Upper body stretching is actually quite difficult to do when you're laying down. The range of mobility is obviously not as much as you would be as you're in a chair sitting upright. We've been operating within Google for over two years now as the exclusive stretch company. And we've maintained a five star rating within the company, so I definitely think there's a need for it. I think there's a trend towards companies adopting pre-wellness ventures. Not just thinking about it as a kind of treat for employees but also understanding that you're treating people before injury, which is super important for bigger corporations. And you're providing a service to employees where they feel taken care of. "

The other thing about stretch is that compared to some other things that you might have offered in terms of services within a company, there's no need to change clothing. There's no kind of issue with having to take a shower or change after before or after, the appointment. I think for workforce for both the employer and the employee, it's just a much easier transition back to the desk.

Nurturing your community

In additional to the operational side of running a business, it's important to be present in the community and encourage a sense of belonging to keep members feeling positive and engaged. Julie Cartwright, President at Pvolve, a proprietary fitness method unlike anything else on the market, says: "We have many ways we engage our studio and franchise community. Hosting events and workshops is a crucial part of the membership experience at Pvolve studios. Studio events focus on a range of topics related to health and wellness, including nutrition, pelvic floor health, recovery techniques, pre/postnatal care, and beyond. These gatherings create a space for members to interact, learn, and grow together, strengthening the community bond.

Challenges are an incredible way to drive excitement and camaraderie, as people are all working towards the same goal. We make a big deal, adding enhancements to studio decor that speak to the challenge theme and offering fun prizes and swag. Perhaps the most beloved part of the challenges are the tracking cards that get posted on a highly visible wall that shares a member’s goal, challenge progress, and even a Polaroid picture. These challenges can be completed in-studio or via on-demand classes, with the goal of meeting our members where they are.

Pvolve is an innovative, low-impact workout that combines functional fitness with patented resistance equipment. This method focuses equally on longevity and healthy aging alongside aesthetics. We partner with other health and wellness brands to offer special benefits such as discounts on IV, recovery, supplements, saunas, and gear. These cross-collaborations inspire a community of like-minded individuals to explore outside the four walls of the studio and take their wellness practices to the next level. 

Pvolve is overseen by a Clinical Advisory Board (CAB) made up of Medical Doctors, a Physical Therapist, and a Sports Physiologist. With the help of the CAB & Top Trainers, Pvolve is committed to science and validating the fitness method through clinical research trials with leading universities on lower back pain, mobility, strength, and lean muscle mass. The method’s emphasis on low-impact, functional workouts that support the body and encourage longevity is highly differentiated from other methodologies within the fitness landscape, which has long championed the notion of “no pain, no gain.”"

Today's customer is focused on a holistic approach to their health, fitness, and wellness programs. They are looking for ways to not only address their fitness needs and goals, but rather a 360 degree approach to optimize their health.

- Kathleen Ferguson, Coach 360

Check out our guide on How to leverage the 2024 fitness trends in your facility.

 
A special thank you to our featured speakers:

Kathleen Ferguson, CEO and Founder at Coach 360
Christine Dang, General Manager at BASI Pilates
Diego Guimarães, CEO & Founder at INFINITY, beyond fitness
Allison Beardsley, CEO and Founder at Red Light Therapy
Brandon Cullen, Co-founder and Chief Concept Officer at MADABOLIC
Anna Martens, COO at barr3
Ann Marie Barbour, Business Development at Lumin Fitness
Becky Cerroni, President and COO of Go Saga at LYMBR
Emre Ozgur, Co-Founder and CEO at Safe Sweat
Mauro Frota CEO and Co Founder at BHOUT
Julie Cartwright, President at Pvolve