3 proven strategies for scaling fitness franchises

Strategy #1: Strategic partnerships and endorsements

Strategic partnerships remain one of the best ways to accelerate the growth of your franchise. Partnerships have always been uniquely effective for visibility and marketing positioning since time immemorial - but in today’s over-connected world, the right partnership ripples through vast networks of consumers.

Just this year, Studio Pilates built momentum in the US with a celebrity-led franchise expansion: Actor Jason Priestley and his wife, Naomi, are opening a studio in Nashville. Last year, we saw Planet Fitness partner up with Grammy-winning artist Megan Thee Stallion. With Gen Z hitting the gym-going age (the oldest Gen Z adult is 29), celeb endorsements become even more important, with 49% of this generation recently affirming that an endorsement from an Olympic athlete would impact their buying choices. 

However, if you’re going down the celeb route, your choice needs to be strategic and meaningful. 

Just look at Nike - once the poster child of expansion through partnerships, Nike has been losing their advocates to smaller brands which are more meaningful to the athletes in question. Even stars like Simone Biles and Roger Federer have ended their Nike partnerships for more creative control at smaller fitness companies.

Strategy #2: Vertical integration and service diversification

Vertical integration is beginning to do some heavy lifting when it comes to the strength of a franchise’s value proposition. This is when a franchise takes control of more steps along the road to their offering. This can reduce cost but also help to create a more comprehensive offering, with more control over the quality. 

For example, Clean Health recently acquired Nutrition Coaching Institute to enhance service offerings. They have an ambitious goal to “educate over a million fitness professionals by 2028”, and this acquisition will help to create a more comprehensive roadmap towards that goal. 

Expanding service offerings for customer retention

Expanding service offerings beyond the core business can create multiple revenue streams and increase customer lifetime. It's important to adapt to consumer needs and stay ahead of market trends.

One example is Remedy Place - recently scaling by expanding its offerings to include equipment, events, and at-home products.

Strategy #3: Targeted market expansion and acquisitions

Targeted market expansion and strategic acquisitions are non-optional for franchises looking to increase their market share and secure long-term growth. Anytime Fitness, for instance, recently celebrated the milestone of reaching 150 clubs in the Philippines, a testament to the power of well-executed market expansion. Identifying key markets with strong demand, such as emerging regions, can help franchises successfully enter new territories and establish a robust presence. This approach also helps mitigate the risks associated with over-saturation in more established markets.

However, choosing the right markets is easier said than done. DRIVE FITT targeted the emerging market in India, capitalizing on the rapid growth and demand for fitness solutions. Similarly, FS8’s strategic expansion into Europe and the U.S. shows how a thoughtful approach to international growth can drive success. The key in both examples is thorough market research and careful planning in selecting regions that offer both high demand and the potential for long-term profitability.

How Hapana can help scale fitness franchises

Forming strategic partnerships and endorsements, pursuing vertical integration and service diversification, and executing targeted market expansions and acquisitions are all core parts of scaling. These strategies, when implemented effectively, can significantly boost the growth and profitability of a fitness franchise.

Here at Hapana, our software is designed to support these strategies from the ground up. Book a tour of the software with our friendly team to see how.