boutique fitness franchise

The agreement expands Xponential’s footprint and membership base by bringing its boutique fitness brand studios to over 500 LA Fitness and City Sports Club locations across the country.

IRVINE, Calif. — Xponential Fitness, Inc. (NYSE: XPOF) (“Xponential” or “the Company”), a curator of leading boutique fitness brands, and Fitness International, LLC, operator of LA Fitness (“LAF”) and City Sports Club (“CSC”), today announced an exclusive development agreement. The agreement lays out a minimum development of over 350 franchised locations over five years to add Xponential brands in more than 500 Fitness International locations.

This development commitment will afford Xponential Fitness the opportunity to invite existing franchisees who own a studio with an LAF or CSC location within their protected territory to open an Xponential brand studio inside of these locations. A membership to an Xponential brand studio within an LAF or CSC facility will be available to existing gym members for an additional cost.

Studio development time and buildout costs of these locations will be less than those of a traditional standalone studio, and existing franchise partners will have an opportunity to drive additional revenues while operating these locations free of initial franchise fees and lower marketing fund fees. AUVs at these locations are expected to be lower than those of traditional studio locations; however, this opportunity provides for reduced operating costs than standalone studios.

“We are pleased to enter into an exclusive development agreement with Fitness International to further our mission of making boutique fitness accessible to everyone, increasing our total addressable market, and providing expansion opportunities to our franchisees,” said Anthony Geisler, CEO of Xponential Fitness, Inc. “This provides a unique opportunity for franchisees to increase their reach and overall revenue generation within their protected territories. We look forward to delivering best-in-class boutique fitness to the LA Fitness and City Sports Club communities.”

“We are proud to welcome Xponential brand studios to our LA Fitness and City Sports Club locations,” said Jill Grueling, President, Club Operations of Fitness International. “Xponential will bring additional high-quality fitness experiences to our members. We are confident their boutique fitness brands will provide an excellent complement to our members’ existing workout routines.”

Development of Xponential Fitness brand studios within Fitness International locations is expected to begin in the first quarter of 2022 and will not have an immediate impact on Company revenues during the current calendar year. Management looks forward to updating the investment community further on the strategic benefits of this partnership on its upcoming third quarter earnings conference call on November 11, 2021 at 2 PM PT / 5 PM ET. More information on the third quarter earnings call can be found on Xponential’s investor relations website.

About Fitness International
Fitness International, LLC is one of the fastest-growing health club chains in the U.S., with over 700 locations across 27 U.S. states and Canada. Operating the brand names LA Fitness, Esporta Fitness, and City Sports Club, the company’s mission is to help as many people as possible achieve the benefits of a healthy lifestyle by creating a nationwide network of health clubs, offering its members the widest range of amenities and the friendliest service at an affordable price. To learn more about Fitness International’s growth, visit lafitness.com, esportafitness.com, and citysportsfitness.com. Follow Fitness International on Facebook, Instagram or by downloading its mobile apps.

Forward-Looking Statements
This press release contains forward-looking statements that are based on current expectations, estimates, forecasts and projections of future performance based on management’s judgment, beliefs, current trends, and anticipated financial performance. These forward-looking statements include, but are not limited to, statement relating to the execution of the Company’s growth strategies.  Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from those contained in the forward-looking statements. These factors include, but are not limited to, the impact of COVID-19 pandemic on our business and franchisees; difficulties and challenges in opening studios by franchisees; the ability of franchisees to generate sufficient revenues; risks relating to expansion into international market; and loss or reputation and brand awareness; and other risks as described in the filings of Xponential with the Securities and Exchange Commission, including the Quarterly Report on Form 10-Q. Other unknown or unpredictable factors or underlying assumptions subsequently proving to be incorrect could cause actual results to differ materially from those in the forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance, or achievements. You should not place undue reliance on these forward-looking statements. All information provided in this press release is as of today’s date, unless otherwise stated, and Xponential undertakes no duty to update such information, except as required under applicable law.

IRVINE, Calif. — Xponential Fitness, Inc., a curator of leading boutique fitness brands, today announced that it has filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission (the “SEC”) relating to the proposed initial public offering of its Class A common stock. The number of shares to be offered and the price range for the proposed offering have not yet been determined. Xponential Fitness has applied to list its Class A common stock on the New York Stock Exchange under the symbol “XPOF.”

BofA Securities, Jefferies and Morgan Stanley are acting as joint lead bookrunners for the proposed offering. Guggenheim Securities, Citigroup and Piper Sandler are acting as bookrunners for the proposed offering. Baird and Raymond James are acting as co-managers for the proposed offering.

The proposed offering will be made only by means of a prospectus. A copy of the preliminary prospectus, when available, may be obtained from: BofA Securities, Inc., Attn: Prospectus Department, NC1-004-03-43, 200 North College Street, 3^rd Floor, Charlotte, NC 28255, email: dg.prospectus_requests@bofa.com; Jefferies LLC, Attn: Equity Syndicate Prospectus Department, 520 Madison Avenue, New York, NY 10022, telephone: (877) 821-7388, email: Prospectus_Department@Jefferies.com; or Morgan Stanley & Co. LLC, Attn: Prospectus Department, 180 Varick Street, 2^nd Floor, New York, NY 10014.

A registration statement relating to these securities has been filed with the SEC but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. Any offers, solicitations or offers to buy, or any sales of securities will be made in accordance with the registration requirements of the Securities Act of 1933, as amended.

Boxing Brand with Celebrity Ties Becomes Ninth Acquisition for Boutique Fitness Leader’s Curated Family of Franchised Fitness Brands.

IRVINE, Calif. — Xponential Fitness has announced today the acquisition of Rumble, the latest brand added to its portfolio, further highlighting the company’s position as the largest curator of boutique fitness brands in the world. Rumble, a boutique boxing concept, joins the other eight brands under the Xponential Fitness umbrella including Pure Barre, Club Pilates, CycleBar, YogaSix, StretchLab, Row House, AKT, and STRIDE.

Founded in 2017, Rumble delivers 45-minute, 10-round, full-body strength and conditioning workouts crafted around specially designed water-filled, teardrop-style boxing bags. The company was started in the heart of Chelsea in New York City and has since expanded into Los Angeles, Washington DC, Philadelphia, Palo Alto, and San Francisco, with a Chicago location coming soon.

Signaling Anthony Geisler’s ‘return to the ring’ after almost 10 years, the acquisition will see Xponential Fitness work quickly to start franchising the concept, leveraging its seasoned team with decades of fitness and franchising expertise. Rumble has massive brand loyalty and widespread appeal partly thanks to attracting top names like Justin Bieber, Selena Gomez, Kendall Jenner, Hailey Baldwin, Jason Derulo, David Beckham, and Kevin Hart to its studios.

“With its premium, world-class boxing experience, cutting-edge virtual workout platform, and celebrity reach, Rumble is a fantastic fit for our robust lineup of industry leaders across boutique fitness,” said Anthony Geisler, CEO of Xponential Fitness. “By adding Rumble to the Xponential portfolio, we’re opening up another core modality for our members to help them reach their health and fitness goals within our family of brands, as well as creating opportunity for entrepreneurs to bring this engaging workout to their market.”

In February, Rumble launched Rumble TV, a live and on-demand workout platform, to bring the Rumble experience home with an extensive collection of boxing, HIIT, strength, and running workouts.

“We are thrilled to announce our deal with Xponential,” said Andy Stenzler, Co-Founder of Rumble. “They are certainly the premier franchisor in our industry and thus the perfect partner to bring the Rumble experience across the globe.”

“Our loyal Rumble customers will love being part of the amazing family of Xponential brands that will cater to all of their fitness needs,” said Ashley Camerini, CEO of Rumble. “We are looking forward to seeing Rumble grow with such an incredible industry leader.”

Backed by Anthony Geisler and Snapdragon Capital Partners, Xponential Fitness saw extensive growth over the past few years, awarding 917 franchise territories and opening 394 new locations in 2019 and 263 franchise territories, and opening 240 new studio openings in 2020, even at the height of the coronavirus pandemic. Throughout 2021, the brands will continue to focus on accelerating growth domestically and internationally. Notable recent international debuts include five brands in Saudi Arabia, including Club Pilates, Pure Barre, AKT, YogaSix, and CycleBar, Club Pilates locations in Japan and South Korea, as well as the first of many CycleBar studios in Australia. New franchise agreements signed will also bring Xponential studios to Germany, Singapore, Spain, and the Dominican Republic.

To learn more about the Rumble franchise opportunity in the coming months, please visit https://www.xponential.com/rumble-franchise-inquiry

ABOUT SNAPDRAGON CAPITAL PARTNERS:

Snapdragon is a private equity investment firm founded in 2018 targeting concentrated investments in growth consumer businesses benefitting from long-term secular trends. Snapdragon invests in both majority and minority positions with health & wellness as one of its core areas of focus.  In addition to Xponential Fitness, Snapdragon is an investor in Nutraceutical, a vertically integrated provider of branded supplements, personal care, and other natural products.

ABOUT RUMBLE:

Rumble is a group fitness company with locations in New York City, Los Angeles, Washington DC, Philadelphia, Palo Alto and San Francisco, with a Chicago location coming soon. Rumble Boxing was founded in January 2017 as a boxing-inspired group fitness concept in the heart of Chelsea in New York City. The experience is a 45-minute, 10-round, full-body cardio and strength workout crafted around specially designed water-filled, teardrop-style boxing bags. In 2021, Rumble launched Rumble TV, a live & on-demand workout platform, to bring the Rumble experience home with an extensive collection of boxing, HIIT, strength, and running workouts. Rumble was founded by Noah Neiman (former Barry’s Bootcamp Master Trainer, and cast member of Bravo’s Work Out New York), Eugene Remm (Co-Founder of Catch Hospitality Group (Catch Restaurants, CATCH STEAK, Lexington Brass), Andy Stenzler (Co-Founder Cosí, Kidville), and Anthony DiMarco (13-time IRONMAN, former Managing Director, Google).

Club Pilates, Pure Barre and CycleBar Rank at 104, 119, and 351 Respectively on the Coveted List.

IRVINE, Calif. — 2020 did not hold back the brands of Xponential Fitness, the largest curator of premium boutique fitness brands across eight different verticals. Three of the company’s brands – Club Pilates, Pure Barre and CycleBar – landed a spot in Entrepreneur magazine’s coveted 2021 Franchise 500 list as a result of another year of impressive unit growth, financial strength and stability and brand power. Club Pilates was ranked 104; Pure Barre was ranked 119, up from its previous spot of 300; and CycleBar landed at 351, up 128 spots from last year.

“The strong showing on Entrepreneur’s Franchise 500 across these three Xponential Fitness brands demonstrates that boutique fitness is here to stay and the best is yet to come,” said Sarah Luna, President of Xponential Fitness. “Our members love the world-class workouts and unmatched sense of community we provide, whether that’s inside our studios or virtually, and these rankings are a testament to our franchise owners’ passion, commitment and hard work day in and day out, especially given the challenges 2020 presented them.”

In Entrepreneur’s continuing effort to best understand and evaluate the ever-changing franchise marketplace, the company’s 42-year-old ranking formula continues to evolve as well. The key factors that go into the evaluation include costs and fees, size and growth, support, brand strength, and financial strength and stability. Each franchise is given a cumulative score based on an analysis of more than 150 data points, and the 500 franchises with the highest cumulative scores become the Franchise 500® in ranking order.

While some fitness brands struggled to find their footing following the onset of the pandemic and other challenges that arose in 2020, Xponential Fitness proved to be a beacon of resilience and creativity in the industry. When adversity struck, franchise owners were empowered to pivot by offering outdoor and virtual workouts, with some brands even renting out equipment to keep members healthy and engaged. The company’s strategies have proven effective as it has retained more than 86% of members across all eight brands, which also include YogaSix, Row House, StretchLab, AKT, and STRIDE.

Xponential Fitness also saw extensive growth over the past year, signing numerous franchise deals and opening new locations around the world, even at the height of the coronavirus pandemic. Notably, the company opened five brands in Saudi Arabia, including Club Pilates, Pure Barre, AKT, YogaSix, and CycleBar locations, as well as the first of many CycleBar studios in Australia. Exciting new franchise agreements signed will also bring Xponential studios to Germany, Singapore, Spain and the Dominican Republic.

Beyond the in-studio experience in 2020, Xponential debuted online workouts across all of its brands last year through its proprietary streaming platform called GO, bringing premium classes directly to consumers’ homes.

To view Pure Barre, Club Pilates and CycleBar in the full ranking, visit www.entrepreneur.com/franchise500. Results can also be seen in the January/February 2021 issue of Entrepreneur, available on newsstands January 26. For more information about all Xponential Fitness brands, visit www.xponential.com.