LIFTS Episode 29 - Franchising Challenges in Fitness: A LIFTS Discussion on Xponential's Issues

Escape Your Limits

Welcome back to LIFTS, on this special episode, Matthew Januszek, CEO of Escape Fitness and Mo Iqbal, Founder & CEO of SweatWorks discuss the recent changes at Xponential Fitness and the departure of Anthony Geisler with Jon Canarick, Managing Partner at North Castle Partners, they are the leading small cap consumer private equity firm focused in the Healthy, Active, and Sustainable Living sectors.

During this conversation, Jon offers his views on the potential impact of Anthony Geisler's departure from Xponential, particularly on brand acquisition efforts and the process of selling new franchises.

They delve deeper into insights around the lack of proof points and data available for potential franchises to properly assess the likelihood of success in a specific location.

Topics discussed include:

● Anthony Geisler's departure from Xponential and its potential impact.

● The lack of sufficient proof points and location-specific performance data provided to potential

franchisees before large-scale sales begin.

● Variability in boutique fitness studio build costs and revenue potentials.

● Lessons learned from Xponential and F45's rapid expansion strategies.

• Outlook on the fitness industry and opportunities for brands.

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0:00 Intro

1:27 The changes at Xponential Fitness

09:20 Investment in brands and the impact of rapid growth

12:35 Boutique fitness models and build out costs

16:25 Lack of proof points and how to educate potential investors opening up in the fitness market

18:37 The regulations required by franchises

23:37 How the impact of the news from Xponential will impact expansion strategies

32:38 Final thoughts