Xponential Fitness, Inc. Announces Exclusive Strategic Development Agreement with the Operator of the LA Fitness and City Sports Club Brands
November 04 2021 - 9:00AM
Business Wire
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
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 press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20211104005355/en/
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 Xponential Fitness, Inc.
Founded in 2017 and headquartered in Irvine, California,
Xponential Fitness, Inc. (NYSE: XPOF) is a curator of leading
boutique fitness brands across multiple verticals. Through its
mission to make boutique fitness accessible to everyone, the
Company has built and curated a diversified platform of ten
boutique fitness brands spanning across verticals including
Pilates, indoor cycling, barre, stretching, rowing, dancing,
boxing, running, functional training and yoga. In partnership with
its franchisees, Xponential Fitness offers energetic, accessible,
and personalized workout experiences led by highly-qualified
instructors in studio locations across the 48 U.S. states and
Canada, and through master franchise or international expansion
agreements in 10 additional countries as of October 13, 2021.
Xponential Fitness' portfolio of brands includes Club Pilates, the
nation's largest Pilates brand; CycleBar, the nation's largest
indoor cycling brand; StretchLab, a concept offering one-on-one and
group stretching services; Row House, a high-energy, low-impact
indoor rowing workout; AKT, a dance-based cardio workout combining
toning, interval and circuit training; YogaSix, the largest
franchised yoga brand; Pure Barre, a total body workout that uses
the ballet barre to perform small isometric movements; STRIDE, a
treadmill-based cardio and strength training concept; Rumble, a
boxing-inspired full-body workout; and BFT, a functional training
and strength-based program. For more information, please visit the
Company’s website at xponential.com.
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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211104005355/en/
Xponential Fitness Kimberly Esterkin Addo Investor
Relations investor@xponential.com (310) 829-5400
Fitness International, LLC Jill Grueling
mediarelations@lafitness.com
Xponential Fitness (NYSE:XPOF)
Historical Stock Chart
From Jun 2024 to Jul 2024
Xponential Fitness (NYSE:XPOF)
Historical Stock Chart
From Jul 2023 to Jul 2024