Xponential Fitness, Inc. (‘XPO Inc.’), through its principal operating subsidiary, operates as a global franchisors of boutique health and wellness brands.
The company’s principal operating subsidiary is Xponential Fitness LLC (‘XPO LLC’). The company operates a diversified platform of eight brands spanning across verticals, including Pilates, indoor cycling, barre, stretching, boxing, functional training, metabolic health, and yoga. In partnership with its franchisees and master franchisees, X...
Xponential Fitness, Inc. (‘XPO Inc.’), through its principal operating subsidiary, operates as a global franchisors of boutique health and wellness brands.
The company’s principal operating subsidiary is Xponential Fitness LLC (‘XPO LLC’). The company operates a diversified platform of eight brands spanning across verticals, including Pilates, indoor cycling, barre, stretching, boxing, functional training, metabolic health, and yoga. In partnership with its franchisees and master franchisees, XPO LLC offers energetic, accessible, and personalized workout experiences led by highly qualified instructors in studio locations throughout North America and internationally, with franchise, master franchise, and international expansion agreements in 49 U.S. states, Puerto Rico, and 30 additional countries as of December 31, 2024. The company's portfolio of brands includes Club Pilates, the largest Pilates brand in the United States; CycleBar, the largest indoor cycling brand in the United States; StretchLab, a concept offering one-on-one and group stretching services; YogaSix, the largest franchised yoga brand in the United States; Pure Barre, a total body workout that uses the ballet barre to perform small isometric movements, and the largest barre brand in the United States; Rumble, a boxing-inspired full-body workout; BFT, a functional training and strength-based program; and Lindora, a provider of medically guided wellness and metabolic health solutions, which was acquired on January 2, 2024.
The company built the Xponential Fitness brand portfolio through a series of acquisitions, targeting select health and wellness verticals. In curating the company’s portfolio, it identified brands with exceptional programming and a loyal consumer base, which would benefit from its operational expertise, franchising experience, and scaled platform. With extensive industry experience, the company’s management team and brand presidents are the driving force behind its operational excellence. The company has established a proven operational model (the ‘Xponential Playbook’) that helps franchisees generate compelling studio economics. The key pillars of the company’s Xponential Playbook include: optimizing the studio prototype and investment cost; thoroughly vetting franchisee candidates; real estate identification, site selection, studio build-out, and design assistance; comprehensive pre-opening support, including membership sales, marketing support, employee training, and programming development; detailed studio-level operational framework and best practices; intensive instructor and studio-level management training; the company’s robust digital platform offerings that allow franchisees to generate incremental revenue; data-driven analytical tools to support marketing strategies, member acquisition, and retention; sophisticated technology systems, including uniform point-of-sale and reporting systems, to drive studio-level performance; a centralized model capable of providing resources to franchisees in the event of exceptional crises; and ongoing monitoring and support to promote success.
The Xponential Playbook is designed to help franchisees achieve compelling Average Unit Volumes (‘AUVs’), strong operating margins, and an attractive return on their invested capital. Studios are generally designed to be between 1,500 and 2,500 square feet in size, depending on the brand. As of December 31, 2024, franchisees were contractually committed to open an additional 1,607 studios in North America.
Growth Strategies
The company’s strategies are to grow its franchised studio base across all brands in North America; drive system-wide same-store sales and grow AUV; and grow its brands and studio footprint internationally.
Brands
The company has curated a portfolio of eight brands that span a variety of popular fitness, wellness, and health verticals, including Pilates, barre, cycling, stretching, yoga, boxing, metabolic health, and functional training. Collectively, the company’s fitness brands offer consumers specialized and personalized workout experiences that appeal to a broad range of ages, fitness levels, and demographics. Under the company’s suggested operating model, consumers may purchase recurring monthly memberships, single classes, or private one-on-one training services for each brand. The company has created a robust digital platform of recorded workouts that can be easily accessed at home or on-the-go. Lindora complements the company’s other brands and helps it deliver on its members’ increasing demand for a holistic approach to health.
Franchisees have the opportunity to purchase merchandise for sale in studios and online. To ensure consistency across the studio base, the company requires franchisees to order merchandise directly from it or approved vendors. Examples of merchandise include at-home fitness equipment, such as light weights, exercise mats, balls, and exercise bands; fitness apparel, such as leggings and t-shirts; and accessories, such as water bottles and towels. Merchandise is offered from popular athletic retailers, as well as fitness apparel and accessories featuring the company’s brands’ logos and slogans.
Club Pilates
The company was the largest Pilates brand by number of studios as of December 31, 2024. The programming tracks Joseph Pilates’ original Reformer-based Contrology method and is modernized with group practice and sophisticated equipment. The company’s Club Pilates franchises offer consistent, high-quality Reformer-based Pilates workouts in an uplifting and supportive atmosphere. As of December 31, 2024, there were 1,200 operational studios and 1,856 licenses sold globally.
There are nine signature Club Pilates class formats, including introductory, cardio, strength training, stretching, and suspension options, among others. Club Pilates offers an extensive training certification. Its 500-hour teacher training program includes comprehensive Pilates education, including: Mat, Reformer, Jumpboard, Springboard, Cadillac, Chair, Ladder Barrel, Spine Corrector, and Magic Circle.
Under the company’s suggested operating model, customers may purchase recurring monthly memberships for four, eight, or unlimited monthly classes. There is also the option to purchase single walk-in classes, as well as one-on-one private training classes. The typical studio is approximately 1,500 square feet and is designed to allow up to 12 people to work out together. Some studios also offer private one-on-one classes.
Pure Barre
The company was the largest barre brand by number of studios as of December 31, 2024. Pure Barre offers a range of effective, low-impact, full-body workouts for a broad range of ages and fitness levels, designed to improve strength, muscle tone, agility, flexibility, and balance. Pure Barre has cultivated a large and passionate consumer base through the combination of effective programming, an energetic in-studio experience, and a supportive and community-oriented culture. As of December 31, 2024, there were 626 operational studios and 800 licenses sold globally.
There are five signature Pure Barre class formats: introductory, strength and power, balance and flexibility, classic barre, and interval training. Pure Barre offers a specialized multi-tiered teacher training program, which includes both classroom and on-the-job training. The typical studio is approximately 1,500 square feet and is designed to allow up to 26 people to work out together.
StretchLab
StretchLab is a leading assisted stretching brand. StretchLab was created to help people improve their health and wellness through customized flexibility services. It appeals to customers across a broad range of ages and fitness levels and is highly complementary to the company’s broader brand portfolio. As of December 31, 2024, there were 529 operational studios and 1,005 licenses sold globally.
StretchLab offers one-on-one and group assisted stretching sessions. Most of StretchLab’s customers purchase one-on-one sessions. StretchLab offers an extensive training program for ‘Flexologist’ instructors. The teacher training program includes both classroom and on-the-job training. Under the company’s suggested operating model, customers may purchase monthly memberships for four, eight, and unlimited group sessions per month. There is also the option to purchase single group sessions. One-on-one assisted stretching sessions can be purchased in recurring packages of four, eight, or 12 classes per month, as well as in single one-on-one sessions. The company’s studio is designed to be between 1,000 and 1,500 square feet and is equipped with approximately ten stretch benches.
YogaSix
The company was the largest franchised yoga brand by number of studios as of December 31, 2024. With modern-day yoga instruction, the company’s diverse yoga and fitness programming includes movement and intensity to help customers achieve their fitness goals. As of December 31, 2024, there were 194 operational studios and 635 licenses sold globally.
There are six signature YogaSix class formats: introductory, slow flow, stretching, hot yoga, cardio, and strength training. YogaSix offers an extensive accredited teacher training program for Registered Yoga Trainers. The 200-hour program includes both classroom and on-the-job training. Under the company’s suggested operating model, customers may purchase recurring monthly memberships in packages of four, eight, or unlimited monthly classes. There is also the option to purchase single classes. The typical studio is approximately 2,000 square feet and is designed to allow up to 40 people to work out together.
BFT
BFT offers community-based 50-minute functional, high-energy strength, cardio, and conditioning-based classes across multiple workout programs, each designed to achieve the unique health goals of its members. As of December 31, 2024, there were 331 operational studios and 766 licenses sold globally.
There are fourteen signature BFT class formats, consisting of cardio, high-intensity interval training, and strength, which are programmed in specific layouts to progress members through a strength training program. BFT offers a specialized training program for BFT coaches, which includes online training, classroom, and on-the-job training. Under the company’s suggested operating model, customers may purchase monthly memberships for eight, 12, and unlimited monthly classes. There is also the option to purchase single walk-in classes. The typical studio is approximately 2,500 square feet and is designed to allow 36 people to work out together.
Rumble
Rumble is a boxing-inspired brand offering a high-energy workout experience with the ultimate fusion of boxing, HIIT, and strength. The Rumble experience is built around the motto that ‘how you fight is how you live,’ inviting consumers to develop their inner fighter and build confidence, courage, focus, and stamina. The Rumble boxing community welcomes all fitness levels to Rumble together. As of December 31, 2024, there were 103 operational studios and 394 licenses sold globally.
There are two studio formats, signature and boutique, both of which deliver a premium entertainment, culture, and fitness experience split evenly between the skills and drills of boxing and the transformative power of resistance training. The workout is an explosive, 45-minute, 10-round experience with state-of-the-art equipment found only at Rumble. There are various class options for multiple levels and interests, ranging from an introductory class for first-timers to more advanced classes that feature strength or boxing separately. Under the company’s suggested operating model for the signature format, customers may purchase monthly memberships for four, eight, or unlimited classes a month, or class packages ranging from 1 to 30 classes. There is also the option to purchase single walk-in classes. Under the company’s suggested operating model for the boutique format, customers may purchase monthly memberships for four, eight, or unlimited classes a month, or class packages ranging from 1 to 20 classes. The studios following the signature format are designed to be around 3,500 to 4,500 square feet to allow about 60 people to work out together, while studios following the boutique format are designed to be around 2,500 square feet to allow about 48 people to work out together.
CycleBar
The company was the largest indoor cycling brand by number of studios as of December 31, 2024. It provides a variety of low-impact, high-intensity indoor cycling workouts that are inclusive for a broad range of ages and fitness levels. CycleBar offers an immersive, multi-sensory experience in state-of-the-art ‘CycleTheaters,’ led by specially trained instructors, enhanced with high-energy ‘CycleBeats’ playlists and tracked using rider-specific ‘CycleStats’ performance metrics. As of December 31, 2024, there were 204 operational studios and 565 licenses sold globally.
CycleBar has a number of signature class formats, including metrics-focused classes and ‘unplugged’ classes in which metrics are not tracked. CycleBar offers a specialized training program, which includes both classroom and on-the-job training. Under the company’s suggested operating model, customers may purchase monthly memberships for four, eight, or unlimited monthly classes. There is also the option to purchase single walk-in classes. The typical studio is approximately 2,000 square feet and is designed to allow up to 50 people to work out together.
Lindora
Lindora complements the company’s existing brands and will help it deliver on consumers’ increasing demand for a holistic approach to health. As of December 31, 2024, there were 30 operational clinics and 114 licenses sold globally.
Lindora is a leading provider of medically guided wellness and metabolic health solutions. For over 50 years, Lindora has helped clients live healthier lives through its suite of services that support metabolic health, including weight management programs that incorporate nutrition, lifestyle, exercise, and the latest innovations in weight loss medications; IV hydration; hormone replacement therapy; and other services. Lindora’s boutique wellness experience begins with a personalized assessment, medical exam, comprehensive lab panel, and body composition analysis to determine a benchmark of the client’s overall metabolic health. Clients can then choose plans that include weight loss programs, clinician counseling, booster shots, and more.
AKT Wind Down
During the three months ended September 30, 2024, the company announced the wind down of AKT franchise operations. As part of the wind down, it began terminating franchise agreements with existing AKT studios and signed a licensing agreement with a former franchisee for no consideration received. As of December 31, 2024, there were no operational AKT studios, with the exception of the studio operating under a licensing agreement.
New Studio Development
The company’s small-box format studios have the flexibility to be located in a variety of retail buildings and shopping centers, and it considers locations in both high- and low-density markets. The company seeks out locations with its target customer demographics, high visibility and accessibility, and favorable traffic counts and patterns. It uses internal and third-party analytic tools to access demographic data that it uses to analyze potential new and existing sites and markets for franchisees. The company guides franchisees through the site selection, build-out, and design processes during the development of their studios, ensuring that the studios conform to the physical specifications for their respective brands.
Franchise Development Team
The company has a dedicated sales team to help promote and coordinate sales and resales of franchises at the corporate level. It has created a scalable and sustainable model through which it identifies potential franchisees. In addition, the company has a team dedicated to training and supporting franchisees in lead generation, sales conversion, and customer retention support. The company also works with third-party brokers to generate sales leads for potential new franchisees.
Studios
As of December 31, 2024, franchisees operated 2,758 studios in North America and 475 studios internationally. In 2024, franchisees opened 353 studios across North America, as well as 111 studios internationally.
The company continues to drive the international expansion of its studio base. It currently has in place master franchise and international expansion agreements that grant master franchisees the right to sell licenses to potential franchisees in 30 countries that it has targeted for near-term expansion. As of December 31, 2024, there were 475 studios open internationally, and the master franchisees were contractually obligated to sell licenses to franchisees to open an additional 1,043 studios, of which master franchisees had sold 237 licenses for studios not yet open as of December 31, 2024. As of December 31, 2024, franchisees were contractually committed to open an additional 1,607 studios in North America under existing franchise agreements.
Fitness Equipment
The company’s franchised studios contain state-of-the-art fitness equipment from an array of suppliers. Franchisees are required to order replacement or upgraded equipment within five to ten years, depending on the manufacturers’ guidelines.
Digital Offering
The company’s digital offering is available 24 hours a day, 7 days a week, and delivers highly engaging live-streamed and on-demand fitness classes from all of its brands. The company covers the cost of production for its digital content. Pure Barre members who purchase a ‘LifeStyle’ membership, as well as all StretchLab, BFT, and Lindora members, receive a subscription at no additional cost. Other members across its brands may purchase a digital subscription from a studio or directly from the company. The company receives a platform fee from franchisees for each digital subscription that is purchased from a studio.
The company offers digital subscriptions on an individual brand basis, as well as an all-access package. The company’s digital platform offers a great selection of digital workouts with multiple class formats within each brand, and it expects to continue to grow and refresh that content. The company’s digital platform is attractive for franchisees, as it allows them to upsell a better value proposition to their members. It also allows the company to market local studios to standalone digital members based on their geographic location.
Marketing
Marketing Spending
National advertising: The company manages a marketing fund for franchisees, with the goal of building national awareness for its brands. The company focuses its marketing efforts on national advertising and media partnerships, developing and maintaining creative assets to support local sales throughout the year, and building and supporting the Xponential Fitness community via digital and social media for each of the company’s brands. The company’s franchise agreements require franchisees to contribute 2% of their monthly gross sales to the marketing fund of their respective brand.
Local marketing: The company’s franchise agreements require franchisees to spend at least $1,500 per month on approved local marketing to support promotional sale periods throughout the year and continue to build the brand in local markets. All franchised studios are supported by the company’s dedicated franchisee marketing team, which provides guidance, tracking, measurement, and advice on best practices. Franchisees spend their marketing dollars in a variety of ways to promote business at their studios on a local level. These methods typically include media vehicles that are effective on a local level, including direct mail, outdoor (including billboards), social media, radio advertisements, and local partnerships and sponsorships.
Social media: The company has an engaged social media platform for each of its brands, which further raises brand awareness and creates a community among its members. Each brand has a dedicated social media page run by the company, and it also maintains a corporate social media page where it seeks to engage personally with customers. In addition, franchisees operate social media accounts at the local level. The company provides franchisees with social media consulting during the pre-opening phase in order to help them maximize their social impact.
Digital: The company utilizes digital advertising at the corporate level to drive awareness for its digital platform offerings.
Intellectual Property
As of December 31, 2024, the company owned approximately 91 registered trademarks and service marks in the United States and approximately 377 registered trademarks and service marks in other countries, including ‘Xponential,’ ‘Pure Barre,’ ‘StretchLab,’ ‘YogaSix,’ ‘Club Pilates,’ ‘CycleBar,’ ‘Rumble,’ ‘Lindora,’ and ‘BFT.’
Government Regulation
The company is subject to a trade regulation rule on franchising, known as the FTC Franchise Rule, promulgated by the U.S. Federal Trade Commission (the ‘FTC’), that regulates the offer and sale of franchises in the United States and requires it to provide to all prospective franchisees certain mandatory disclosures in a Franchise Disclosure Document (‘FDD’). In addition, the company is subject to state franchise sales laws in approximately 20 U.S. states that regulate the offer and sale of franchises by requiring it to make a business opportunity exemption or franchise filing, or obtain franchise registration prior to making any offer or sale of a franchise in those states, and to provide an FDD to prospective franchisees.
The company is subject to franchise sales laws in seven provinces in Canada that regulate the offer and sale of franchises by requiring it to provide an FDD in a prescribed format to prospective franchisees and that further regulate certain aspects of the franchise relationship.
The company is also in the process of updating and renewing the FDDs and, as a result, has paused selling franchises in all states, except in cases where an exemption permits sales to persons who meet specific criteria.
The company and its franchisees are also subject to the U.S. Fair Labor Standards Act of 1938, as amended, similar state laws in certain jurisdictions, and various other laws in the United States and Canada governing such matters as minimum-wage requirements, overtime, and other working conditions.
The company and its franchisees primarily accept payments for its memberships through electronic fund transfers from members’ bank accounts and, therefore, are subject to both federal and state legislation and certification requirements, including the Electronic Funds Transfer Act.
Additionally, the collection, maintenance, use, disclosure, and disposal of individually identifiable data by the company or its franchisees are regulated at the federal, state, and provincial levels, as well as by certain financial industry groups, such as the Payment Card Industry, Security Standards Council, the National Automated Clearing House Association, and the Canadian Payments Association. Federal, state, and financial industry groups may also consider, from time to time, new privacy and security requirements that may apply to the company or its franchisees and may impose further restrictions on its or their collection, disclosure, and use of individually identifiable information that are housed in one or more of its or their databases. These security requirements and further restrictions, including the General Data Protection Regulation (‘GDPR’) and the California Consumer Privacy Act (‘CCPA’), grant protections and causes of action related to consumer data privacy and the methods in which it is collected, stored, used, and disposed of by the company, its franchisees, and applicable third parties.
History
Xponential Fitness, Inc. was founded in 2017. The company was incorporated in the state of Delaware in 2020.
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