If you think your local gym is still just a place to hit the treadmill or join a 7 a.m. spin class, think again. The fitness world isn’t just about breaking a sweat anymore – it’s undergoing a full-body transformation, flexing new muscles in technology, personalization, and delivering a truly holistic experience.
Today’s fitness franchises are tech-savvy, wellness-obsessed, and laser-focused on consumer preferences. From AI-powered workouts that know you better than you know yourself to wellness hubs that treat your mind as well as your muscles, this is state-of-the-art stuff – and it’s only getting started.
The industry’s evolution is fueled by shifting consumer demands for personalized, tailored experiences. Fitness franchises are adopting some of the most innovative business models around, driven by rapid technological advancements. As we step further into the 21st century, we dive deep into how these franchises are leading the charge into the future, blending cutting-edge innovation with a comprehensive approach to health. Whether you’re a future investor or just curious about where the industry is headed, here’s your front-row seat to the future of fitness.
Technology and innovation
Technology is undeniably transforming the fitness industry, with forward-thinking franchises redefining the gym experience.
Digital fitness platform Fitness On Demand – a key division of Lift Brands, a global powerhouse that includes the 24/7 international gym franchise Snap Fitness – is a prime example.
“Fitness On Demand is about making fitness accessible to everyone, delivering holistic, personalized, and on-demand solutions through its four pillars: Group Studio, Flex App, Broadcast TV, and Digital Signage,” says CEO, Andy Peat. “These pillars elevate the fitness experience beyond what traditional gyms offer, adding a new dimension to the four walls of a club. Each pillar activates screens with top-tier content designed to motivate and retain members – crucial in an industry where 50% of new members typically quit within the first six months.”
The Group Studio offers over 1,200 on-demand classes at the touch of a button, while the Flex App caters to diverse wellness needs. Meanwhile, Broadcast TV and Digital Signage open new revenue streams and enhance member engagement through dynamic displays.
Fitness On Demand’s powerful analytics suite delivers real-time insights into member behavior, enabling operators to fine-tune offerings, boost retention, and maximize revenue. With gamification features and seamless integration with wearable tech and existing apps, the platform has driven a 115% increase in member engagement and a 66% surge in user numbers, with over nine million classes streamed in more than 20 countries.
Holistic wellness
A key trend in 2025 is the shift towards holistic wellness, where fitness is seen as part of a broader approach to health that includes mental well-being, nutrition, and recovery. Lift Brands and Xponential Fitness are leading this shift by incorporating comprehensive wellness offerings into their business models.
Snap Fitness, for instance, is expanding its recovery zones and enhancing its app to provide a more rounded member experience. And Xponential Fitness, a leading global franchisor of boutique health and wellness brands, has invested millions of dollars to enhance accessibility and personalization, creating a seamless customer experience. “We want our members to have access to an Xponential experience that matches their individual needs and interests, and we do this by approaching the experience in an omnichannel way,” explains Xponential’s president, Sarah Luna.
One of Snap Fitness’s most successful strategies has been its recent brand repositioning toward holistic fitness, encapsulated in the philosophy “All About the Feeling.” Ty Menzies, global CEO of both Snap Fitness and Lift Brands, credits this shift towards well-being for fueling “significant growth in global memberships and franchise sales.”
A key factor in this success is the innovative Snap App, which offers on-demand workouts, personalized training plans, nutrition guidance, and wellness content. Menzies emphasizes, “This digital-first approach has not only elevated member engagement and retention but also solidified our leadership in the market.”
At the core of Snap Fitness’s success is a business model that balances strong support with franchisee autonomy. With a full-time club manager handling daily operations, franchisees can focus on growth while maintaining a better work-life balance. “This approach has been highly effective, with 70% of territory sales last year coming from multi-unit franchisees,” says Menzies.
“There’s a growing demand for integrated solutions that cater to both physical and mental well-being, extending beyond the traditional gym environment,” he points out. “Snap Fitness is already capitalizing on this shift with its recent rebrand, which introduced the innovative Snap App and refreshed gym spaces. We’re poised for further global expansion, particularly in regions like APAC and EMEA, which present significant potential.”
As we approach the 2030s, Menzies sees significant opportunities in expanding digital and holistic wellness solutions, anticipating that AI-driven personalized training and virtual coaching will become normalized. In the shorter term, mental health and recovery services are set to expand, solidifying wellness as an indispensable part of the fitness experience. By enhancing the Snap App, integrating more personalized features, and introducing dedicated recovery zones in gyms, Snap Fitness is focused on the future. “We’re exploring new partnerships and digital strategies to support franchisee growth and further improve our standout member experience,” reveals Menzies.
“There’s a growing demand for integrated solutions that cater to both physical and mental well-being, extending beyond the traditional gym environment”
Ty Menzies, Snap Fitness
It’s this ability to innovate and invest in groundbreaking tech that marks out the fitness franchise sector as a significant driving force in the global wellness revolution.
Building on advancements already seen across the industry, Xponential Fitness is setting new standards in boutique studio fitness by investing heavily in digital and omnichannel solutions, as well as streamlining franchise operations by driving reliable revenue through recurring memberships. Perhaps most exciting of all, Xponential offers a seamless multi-brand experience under a single subscription, underscoring the industry’s move towards integrated, versatile fitness solutions.
Unsurprisingly, Xponential Fitness is blazing a trail in the international market, with a particularly strong presence in the APAC region – BFT, Club Pilates, StretchLab, Rumble Boxing, CycleBar, and very soon Pure Barre and YogaSix, are making significant waves in Australia and Japan. “Our mission is to build a substantial presence in key markets, driving consumer awareness and achieving economies of scale,” says Luna.
Xponential Fitness’s commitment to making boutique health and wellness accessible to everyone is a game-changer. Catering to a broad demographic – predominantly women aged 20-60 with a household income of $160K USD – the company’s vision for 2025 extends beyond fitness. Luna articulates a future where keeping fit is seamlessly integrated into a broader view of health and wellness. “We’re dedicated to delivering not just workouts, but a holistic experience that enriches every aspect of our members’ lives,” she highlights. “This means we’re dedicated to creating genuine value in more ways than fitness for our customers – we want our members to feel they get fitness, community, entertainment, and numerous loyalty perks and benefits for a small monthly membership. Our goal is to make that one hour in our studio enhance the other 23 hours of their day.”
Xponential’s model benefits franchisees too. The recurring membership system delivers predictability along with higher financial security, which franchise owners love. “Our franchisees appreciate the stability and comprehensive support we provide,” Luna says. This support isn’t just about initial training but includes strategic partnerships with digital solutions such as Wellhub, Optum, and Classpass, as well as ongoing assistance, ensuring that our partners and their studios thrive.
Looking ahead, Xponential is poised for impressive growth. With plans for around 8,400 locations in North America and more than 1,900 already under contract, there is considerable whitespace in North America for future development. Luna notes, “The opportunity for international expansion is significant, and we’re excited to continue developing our brands on a global scale. The fitness landscape is evolving, and we’re right at the forefront, ready to meet the changing demands of our consumers.”
Personalization
Anytime Fitness has long been a leader in the global fitness franchise industry, and recent innovations reveal exactly why. In an era where consumers increasingly demand personalized, holistic wellness solutions, Anytime Fitness has not only kept pace but has set the standard. The introduction of SmartCoaching technology, the AF App, and its partnership with Apple Fitness+ are all part of a broader strategy to meet the evolving needs of its members.
These tools make it easier for members to incorporate fitness into their busy lives, offering personalized plans that go beyond mere workouts to include holistic health and wellness goals. “We recognize that our members have unique schedules and diverse needs,” explains the Anytime Fitness global team. “SmartCoaching and our app make personalized wellness accessible to everyone, regardless of their location or daily routine.”
This focus on personalization is more than just a trend; it’s a driving force behind Anytime Fitness’s growth and member retention. Franchisees are seeing tangible benefits from these innovations, with increases in membership sign-ups, foot traffic, and loyalty. The welcoming environment fostered by these tools also enhances the overall member experience, making Anytime Fitness clubs a preferred destination for people seeking more than just a gym.
Globally, Anytime Fitness’s expansive footprint across seven continents positions it uniquely to capitalize on emerging trends like wellness tourism, where travelers increasingly prioritize fitness on the road. By offering digital tools that provide access to coaching and personalized plans anytime, anywhere, Anytime Fitness ensures that its members remain connected to their fitness goals, no matter where life takes them.
As the fitness industry continues to evolve, Anytime Fitness is committed to staying ahead of the curve. The brand’s investment in personalized plans and holistic wellness will remain central to its strategy in the coming years. “We’re focused on enhancing the member experience across the globe,” says the team, “and helping our franchisees and coaches make a positive impact in the communities they serve.”
In the broader context of fitness franchising, Anytime Fitness’s approach is setting the benchmark for others in the industry. The brand’s commitment to integrating recovery processes into the fitness experience, for example, reflects a wider trend that is rapidly gaining traction across the industry. It’s this forward-thinking strategy that ensures Anytime Fitness remains a leader in a fast-changing market, offering a model of success that others aspire to follow.
The boutique fitness sector is also seeing explosive growth, with brands such as Body20 and HOTWORX leading the way.
Ranked as one of the fastest-growing private companies in America, Body20 has plans to open over 85 new locations by 2025. The model’s success is partly due to its ability to operate with a relatively small member base, which supports significant potential for international growth, as well as its scientifically endorsed EMS (Electrical Muscle Stimulation) technology. With a smaller studio footprint compared to traditional gyms, the model reduces overhead costs and optimizes space efficiency.
“Most of our customers use Body20 as an anchor for a diversified fitness program, many with a sport or lifestyle-specific goal, whether it’s training for an event or enhancing performance in areas like tennis, skiing, or running,” says Jay Galluzzo, CEO. “Regardless of what drives them, they all value our personalized approach and the efficiency of our 20-minute workouts – there truly is nothing like it in the U.S. today.”
Meanwhile, HOTWORX has become a household name in boutique fitness since its inception in 2017. The brand has grown to over 670 locations, driven by its unique concept that blends heat, infrared energy, and exercise to maximize results in less time.
“Boutique fitness studios have increasingly become known for their more intimate and personalized workout experience, as opposed to the crowded and chaotic nature many national conglomerate chains are notorious for,” says CEO Stephen Smith. “Their truncated square footage allows for smaller class sizes, making workouts more approachable, and giving members a less-intimidating environment to make connections and friends during their session. This is a pivotal point to make as younger generations continue to express a strong preference for group workouts.”
This focus on personalization and a member-first approach is a hallmark of the evolving fitness landscape. As the competition in the boutique fitness franchise space intensifies, brands are leveraging clinical research into new and existing holistic modalities, proving the value of personalization and technology in delivering real results.
“Where boutique fitness brands may once have been seen as bougie and ineffective, the franchise model is making such concepts more accessible, shifting that narrative, and advancing the field as a whole,” Smith adds. “Round-the-clock accessibility at our locations is a standout feature in the boutique fitness industry, offering significant value to members managing busy professional and personal lives. Additionally, in an era when many consumers are looking to save time and money, HOTWORX provides a unique advantage. Our combination of infrared sauna therapy and on-demand workout classes typically requires multiple memberships from different brands. Here, members can achieve the benefits of a 90-minute workout plus recovery in as little as 15 minutes.”
Investment opportunity
For investors, fitness franchises present a compelling opportunity, offering a blend of stable recurring revenue and the potential for significant growth, especially as health and wellness continue to be top consumer priorities globally. The market is set to expand significantly, with projections indicating a $231 billion valuation by 2027, driven by factors such as growing awareness of health and fitness, the proliferation of digital fitness solutions, and the increasing demand for personalized, holistic wellness services.
Brands like Anytime Fitness, Lift Brands, Snap Fitness, Body20, HOTWORX, and Xponential Fitness are well-positioned to capitalize on these trends, offering diverse investment opportunities across multiple geographies and market segments. Investors are drawn to these brands not just for their strong track records but also for their innovative approaches to member engagement, digital integration, and global expansion.
However, as always, there are challenges in this competitive marketplace. “Consumers are being inundated with new fitness franchise concepts on what often seems like a weekly basis; many of which are staking their claim with often proprietary modalities with benefits that can’t be obtained as effectively or effortlessly anywhere else,” points out Stephen Smith. “That reality is posing two significant challenges to the fitness franchise industry. For one, competition in the space is becoming more heated than ever, and as a result, securing/retaining new members has become far more of a challenge than in years past. And second, those members want to see proper validation behind the modalities they’re spending their hard-earned dollars on—they want to see results for their efforts.”
As the fitness industry continues to evolve, it presents a lucrative opportunity for savvy investors. Whether it’s leveraging digital tools, expanding into new markets, or catering to the growing demand for personalized and holistic wellness solutions, the future of fitness franchising looks incredibly bright.
Brands that embrace technology, prioritize holistic wellness, and offer personalized experiences will not only survive but thrive, setting new standards for what it means to be a leader in this dynamic industry.
For franchisees, the opportunity lies in partnering with brands that are at the forefront of innovation. With the right support, training, and market positioning, owning a fitness franchise can be a rewarding and profitable venture, offering the chance to be part of an industry that not only delivers financial returns but also contributes positively to global health and wellness.
Trends to watch
- Tech-powered personalization: Fitness franchises are leveraging AI and wearable technology to create highly personalized workout plans and wellness routines. With apps and digital platforms tracking everything from your steps to your recovery, these tailored experiences not only boost member retention but also make fitness more accessible and results-driven than ever before.
- Holistic wellness integration: The future of fitness franchises goes beyond just physical workouts. Brands are expanding into holistic wellness, offering services like mental health support, nutrition guidance, and recovery therapies. This comprehensive approach aligns with consumers’ growing desire to address both their physical and mental well-being in a single space.
- Virtual coaching and hybrid models: As fitness becomes more tech-integrated, virtual coaching and hybrid memberships (combining in-person and digital workouts) are becoming standard. Franchises that offer seamless access to trainers and workout classes both online and in the gym will thrive, especially as members seek flexibility in how they maintain their fitness routines.
