Franchise
Insights

The Boom Continues: World Domination Awaits?

In 2023 franchising exploded once more and has never been more popular, competitive or diverse than it is today. Many HVLP franchisors continue to expand rapidly and globally, rushing for real estate and first mover advantage in under-developed markets, or doubling down in successful markets. In addition, a wave of new franchisors caters to almost every demographic with trending concepts from Reformer Pilates, Stretch, Strength & Conditioning, HIIT, Cryotherapy, IV Therapy, Hot/Cold Immersion and Oxygen Therapy, are all rising in popularity. Franchisors continue to be more creative with their business models, territories, and floorspace designs – adapting their offerings to guarantee faster paths to profitability for franchisees. Many franchisors are also seeing record franchise sales but are struggling to get franchisees to build at their desired speed, as the fear of a global recession, inflation, rising real estate prices and post-pandemic challenges all now dawn on the recently sold franchisee. Success can be found for franchisees in creating a tight, fun, bustling community, one that has purpose and authenticity, especially in boutiques.

Strong demand for flexible, quality fitness at affordable prices continues to be resilient and value gyms are one of the fastest growing sectors in fitness. In the six countries that PureGym operates, this demand has delivered a robust performance across 2023 with the Group expansion continuing to 582 sites and 1.9 million members driving strong recovery in member growth +11% and EBITDA +39%. PureGym completed an £805m refinancing deal in September, one of the largest of its kind in the sector’s history, a huge vote of confidence in the high value, low price model. 2024 will see expansion of our franchise offering across new territories including Asia, encouraging millions more people to engage with exercise for the first time.

Francine Davis

Chief Strategy Officer
PureGym

Belgravia Health and Fitness has had a great 2023, with new Genesis Health and Fitness clubs opening, and Reformer Pilates being introduced into half the clubs, which has grown the number of members using our premium offerings, significantly. Rolling out the new club fit out has created a high level and modern feel to our clubs and we look to Elevate the appearance even further in 2024, with an increased wellness offer. Franchisee engagement with Genesis, Jump Swim Schools and Ninja Parc has never been stronger, with strong growth in all brands and sectors of the industry.