Franchise
Insights

Market Players

HVLP Boom and Boutique Evolution

The franchising landscape is rapidly expanding and evolving. Integration of technology is reshaping the industry, with frictionless member journeys, virtual offerings, AI-driven coaching, and advanced data analytics enhancing service delivery. As consumers seek personalized fitness experiences that encompass holistic wellness, nutrition coaching, and mental health resources, franchisors are fast figuring out how these can be added into their offering. HVLP franchises are flourishing with the likes of Planet Fitness, Anytime Fitness, Snap Fitness, Crunch Fitness and others enjoying boom-times. On the flip side we have seen a contraction in boutique fitness franchises as many high-growth companies slowed in their growth plans whilst colliding with the need for large investments into their franchise systems and teams to support growth on multiple countries and continents. However, there is a rise of boutique wellness franchising with sauna/bathing/recovery/spa concepts enjoying a blue-sky period of growth and consumer interest. This is similar growth in pickleball and padel franchising. What is perhaps widely concerning is the sold/open ratio, with some franchisors selling hundreds of units/franchises but their prospective franchisees being very slow to develop and open. On the finance and investment side, we saw the merger of Anytime Fitness and Orangetheory this year plus finance and M&A deals involving a range of franchisor and multi-site franchisee companies. Franchise was THE growth engine for the fitness and wellness industry in 2024.

Michael Jordan

CEO
UBX

We’re thrilled to see this year how our Extended Access feature is transforming the member experience. This innovation allows UBX members to train outside regular staffed hours, following our workouts without time constraints for unmatched flexibility. Alongside our staffed model and UBX On Demand, Extended Access completes our ‘Member Ecosystem,’ boosting convenience and member satisfaction. This model has also increased gym utilization and membership capacity, benefiting both members and franchisees. Extended Access seamlessly integrates without compromising workout quality, simply expanding the available training hours. Unlike structured, class-based programs, our model supports consistent training and staffing optimization, focusing resources during peak times while maintaining access during off-peak hours. This flexible, efficient approach embodies UBX’s ongoing commitment to world-class training that fits around members’ lives.

At Inspire Brands Asia, we are driven by a clear purpose heading into what we expect to be a booming 2025: to inspire growth for our franchisees, members, partners, and staff across our dynamic markets—Singapore, Malaysia, the Philippines, Hong Kong, Indonesia, Thailand, Taiwan, and Vietnam. Our brands, Anytime Fitness and SUMHIIT Fitness, are uniquely positioned to meet the increasing demand for wellness, backed by our signature member experience, tech stack, and community focus. With the largest consolidated regional network, we are laser-focused on hitting 500 clubs by end-2025 to better serve our 600-million-strong population. With over 70% of consumers in Asia-Pacific prioritizing fitness in this post-pandemic era, we are excited to lead this growth and take our role in shaping healthier futures seriously. 

Luke Guanlao

Co-Founder and Group CEO
Inspire Brands Asia (Anytime Fitness & SUMHIIT Fitness)

Adam Sedlack

CEO
UFC Gym

As I enter my third decade in our industry, I have so much pride on what we do as a community to impact lives.  From changing the physical and mental health of our members to the employment and careers of so many health-centric team members, we make a significant impact on so many lives. As I look at 2024, the industry not only made a full comeback from the days of covid but also continued to innovate in verticals like recovery, IV therapy and wellness. There has also been inspiring leadership with so many owners and operators driving a wider customer funnel, getting more people into clubs and facilities than ever before. As we voyage to 2025, the industry will continue to see growth and advancements like never seen before. I believe we will see the continued progression of (1) AI which will be utilised more than we think.  Not only as a leverage point for marketing but also creating improved consumer journeys while driving labor efficiencies. (2) Holistic Health will continue to leap forward in our ability to create an improved workout session while allowing for incremental revenue verticals. (3) Data, will not only be important for AI but will also improve an operator’s ability to properly segment consumer profiles to better service the member. (4) People, as we rely more and more on technology, AI, and digital platforms, we will need to have improved focus points on how we create the next generation of leaders. These are just some areas where I see the industry having incremental focus. Of course, there is one group of people that can change this direction in real time! That is our customers. Listening to our members will be more important than ever before. I wish everyone a great close to 2024 while they prepare for an amazing 2025.

Most club owners I’ve talked to around the world say they’re still only back to 85-90% pre-covid membership levels. They’ve increased prices and cut costs to get back to profitability, but this is a trap. Customers notice the cost cuts and go looking for something better. Clubs that are investing exciting new workouts and products are getting great results. We also have a generational change with Gen Z, and with that new tastes and trends to be catered for. As always, under 30’s are by far our biggest new joiner group, and they will tend to come back to their first club over and over throughout their lives. New group workout trends are packing out classes in clubs worldwide. Don’t miss this huge opportunity!
Phillip Mills

Founder & Executive Director
Les Mills International