Best Boutique Fitness Franchise Options and Why You Should DEFINITELY (or definitely not) Invest

It’s no secret the fitness industry is booming in the US. A record 64.2 million Americans belonged to a health club in 2019.  The figure is up from 62.5 million in 2018 according to the International Health, Racquet & Sportsclub Association.  It’s also no secret the boutique fitness industry is booming. In fact, the biggest growth sector in an IHRSA report reviewing the fitness industry, was boutique. These are the small, specialized fitness studios with big price tags for members or participants. They have household names like SoulCycle, Orangetheory, Row House, Pure Barre, and Club Pilates. According to the IHRSA, between 2013 and 2017, membership at traditional gyms grew by 15%, while membership to boutique studios grew by 121%. So what is the best boutique fitness franchise? More importantly, what do you need to know about the best boutique fitness franchise options out there today before you invest?

Let’s start by taking a look at the industry, what’s driving it, and what the pros and cons are.

The Pros

Profits.  Health club industry profits have drastically risen in recent years. For instance, from 2017-2018, profits rose 8% to $32 billion. The jump is at least in part due to the boutiques, whose consumers pay twice as much for memberships gyms like Planet Fitness, Crunch, or Gold’s Gym.

Shifting Culture Driving Growth.  Boutique brands are booming in part because they have transformed into a go-to social destination. In a recent survey performed by ASweatLife, a health and wellness media company, 78% of respondents were more likely to try a new workout with a friend. In an interview with CNBC, ASweatLife’s editor and chief, Kristen Geil noted of their largely millennial readership’s view on boutiques, “[i]t’s not necessarily the fitness aspect, but a fitness activity that’s replaced your standard happy hour [. . .]” Importantly, Millennials are the most health-conscious generation and have a buying power slated to reach $1 trillion by the end of 2020.

The Cons

Growing trends. On-demand fitness services such as Peloton, the Mirror, Tonal, and Aaptiv are growing quickly.  The companies are taking advantage of improved streaming capabilities and Millennials’ desires for personalization, freedom, and experiences over material things.

Last year, 21% of respondents to ASweatLife’s survey said they were spending on digital fitness, more than twice the share in 2016. The industry leader and behemoth, Peloton, a high-tech cycle with live streaming and on-demand classes on a built-in screen, has plans to go public. The company is currently valued at approximately $4 billion, as it quickly acquires users and eats into the traditional gym/boutique’s customer pie. 

Not recession proof. While growth in the fitness industry is strong now, these uncertain economic times raise caution for boutique investments. If a recession hits, consumers are more likely to drop boutiques with their high price premiums from their budget for cheaper gyms or streaming services. 

With the pros and the cons out there, what are the best boutique investment opportunities?  Here are some of the biggest names in the industry and some helpful information about them. 

The Best Boutique Fitness Franchise Opportunities

1. Cyclebar 

CycleBar is an indoor cycling fitness chain providing intensive boutique cycling classes at significantly lower rates than competitors like Soul Cycle. The Cycle Bar experience is built on three primary elements. CycleStars the companies dynamic instructors, CycleBeats, energetic playlists that can be downloaded online, and CycleStats, a stat tracker members use to track six key performance metrics. The classes feature in an intense environment and energy-enhancing video graphics and light shows.

Total Estimated Initial Investment: $284,350 to $497,150
Number or Existing Locations: Over 200
Liquid Capital Required: $150,000
Net Worth Required: $600,000 to $6,000,000
Franchise Fee: $50,000

2. Row House

Row House is fitness concept featuring immersive, energetic indoor rowing classes. The franchise offers 45-minute rowing workouts that are low-impact but high-intensity. Each of its six classes combine cardio, resistance training, stretching, and rhythm-based rowing. Every class is fueled by a good soundtrack. 

Total Estimated Initial Investment: $257,700 to $400,800
Number of Existing Locations: Over 250
Liquid Capital Required: $100,000
Net Worth Required: $500,000
Franchise Fee: $60,000

3. Orangetheory Fitness

Orangetheory Fitness is a boutique studio offering a 1-hour, high intensity interval training workout. Its routines encompass training endurance, strength and power for a full-body workout. The franchise uses heart rate-based interval training, which burns more calories post-workout than traditional exercise. Members wear an exclusive “OTbeat” heart rate monitor to track real-time results, which are displayed on large screens throughout the studio. Intensity is based on each individual’s heart rate zones, making the workout effective for all fitness levels. Certified coaches ensure participants do not over or under training.

Orangetheory offers a no-contract monthly membership fee that includes either unlimited or a set number of classes. The company experienced 952% U.S. franchise growth from 2014 to 2019.

Total Estimated Initial Investment: $560,000 to $1,000,000
Number of Existing Locations: Over 1,200
Liquid Capital Required: $150,000
Net Worth Requirement: $500,000
Franchise Fee: $60,000

4. F45 Training

F45 Training concept was launched by CEO Rob Deutsch, who wanted to create a fitness profram that offered a personalized approach without the personal training price tag. The franchise created 27 different workouts based on a high-intensity circuit training model. F45 also has a database of more than 3,000 exercises. New workouts and new exercises are constantly being developed.

The name is a nod to the workout’s concept. The “F” stands for “functional” (the types of exercises) and “45” is how long each and every class lasts in minutes

Total Estimated Initial Investment: $100,000 to $300,000
Number of Existing Locations: 985
Liquid Capital Required: $100,000
Net Worth Required: $150,000
Franchise Fee: $50,000

5. 9Round

9Round is a specialized fitness center offering a kickboxing themed fitness programs. The routines incorporate functional, interval, cardiovascular, and circuit training regiments. The programs consist of a proprietary system of nine challenging workout stations developed by a World Champion Kickboxer. Members can show up at their convenience, there are no class times. Trainers teach members how to wrap hands for support when punching.

9Round also incorporates heart rate training to ensure members stay in target fat burning zone. Every three minutes, members move to the next exercise station. After station nine, the 30-minute full-body workout is over. The company experienced 239.5% U.S. franchise growth from 2014 to 2019.

Total Estimated Initial Investment: $99,675 to $143,075
Number off Existing Locations: Over 600
Liquid Capital Required: $35,000
Net Worth Required: $150,000
Franchise Fee: $30,000

6. Club Pilates

Club Pilates offers workouts featuring a Reformer—a Pilates apparatus using a spring tension and body weight—for a full-body workout. The workouts are tailored to fit individual needs by comprehensively certified instructors. In addition to the reformer, Club Pilates classes feature additional pilates equipment pieces including TRX, Bosu, Springboard, EXO chairs, andTriggerpoint foam rollers, Club Pilates offers 7 different class styles at 4 different levels. There are also four different membership options based on the number of classes (4-pack, 8-pack, monthly unlimited, and annual). The company experienced an astounding 2,773.7% U.S. franchise growth from 2014 to 2019.

Total Estimated Initial Investment: $167,967 to $280,446
Number of Existing Locations: Over 850
Liquid Capital Required: $80,000
Net Worth Required: $300,000
Franchise Fee: $60,000

7. Pure Barre

Pure Barre offers an effective total body workout focused on low-impact/high- intensity movements that improve strength and flexibility. Barre itself, is a type of workout based on the use of a ballet barre. The routine has exploded in popularity in recent years. Pure Barre’s workouts use small movements for stretches and strength training designed to sculpt and shape the body. Pure Barre more than doubled its U.S. footprint in the last five years. The company expanded its number of U.S. franchises by 101.6% in the same time. 

Total Estimated Initial Investment: $178,350 to $370,000
Number of Existing Locations: 460
Liquid Capital Required: $90,000
Net Worth Requirement: $300,000
Franchise Fee: $60,000

8. iLoveKickboxing

iLoveKickboxing is a fitness boutique incorporating a kickboxing regiment into a high-intensity and strength conditioning workout. The program is class based, and each class includes a warm-up, punching bag drills, and partner work. Classes are designed to exercise the full body, and especially target the biceps, triceps, shoulders, back, abs, glutes, and quads.

Total Initial Investment: $214,944 to $559,494
No. Existing Locations: 256
Liquid Capital Required: $125,000
Net Worth Required: $500,000
Franchise Fee: $50,000

9. Burn Boot Camp

Burn Boot Camp is a women-only weightless fitness concept.  Catering to fitness-minded women, perks include free childcare, healthy food recipes, and personal fitness consultations. Burn Boot Camp also makes use of Facebook Live, Instagram, and YouTube to stay in touch with customers and let them know about promotions and fitness challenges. The concept was started by husband-and-wife team Devan and Morgan Kline. Devan, a former minor league pitcher launched a career as a Certified Personal Trainer shortly after leaving the baseball world. Founded in 2012, the company quickly gained its 219 current locations.

Total Estimated Initial Investment: $148,830 to $353,150
Number of Existing Locations: 219
Liquid Capital Required: $70,000
Net Worth Required: $300,000
Franchise Fee: $40,000

10. Iron Tribe Fitness

Iron Tribe Fitness offers a distinctive blend of group fitness and one-on-one coaching with weight training and HIIT programs for an intensive workout experience. Founded in Birmingham, Alabama — a city fondly nicknamed the Iron City for its rich history in iron and steel — Iron Tribe Fitness blends one-on-one coaching with group fitness. Workouts are limited to 20 participants and 45 minutes.

Total Estimated Initial Investment: $305,000 to $438,500
Number of Existing Locations: Over 38
Liquid Capital Required: $50,000
Net Worth Requirement: $250,000
Franchise Fee: $42,000