Orangetheory Fitness Continues Aggressive Growth In First Quarter of 2018
Posted: April 24, 2018 in Chains
BOCA RATON, FL – Orangetheory Fitness, the scientifically backed and fast-growing fitness franchise, announced that it experienced significant growth in the first quarter of 2018, opening 61 new studios throughout the world, as well as signing 54 lease agreements and 34 franchise agreements to continue driving its global expansion.
As part of this accelerated development, Orangetheory grew its footprint in 27 states nationwide, opening nine new studios in California and five in Texas during Q1 alone, both of which are key target markets for the brand. These achievements are fueled by the company’s ongoing success and position the leading fitness franchise to achieve its goal of opening 1,100 studios by the end of 2018.
“Orangetheory Fitness has experienced incredible and unparalleled growth in less than a decade, and the compounding success we’ve already achieved this year is indicative that the brand’s global domination is just beginning,” said Mike Mettler, senior vice president of franchise development for Orangetheory Fitness. “This relentless momentum has allowed us to accelerate our franchise development efforts in several prime expansion markets like California and Texas, and we’re thrilled to continue tapping into the wealth of potential in these regions.”
Orangetheory has continued to experience a surge in franchise development, currently reporting more than 400 studios in the pipeline slated to open domestically. As a result, the company is seeking quality real estate to facilitate studio openings for franchisees throughout the country. To support these efforts, the brand will be exhibiting at the ICSC RECon Global Retail Real Estate Convention from May 20-23 in Las Vegas. Real estate professionals and retail proprietors interested in offering potential sites are encouraged to visit the brand throughout the show at booth #C2459, where Orangetheory executives will be available to discuss opportunities.
“There are a number of factors that make Orangetheory an exceptionally attractive tenant, including consumer demand for experiences, our small footprint that allows us to be in more places, and the distinct achievement of never having closed a studio,” added Mettler. “We look forward to meeting with potential partners at the convention and accelerating our efforts to identify the best real estate for our brand.”
Along with its impressive domestic growth, with an annualized growth rate (CAGR) of 76% over the past five years, Orangetheory Fitness continued its ongoing international expansion throughout the first quarter of the year, opening nine new studios in Canada, two in Australia and one in Guatemala. Its five-year international annual growth rate is an outstanding 96%. The company also signed five new international franchise agreements and 11 new studio leases, which will further drive its global presence throughout the year. This strong Q1 comes on the heels of the brand’s success in 2017, during which it signed 275 franchise development agreements, including its 1000th milestone franchise agreement. This explosive growth landed Orangetheory Fitness a #1 ranking on Franchise Times’ 2018 Fast & Serious list, naming the company the smartest-growing brand in the industry. This year, the leading fitness franchise is on track to achieve $1 billion in system-wide revenue and open more than 270 additional new studios.
Orangetheory Fitness launched its first studio in Fort Lauderdale, Fla. in March 2010, and has transformed into one of the world’s top fitness franchises, with more than 935 studios in 49 states and 17 countries. Based on excess post-exercise oxygen consumption (EPOC), the science backed, technology tracked workout uses heart-rate monitoring technology to measure members’ performance and improvement over time. Orangetheory’s coach-led workouts are designed to produce results and give members more energy, drive, health and overall – more life.
“We have combined a science based workout, cutting edge technology and over 4,000 skilled, passionate coaches to produce a workout considered by many of our 650,000-plus members and industry experts to be the best workout in the world” states David Carney, president of Orangetheory Fitness.