Xponential Fitness Signs Master Franchise Agreement in Kuwait for Rumble, Club Pilates, StretchLab and CycleBar
Posted: October 26, 2022 in Chains
Xponential Fitness
IRVINE, CA – Xponential Fitness, Inc. (NYSE: XPOF) announces it has signed a Master Franchise Agreement in Kuwait for its brands Rumble, Club Pilates, StretchLab and CycleBar. The deal, signed with Kuwait Real Estate Company, Aqarat, will result in the opening of a minimum of eight studios early in the initial 10-year term of the agreement, with additional studios to be developed based on market opportunity.
The Master Franchisee for Xponential in Kuwait is the publicly traded real estate development company, Aqarat, a prominent developer and manager of commercial, residential and hospitality properties in Kuwait and the Middle East, as well as Europe and the United States. Aqarat also has investments and joint venture agreements with the hospitality brands Yotel, Courtyard by Marriott, and IFA Hotels and Resorts.
Kuwait has the fourth largest fitness industry in the Middle East with annual revenue of nearly $240 million (USD) revenue, according to research from the International Health, Racquet & Sportsclub Association. The more than 600 fitness centers are a mix of local, regional and international operators, with boutique fitness early in its lifecycle and poised for growth.
“We are thrilled to be working with Aqarat to bring our world-class boutique fitness studios to Kuwait”, said John Kersh, Chief International Development Officer of Xponential Fitness. “Aqarat’s extensive real estate and hospitality experience is perfectly suited for our customer-focused brands, and they are well-equipped to deliver our immersive studio experiences to the Kuwaiti population.”
“Fitness in Kuwait is changing and growing fast,” says Saad Al-Muneefi, Vice President, Asset Management and Investor Relations of Aqarat. “We at Aquarat are invested in improving the lives of our community and are proud of this partnership with Xponential Fitness to realize our dream of bringing boutique fitness to the people of Kuwait in a very big way.”
The agreement marks the continued expansion of Xponential Fitness outside North America. The company currently has studios across multiple brands operating or in development in 15 countries including across North America, Europe, Asia-Pacific and Australia. Most recently in 2022, Xponential signed master franchise agreements for Club Pilates in Mexico and the UK, and for CycleBar in Japan.
