AUSTIN, Texas – F45 Training, the global fitness community known for its innovative and functional group workouts, has announced a record-breaking year in 2024. The company reports significant growth across its brands, including F45 Training, FS8, and VAURA, with a sharp focus on expansion and innovation. The fitness giant is not just resting on its laurels; it is actively setting its sights on further growth in 2025 and beyond, aiming to lead the boutique fitness industry into the future.
Record-Breaking Growth in 2024
The past year has been a landmark one for F45 Training. The company achieved its highest Average Unit Volumes (AUVs) in its 12-year history, a testament to its refined business model and strong franchisee support. This growth is underscored by several key milestones:
- Global Expansion: F45 Training opened 75 new studios across its brand portfolio, significantly expanding its global footprint. This expansion includes the F45 Training, FS8, and VAURA concepts.
- Franchise Growth: The company sold 87 new franchises across all brands, reflecting strong demand for its fitness offerings.
- Strategic Partnerships: F45 has established several strategic partnerships, enhancing its brand awareness and market reach.
- Increased Franchise Inquiries: The company has witnessed a 23% year-over-year increase in franchise ownership inquiries, showcasing the brand’s growing appeal to potential investors.
- Average Unit Volumes (AUVs): The company experienced a 12.4% increase in global AUVs, reflecting higher revenue per studio and increased customer engagement.
“Our hard work and focus resulted in 2024 being a best-ever and pivotal year for the company, marked by significant overall growth and the highest Average Unit Volumes (AUVs) in our 12-year history,” said Tom Dowd, Chief Executive Officer of F45 Training. “This success reflects our dedication to refining every aspect of our business model, delivering exceptional support to our franchisees, and aligning our offerings with what members truly value.”
Strategic Expansion and New Markets
F45 Training is not just expanding; it is strategically entering new regions with master franchise partners. This includes significant growth in:
- South Africa: F45 Training is expanding under the leadership of Functional Fitness South Africa Pty Ltd.
- South Korea: FS8, F45’s Pilates brand, is making inroads in South Korea with Embrace.
- United Kingdom and Europe: FS8 continues to grow its presence through its partnership with Club Sports UK.
These strategic partnerships are a testament to F45’s commitment to global expansion and adapting to local markets. The company is demonstrating that its fitness model can thrive in diverse regions, proving its adaptability and appeal across different cultures.
Innovation and Enhanced Offerings
F45 Training is not just about expanding its reach; it’s also about innovating and enhancing its fitness offerings. The company is investing heavily in:
- Reimagined Studio Design: F45 is introducing a refreshed studio design to enhance the member experience.
- New Strength Training Program: The company is launching a comprehensive strength training program, integrating functional racks into its studios. This includes power racks, barbells, cable systems, and landmines, allowing for foundational strength exercises and expanded programming options.
- Recovery and Wellness: F45 plans to further evolve its “Recovery and Wellness” concept, empowering members to optimize their training and overall well-being. This includes the introduction of recovery concepts like cold plunges, infrared saunas, and compression therapy in select studios.
These innovations show F45 Training’s dedication to staying at the forefront of the fitness industry, catering to the evolving needs and preferences of its members. By integrating recovery and wellness into their offerings, F45 is positioning itself as a comprehensive health and fitness solution.
Multi-Brand Portfolio Strategy
F45 Training is also leveraging its expertise in group fitness to expand its offerings beyond functional HIIT. The company’s multi-brand strategy includes:
- FS8: A Pilates, tone, and yoga hybrid that provides a low-impact, high-energy workout.
- VAURA: A premium athletic reformer Pilates experience.
These new brands address the growing demand for Pilates and yoga, offering diverse workout styles to appeal to a wider audience. F45’s leadership believes that within the next three to five years, FS8 and VAURA could potentially surpass F45 Training in studio numbers, reflecting their confidence in the booming Pilates market.
F45’s Focus on Trends
F45 Training is keen on staying ahead of fitness industry trends, and incorporating them into their studios. This includes:
- Functional Fitness: Emphasizing exercises that improve daily activities.
- Active Aging: Focusing on training systems that are safe for all ages and fitness levels.
- Recovery and Wellness: Integrating recovery concepts such as cold plunges and infrared saunas.
- GLP-1 Medication Support: Acknowledging the growing trend of weight-loss medications, F45 is offering support for its members who are taking GLP-1s. This includes guidance on exercise and nutrition to ensure healthy weight loss and muscle maintenance.
By tracking and integrating these trends, F45 ensures its training programs are relevant and effective, attracting and retaining a broad member base.
Strategic Partnerships
F45 Training has also been active in forging key partnerships with brands and organizations including:
- Hyrox and Spartan: Fitness competition brands that enhance the F45 training experience.
- Samsung: A tech giant providing technological enhancements to improve the member experience.
- Battle Cancer: A cancer-focused initiative, demonstrating F45’s commitment to social responsibility.
- REP Fitness: A partnership to introduce functional racks to enhance strength training in its studios.
- Dr. B: A telehealth provider, enabling members to combine F45’s fitness and nutrition tools with access to GLP-1 medications.
- Dietitian Live: A telehealth service that connects people with registered dietitians for nutrition advice.
These strategic alliances show F45’s comprehensive approach, enhancing not just their training but also support systems for their members.
Financial Performance
While F45 experienced a significant loss in past years, the company has taken steps to restructure, and is now on solid ground with its financials. Some key financial aspects include:
- Trailing 12-Month Revenue: As of June 2023, F45’s trailing 12-month revenue was $63.9 million.
- 2024 Average Unit Volumes: F45 has seen record-setting Average Unit Volumes (AUVs) in 2024, indicating improved financial performance.
- Revenue Growth: While there have been fluctuations in revenue, the company is showing signs of recovery and growth.
With a strong focus on revenue growth and financial stability, F45 is working to solidify its position in the fitness market and continue on a path toward future success.
Future Outlook
Looking ahead, F45 Training has aggressive plans to continue its upward trajectory. The company aims to:
- Expand Global Reach: Further expand into new territories and solidify its global presence.
- Enhance Member Experience: Continuously innovate and enhance the member experience.
- Develop New Concepts: Introduce new fitness concepts and offerings to meet the evolving needs of the market.
- Focus on Health and Wellness: Position F45 as a one-stop shop for all things health and wellness, including recovery, nutrition, and weight loss support.
With a strong leadership team, a proven track record, and a commitment to innovation, F45 Training is poised to continue leading the boutique fitness industry for years to come.
F45 Training’s remarkable growth in 2024, combined with its strategic focus on innovation, expansion, and health, positions the company to dominate the fitness industry. By embracing new trends, forging strategic partnerships, and enhancing its offerings, F45 is not only meeting the needs of its members but also setting new standards for the future of fitness. The fitness giant is showing that it’s not just a workout, it’s a lifestyle.
