Franchise News
With North Castle staying on and new debt in place, the operator plans 24 openings this year, targets at least 100 more in five years and expands into Arizona with a member-first playbook.
CR Fitness Holdings, the largest franchisee in the Crunch Fitness system, received a strategic growth investment from Sixth Street, according to an Oct. 23 press release from the global investment firm. North Castle Partners, which led a majority investment in 2019 and recapitalized the business in 2022, remains the largest shareholder.
CR Fitness operates nearly 90 clubs across Florida, Georgia, North Carolina, Texas and Tennessee and plans to expand into Arizona. The company, co-founded by Vince Julien, Tony Scrimale and Jeff Dotson, expects to open 24 locations in 2025, including the previously announced acquisition of nine 24 Hour Fitness locations in Florida, and targets more than 100 additional clubs over the next five years. The franchisee is the system’s leader in unit volumes and sales.
North Castle’s Jon Canarick said the growth since the firm first partnered with CR Fitness underscores the brand’s model and team. “Partnering with Tony, Vince and the CR team since 2019, when the franchisee had just 19 clubs, has been an incredible journey,” he said. “In six years, the team has solidified CR Fitness as the leading franchisee in the Crunch system with a strong member-first culture. Sixth Street brings deep industry experience and values that align with ours and management’s, making them an ideal partner to support CR in its continued growth.”
Scrimale, CR Fitness’s CEO, pointed to execution and culture. “What sets CR apart is our people. We’ve built a team of talented regional leaders who know how to launch, operate and grow clubs the right way. That strength, rooted in a disciplined and proven playbook, allows us to expand with impact while keeping members at the heart of everything we do.”
Sixth Street framed the deal as a bet on both operator quality and the high-value, low-price segment. “We are extremely excited to partner with Tony, Vince, North Castle and the entire team at CR Fitness. Their record of execution speaks for itself, and is arguably the best we have seen in the high-value, low-price fitness space,” said Kayvan Heravi, who co-leads Sixth Street’s consumer team. Jenny Walsh, his co-head, said, “We see substantial whitespace ahead for CR Fitness. Beyond the growth opportunity, what stood out for us is how closely our teams are aligned on values: putting members first, empowering great operators, and building for the long term.”
Golub Capital provided a new senior debt facility supporting the transaction. Harris Williams advised CR Fitness; Jefferies advised Sixth Street. Morrison Cohen LLP served as legal advisor to CR Fitness and North Castle Partners, and Kirkland & Ellis LLP advised Sixth Street.
Read the original press release here.
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