Franchise News
As U.S. life expectancy drops and stress rises, the fitness industry is booming, driven by a shift toward wellness and recovery. Franchised studios offering efficient, scalable services lead the way.
In 2014, the American life expectancy peaked, beginning a slow decline that would accelerate following the onset of pandemic in 2020.
With an obesity rate amongst adults in the United States eclipsing 40%, the idea of physical fitness has begun taking on increased importance. Last year, fitness membership in the U.S. reached an all time high, with 77 million people over the age of 6 holding a gym membership.
With big box fitness centers dotting the American horizon, the future of fitness looks bright, with the American fitness industry set to reach a valuation of nearly $120 billion next year.
An embrace of wellness can help offset rising health care costs with the American wellness sector now worth a whopping $480 billion, rendering wellness franchises a major part of the U.S. fitness experience and creating a bright future for recovery studios.
In 1965, fitness franchisor Gold’s Gym opened its first location in Venice, California, operating more than 700 gyms today on six continents.
Thanks to iconic instructors like Jane Fonda and Richard Simmons, fitness moved indoors in the 80s upon the advent of exercise home videos (perhaps a harbinger of today’s rise of home-based exercise options like Peloton).
24 Hour Fitness opened its first location in 1983 and operates more than 400 U.S. locations today, ushering in the rise of franchised fitness chains like Planet Fitness and Anytime Fitness.
But today, franchised fitness centers like Orangetheory incorporate wellness as a significant part of the chain’s massive success, with a global presence now encompassing more than 1,500 locations.
Demand for efficiency and for relief from stress or injury has placed an increased emphasis on recovery services, which boast a standardized, scalable model perfect for high-growth franchising.
While the American wellness industry is worth $480 billion, there’s a very specific sector driving that growth, with corporate wellness set to reach a nearly $130 billion valuation of its own by 2033.
Although corporate wellness is often driven by the simple idea of lowering health care costs, stress is a factor, too: A stunning 80% of Americans reporting feeling stressed in the workplace, and 50% say it impacts their home lives. That raises the importance of overall fitness and wellness.
Athletes also help drive the trend, with professional athletes shining a mainstream spotlight on ideas like rest, nutrition, proper sleep, stress management and overall recovery. NBA star LeBron James has partnered with fitness/tech brand Tonal while tennis great Serena Williams is embracing her role as the first women’s health advisor for supplement brand Ritual.
The average consumer has proven willing to pay a premium recovery and for guaranteed time for relaxation that offsets stress. Athletes hammer home the idea that recovery is no longer optional; it is a necessary part of any workout.
Technology like smart phone apps and items including the Apple Watch, Oura Ring and Whoop make it easier than ever to track fitness and recovery, delivering valuable data that’s helped drive a greater embrace of wellness.
Fitness franchises may have led the way but wellness and recovery studios are coming on strong. Unlike gyms, recovery studios require a smaller footprint with less equipment, easing not just buy-in but maintenance.
Prioritizing process over product in a setting that standardizes services, recovery studios require less investment in costly or accredited instructors. Subscription models like membership or class packages can drive a recurring revenue stream, with the idea of franchising adding the idea of consistency to the equation, driving overall safety.
And nationally established brands are helping to place a bigger emphasis on the idea of recovery, with SweatHouz capitalizing on data to deliver a personalized experience alongside ideas like an infrared sauna experience, cold plunge and vitamin C shower.
DRIPBaR focuses on energy, anti-aging and immunity at more than 100 locations while FYZICAL Therapy & Balance Centers delivers advanced recovery solutions, holistic therapies and science-backed treatments at more than 500 locations.
Recovery today can take the shape of high-pressure oxygen treatments, IV therapy, injectables or merely the delivery of stress relief and escape.
Data has led to significant advancements driving the personalization of recovery services that have crossed over to the mainstream thanks to placement front and center on any smart device, celebrity endorsements and the testimonials of professional athletes.
Lowering the barrier of entry has helped drive growth of franchised wellness and recovery studios, with recovery quickly becoming an idea that’s less predicated upon luxury.
Increasingly becoming a fundamental part of the average American’s fitness experience drives both acceptance and interest among the average consumer, painting a bright future for wellness franchises as a significant part of the next fitness boom.
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