The Dual Dynamics of ‘Fit House of Brands’:
Booming Franchises Amid Financial Instabilities
As a Pilates Business Consultant, I specialise in building high-turnover, high-profit business models that help clients avoid the common trap of running financially mediocre, lifestyle-driven studios. While it's tempting to praise venture capital-funded franchises and multi-site ventures as success stories, the reality is often more complex. A closer examination can reveal challenges for both franchisors and franchisees that aren’t always visible on the surface.
Navigating Through Financial Challenges
F45 (Now a subsidiary of ‘FIT House of Brands’), the Australian fitness giant, despite boasting robust franchisee numbers and an expansive global presence, faces significant financial turmoil. Valued at US$1.4 billion following its IPO in June 2021, the company has since experienced a dramatic decline. This downward trajectory was marked by a steep 75% drop in share prices following its decision to delist from the New York Stock Exchange due to non-compliance with listing standards and ongoing financial losses, culminating in a valuation of just US$88 million.
Strategic Expansion Through Pilates Concepts
Amidst these financial challenges, ‘FIT House of Brands’ has strategically launched two innovative Pilates Apparatus based concepts: FS8 and Vaura Pilates.
FS8, introduced in 2021, blends Pilates (many in the Pilates world would disagree) with yoga (again many would disagree in the Yoga world) and toning exercises, targeting a niche in low-impact, holistic workouts. In contrast, Vaura Pilates, launched more recently in New York City, brings a dynamic approach to fitness on the Pilates Reformer (as opposed to Reformer Pilates), infusing high energy and athletic training into traditional practices. These launches are not just about diversifying ‘Fit House of Brands’ portfolio but are pivotal in tapping into the booming market for Pilates and mind-body wellness, aiming to stabilise and expand the brand’s reach.
The FIT House of Brands: A Vision for Integrated Wellness
In response to the evolving fitness landscape, F45 announced the launch of the FIT House of Brands, an umbrella organization that consolidates F45 Training, FS8, and Vaura Pilates. This strategic move, led by CEO Tom Dowd, aims to redefine the brand’s narrative and expand its market reach through holistic wellness offerings. The FIT initiative represents a critical pivot, focusing on a more integrated approach to health and fitness, emphasising both physical and mental well-being.
Future Outlook: Stability and Growth
Despite the financial headwinds, the strategic introduction of FS8 and Vaura Pilates under the FIT House of Brands umbrella could be the keystone for F45's stabilisation and future growth. By broadening its fitness offerings and tapping into the lucrative wellness trend, F45 is positioning itself to not only recover, but also thrive in the competitive fitness industry. The company's ability to innovate and adapt offers a hopeful outlook for franchisees and investors alike, suggesting a potential rebound from its current fiscal challenges.
Author: Chris Onslow - Pilates Consultant
Chris Onslow, has run Pilates focussed businesses since 1998. He and his team specialise in supporting Pilates entrepreneurs and business owners. With a rich history of owning and running successful Pilates studios in the UK, and supporting others in Europe and the Middle East, Chris has broad expertise in maximising profitability and optimising operational efficiency. His agency provides top-tier advice on selecting new, pre-owned, and hireable Pilates equipment from renowned brands such as Align-Pilates, Balanced Body or Stott-Pilates/Merrithew. As the founder of Mbodies Training Academy, Chris continues to revolutionise Pilates education, offering premier online and hybrid CPD and qualification courses for Pilates apparatus instruction and special population CPD.