The next step for Snap Fitness, the fast-growing 24/7 franchise, is the establishment of a parent company called Lift Brands. The parent company will serve as an umbrella organization for Snap Fitness’ many fitness concepts, which include Snap Fitness, 9Round, Kosama, STEELE 365 and Fitness on Demand.
The tag line of Lift Brands is “elevated wellness companies.” According to Peter Taunton, the founder of Snap Fitness, Lift Brands has been in the works since 2008, when the company began pursing vertical integration. In the process of that pursuit, it established financing, construction, real estate, franchise sales, legal, franchise training and franchise support arms. Combined, those arms make up the resources that Lift Brands provides companies under its guidance.
As a result, each and every fitness concept under the Lift Brands umbrella has the tools necessary to facilitate growth and success. “Our goal was to create a supportive platform for our franchisees,” said Taunton. “They’re so loyal and are such good operators.”
According to Taunton, Lift Brands is unique in that the company looks at the acquisition of concepts as partnerships, not just purchases, especially with company founders. “Take 9Round as an example,” said Taunton. “We’ve made some changes, but all in the spirit of enhancing the product and making it scalable … We’re not looking to buy a company and then do all the work. The founders are all extremely involved.”
For Taunton, Lift Brands also provides a unique opportunity for the franchisees under it. “We have hundreds of franchisees who are interested in expanding,” he said. “We allow them to open additional businesses that are still in the health, fitness and wellness space, but different. There’s a lot of opportunity.”
In January 2014, Snap Fitness announced in had taken on substantial investment from TZP Capital Partners, a private equity fund focused on investments in lower middle market business and consumer services companies. According to Taunton, the investment had no impact on the creation of Lift Brands, as it was something the company had been working on for some time.
Taunton hinted that additional acquisitions of concepts within the fitness and wellness space could be in the works. “We’re always looking for innovative, new concepts that we can look at, consulter, partner with and grow,” he said.
Altogether, Lift Brands’ portfolio of companies boasts 2,900 locations open or in development in 15 countries worldwide.
By Rachel Zabonick
