Two seasoned operators share what’s working, what’s not, and how a new fitness franchise can navigate today’s tougher landscape.
It’s no secret franchising is a great way to break into the business side of fitness. While the model can offer structure and scalability, it’s not without challenges — especially for those new to entrepreneurship.
In the latest Thought Leaders roundtable, two industry experts shared their insights into what’s driving success and creating challenges, along with advice on how new operators can prepare. The panelists included Ben Ludwig, the president of Colossians 3:23-24 Fitness Holdings, and Brandon Cullen, the founder and chief concept officer of MADabolic.
Ludwig and Cullen opened the discussion by reflecting on the current state of the franchising space. Both acknowledged slowing franchise sales — a shift driven by rising financial caution, market saturation and increased competition from high-value, low-price models.
“Francise sales have slowed; it’s been a tough year,” said Cullen, noting economic factors like negative press and an election year that could have made buyers more hesitant.
But not all is bleak. For both established and emerging franchises, leaning into specialization could be the path to success. “Boutique has to get back to being boutique, and that’s offering a specific service to a specific someone,” said Cullen.
In recent years, Cullen’s seen more studios try to appeal to everyone. Instead, he advises franchises to lean into what makes them unique — whether it’s a target demographic or distinct training style.
Ludwig also emphasized operators can’t afford to stay static. The key to longevity is constantly improving the member experience and evolving with trends.
“The best vehicles that last the longest are the ones that get the preventative maintenance,” said Ludwig. “And your business is no different.”
That maintenance could mean implementing a new AI scheduling tool, testing new marketing strategies or reimagining an existing program. The key is to be proactive and open to change, even if something doesn’t work.
As new owners enter the space out of passion for health and wellness, their experience doesn’t always match their excitement.
“What people don’t know is a franchise is a business within a bigger business,” said Cullen. “The franchisor’s role is to buy best practices, playbooks and support to help that individual business owner, and that is not talked about enough.”
Rather than selling franchising as an entrepreneurial dream, Cullen suggested first focusing on teaching new owners how to be excellent operators.
Inexperience can lead to issues like too much growth too fast. Ludwig advises new operators to be wary of hiring too much staff or buying too many locations. He also emphasized the importance of owning up to these mistakes and being able to move on creatively.
What’s next for the future of franchising?
While models like Pilates have seen extreme growth in recent years, Cullen thinks that trend may soon reach a ceiling — similar to what happened with indoor cycling. This is where innovation and evolving with the industry can be so helpful. Instead of chasing the next big thing, try innovating within existing trends and repackage familiar models.
From hiring knowledgeable leadership, having the courage to fail and evolving with trends, this advice from industry professionals may be what sets up your franchise for years of success.
