A fixture in small towns across Illinois, Fitness Premier becomes one of the first affordable gym brands to launch a medical weight loss program. It’s also eyeing growth across America
Fitness Premier, a mid-priced gym chain based in Illinois, adding a medical weight loss program as the brand eyes franchise growth in small markets across the United States.
The 19-unit gym franchise will be piloting a medical weight loss affiliate program across four of its locations, it announced. Fitness Premier says the program was designed in partnership with a “trusted vendor,” and aims to provide members with safe, effective, solutions for losing weight through integrations with personalized fitness and nutrition programs.
“Medical weight loss is a big thing across the country right now, and people in our communities don’t really have immediate access to it,” said Fitness Premier vice president Rick King. “It is one of the opportunities that we are exploring.”
The new program cements Fitness Premier as one of the first brick-and-mortar fitness brands to launch a medical weight loss program amid the rise of GLP-1s. Brands like Life Time, Equinox and F45 Training have launched their own programs catered to GLP-1 users, but brands on the lower end of the pricing spectrum like Fitness Premier have yet to embrace medical weight loss (a Fitness Premier membership typically runs between $40 and $60 per month).
The rise of GLP-1s presents a massive economic opportunity for gyms, valued at up to $6.8 billion according to one report. However, there’s been some disagreement among insiders about how feasible it is for gyms, especially low-cost-ones, to introduce safe medical weight-loss programs at scale.
Fitness Premier believes the timing is now right for gyms to get in on the action.
“There have been major advancements in the last four years, making it safer and more common,” King said. “What we’re working on is positioning this offering in a way that’s safe and makes sense for our franchisees and communities.”
Small Towns, Big Opportunity
Fitness Premier’s medical weight loss program comes as the gym brand gears up for expansion, particularly in small-town markets. Fitness Premier currently counts 19 locations in Illinois, Indiana and Georgia, with future locations in the pipeline for Florida and Colorado.
The gym franchise signed 6 new franchise agreements in 2024, which would grow its footprint by around 30%.
Fitness Premier looks to open gyms in towns with populations of between 10,000 and 30,000 people, seeing an opportunity in areas of the country that are typically underserved by big-box gyms and high-end boutique fitness brands.
“There’s not enough volume (in smaller towns) for the bigger players in our industry to run their model,” King told Athletech News. “It’s a huge opportunity for us because there are a lot of markets that fit our needs that the big players aren’t fighting over.”
Fitness Premier places a high priority on becoming a fixture in the local community in the markets it enters. The fitness brand is active in local chambers of commerce and hosts initiatives like 5K runs, according to King.
Operating in smaller markets also forces Fitness Premier and its franchisees to stay on their toes – you don’t want to get a bad reputation in a small town.
“What I really like about small markets is you have to do it right or you’re never going to make it,” King noted. “There’s only so many people, so you can’t funnel through members like you can in some of the bigger markets. You have to learn retention, sales, and relationships, and you have to dig deep into the community right from the beginning.”
The fitness brand also points to lower real estate costs per square foot in small towns as another reason they’re attractive for gym growth.
Tapping Into the Business of Recovery
While Fitness Premier operates in small markets, it’s bringing big-city amenities. The gym brand recently launched Relax + Restore, bringing modalities like saunas, massage equipment and cold plunges to its gyms.
Relax + Restore services are available as part of a premium membership that usually runs $20 more per month than a base-level Fitness Premier membership, allowing the brand to drive additional revenue.
“We’re noticing that about 30% of our new members are buying that (premium) package right out of the gates,” King reports.
Recovery services have also allowed Fitness Premier to appeal to a new customer base, attracting members who wouldn’t ordinarily come into a gym.
“We’re attracting people to recovery that haven’t been attracted to us over the last 20 years to buy fitness,” King said. “We’re marketing that recovery area almost as a standalone, and we have people coming in who only plan on using that recovery room.”
Road to 100 Locations
Fitness Premier currently counts 19 locations with several more in the pipeline, but the brand sees much more runway for growth with its small-market model. The brand recently sold multi-unit franchise deals in Colorado and Florida, and the growth may not stop there.
King notes Fitness Premier has been laser-focused over the last few years on growing its back-office team to support franchisees at scale. With those back-office functions now squared away, the brand is entering expansion mode.
“What we do on the back end for our franchisees is above and beyond what you’ll typically get in most franchise networks,” King said.
Fitness Premier likely won’t ever become as big as the likes of Planet Fitness or Crunch Fitness, but it does plan to significantly grow its portfolio of gyms in the years ahead.
“We’re not looking to be a brand that has 1,000 locations,” King said. “We’re looking to be a brand that maintains its integrity and looking to grow it with franchisees who are aligned.”
“Our reach goal was always 50 (locations), but we’ve been discussing internally, and we’re moving the target to 100,” he added.
