Xponential Fitness uses tech, communication and aesthetic detail to establish franchising success

Editor’s note: When this article originally ran in ATN’s Fitness & Wellness Franchise Outlook Report, Sarah Luna served as Xponential Fitness president. She has since left the company

Xponential Fitness didn’t grow to become the largest global franchisor of boutique fitness and wellness brands, encapsulating over 3,000 locations, on a whim. Instead, the brand implements a detailed approach to franchising, simultaneously providing partners with the necessary guidance for success and adequate freedom to operate effectively in their specific markets.

“For us, it’s really about doing what we do well in each of the brands and the locations, owning that modality, and being the best within that particular market,” said Sarah Luna, the former president of Xponential Fitness. “There’s a ton of work, a ton of thought, that goes into it.”

While it may not be shocking to hear that one of the health and wellness industry’s largest brands invests significant time and energy into its franchising strategy, the broad nature of those efforts is rather singular. 

From using cutting-edge software to developing close connections with franchisees, Xponential covers all corners of the franchising game with its Club Pilates, CycleBar, StretchLab, BFT, Pure Barre, Rumble Boxing, YogaSix, and Lindora locations.

Foundations for Franchising 

Xponential does its homework before adding a new location to its network, or rather, it deploys tools that do it. With Buxton, a consumer technology software system, Xponential can determine whether a potential new location will succeed or not before putting pen to paper. 

“We run all of the data through Buxton and we do that in advance of purchasing a company and adding it to our portfolio,” Luna explained. “We want to know everything about the customers and the members that make that location successful. Next, we extrapolate that across the entire U.S. to understand how many other pockets of lookalike customers there are available and then what type of AUVs that produces for a franchisee.”

Xponential takes that data and determines what type of margin it will provide for franchisees and whether or not it’s scalable in certain locations. This all helps Xponential make informed investments and monitor them for years to come as well. 

“It’s that groundwork, even prior to jumping into a brand,” said Luna. “Then, once we have a brand underneath our roof, we’re constantly running that data through the Buxton system to see how customer cohorts have shifted, even to the level of having our marketing initiatives shift the type of customer that we’ve brought in.”

Relationships & Communication

From the application process all the way through to year 10, 20, or 40 of being a franchisee, Xponential also prioritizes communication with its partners. Doing so helps everyone involved understand where their responsibilities lie and relay growth. 

“Our take is that it’s a relationship business at the end of the day and that relationship starts prior to a franchisee becoming a franchisee,” Luna said. “We establish strong lines of communication and engagement so they know what decisions they ultimately get to make at the local level and which decisions we make as a franchisor. Franchisees can run their business, but it still makes sense and still is complimentary for the larger brand.”

Xponential partners are often delegated tasks that use their tighter pulse on their market to everyone’s advantage, such as acquiring marketing assets or securing promotions. Communication from the HQ level involves the usage of Xponential’s cutting-edge tools, including a one point sales system that identifies trends and communicates findings to partners for them to adapt to. 

“We’re able to see the red lights and the green lights and when things are starting to either accelerate or decelerate,” said Luna. “Then we give those KPIs to our franchisees so that they know they have a blood test, a litmus test, at the local level, and know what’s happening within their own business. They can raise their hand and tag in the corporate team, or vice versa and we can help them navigate the business.”

A Detailed Approach to Scaling 

While these advanced solutions and omnipresent communication have their place in spurring franchise success, simple concepts like a consistent feel and atmosphere remain important when scaling as well for Xponential. 

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“It starts with the ambiance of the location,” said Luna, when asked how Xponential makes sure all its sites have the same energy beyond its flagship ones. “What does the floor look like, to the millwork and to the painting? That’s going to set a very particular tone. Same thing with the lighting and the smell. It’s tapping into all the different senses of a customer.”

This replication effort extends out to the staff as well. Xponential makes sure that its brands facilitate the same experience no matter where their buildings are and who’s working inside of them. 

Xponential coaches its franchise partners on what to look for when hiring trainers or instructors. While a keen understanding of what health or wellness modality is being facilitated helps, it’s whether or not someone possesses a strong drive that makes or breaks their candidacy. 

“We’re training the front desk employees to the instructors and making sure there’s continuing education,” said Luna. “You’re bottling up that excitement and the coaching so that the end customer, no matter if they’re in Waco, Texas or in Anchorage, Alaska, they’re getting that same experience.”

“They’re not necessarily looking for the most technical coach or instructor, but they’re looking for someone who has a type of enthusiasm, passion and excitement for the brand who can be taught the technique, various classes and class formats,” Luna explained. “It’s really about getting the ambience right, the location right, tapping into the customer senses, and then from there, making sure that you’re continuing to hire and deliver an incredible product each and every day.”

This article originally appeared in ATN’s Fitness & Wellness Franchise Outlook Report, which explores the essential questions that can help determine if a franchise aligns with your personal and professional aspirations. Download the free report.