• Acquired by Olympus Partners in 2022, Excel Fitness is up to 164 Planet Fitness locations and counting as the Texas-based operator says it’s already secured multiple 2025 pipeline sites.

• As a system, Planet Fitness hit 2,637 units in the third quarter, and its new CEO is charting a path to broaden the appeal of the high-value, low-price gym brand.

With its acquisition of Texas Family Fitness, one of the largest Planet Fitness franchisees extended its reach in the Dallas-Fort Worth market.

Excel Fitness, based in Austin, Texas, and now with 164 locations, bought Texas Family Fitness and its 11 gyms, the company announced in December. Seven of those locations are converting to Planet Fitness, said Excel CEO CJ Bouchard, with the remaining four closing because they are in close proximity to existing Planet Fitness units. Excel did not disclose the purchase price.

“Acquisitions provide a unique opportunity to continue accelerating growth by leaning on an existing membership base and continue offering a similar club experience, as well as a shorter timeframe for converting vs. building units,” Bouchard said in written comments.

Texas Family Fitness opened in 2003 and was known in the area for its affordable rates and child care offering. The deal gives Excel Fitness more than 50 locations in the Dallas-Fort Worth area and 77 total gyms in the state. Its other locations are spread across Oklahoma, Arkansas, Missouri, North Carolina, Virginia, Tennessee, Georgia and Utah.

Excel’s growth, said Bouchard, comes from a blend of buy and build. Earlier in 2024 it acquired a fellow Planet Fitness franchisee and it finished the year with eight new builds.

“As Excel’s footprint grows in established markets, there will be a healthy balance of these two growth vehicles,” he said. “However, with the increased vacancies from recent retail fallout, Excel is continuing to see more and more second-generation box availability and have already secured multiple 2025 pipeline sites.” 

Excel, Bouchard noted, is one of the fastest-growing operators, and he said purchases like that of Texas Family Fitness “demonstrate Excel’s performance and the company continues to benefit from established markets with sustained population growth, like DFW. The pandemic fueled consumer adoption of fitness and Excel has continued to build units and capitalize on this demand.”

Greg Attwood and Mike Turner formed Excel Fitness in 2007. At 18 units in 2016, they sold the business to Altamont Capital Partners, the private equity owner of leading Taco Bell operator Tacala. Altamont exited its investment in 2022 with the sale to Olympus Partners.

The group had 91 units when Olympus acquired it, said Bouchard, who’s been CEO since 2021. It’s since acquired 44 units and built 29 new Planet Fitness gyms. 

Planet Fitness brand evolution underway

In her second earnings call since taking over as CEO in June, Colleen Keating said the company is making several important pivots to ensure it maintains its industry leadership.

“First is to redefine our brand strategy and pull it through our marketing. Second is enhancing our member experience. Third is refining our product and optimizing our format. And fourth is accelerating new club growth,” said Keating, according to a transcript of Planet Fitness’ third quarter earnings call November 7.

Keating, the former CEO of rental home property management company FirstKey Homes, replaced Craig Benson, who filled in following the ouster of longtime CEO Chris Rondeau in September 2023.

Among the initiatives is a move to broaden the brand’s audience by appealing to beginners and returning gym-goers. “We are doubling down on our efforts to establish Planet Fitness as the club that welcomes all fitness levels, from beginners to more advanced, whether they’re starting a fitness journey or running another marathon,” said Keating.

Planet Fitness, which finished the quarter with 2,637 locations and reported a systemwide same-club sales increase of 4.3 percent, raised its prices last year for the first time in more than two decades. New classic card members pay $15 per month, up from $10. PF Black Card members pay $25 per month to access any club and use amenities such as massage chairs.

Read more: Planet Fitness Tests Price Increases, Announces Changes to Franchisee Model

“We’re beginning the shift to communicating the high value of a Planet Fitness membership versus primarily focusing on our low price, and using our marketing to demonstrate the breadth of high-quality top-tier equipment in our clubs,” said Keating.

The price increase, she noted, generated a supportive response from franchisees and is accretive to their average unit volume at the 12-month mark for existing clubs and is “quite favorable for new club openings, as they’ll have a majority of their joins at that minimum threshold.”

Outgoing Chief Financial Officer Tom Fitzgerald (new CFO Jay Stasz started November 15) said with the price increase the company expected a slight membership decline for the third quarter, “which was more than offset by the rate improvement on classic card and higher Black Card mix.” Black Card users account for 63.1 percent of Planet Fitness members.

In the gyms, which typically span 20,000 square feet and are packed with cardio machines, more strength equipment is being added while cardio pieces are reduced. This is in response to member feedback, Keating noted, and is expected to save franchisees money on new builds and reequips.  

The long-term club count target in the U.S. is 5,000, said Keating, with the traditional large format locations as a primary growth vehicle. Planet Fitness is working on smaller footprint clubs for infill locations and less populated areas.

The cost to open a Planet Fitness ranges from $1.5 million to $3.7 million if equipment is financed. Average gross sales for franchise clubs in 2023 were $1.7 million.