What’s happening: The global boutique studio franchisor announced a divestiture of rowing franchise Row House.
XPOF will transfer ~80 open studios and rights to 300+ licenses to Extraordinary Brands, franchise operator of Southern cycling chain pūrvelo.
Full House
Mired in a federal probe for alleged securities violations, interim CEO Brenda Morris said Xponential will prioritize “time and resources on the brands that best fit our portfolio.”
And the shakeup is already in motion.
In February, XPOF divested from treadmill concept STRIDE Fitness.
Earlier this year, it opened KNRGY, a dance fitness concept founded by Julianne Hough.
Per its latest earnings call, it ceased additional licensing for dance fitness concept AKT.
Playing favorites, the franchisor is accelerating the expansion of weight loss clinic Lindora, selling 40 licenses since acquiring it in March.
Reaffirming guidance, XPOF believes its portfolio can reach 8.4K locations in the US alone, including 1K Lindora sites.
Looking ahead: In turmoil, Xponential is banking on its most profitable concepts — which could mean others are on the way out.
We break down how fitness, wellness, and healthcare are converging — and what it means for business, culture, and capital.
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