You might have heard of, known, or even been a member of Orangetheory Fitness, the HIIT (high-intensity interval training) franchise, which is known for its holistic group sessions and heart-rate-based exercises. They have made their mark in the fitness world for over a decade now. Unfortunately, a few years back, they recorded signs of a sloped growth rate, which prompted them to merge while finding solutions to strengthen their legacy.
The Orangetheory business pattern depends on memberships. That is, they sell membership forms to people who would like to keep fit and boost their overall health by providing professional fitness instructors. Furthermore, they invest large capital to launch studios around the world and depend majorly on constant member acquisition for profit.
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What Are the Focus Areas for Orangetheory Franchises?
The following are the key areas they hope to improve:
Innovative Marketing Style
The Franchise’s board of directors has shown concern regarding the decline of members in a letter, which was written on the 16th of May, 2024. It states that, although, in January 2024, Orangetheory recorded 32,000 membership joins, which was the strongest pull compared to recent years. Furthermore, it states that the pull was a result of the $24 join promotion and not because people were really interested.
The focus now is to find a fresh approach to new and former demographics, which might provide a more competitive hand.
Cost Optimization
Just as it was stated in their letter, they recorded significant growth because of a promotion they introduced, which costs less. That is a sign that their membership fees might have been perceived as “too expensive.” They hope to explore cost-saving strategies without putting an end to rendering quality services. Maybe there will be more promotions in the coming months. Who knows?!
Technology Integration
The Orangetheory franchises are well known for their heart-rate-based fitness exercise, which relies heavily on heart-rate monitor equipment. If they leverage technology further, that might improve the services they provide and give members a better fitness experience. That includes, more virtual instead of physical sessions, introducing wearable technological devices, and lots more.
How to Retain Members
Orangetheory’s main focus was on getting new members consistently. They are not to blame because that is where their major profit comes from. However, they might have neglected the need to find quality methods to retain their existing members.
Existing members will keep renewing their membership if they find Orangetheory’s services top-notch. There they should integrate more personalized sessions and build a more solid community within each studio.
Does this Decline In Growth Rate Affect Other Franchises?
Unfortunately, it does affect other franchise businesses because of the increased competition and market saturation. Below are two trends that might have caused this impact:
The Rapid Growth of Boutique Fitness Studios
The consistent rise of smaller fitness centers is gaining popularity, which affects the growth of bigger fitness franchises like Orangetheory. These franchises need to make their services better in any legal way they can.
Digital Fitness
Everyone with a smartphone has access to unlimited fitness apps. That means they can keep fit in the comfort of their homes. That, however, is one of the challenges fitness franchises face. They need to either provide what these fitness apps cannot or integrate the digital method to create a hybrid approach.
Conclusion
The merger is one positive and effective step to future success. However, their success also depends significantly on innovation and adaptability. “The world is changing rapidly, so why not change with it or be at pace with it?” says franchise attorney Jason W. Power. Also, they need to pay attention to members’ concerns as if they are left unattended; it might result in a continued decline in membership growth.
