Franchise Firm Seeks High-Impact Growth Through Low-Impact Fitness Chain
In an increasingly competitive health and fitness industry, some franchise chains have been stretching their reach beyond adding new locations by buying other brands that offer different methods of getting fit.
Self Esteem Brands, the Woodbury, Minnesota-based parent of Anytime Fitness, is the latest. It purchased low-impact fitness chain The Bar Method.
In its announcement, Self Esteem Brands said it will initially offer new franchise territories throughout North America. The Bar Method currently has 123 locations around the U.S.
This deal comes nearly nine months after Self Esteem Brands bought Basecamp Fitness, a high-intensity, class-based concept the company plans to expand through franchising. Basecamp was founded by Nick Swinmurn, founder of online shoe and clothing retailer Zappos.
“We believe that The Bar Method will appeal to a different type of consumer than those who choose Anytime Fitness or Basecamp Fitness,” Dave Mortenson, president and co-founder of Self Esteem Brands, said in a statement.
The latest deal puts Self Esteem Brands in direct competition with Pure Barre, which has more than 500 locations around the country. Like Pure Barre, San Francisco-based The Bar Method features group workouts that include a ballet barre as part of the routine.
Pure Barre’s initial growth had the backing of L Catterton, a Connecticut private equity firm that has more than $15 billion invested in a large portfolio of consumer brands. Irvine, California-based Xponential Fitness bought Pure Barre last October and L Catterton rolled its investment into the deal.
Meanwhile, Self Esteem has financial backing from Atlanta-based Roark Capital. Roark Capital’s investment portfolio includes Focus Brands, which owns such franchises as Jamba, Cinnabon and Moe’s Southwest Grill.
Buying The Bar Method “would not have been possible without the support, expert analysis and advice provided by Roark,” Chuck Runyon, Self Esteem Brands’ CEO, said in a statement.
Terms of the deal were not disclosed.
