Crunch Fitness has sold six company-owned gyms in the Sacramento, California, area to JEM Wellness Brands, a franchise concept operator, Crunch announced on Dec. 19. Financial terms of the deal were not disclosed.
The clubs, which are in Citrus Heights, Elk Grove, Folsom, Granite Bay, Howe Ave., and Rocklin, are part of a commitment by JEM to develop and open 75 additional clubs by 2032.
The refranchising transaction between Crunch and JEM will further drive Crunch's strategic growth objectives and strengthen the brand in the Northern California market, according to the announcement.
"We're excited for the opportunity to bring on a strong health and wellness partner in JEM Wellness Brands," said Jim Rowley, Crunch Worldwide CEO. "Refranchising these gyms will allow JEM to accelerate their position in Crunch far faster than establishing new units, in turn allowing us to keep our focus on innovation and support of the franchise network."
JEM Wellness Brands is owned by the Atticus Franchise Group. JEM invests in health and wellness franchise businesses to provide them with a scalable operating platform.
"Sacramento is one of California's fastest growing cities, and we see tremendous growth potential in partnership with Crunch," Alex Murphy, partner and managing director of Atticus Franchise Group, said in the announcement.