Orangetheory Fitness, Boca Raton, Florida, opened 61 new studios throughout the world in the first quarter of 2018 and is on pace to opening 270 studios for the year, the fitness franchise announced.
The growth would increase Orangetheory’s total studio number to 1,100 and help the company bring in an anticipated $1 billion in system-wide revenue for 2018, according to a media release from the company. The brand, which launched in 2010, currently has more than 935 studios in 49 states and 17 countries
During the first quarter, Orangetheory grew its footprint in 27 states nationwide, opening nine studios in California and five in Texas—both states being key target markets for the brand, according to the company.
“Orangetheory Fitness has experienced incredible and unparalleled growth in less than a decade, and the compounding success we’ve already achieved this year is indicative that the brand’s global domination is just beginning,” Mike Mettler, senior vice president of franchise development for Orangetheory Fitness, said in the release. “This relentless momentum has allowed us to accelerate our franchise development efforts in several prime expansion markets like California and Texas, and we’re thrilled to continue tapping into the wealth of potential in these regions.”
Orangetheory Fitness has an annualized growth rate of 76 percent during the past five years, according to the company. It has more than 400 studios in the pipeline slated to open domestically. It signed 54 lease agreements and 34 franchise agreements during the first quarter.
To help with its growth plans, the brand will exhibit at the ICSC RECon Global Retail Real Estate Convention from May 20-23 in Las Vegas to help it find quality real estate throughout the country.
“There are a number of factors that make Orangetheory an exceptionally attractive tenant, including consumer demand for experiences, our small footprint that allows us to be in more places, and the distinct achievement of never having closed a studio,” Mettler said. “We look forward to meeting with potential partners at the convention and accelerating our efforts to identify the best real estate for our brand.”
Orangetheory Fitness also continued expansion internationally during the first quarter, opening nine new studios in Canada, two in Australia and one in Guatemala. Its five-year international annual growth rate is 96 percent. The company signed five new international franchise agreements and 11 new studio leases.
The growth in 2018 comes on the heels of its 2017 growth in which Orangetheory opened 294 studios, signed 275 franchise development agreements (including its 1,000th franchise agreement) and reported $738 million in system-wide revenue. The company ranked No.1 on 2018 Fast & Serious list by Franchise Times, which named the company the smartest-growing brand in the industry.
“We have combined a science-based workout, cutting edge technology and over 4,000 skilled, passionate coaches to produce a workout considered by many of our 650,000-plus members and industry experts to be the best workout in the world” states David Carney, president of Orangetheory Fitness.
Orangetheory ranked No. 17 on Club Industry's 2017 Top 100 Clubs list with 2016 revenue of $93.37 million. This revenue was from corporate-owned clubs and franchisee fees, not system-wide revenue. The reported number was a 62 percent increase from its 2015 revenue.