Entrepreneur USA - January 2018

(Jeff_L) #1

T


here’s a lot of money


in the fitness


business. The U.S.


market is worth


$28 billion, and


franchise brands are


the hottest, fastest- growing


part of it. So how does one of


the hottest brands thrive in


one of the hottest markets?


Ask Dave Long, CEO of the


fitness company and


workout craze Orange-


theory, which offers some


actual fun alongside its


members’ healthy pursuit.


Founded in 2010 and


headquartered in Boca


Raton, Fla., Orangetheory’s


823 franchise studios have


one-hour, trainer-led group


classes featuring wrist- or


chest-worn heart-rate


monitors. Classes aim to


help members achieve an


“afterburn” effect—a


metabolic sweet spot that


sheds calories long after the


gym session ends. But Long


says that the company’s


explosive growth—including


a solid 137 percent increase


in revenue over the past


three years—isn’t just about


good timing. It’s about doing


franchise expansion right.


How did you become


interested in fitness as a


business?


I’m a pretty avid extreme-


sports type person. I do a lot


of snowboarding, surfing,


and mountain biking. Early


in my career I worked at a


health club, and later at


European Wax Center and


Massage Envy. My partner


and I were looking for a


world-changing fitness


product that had already


been incubated—something


we thought we could grow


and add value to. That’s


when we crossed paths with


[cofounder] Ellen Latham,


who had a large studio with a


spinning room, a Pilates


room, and an “ultimate


workout room,” which was


the first version of what


Orangetheory does today.


At Massage Envy, first as


VP of operations and later


as a regional developer,


By avoiding huge,


multi-unit deals,


Orangetheory ensures


franchisees never


lose touch with


product or strategy.

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