PRIVATE EQUITY OWNED
Orangetheory Fitness
Includes OTF, Orange Theory
boutique fitness · Boca Raton, FL
- PE Firm
- Roark Capital →
- Year Acquired
- 2016
Merged into a mega-franchise while its biggest operator collapsed.
What They Did
- Roark Capital invested in 2016, then engineered a merger with Anytime Fitness parent in 2024 to form $3.5 billion 'Purpose Brands'
- Largest franchisee Honors Holdings (143 studios) defaulted on $100M+ in loans and began winding down operations in late 2024
- Average studio profitability dropped by more than 50% from 2019 to 2023, with nearly 1 in 5 studios (19.4%) losing money at the location level as of March 2024
- Franchisees formed an independent association in 2024 citing declining membership growth and corporate indifference
Since the Acquisition
- After the chain's largest operator went under, two dozen of its studios were left in limbo, their members unsure whether their gym would survive
- As franchisees cut corners to survive, members report fewer instructors, longer waits for popular class times, and equipment that doesn't get replaced
Sources
- Orangetheory's Largest Franchisee Faces Bankruptcy — Franchise Times(2024-12-12)
- Orangetheory Franchisees Form Independent Association — Franchise Times(2024-06-26)
- Orangetheory, Anytime Fitness Complete Massive Merger — Franchise Times(2024-04-05)
- Orangetheory Fitness and Self Esteem Brands Complete Merger — PR Newswire(2024-04-02)
- Orangetheory, Anytime Fitness Unveil Parent Company, Name New CEO — Athletech News(2024-11-21)
- Restructuring Underway for Large Orangetheory Franchisee, 'Wind Down' Likely — Franchise Times(2024-12)