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· Posted on
February 21, 2024

Call Eddie Murphy 'cos Body Fit is coming to America (again)

Body Fit has ridden the fitness boom nicely. It's expecting 200 studios in Australia by the end of 2021.

What's the key learning?

  • Xponential Fitness has just bought Body Fit's intellectual property for $60 million - and it plans to grow the franchise in the US and Canada
  • When a company wants to expand, they can commercialise their IP using a strict franchise or licence model
  • Body Fit is getting paid $60 million by Xponential for the licence to open it in the US.

Background: Body Fit Training was founded back in 2017 and is focused on high intensity training (F45-esque).

What happened: This crew have ridden the fitness boom pretty nicely. They're expecting to have around 40,000 members and 200 studios in Australia by the end of 2021.  

What else: Now, US fitness operator Xponential Fitness - a franchise operator that owns a tonne of different fitness brands in the US - has just bought Body Fit's intellectual property for $60 million. Under the deal, Xponential will grow Body Fit in the US and Canada.

So what's the key learning?

💡When a company creates a blueprint for success and wants to expand, there are a few ways to commercialise their IP.

💡We've got:

  1. The strict franchise model. Ya know, the Maccas model. McDonald's give you a licence to sell their scrumptious burgies, but they'll tell you what your staff need to wear, control your marketing and set performance quotas. 
  2. The licence model. Heard of CrossFit? This crew licence out their name and logo, but the licensee can market their gym with fewer rules. 

💡In this case, Body Fit has taken inspo from CrossFit and is getting paid $60 million by Xponential for the licence to open it in the US.

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