The inaugural Fitness Finance & Growth Conference hosted by Franchise Times in Chicago this week brought together operators, investors and advisors to talk through what it actually takes to fund, build and scale a fitness business in today’s environment.
The conversations covered an array of topics, including consumer behavior, evolving business models, unit economics and where capital is moving (and where it isn’t) in the current mergers and acquisitions market. A few takeaways and key considerations for operators stood out above the rest.
Big box + boutique: The new membership bundle
Despite economic headwinds, fitness membership has held up. The K-shaped economy is showing up more in how consumers engage rather than whether they do. Traditional big-box gyms are seeing some moderation in growth expectations, without any significant pullback, while boutique gyms continue to hold up well—their members remain the higher-spend, more engaged cohort.
What’s interesting is the “big box plus” dynamic that’s taking shape: a growing segment, concentrated in higher-income households, which holds both memberships at the same time. The traditional gym serves as a low-cost access pass while the boutique delivers the structured, community-driven experience that commands a premium.
What once looked like direct competition is starting to look more like a fitness ecosystem, with the same consumer supporting both sides.
Underpinning that shift is a broader change in how consumers, especially Gen Z, relate to fitness. Health and wellness have become a lifestyle, not just an activity, and that mindset is pushing demand well beyond traditional gym membership.
Building for the GLP-1 member
The rapid rise of GLP-1 medications is a meaningful part of that membership story. With growing emphasis on preserving lean muscle mass, resistance training is becoming a core component of programs targeting GLP-1 medication users and a number of operators are already building programming and partnerships around it. Brands that adapt could stand to capture incremental demand; those that don’t might risk falling behind as adoption continues to accelerate.
Wellness drives growth—but complexity comes with it
Fitness brands are moving beyond the traditional gym model toward broader health and wellness platforms. Recovery services such as cold plunge and infrared sauna are becoming more common alongside nutrition and mental wellness offerings, creating real opportunity to drive higher revenue per member and improve retention.
As these offerings expand, operators are navigating a more complex mix of sales taxability, licensing and health-related regulatory requirements that vary significantly by state, all of which can meaningfully affect pricing strategy and operational scalability.
AI isn’t the headline—it’s the execution advantage
Artificial intelligence came up consistently throughout the conference as an operational lever to drive enterprise value, though it didn’t dominate the room. The most actionable applications centered on market analysis, financial planning, and labor, which remains one of the industry’s largest and most variable costs. The operators making progress aren’t just talking about AI, they’re building it into how they run their businesses.
Unit economics and growth strategy
One of the more encouraging signals from the conference was the improved economics tied to front-end marketing strategy. Operators shifting toward pre-sales—building membership rolls before a club opens—are seeing clubs reach positive unit economics faster, and the trend is becoming more prevalent across recent openings.
Introductory pricing is also playing a meaningful role, converting prospective members into committed, paying members. Trial-to-conversion programming isn’t just a traffic driver; it’s compressing the time to profitability at the club level, which matters both for operators managing cash flow and for investors evaluating new unit potential.
M&A and capital deployment
M&A activity remains selective. A valuation gap between buyers and sellers is slowing broader deal flow, though roll-up strategies, particularly in boutique fitness, continue to attract interest given their ability to scale across smaller footprints. Where deals are getting done, buyers are placing heavier emphasis on fundamentals: management depth, unit economics, and the ability to integrate and scale effectively.
Fundamentals are driving growth
The overarching theme across conversations at the conference was disciplined execution: operators should make thoughtful, forward-looking decisions in a challenging macro environment. The fitness industry continues to evolve quickly and the platforms positioned to lead aren’t necessarily the ones with the most locations or the loudest brands. They’re often the ones delivering real member value, running efficiently and deploying capital with intention.
For more, check out our outlooks for the following sectors: consumer goods, food and beverage, and retail and restaurant.
