Crunch Fitness

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Crunch Fitness
Franchise
IndustryHealth club
Founded1989
FounderDoug Levine
Websitewww.crunch.com/ Edit this on Wikidata

Crunch Fitness is a chain of over 300 franchised fitness clubs located in the United States, Canada and Australia.

History[edit]

Crunch was founded in 1989 as a fitness studio by Doug Levine, a former stockbroker.[1][2] The clubs became popular by appealing to young upscale members and featuring heavy promotions and marketing with some humorous and sexual connotations. They were initially profitable in large part due to successful promotion of logo merchandise sales within the clubs.[3]

Bally Total Fitness[edit]

Bally Total Fitness bought Crunch in 2001 for $90 million in cash and stock.[4] Initially intending to double the size to 40 gyms, Bally found the business unprofitable and was unable to get out of long-term leases in poorly performing locations. In 2005 Bally's sold Crunch to Angelo, Gordon & Co., a private equity firm, for $45 million. In May, 2009 the chain filed for bankruptcy,[5] as part of a reorganization by which it was acquired by New Evolution Fitness Company ("NEFC"),[6][7] a company founded by Mark Mastrov (co-founder of 24 hour fitness), Jim Rowley and some of the Angelo Gordon principals. NEFC was developing plans in 2009 to open a series of UFC-related gyms.[7] The first of the UFC gyms opened in November, 2009 in Concord, California, with other gyms planned for Canada and Hawaii.[8] With recent developments into the introduction into the Australian fitness industry, Crunch is continuing its international expansion by opening gyms in larger areas such as Sydney CBD [9].

Group Fitness Classes[edit]

Initially, Crunch featured some unusual classes such as pole dancing, bicycle-based yoga, coed wrestling, an "Abs, Thighs and Gossip" class run by a drag queen, and Capoeira.[2] Although the classes were later standardized across various locations, some popular offbeat classes remain, such karaoke bicycling, [1] POUND[10], Antigravity Yoga[11], and many more.

Crunch’s wide array of dynamic group fitness classes include The Ride – the gym’s proprietary stationary bike workouts – Cardio Tai Box, Yoga Body Sculpt, Fat Burning Pilates, Jillian Michaels Bodyshred™[12] and Zumba®. Members interested in a particularly unique workout experience can also take classes based around things like pole dancing, TRX suspension ropes, 4D PRO® Bungee Sling Trainer or CirqFIT® aerial dancing. Many Crunch classes have developed a loyal following among members due to knowledgeable instructors’ dedication to form and their commitment to creating a community within classes[13]

Franchises[edit]

In 2010, Crunch launched its franchise arm to bring the company’s fitness experience to locations around the country at an affordable price point, with memberships starting at $9.95 per month.[14] In the process, they helped develop a fitness market segment that offers classes and amenities previously associated primarily with high-end gyms at a lower price point.

Memberships[edit]

The company has two categories of gyms: Signature and Franchise. Crunch Signature locations are clubs with monthly memberships that typically range from $85 – $130, mainly located in major metropolitan areas, which offer a wider array of services, classes and amenities than a standard Crunch Fitness location[15]. As of 2019, 30 of Crunch’s locations were Signature gyms.

TPG[edit]

On July 1st, 2019, it was announced that private-equity firm TPG is acquiring Crunch Fitness through its growth-equity unit.[16]

Crunch is led by CEO and Partner Jim Rowley. Keith Worts is CEO of the company’s Signature business and Ben Midgley is CEO of its Franchise business.[17][18][19]

References[edit]

  1. ^ a b Wendy A. Lee (2009-07-29). "The Trapeze, the Catwalk, the Gym". New York Times.
  2. ^ a b Edward Lewine (1997-11-30). "The Fitness Gurus". New York Times.
  3. ^ Constance C. R. White (1996-06-16). "Crunch Inc.: Marketing a Gym, as Well as a Way of Life". New York Times.
  4. ^ "Bally Plans to Purchase Crunch for $90 million". New York Times. 2001-10-16.
  5. ^ Tiffany Kary (2009-05-11). "Crunch Fitness Files for Bankruptcy in New York". Bloomberg.
  6. ^ Stuart Goldman (2009-05-07). "Crunch Files For Bankruptcy, Seeks Sale". Club Industry.
  7. ^ a b Stuart Goldman (2009-05-01). "Crunch Files For Bankruptcy, Seeks Sale to Mastrov's Company". Club Industry.
  8. ^ Alejandro Martínez-Cabrera (2009-11-28). "Martial arts firms targets families for new gym". San Francisco Chronicle. Retrieved 2017-11-26.
  9. ^ "Crunch Clubs". Crunch Fitness. Retrieved 2019-09-04.
  10. ^ "Drum Your Way Fit With Pound At Crunch". It's Amanda Lauren. Retrieved 2019-09-04.
  11. ^ "AntiGravity Yoga a fun approach to fitness". Reuters. 2011-03-28. Retrieved 2019-09-04.
  12. ^ "About | Jillian Michaels BODYSHRED". www.jillianmichaelsbodyshred.com. Retrieved 2019-09-04.
  13. ^ Kurutz, Steven (2018-06-18). "Carl Hall Is the King of Spin". The New York Times. ISSN 0362-4331. Retrieved 2019-09-04.
  14. ^ "Crunch Franchise Franchise Information". Entrepreneur. Retrieved 2019-09-04.
  15. ^ "No Judgments | Crunch Fitness". www.crunch.com. Retrieved 2019-09-04.
  16. ^ Kang, Jaewon. "TPG to Buy Gym Chain Crunch Fitness". WSJ. Retrieved 2019-07-01.
  17. ^ "Bloomberg - Are you a robot?". www.bloomberg.com. Retrieved 2019-09-04.
  18. ^ Fitness, Crunch. "Crunch Fitness Appoints Keith Worts To Chief Executive Officer". www.prnewswire.com. Retrieved 2019-09-04.
  19. ^ "Tips From The Top: One On One With Ben Midgley, CEO of Crunch Franchise - Thrive Global". thriveglobal.com. Retrieved 2019-09-04.

External links[edit]