This story is part of “Post-Close: An Inside Look at Franchise M&A Outcomes,” a digital series in which Franchise Times revisits past Dealmakers winners to explore how they’re putting investment dollars to work, if integration of that acquisition is going as planned and what they’ve learned in the process.
When Doug Payne launched Ohm Fitness in 2021 and began franchising a year later, he knew he had an innovative workout concept that was eventually going to catch on.
What he didn’t anticipate was how quickly his new business would attract interest.
“We’ve sold 17 regions and almost 60 franchise licenses in the first 18 months of operations, and it looks like by the end of year we’ll have 25 open and operating locations, or about 50 percent of our awarded footprint,” said Payne, the CEO of Ohm. “It’s been just a wild ride and kind of magical with how it’s all happened so quickly.”
Ten locations are open, and Payne noted he has an “amazing corporate team” that has been focused on opening new locations in a challenging real estate environment and providing training and support for franchisees. Payne worked for Orangetheory Fitness and European Wax Center on both the corporate side and as an operator before launching Ohm with Steve Belknap and Eric Hammond.
Ohm Fitness CEO Doug Payne worked for Orangetheory Fitness and European Wax Center on both the corporate side and as an operator before launching his EMS concept.
That European Wax connection helped Ohm attract a minority investor in 2022 that last year earned Franchise Times Dealmakers award recognition. Joshua Coba, the co-founder of European Wax Center, came out of retirement at age 40 to, with wife Jenni, invest in Ohm and become one of its first franchisees and area developers. Coba and his brother, David, took European Wax Center from one salon to more 900 locations and a $151.6 million initial public offering in 2021.
Payne credited Coba and “his amazing connections” with 80 percent of Ohm’s early development success.
“Josh’s influence on the brand has been a game changer for us, no doubt,” Payne said. “We wouldn’t be where we are now without Josh.”
Payne called the partnership “coming full circle,” and for good reason. Payne was a European Wax Center franchisee for 15 years before selling his last location in 2022. He served as the company’s chief information officer from 2008 to 2010.
The Cobas became early fans of Ohm Fitness, which delivers electrical muscle stimulation, or EMS, via a wireless bodysuit. Ohm claims its workouts strengthen muscles up to three times faster than normal workouts.
“To be honest with you, I had no intention of getting into the fitness space, which is really crowded with workout concepts that only 1 percent of the population can actually do,” Coba said. “The thing I really like about Ohm is that really anyone can do it. So, I asked myself, why not get into fitness concept that 99 percent of the population can do and benefit from?”
European Wax Center co-founder Josh Coba, right, is a minority investor and area developer for Ohm Fitness with his wife, Jenni.
The Cobas have one Ohm location open, in Boca Raton, Florida, with another studio in the permitting stage in nearby Doral and a third unit under construction. Coba said their plans are to open about a dozen studios in southern Florida over the next five to 10 years.
“Obviously, we’re still in a ramp-up phase with a new concept, but so far so good,” Coba said. “We’re facing a lot of barriers with the real estate market being what it is and also with just educating people on the body suits so they don’t think it’s a gimmick and that it really is safe and works. The more people we can get to come in for free trials, the faster people will catch on to it.”
Although there are a handful of other brands, such as 70-unit Body20, that feature EMS workouts, Payne said the differentiator for Ohm is that it offers small to mid-size group exercise classes with immersive high-energy music. That’s opposed to a more common personal training model, he said.
The cost to open an Ohm Fitness location ranges from $373,500 to $885,000.
Ohm members pay $199 per month for unlimited classes. A 20-class package that is shareable amongst family members or groups living under a single roof is also offered. Ohm members also have the option of buying the brand’s proprietary EMS dry suits for $300, which Payne estimates about 80 percent of its members purchased.
“Our members are walking in the studio in their garment and are ready to go,” Payne said. “Thirty to 35 minutes later they’ve done their workouts and they’re out the door. It’s that easy and that fast.”
Payne is already planning for the company’s next phase of innovation and development at Ohm with wireless suits that can be used remotely while still participating in a live studio class. Payne is awaiting U.S. Food and Drug Administration approval on his new patented suits that are equipped with a virtual reality component.
He said the new technology will provide franchisees an additional revenue stream.
“Doug is just an unbelievably creative guy with the technology stuff and I’m just glad to be involved and help out anyway I can,” Coba said. “My expertise is more in operations, hands-on in the field and promotions, so I think we complement each other really well.”