Xponential Fitness, Inc.’s XPOF Body Fit Training (BFT) brand recently announced a Master Franchise Agreement with Tage Flugeim to expand its presence in the Scandinavian market. The agreement follows the brand’s growing presence across Europe, underscored by the recent studio opening in Barcelona. The deal marks the company’s first brand entry in the Scandinavian region.
Per the agreement, Tage Flugeim intends to launch Body Fit Training studios in Oslo, Stockholm and Copenhagen within the next 12 months. Following the successful establishment, Flugeim and his team will focus on forming new partnerships and attracting sub-franchisees. The company intends to open 20 studios within the first five years and 40 BFT studios across Scandinavia within 10 years.
The company is optimistic about expanding BFT across various cities in Scandinavia. Attributes such as high-quality workouts, innovative strength training methods, thoughtful programming, community focus and inclusive studio environments are expected to contribute positively. Management highlighted Scandinavians’ appreciation for foreign fitness brands, particularly those from the United States, the U.K. and Australia, affirming that BFT’s culture, story and superior workout offerings are well-aligned with regional preferences.
Emphasis on Expansion Bode Well
The company emphasizes the expansion of the franchise studio network to drive growth. During the first quarter, the company reported more than 400 North American leases and letters of intent signed for studios not yet open. The company reported a robust pipeline of nearly 2,000 licenses committed to open in North America and an additional 1,000 under master franchise agreements. International expansion is also progressing well, with existing master franchise relationships being leveraged in Japan and Singapore while exploring new markets. In the first quarter, international business contributed 31% to license sales and 23% to new studio openings.
The company is tapping into the growing demand for BFT beyond its established APAC markets, particularly in Europe and the United States. It opened 30 studios across the U.S. in 2023 and continued expanding into New Jersey, Kansas, Missouri, and California in 2024. Looking ahead, the company plans to focus on global brand expansion to drive growth. The pipeline includes the Scotland BFT studio in Glasgow and new BFT studios in Indonesia and South Korea, set to open in July 2024.
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Year to date, the stock has gained 21.7% compared with the industry’s rise of 1.9%.
Zacks Rank & Stocks to Consider
Xponential Fitness currently carries a Zacks Rank #3 (Hold).
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