Xponential Fitness Fuels Japan Expansion with Master Franchise Agreement for Pure Barre and YogaSix
Xponential Fitness, Inc. (NYSE: XPOF) signs Master Franchise Agreement with Sunpark Co. Ltd. for Pure Barre and YogaSix in Japan, expanding their brand count to seven in the country. Sunpark commits to opening a minimum of 50 franchised studios. This marks Xponential's first expansion of Pure Barre into Asia and continued global expansion.
The strategic expansion of Xponential Fitness into the Japanese market through a Master Franchise Agreement with Sunpark Co. Ltd. for Pure Barre and YogaSix franchises represents a significant business move. This partnership is poised to leverage Sunpark's established presence and expertise in the region, potentially accelerating market penetration and brand recognition for Xponential Fitness. By securing a commitment to open a minimum of 50 franchised studios, Xponential Fitness is not only diversifying its geographical footprint but also capitalizing on the growing consumer demand for health and wellness in Asia.
It is crucial to consider the cultural and consumer behavior nuances in Japan, which may differ significantly from Western markets. The fitness and wellness sector's nascent stage in Japan offers an opportunity for early movers like Xponential Fitness to shape consumer preferences and establish a strong market position. However, the success of this expansion will heavily depend on the effectiveness of localization strategies, brand adaptability to Japanese consumer tastes and the execution of an aggressive marketing campaign to build brand awareness.
The announcement of Xponential Fitness's Master Franchise Agreement in Japan may have favorable implications for the company's revenue growth and financial health. By tapping into the Japanese market, Xponential Fitness diversifies its income streams and reduces its reliance on the North American market. The commitment to open 50 new studios could translate into a steady stream of franchise fees, royalties and potentially increased sales of branded merchandise and services.
Investors should monitor the rollout of these new studios closely, as the initial capital expenditure and operating costs will impact short-term financials. However, if the expansion mirrors the success of Xponential's other brands, it could contribute positively to the company's long-term profitability and shareholder value. This move also signals Xponential's ambition to be a dominant player in the global fitness industry, which could attract investor interest and potentially impact the company's stock valuation positively.
Xponential Fitness's decision to expand its portfolio in Japan through a Master Franchise Agreement with Sunpark Co. Ltd. underscores the strategic importance of international growth for fitness companies. The fitness industry is becoming increasingly globalized and Xponential's move aligns with the broader trend of wellness brands seeking international opportunities. By partnering with an experienced multi-brand operator like Sunpark, Xponential benefits from local market insights and established operational capabilities, which can mitigate entry risks and streamline the expansion process.
Furthermore, the choice of Japan as a focus for expansion reflects a calculated move to enter a high-potential market. Japan's high disposable income levels, coupled with an increasing focus on health and wellness among consumers, present a fertile ground for boutique fitness concepts. The long-term impact of this expansion could see Xponential gaining a foothold in the broader Asian market, setting the stage for further international growth and solidifying its position as a global fitness leader.
01/02/2024 - 09:00 AM
Agreement with Sunpark Co. Ltd. Marks Xponential’s Sixth and Seventh Brands in Japan
IRVINE, Calif. --(BUSINESS WIRE)--
Xponential Fitness, Inc. (NYSE: XPOF) announced today it has signed a Master Franchise Agreement in Japan for Pure Barre and YogaSix with Sunpark Co. Ltd., their current Master Franchisee for StretchLab . Sunpark has committed to open a minimum of 50 Pure Barre and Yoga Six franchised studios in Japan . This deal brings Xponential’s brand count in Japan to seven, the largest count of brands outside of North America , following previous agreements for Club Pilates, CycleBar, Rumble, AKT, and StretchLab.
The Master Franchise Agreement with Sunpark follows their recent launch of StretchLab, with their first location opening in Tokyo in July 2023. Sunpark is a multi-brand operator and global franchisor of more than 100 restaurants, entertainment concepts, and fitness centers in Japan , Singapore , Thailand and the United States , Sunpark has significant real estate and development experience which is expected to greatly benefit the growth of the Xponential Fitness brands.
“Xponential looks forward to continued strong growth in Japan with the planned 2024 launch of Pure Barre and YogaSix with our valued Master Franchisee Sunpark Co. Ltd.,” said John Kersh, Chief International Development Officer of Xponential Fitness. “Sunpark’s track record of expansion in Japan and Asia with multiple restaurant brands blends well with Xponential’s extensive experience in boutique fitness. We are excited to expand into a new, multi-brand relationship with Sunpark.”
Sunpark is led by founder and CEO Ken Takagi, a respected entrepreneur who has now set his sights on the wellness space. “The fitness and wellness sector is still in its infancy in Japan,” says Takagi. “We believe the time is right to build on our successful launch of StretchLab by introducing Pure Barre and YogaSix to the market and continue tapping into the strong consumer demand for health, wellness and fitness.”
The agreement marks the first expansion of Pure Barre into Asia and the continued expansion of Xponential Fitness brands globally. The company now has eight of its brands’ studios operating or in development in 23 countries across North America , Europe , Asia , the Middle East , and Australia . Specifically for YogaSix, Xponential signed their first international agreement for YogaSix earlier this year, for Germany with their existing Master Franchisee of Club Pilates in Germany . The brand has almost 200 studios open globally and Pure Barre has 640+ studios open globally.
For more information about Xponential Fitness and to learn more about its various franchise opportunities, visit www.xponential.com .
About Pure Barre
Founded in 2001, Pure Barre is the largest barre brand by number of studios, offering a range of effective, low-impact, full-body workouts for a broad range of fitness levels. Pure Barre has five signature class formats including introductory, classic barre, interval training, resistance training, and restorative stretching. Its high quality instructors receive specialized multi-tiered training allowing for class format and choreography to be refreshed on a quarterly basis. Ranked on Entrepreneur Magazine’s Franchise 500 each year and the Fastest-Growing Franchises in three years running as well as Inc. Magazine’s Inc. 5000, Pure Barre is headquartered in Irvine, CA and backed by Xponential Fitness, the largest franchisor of boutique fitness brands. To learn more about Pure Barre, visit https://www.purebarre.com/ .
About YogaSix
Founded in 2012, YogaSix is the largest franchised yoga brand in the United States that offers a broad range of heated and non-heated yoga classes, boot camp style fitness classes and meditation accessible to all. Class formats include Y6 101, Y6 Restore, Y6 Slow Flow, Y6 Hot, Y6 Power and Y6 Sculpt Flow. Classes at YogaSix eliminate the intimidation factor that many people feel when trying yoga for the first time, offering a fresh perspective on one of the world's oldest fitness practices. Ranked in Entrepreneur Magazine’s Franchise 500 in 2023, and Fastest-Growing Franchises and Top New Franchises two years running, YogaSix is headquartered in Irvine, California and backed by Xponential Fitness, the largest franchisor of boutique fitness brands. To learn more about YogaSix, visit www.yogasix.com to learn more.
About Xponential Fitness, Inc.
Xponential Fitness, Inc. (NYSE: XPOF) is the largest global franchisor of health and wellness brands. Through its mission to make health and wellness accessible to everyone, the Company operates a diversified platform of ten brands spanning across verticals including Pilates, indoor cycling, barre, stretching, rowing, dancing, boxing, running, functional training and yoga. In partnership with its franchisees, Xponential offers energetic, accessible, and personalized workout experiences led by highly qualified instructors in studio locations throughout the U.S. and internationally, with franchise, master franchise and international expansion agreements in 49 U.S. states and 22 additional countries. Xponential's portfolio of brands includes Club Pilates, the largest Pilates brand in the United States ; CycleBar, the largest indoor cycling brand in the United States ; StretchLab, the largest assisted stretching brand in the United States offering one-on-one and group stretching services; Row House, the largest franchised indoor rowing brand in the United States ; AKT, a dance-based cardio workout combining toning, interval and circuit training; YogaSix, the largest yoga brand in the United States ; Pure Barre, a total body workout that uses the ballet barre to perform small isometric movements, and the largest Barre brand in the United States ; STRIDE Fitness, a treadmill-based cardio and strength training concept; Rumble, a boxing-inspired full-body workout; and BFT, a functional training and strength-based program. For more information, please visit the Company’s website at xponential.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240102886180/en/
Media: Rachel B, TOP Agency, xponential@prhacker.com
Source: Xponential Fitness
What is the latest Master Franchise Agreement signed by Xponential Fitness, Inc. (NYSE: XPOF)?
Xponential Fitness, Inc. (NYSE: XPOF) has signed a Master Franchise Agreement with Sunpark Co. Ltd. for Pure Barre and YogaSix in Japan.
How many franchised studios has Sunpark committed to open in Japan?
Sunpark has committed to open a minimum of 50 Pure Barre and YogaSix franchised studios in Japan.
In how many countries are Xponential Fitness brands' studios operating or in development?
Xponential Fitness brands' studios are operating or in development in 23 countries across North America, Europe, Asia, the Middle East, and Australia.
What is the current brand count of Xponential Fitness in Japan?
Xponential Fitness now has seven brands in Japan, the largest count of brands outside of North America.
Who is the Chief International Development Officer of Xponential Fitness?
John Kersh is the Chief International Development Officer of Xponential Fitness.
Who is the founder and CEO of Sunpark Co. Ltd.?
Ken Takagi is the founder and CEO of Sunpark Co. Ltd.
In how many countries are Xponential Fitness brands' studios operating or in development?
Xponential Fitness brands' studios are operating or in development in 23 countries across North America, Europe, Asia, the Middle East, and Australia.
How many studios are open globally for YogaSix and Pure Barre?
YogaSix has almost 200 studios open globally, and Pure Barre has 640+ studios open globally.
