Fitness World Canada Plans to Open Gyms in US

At the recent ATN Innovation Summit held in New York City, Fitness World CEO Chris Smith said the operator expects to have clubs open in the United States by the end of this year.

“I would … anticipate by the end of this year, we’ve actually got clubs open and operating in the U.S.,” Smith said, noting that growth in America will initially come through franchised locations.

Earlier this year, Fitness World Canada announced that it was investing $50 million into accelerating its growth, including selling franchises for the first time. The operator said it would open 25 new corporately owned clubs in addition to selling franchise licenses.

As part of the investment announcement, Fitness World said it was primarily looking to expand its footprint in Canada, where it currently has 18 locations in British Columbia. But it also opened the door to further expansion in North America, including the U.S.

The operator also said it was aiming to introduce 1,000 new jobs — more than doubling its current team of 700 — over the next five years to facilitate expansion.

Speaking at the ATN Innovation Summit, Smith, a former 24 Hour Fitness executive and former chair of the Health & Fitness Association board, said he believes there’s an opportunity for international operators to bring new innovations to the U.S. market. Those include tactics like biweekly billing, which is used in Canada and many other countries.

Smith acknowledged that America’s low-price gym market is highly competitive and crowded, but said he believes Fitness World Canada’s offering is differentiated enough to find success.

“We think we have a unique offering that’s just different enough,” Smith said of Fitness World Canada, which is known for having a profitable personal training arm.

The average Fitness World Canada club does over $90,000 per store per month in PT revenue, Smith said.