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Xponential Fitness Signs Master Franchise Agreement in Japan for StretchLab
Rhea-AI Impact
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Rhea-AI Sentiment
(Very Positive)
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Rhea-AI Summary
Xponential Fitness (NYSE: XPOF) has inked a Master Franchise Agreement in Japan to introduce StretchLab, the largest assisted stretching brand globally. This agreement allows the Master Franchisee to open at least 40 studios over the next decade. Currently, Xponential operates over 2,600 studios worldwide across 16 countries. The deal represents the fifth brand from Xponential to enter the Japanese market, following franchises like Club Pilates and Rumble. Sunpark Co. Ltd., a multi-brand operator in Japan, will oversee this expansion. Xponential aims to capitalize on increasing consumer interest in health and well-being in Japan. Additionally, the company has successfully expanded its brands internationally, with multiple agreements signed since 2021 for markets including Australia, Mexico, and Kuwait.
Positive
Master Franchise Agreement signed for StretchLab in Japan, allowing 40 new studios over 10 years.
Expansion into Japan as the fifth brand, indicating strong market penetration.
Sunpark's experience in franchising and real estate enhances growth potential.
Continued international growth with existing franchises in 16 countries.
Negative
Potential risks related to international market expansion.
Uncertainties due to COVID-19 impact on business and franchisee operations.
Multi-Brand Franchisor Sunpark Acquires Rights to Develop Xponential’s Fifth Brand in Japan
IRVINE, Calif.--(BUSINESS WIRE)--
Xponential Fitness, Inc. (NYSE: XPOF) announced today it has signed a Master Franchise Agreement in Japan for StretchLab, the world’s largest assisted stretching brand. The agreement provides the Master Franchisee with the opportunity to license at least 40 StretchLab studios in Japan to potential franchisees over the next 10 years. As of December 31, 2022, Xponential had over 2,600 open studios worldwide, operating in 16 countries and four continents.
The deal was signed with Sunpark Co. Ltd. of Osaka, a multi-brand operator and global franchisor of restaurants, entertainment concepts, and fitness centers with more than 100 locations in Japan, Singapore, Thailand and the United States. The StretchLab agreement marks Xponential’s fifth brand to enter the Japanese market, following earlier agreements for Club Pilates, Rumble, CycleBar and AKT with Master Franchise Partner, Wellness X Asia. Wellness X Asia currently has 22 Club Pilates studios open in Japan, with the first studios of Rumble, AKT and CycleBar slated for later this year.
“Japan is emerging as one of Xponential’s most important global markets, and we are very enthusiastic to welcome Sunpark as our latest international partner,” said John Kersh, Chief International Development Officer of Xponential Fitness. “Sunpark’s vast experience in real estate and multi-brand franchising will provide an outstanding foundation on which to expand the StretchLab brand across Japan.”
Sunpark is led by founder and CEO Ken Takagi who is assembling a highly-qualified team to bring the StretchLab brand to life in Japan. The StretchLab project will be overseen by Koji Yamaguchi, a respected entrepreneur with 10 years of experience in the assisted stretching space in Japan.
According to CEO Ken Takagi, “This is an ideal time to launch StretchLab in Japan, as consumers are increasingly seeking high-quality options to improve their overall health and well-being. We are confident Stretchlab will be very well-received across Japan.”
The agreement marks the continued expansion of Xponential Fitness outside North America. The company currently has multiple brands’ studios operating or in development in 16 countries across North America, Europe, Asia, and Australia. Specifically for StretchLab, Xponential signed their first international agreement for StretchLab in 2021, for Australia and New Zealand, and in 2022 they signed master franchise agreements for Mexico and Kuwait. The brand also just reached the milestone of 300 studios open globally.
For more information about Xponential Fitness and to learn more about its various franchise opportunities, visit www.xponential.com.
ABOUT STRETCHLAB:
Founded in 2015, StretchLab is the largest assisted stretching brand globally that was created to help people through customized flexibility services. It offers one-on-one and group-assisted stretching sessions to customers across a broad range of ages and fitness levels. StretchLab’s advanced “Flexologist” instructors receive extensive training, including both classroom and on-the-job training programs. Ranked on Entrepreneur Magazine’s Franchise 500 and Fastest-Growing Franchises three years running, Top New Franchises in 2021 and 2022, as well as Inc. Magazine’s Inc. 5000 in 2020 and 2021, StretchLab is headquartered in Irvine, CA and backed by Xponential Fitness, the largest franchisor of boutique fitness brands. To learn more about StretchLab, visit www.stretchlab.com.
ABOUT XPONENTIAL FITNESS:
Xponential Fitness, Inc. (NYSE: XPOF) is the largest global franchisor of boutique fitness brands. Through its mission to make boutique fitness 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 across 48 U.S. states and Canada, and through master franchise or international expansion agreements in 14 additional countries. Xponential Fitness' portfolio of brands includes Club Pilates, the nation's largest Pilates brand; CycleBar, the nation's largest indoor cycling brand; StretchLab, the largest assisted stretching brand in the United States; Row House, a high-energy, low-impact indoor rowing workout; AKT, a dance-based cardio workout combining toning, interval and circuit training; YogaSix, the largest franchised yoga brand; Pure Barre, a total body workout that uses the ballet barre to perform small isometric movements; 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 https://xponential.com.
Forward-Looking Statements
This press release contains forward-looking statements that are based on current expectations, estimates, forecasts and projections based on management's judgment, beliefs, current trends, and anticipated performance, including statements regarding the timing of opening and number of additional studios in Japan. Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from those contained in the forward-looking statements. These factors include, but are not limited to, the impact of the COVID-19 pandemic on our business and franchisees; our relationships with master franchisees and franchisees; difficulties and challenges in opening studios by franchisees; the ability of franchisees to generate sufficient revenues; risks relating to expansion into international markets; loss of reputation and brand awareness; material weakness in our internal control over financial reporting; and other risks as described in our SEC filings, including our Annual Report on Form 10-K for the full year ended December 31, 2022 filed by Xponential Fitness with the SEC and other periodic reports filed with the SEC. Other unknown or unpredictable factors or underlying assumptions subsequently proving to be incorrect could cause actual results to differ materially from those in the forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance, or achievements. You should not place undue reliance on these forward-looking statements. All information provided in this press release is as of today's date, unless otherwise stated, and Xponential Fitness undertakes no duty to update such information, except as required under applicable law.
