Private Company Analysis: Crunch Fitness

Research evidence excerpt

Private Company Analysis: Crunch Fitness

Fitness in Southern California and Houston. This franchisee also acquired 3 existing clubs

in Portland to undergo a $75 million market expansion. Similarly, CR Fitness Holdings,

which is backed by North Castle Partners and Sixth Street, operates in nearly 100

locations across the southwest and southeast. This franchisee recently bought nine 24

Hour Fitness locations across Florida and rebranded them under Crunch.

International Reach

Crunch Fitness has significant presence outside of the United States. The brand currently

operates in seven markets outside the US: Australia, Canada, Costa Rica, India, Portugal,

Puerto Rico, and Spain. Internationally, the company is targeting underpenetrated

fitness markets such as India and Mexico, where gym and health club membership

remains low, with fitness penetration rates ~ 0.8% in India and less than 7% in Mexico.

Crunch Fitness debuted their first gym in India in Q4'25, with plans to open at least 75

locations across the country. India's fitness industry is projected to grow from $1.9B to

$4.5B by 2030. Crunch also made an entry into Latin America through their new master

franchise agreement in Mexico, which will introduce 50 Crunch gyms to the country.

Other notable international expansions include Oceania, with the first location in New

Zealand set to open by Q1'27 and 9 other locations planned to open within the next 5

years.

Levered and Unlevered IRRs and four-wall EBITDA margins

According to franchisees, Crunch Fitness clubs typically generate higher revenue per

location (~$2.5 -$3.0 million on average) than Planet Fitness (~$2.0-$2.5 million),

supported by a broader mix of revenue streams like one-on-one personal training and

wider variety/higher volume of recovery amenities.