The fitness industry is experiencing an unprecedented period of growth, with rising consumer demand for health and wellness services creating strong expansion opportunities for fitness brands globally. Europe and the Middle East, in particular, present compelling prospects – combining mature markets with emerging regions where demand for premium fitness offerings is accelerating.

In this environment, franchising has emerged as a highly effective model for growth. It enables brands to scale efficiently while benefiting from the knowledge and local networks of in-market partners. Yet, while the potential is clear, cross-border franchising also introduces legal and regulatory complexities that brands must navigate carefully to ensure sustainable success.

A market ripe for expansion

The post-pandemic recovery of the fitness sector has been remarkable. A growing focus on health and wellbeing, the popularity of hybrid fitness models, and continued investment in new concepts are all driving growth. Consider the following:

• Across Europe, gym memberships are at an all-time high, with over 60 million members and a market valued at €20+ billion.¹
• In the Middle East, countries like the UAE and Saudi Arabia are experiencing rapid growth, supported by government initiatives such as Vision 2030, a strategic framework aimed at diversifying the economy and promoting sectors like health, wellness, and tourism to reduce reliance on oil.²
• Many of these markets remain underpenetrated – gym penetration rates in the UAE and Saudi Arabia remain below 5 percent, compared to over 15 percent in markets like Germany and the UK.³ In North America, gym penetration is approximately 12 percent, and while the region already leads the global fitness market with over 38 percent of total market share, it continues to grow steadily at 3–4 percent annually, with projected growth of 12 percent between 2023 and 2028 – underscoring that even mature markets offer significant opportunities.⁴

Global brands are already moving fast to seize the opportunity. For example:

• Basic-Fit, Europe’s largest budget chain, aims to reach 2,000 clubs by 2030.⁵
• Gold’s Gym is expanding its international presence under RSG Group.⁶
• Xponential Fitness has been expanding its presence in Europe and the Middle East. In Saudi Arabia, they've signed a multi-brand master franchise agreement to open over 50 studios across brands like Club Pilates, Pure Barre, CycleBar, YogaSix, and AKT. In Germany and Austria, they plan to introduce more than 150 studios over five years, starting with Club Pilates and Pure Barre. Additionally, Xponential has entered the UK market with its Body Fit Training brand.⁷
• Boutique concepts like Barry’s and OrangeTheory are leveraging their strong brand identities to enter multiple European and Middle Eastern markets.⁸

The trend is clear: strong brand identity and a clear concept are now essential to thrive in the evolving fitness landscape.

Why franchising makes sense

Franchising enables fitness brands to expand into new markets while mitigating financial risk and operational complexity. Compared to corporate expansion, franchising:

• Reduces upfront capital investment
• Provides faster access to local markets
• Leverages local knowledge and community relationships
• Ensures better scalability and brand consistency

Consumer expectations have also changed. The rise of at-home fitness platforms has created more discerning customers. Generic gyms are struggling, while established brands with a clear USP (unique selling proposition) – like F45’s functional training or Gold’s Gym’s legacy strength focus – are thriving. On the premium end, brands like Equinox are redefining fitness with high-end experiences and wellness retreats.

Today’s fitness consumers are looking for:

• Distinctive workout experiences
• Innovative technology
• Holistic wellness offerings

Franchising provides a powerful vehicle to deliver this at scale – but only if it's backed by a sound legal and operational framework.

Legal considerations in cross-border expansion

Expanding a franchise internationally requires thoughtful legal and operational structuring to protect the brand, ensure compliance, and maintain consistency across borders. Fitness franchisors must take a holistic approach that spans legal, commercial, and operational dimensions. Key considerations include:

• Franchise Agreements & Manuals: Franchise documentation must clearly define system-wide operational standards, brand usage, and quality expectations. Comprehensive manuals and consistent enforcement mechanisms are essential to safeguard brand integrity and franchisee accountability.
• Remuneration Model: The financial framework – including franchise fees, royalties, and other revenue–sharing arrangements – should be structured for long-term sustainability, aligned with both market norms and the brand’s commercial objectives.
• Local Partner Selection: Choosing the right in-market franchisee or master franchise partner is critical. Legal due diligence, contractual alignment, and cultural fit all play a role in building successful and enduring partnerships.
• Staff Training & Qualifications: Fitness-specific recruitment and training programs must meet local qualification standards and cultural expectations. This includes ensuring trainers are properly certified and aligned with the brand’s fitness methodology.
• Marketing Strategy: Localised marketing and member acquisition strategies are vital in a highly competitive landscape. Brands must balance global identity with tailored campaigns that resonate with local audiences.
• Facility Design & Maintenance: Consistency in design, layout, and facility upkeep reinforces brand recognition and supports member experience – particularly in premium or boutique segments.
• Regulatory Compliance: Franchisors must navigate a patchwork of local laws. This includes not only franchise-specific disclosure and registration obligations, but also heightened health, safety, and insurance requirements in fitness environments, which may vary widely between jurisdictions.

A poorly structured franchise risks not only legal disputes and inefficiencies but also damage to brand reputation and customer trust.

Franchise opportunities beyond the gym floor

Franchise growth is not limited to traditional brick-and-mortar gyms. New avenues are emerging – particularly in the hospitality space, where wellness has become a major focus:

• Hospitality Integration: High-end hotels are enhancing their wellness offerings with state-of- the- art fitness facilities and exclusive partnerships with boutique brands. This opens a unique channel for fitness franchises to gain visibility, reach premium clients, and enter luxury markets through strategic hospitality alignments. This presents a unique opportunity for fitness franchises to increase visibility, reach premium clients, and enter luxury markets through strategic hospitality alignments.
• Medical and Wellness Expansion: A growing number of fitness concepts are integrating medical-grade wellness solutions such as GLP-1 treatments (e.g., Ozempic), nutritional coaching, and preventative health services. This reflects shifting consumer interest toward holistic health and weight management – and offers a high-margin, loyalty-driving complement to core fitness services.
• Aesthetic & Recovery Technology: Fitness franchises are also blurring the lines with the beauty and recovery industries by incorporating services like EMS (electrical muscle stimulation) treatments, lymphatic drainage massage, red light therapy, and non-invasive laser sculpting. These offerings tap into consumer demand for rapid results, recovery solutions, and appearance-enhancing services – creating new revenue streams and deepening the member experience.

The time to expand is Now

With rising demand, government support in key markets, and the continued evolution of the fitness consumer, now is the right moment for brands to scale internationally through franchising.

However, success depends on doing it right – from a legal, operational, and brand consistency perspective. Fitness franchises that invest in well-structured, compliant models will be best positioned to capture this growth and thrive in the long term.

1. European Health & Fitness Market Report 2023, EuropeActive/Deloitte.
2. Vision 2030 and Wellness Initiatives, Government of Saudi Arabia & UAE Ministry of Health Reports, 2023.
3. Statista, Global Gym Penetration Rates (2023); IHRSA Global Report, 2023.
4. Statista Market Insights, Global Fitness Industry Report (2024); IHRSA 2023 Global Report.
5. Basic-Fit Investor Presentation, Q3 2023.
6. RSG Group Corporate Website, International Expansion News, 2023.
7. https://www.nasdaq.com/articles/xponential-fitness-xpof-expand-bft-line-scandinavia; https://investor.xponential.com/news/detail/24/xponential-fitness-signs-large-scale-multi-brand-master.
8. Franchise Times, Orangetheory and Barry’s Expansion Plans (2023); Company Press Releases.