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đź”´ PRIVATE EQUITY OWNED
Orangetheory Fitness
boutique fitness · Boca Raton, FL
PE Firm
Roark Capital
Year Acquired
2016
“Merged into a mega-franchise while its biggest operator collapsed.”
The PE Playbook
- •Roark Capital invested in 2016, then engineered a merger with Anytime Fitness parent in 2024 to form $3.5 billion 'Purpose Brands'
- •Largest franchisee Honors Holdings (143 studios) defaulted on $100M+ in loans and began 'winding down' operations in late 2024
- •Franchisees formed an independent association in 2024 citing declining membership and corporate indifference
- •Members reported studios closing without notice — arriving to find eviction notices on doors
Since the Acquisition
- ▸Largest franchisee (143 studios) defaulted on its $100+ million credit facility in 2024 and began winding down — leaving members stranded
- â–¸Closed 22 studio locations in 2023; average studio profitability dropped by more than 50% from 2019 to 2023
- â–¸Nearly 1 in 5 studios (19.4%) were losing money at the location level as of March 2024
- ▸Member complaints center on billing nightmares — people report being charged months after canceling