F45 Training Holdings, Inc. announced a strategic financing facility with affiliates of Fortress Credit Corp. The new facility will allow the fitness boutique operator to immediately offer eligible franchisees access to growth capital to support the development of new F45 studios across the U.S.
This facility will be funded by a $150 million commitment of debt financing with the potential to increase to $300 million over time.
“I am thrilled to announce our new strategic financing with Fortress, which will significantly accelerate the development of new F45 studios across the United States,” said Adam J. Gilchrist, president, CEO, and chairman of F45. “Coming out of the pandemic, access to attractive growth capital has become more challenging for small- and medium-sized businesses, especially in the boutique fitness space. By establishing a new bespoke financing solution tailored to the specific needs of our franchisees, we have taken proactive measures to assist our franchisees in executing on their growth ambitions while creating even greater visibility in our own business. In addition, because the facility will be off-balance sheet from F45’s perspective, we are able to maintain our highly attractive economic model predicated on capital efficiency.”
Current and prospective F45 franchisees will have the opportunity to apply for loan financing under this program to develop new F45 franchises in the United States beginning in Q2 2022.
Gilchrist continued, “Innovation is one of the three core pillars of F45, and this first-of-its-kind financing structure is a prime example of how we continue to drive innovation in the health and wellness and broader franchise industries. This facility will help streamline the process for our franchisees to source capital and accelerate new studio openings nationwide. As we experience unprecedented demand for F45, we remain committed to our goal of bringing the World’s Best Workout to every fitness enthusiast. This new innovative partnership is an important step in achieving that goal.”
“We are thrilled to collaborate with F45 in establishing this bespoke financing facility which will allow them to provide eligible franchisees financing for new franchise development within the United States. F45 is a clear category leader in the fitness industry and has proven its resilient franchise economic model during tough economic conditions, as shown by the extremely low closure rates across the U.S. system during the COVID-19 pandemic,” said Brian Stewart, managing director, Fortress Credit Funds.
Photo courtesy F45
