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Orangetheory Once Followed, Now It Leads

Orangetheory is planning to add 250-300 studios inside and outside the country this year. Please read below to find out how they became so successful and why other franchisees are seeking them out.

Photo Courtesy of NNC Public Affairs Photography.

In less than a decade, Orangetheory Fitness has muscled its way to prominence within the franchise fitness world to become a big, small player in the retail real estate market.

The Boca Raton, Florida-based franchise counts more than 1,100 boutique-sized fitness studios in the U.S., each filling roughly 3,000-square-foot spaces in retail locations across 45 states.

At first, Orangetheory followed big grocery anchors into shopping centers. Today, it’s a lure that draws other franchise brands seeking to tap into Orangetheory’s following.

For landlords, Orangetheory can provide a steady flow of traffic that doesn’t completely sabotage and eat up your parking.

Orangetheory studios offer high-intensity workouts in a small-group setting led by a coach.

You track your heart rate in real time on monitors in the studio as you work through weights and use cardiovascular machines.

Women make up 70 percent of its membership and earn incomes on average $75,000 and up.

Those demographics dovetail nicely with the customer base of a business that caters mostly to women, such as a waxing boutique, nail salon or Pilates studio.

The monthly price depends on the number of visits and varies by city. On average, the basic plan for four classes a month costs $59.

The company initially focused on shopping centers in suburban markets and used guerrilla marketing techniques such as placing Orangetheory color bikes around the city.

Orangetheory no longer needs to use guerrilla marketing and doesn’t need to seek Grocery-anchored Shopping Centers to find real estate. As the brand matured, the focus became more about the trade area, parking and access than the co-tenants.

The shift reflects the fitness boutique’s growing status in the retail world. Now, businesses are seeking them out.

Scott Mileham, a retail broker who represents Orangetheory, said “If people are trying to get around us, we are doing something right.”

2019 CoStar.

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