A fitness franchise is targeting rapid expansion after pivoting to a ‘plug-and-play’ model during COVID-19.
Now Andy Bell, co-founder of AJ Bell, has invested £1 million into Transform Hub alongside Fergus Lyons, a former director at the FTSE 250 investment platform.
Transform Hub operates a number of boutique group training studios, aimed at the over-30s market, across the North West, Yorkshire and London.
The business, launched in 2018 by personal trainer and body transformation expert James Calderbank, pivoted to a new model in 2020 as gyms were forced to close during the pandemic.
Alongside co-founders Wendy Barker and Justin Devonshire, Calderbank re-launched a ‘plug-and-play’ model which allows franchisees to create a profitable Transform Hub within three months.
The 30-year-old from Preston said: “We knew there would be high demand for in-person training after lockdown and our franchise model allows owners to focus on running their own personal studios.”
Transform Hub has seen exceptional growth with 50 staff working across 20 locations, including Knutsford, Bury and Burnley – with an Altrincham studio due to open later this year.
The £1m investment will go towards acquiring new franchise sites as the team aims to employ 300 people across 100 sites by 2025. It is believed that new sites will either be greenfield, startups or involve taking over distressed gyms.
Unlike traditional gyms, Transform Hub studios host group personal training classes where sessions are led by expert coaches. With a community feel members are accountable to coaches with weekly nutrition calls, body composition measurements and goal setting sessions.
Calderbank explains: “Our studios are typically single-sex, and we see high demand for both male and female hubs, with community and nutritional support ranking high on the reasons why we have been so popular.
Providing the right technology to franchisees and users is the backbone of its success. Centrally, Calderbank has invested heavily in digital access for users by integrating SaaS platform Mindbody for class bookings and Loyalsnap for customer retention and marketing services.
He said: “The desire to create a technology-led service was there from the start.”
Elsewhere, Transform Hub uses in-body scanners to keep members accountable, tracking their body composition every week.
And social media ads are controlled centrally in a bid to take away stress for franchisees.
Explaining his decision to invest, Bell said: “The impressive growth that Transform Hub has experienced made this an easy investment decision. The potential to scale further through a focus on new franchisees is really exciting.
“We were also impressed by the team’s resilience to pivot during Covid-19 and launch a group service which promotes positive change, both physically and mentally.
“This commitment to helping others formed part of our decision to invest, as well as being an attractive overall package.”
The Transform Hub deal sees Bell and Lyons each take a 12.5% share in the business with the current founders retaining 75% ownership.
It comes six months after the pair invested £1.2m into Fuel Hub, a healthy meal delivery startup founded by retired professional rugby player James Laithwaite and his wife.
Lyons added: “The enthusiasm that James, Wendy, and the team have for changing the lives of Hub members is positively infectious.
“The traditional gym model doesn’t work for all and the level of care, support and accountability that Hubs give to members has been a huge contributor to the success story so far.”
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