Flynn Group Makes Its Biggest Planet Fitness Play Yet
Flynn Group has acquired 98 Planet Fitness clubs, propelling them to become the fifth-largest franchisee in the brand's history. This acquisition significantly increases Flynn Group's footprint in the fitness sector while also showcasing their larger strategy of diversifying their franchise portfolio beyond restaurants.
This acquisition suggests strong investor confidence in the profitability and appeal of the fitness sector, which is crucial for multi-unit operators looking for growth opportunities in a competitive market.
Flynn Group has significantly expanded its presence in the fitness sector by acquiring Grand Fitness Partners, which operates 98 Planet Fitness gyms across five states. This acquisition propels Flynn Group to become the fifth-largest franchisee within the Planet Fitness system, with their portfolio totaling 141 clubs. The company, which is known for its large-scale operations in the restaurant industry, notably holds over 1,200 Pizza Hut locations, more than 460 Applebee’s restaurants, and over 300 Taco Bells, generating nearly $5 billion in sales last year.
The acquisition is considered "immediately accretive to the overall P&L," according to Stan DeMartinis Jr. , President of Flynn Planet Fitness. Greg Flynn, the founder and CEO of Flynn Group, highlighted the strategic nature of this move, emphasizing that it was always their intention to enhance their footprint in the fitness industry after their initial dive into Planet Fitness with the purchase of 37-unit franchisee Alder Partners in 2021.
The Grand Fitness Partners chain was acquired from HGGC, a middle-market private equity firm that had invested in the operator, initially holding 42 locations when they made their investment. As part of this recent transaction, Monogram Capital Partners, the previous majority owner, also exited its position. While financial details of the deal remain undisclosed, Flynn expressed confidence that they paid a fair price given the quality of the gym portfolio.
Furthermore, Flynn commented on the inherent strength of the fitness business model, particularly the broad appeal of general-purpose gyms. He noted positive industry growth and introduced the potential impact of GLP-1 weight-loss drugs, which could influence gym engagement. In late 2025, Planet Fitness will initiate a partnership with Ro, a telehealth platform providing access to these medications, reflecting an evolving landscape where gyms adapt to integrate wellness solutions into their offerings.
This acquisition signals Flynn Group's commitment to diversifying its operations beyond traditional restaurant management and marks a significant strategic investment in the growing fitness industry.