The company utilizes its scale and vendor relationships to supply equipment and merchandise to franchisees at reduced costs compared to independent acquisition. Franchisees are responsible for selecting, acquiring, and leasing studio sites, subject to site approval by Xponential. The company provides guidance during site selection, build-out, and design to ensure studios comply with brand specifications. A dedicated sales team manages franchise sales and resales, while another team supports franchisees with lead generation, sales conversion, and customer retention. The company does not operate company-owned studios as a primary business model but temporarily held additional studios following COVID-19 disruptions and initiated a restructuring plan in 2023 to exit these transition studios.
Xponential Fitness Inc's Comment on Supply Chain
The company utilizes its scale and vendor relationships to supply equipment and merchandise to franchisees at reduced costs compared to independent acquisition. Franchisees are responsible for selecting, acquiring, and leasing studio sites, subject to site approval by Xponential. The company provides guidance during site selection, build-out, and design to ensure studios comply with brand specifications. A dedicated sales team manages franchise sales and resales, while another team supports franchisees with lead generation, sales conversion, and customer retention. The company does not operate company-owned studios as a primary business model but temporarily held additional studios following COVID-19 disruptions and initiated a restructuring plan in 2023 to exit these transition studios.
Sources:
Xponential Fitness Inc 's official press releases and regulatory filings; CSIMarket.com's supply-chain research; and the financial filings and press releases of other companies cited in this report.
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