Smart Scaling:
Navigating the Growing Pains of Building a Chain
BY JULIE KING
Expanding from a single club into a thriving chain is among the quintessential entrepreneurial dreams in the fitness industry. But the journey from one to five or more locations is fraught with challenges that can test the resolve of even the most passionate founders.
The elements that forged the initial success—that hands-on approach, a tight-knit community, and nimble decision-making—can paradoxically become liabilities during expansion. Often, founders who are expanding their business find themselves overwhelmed by a diluted brand, the immense financial pressure of growth, and the daunting task of finding staff who share their original vision.
Without a clear, repeatable model, inconsistencies creep in, fracturing the member experience and extinguishing the unique spark that once defined your brand.
Making a Mindset Shift
Successfully navigating this challenging growth phase demands a pivotal shift in mindset—from excelling as a club operator to emerging as a visionary leader of a scalable enterprise. This evolution involves building a robust infrastructure, systemizing the brand’s “secret sauce,” empowering a new layer of leadership to carry the torch forward, and more.
So, how can owners learn to overcome the hurdles of expansion and build a fitness empire that is both profitable and true to its soul?

Gale T. Landers Founder and CEO of Fitness Formula Clubs (FFC)

Rodney Steven Founder of Genesis Health Clubs

Colin Grant Co-founder of the PURE Group
Words of Wisdom
When asked for their single most valuable piece of advice, each leader offered insights that were distinct yet complementary.
Rodney Steven: “Refine your systems, assemble a trustworthy team, and establish a self-sustaining culture.”
Gale Landers: “Find two mentors: a local business mentor and one from afar from whom you can learn buckets through their proven business research.”
Colin Grant: “Be authentic and clear on what makes you and your brand unique. Know what must stay consistent, and what can flex to fit the local community. And never compromise on your people—they’re everything.”
How FFC Mastered the Regional Chain
Making the leap from one successful location to a multi-unit operation often involves struggles with brand dilution, operational inconsistencies, and a loss of the original club’s unique culture. Fitness Formula Clubs (FFC) Founder and CEO Gale Landers provides a powerful blueprint for how to navigate this expansion successfully, having built a thriving mini-chain in one of the nation’s most competitive markets.
At the request of Health & Fitness Business and with permission from Landers, Virtuoso CEO BJ Kito used data from the consultancy’s proprietary Krakin platform to evaluate FFC’s performance. The assessment revealed that FFC’s success stems from a clear, disciplined strategy that tackles common growth challenges head-on. Here are a few ways Landers and his team successfully scaled the brand.
They repositioned the brand: According to Kito, FFC’s foundation is a deliberate move away from being just a “gym.” Instead, they are classified as an “integrated health and wellness center,” a holistic model that combines core fitness with personal care, physical therapy, and nutritional support.
“This strategic positioning immediately differentiates them and expands their revenue streams beyond simple membership dues,” notes Kito.
They leaned into local advantages: A key to FFC’s triumph is its embrace of a “hyper-local premium” identity. While competitors like Equinox and Life Time focus on a national luxury brand, FFC has turned its geographic concentration in Chicago into a core strength, cultivating a strong local identity and community-focused feel.
This strategy creates a powerful “defensive moat” against larger national brands and fosters deep member loyalty. Market perception data confirms this success, with customers viewing FFC as the “gold standard for a neighborhood club in Chicago,” striking a perfect balance between high-end amenities and a welcoming, unpretentious atmosphere.
They developed a scalable infrastructure: “To avoid the operational chaos of expansion, FFC built a scalable infrastructure,” Kito says. “For example, the McKinsey 7-S framework analysis shows a structure with a corporate headquarters overseeing individual club managers, which allows for standardized quality while empowering local community-building.
“This is supported by integrated systems for member management and billing. Their growth has not been haphazard but has followed a clear plan: first, penetrating their existing market and developing new products like wellness services, and then leveraging that strong brand equity to expand into new, underserved affluent neighborhoods and suburbs.”
By systematizing their “secret sauce” of integrated wellness within a strong community framework, FFC has not only survived but is projected to grow its market share, according to Kito. Their journey demonstrates that successful expansion requires shifting from simply operating a club to strategically building a scalable, consistent, and deeply understood brand.

BJ Kito CEO of Virtuoso

Health & Fitness Business (HFB) is the leading Health & Fitness industry publication. Published monthly by the Health & Fitness Association (HFA) and distributed free to the industry, HFB offers analysis of the opportunities, challenges, issues and news that impact the industry.
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