CR Fitness Is on Track for 110 Locations by End 2026: How Budget Gym Franchises Are Dominating
CR Fitness Holdings — the largest Crunch Fitness franchisee in the US — is on pace to reach 110 locations by end 2026. That pace represents 25%+ growth in two years, and it's part of a broader trend reshaping the US fitness landscape: the dominance of the HVLP (high value, low price) model.
The Winning Model
HVLP means High Value, Low Price. The principle: $10-25/month memberships in 45,000-50,000 sq ft facilities with premium amenities — modern cardio equipment, extensive free weight zones, saunas, sometimes pools — that would have been reserved for upscale gyms a decade ago.
This model breaks the old paradigm where "cheap" meant "basic." CR Fitness and its competitors prove that margin compression per unit can be offset by membership volume and large-scale operational efficiency. Multi-unit consolidation in budget fitness is accelerating precisely because this math holds at scale.
Geographic Strategy: Secondary Markets
One of CR Fitness's distinctive expansion choices is geographic targeting: secondary and tertiary markets — cities between 100,000 and 500,000 people where fitness facility density remains below the national average. These markets offer lower real estate costs and reduced competition from major chains.
It's a strategy diametrically opposed to premium chains (Equinox, Life Time Fitness) that concentrate in major metros. By occupying intermediate markets, CR Fitness avoids direct position wars with giants while addressing an underserved population. Workout Anytime has built its entire franchise growth model around these same overlooked small markets.
What This Says About the Fitness Market
HVLP represents 68% of new gym openings in the US in 2025-2026. Budget gyms aren't stealing clients from premium gyms — they're creating new market by converting non-members who previously couldn't afford or weren't motivated to join a traditional gym. The global fitness club market data for 2026 confirms which segments are driving that growth and which are stalling.
For independent gym operators, this movement creates additional pressure in the mid-market — a segment increasingly difficult to hold against the perceived value of major HVLP franchises on one side and the premium experience of specialty boutiques on the other.
Implications for Gym Operators
A CR Fitness opening in a secondary market displaces member flows, particularly those who were only looking for basic equipment access. For independent gyms, the answer isn't to compete on price — that's structurally impossible. It's to differentiate on what a $10/month franchise can't offer: personalized coaching, local community, individual follow-up.