Advertisement
Advertisement

Fitness World Plans $50M for Canadian Expansion

Date:

Share post:

Fitness World Canada is entering its most ambitious growth phase to date, unveiling a $50 million capital commitment designed to accelerate national expansion and introduce franchising for the first time in the brand’s modern history. The five year strategy combines the opening of 25 new corporately owned fitness clubs with the rollout of a structured franchise program, positioning the British Columbia based operator for sustained growth across Canada and potentially beyond.

The announcement signals a major inflection point for a company that has quietly rebuilt itself since emerging from bankruptcy during the pandemic. With 17 operating locations across British Columbia and more than 90,000 members, Fitness World is now shifting from regional strength to national ambition, backed by a business model that emphasizes affordability, inclusivity, and operational discipline.

 

“This $50 million investment is more than growth capital, it’s the fuel behind our mission to make fitness more accessible, affordable, and transformative across North America,” said Chris Smith, President and CEO of Fitness World. “Expanding through both corporate and franchise locations underscores our commitment to growth while staying connected to the day to day business.”

Chris Smith

From Pandemic Reset to Growth Platform

Fitness World’s current trajectory is rooted in a restructuring that began in 2020, when Smith acquired the former Steve Nash Fitness World and Sports Club assets out of insolvency. At the time, the brand carried a mid tier pricing structure and an aging portfolio of clubs that struggled to align with shifting consumer expectations.

“We right sized to 15 clubs and now we’re at 17, getting ready to start construction on our 18th location,” Smith said in an interview conducted in fall 2025. “Over the last few years, we’ve really evaluated what’s next in terms of long term strategy, and how we can spread our brand of fitness a little bit more.”

That reset included a near $10 million reinvestment into existing clubs, focused on upgraded equipment, lighting, layouts, and programming. While many physical structures remained intact, Smith said virtually every other element of the member experience was reimagined.

“The bathrooms are still where you remember them and the walls are still there,” he said. “But the colours, the lighting, the music, the equipment, everything else is different. Our business model is different too.”

A High Value, Low Price Positioning

Central to Fitness World’s growth strategy is its positioning as a high value, low price operator. Memberships start at $12.49 bi weekly, placing the brand well below traditional full service gyms while offering significantly more amenities than entry level discount competitors.

“We’re not claiming to be a high end facility and we don’t want to be,” Smith said. “We don’t think that fits our core values, one of which is inclusivity. You can’t really be inclusive if your price point excludes a lot of folks.”

Fitness World clubs feature extensive strength and cardio zones, group fitness studios, recovery amenities such as hydro massage, red light therapy, and massage chairs, as well as personal training and nutritional services. Many locations also offer child minding, women only workout areas, and community specific programming.

“Our model flexes into the community,” Smith explained. “In suburban locations with young families, child minding is critical. In urban locations, it might not be needed. We design clubs based on what that community actually requires.”

 

Corporate Growth Anchored by Real Estate Strategy

As part of the Fitness World Canada expansion, the company plans to open 25 new corporate locations over five years, with two new clubs expected to open in the second quarter of 2026. Typical locations range between 20,000 and 25,000 square feet, positioning Fitness World as a large format anchor tenant within retail and mixed use developments.

“These are big commercial footprints, often anchors to retail centres,” Smith said. “That’s where we like to be, but we can be flexible if there’s a community we really want to serve.”

Geographically, the company is prioritizing Ontario and Alberta for corporate expansion, with a particular focus on the Greater Toronto Area, Calgary, and Edmonton. Smith confirmed the company is also evaluating opportunities south of the border, though Canada remains the immediate priority.

“We don’t want to grow too fast, but we want to grow as fast as sustainably possible,” he said.

Photo: Fitness World

Franchising Marks a New Chapter

Alongside corporate expansion, Fitness World is launching its first formal franchise program, a move Smith describes as a deliberate evolution rather than a pivot away from operating company owned clubs.

“We plan to continue a balance of both,” he said. “There’s a lot of merit in doing both, especially at this stage of our incubation as a company.”

The franchise program debuted quietly at ICSC@Canada in Toronto in fall 2025, generating what the company described as a strong initial response from prospective operators. Fitness World plans a more aggressive rollout in 2026, including presence at ICSC Las Vegas and the International Franchise Expo.

Future franchisees are being offered a turnkey model supported by centralized onboarding, operations playbooks, marketing automation, and a proven technology stack. The company reports average unit volumes of approximately $3.25 million, with club operating profit approaching $925,000.

“We’re looking for the right type of investors or operators who embody who we are and what we want to be about,” Smith said. “This isn’t about scaling at all costs. It’s about scaling with impact.”

Technology as a Growth Enabler

Technology has played a critical role in Fitness World’s turnaround and growth. In 2024, the company partnered with ABC Fitness to deploy advanced club management and member engagement tools, including digital onboarding, personalized fitness plans, and operational analytics.

The results have been measurable. Fitness World now generates roughly one third of its sales through online channels, with monthly digital sales nearly tripling since 2020. These systems have also supported improved member retention, which Smith views as one of the most telling indicators of brand health.

“Our Google review scores are the highest in our market by far,” he said. “Retention is strong, and people keep showing up because they appreciate the experience we deliver.”

Fitness World’s expansion comes as Canada’s fitness industry continues to grow, currently valued at approximately $5.8 billion with annual growth exceeding six percent. According to Smith, the market has bifurcated, with premium operators and high value, low price gyms outperforming mid market competitors.

“The high end clubs are doing well, and our category has grown tremendously,” he said. “Every business metric you look at, member counts, profitability, engagement, tells a positive story.”

Smith noted that boutique fitness concepts have struggled to regain pre pandemic momentum, while consumer demand increasingly favours flexible, comprehensive facilities that support strength training, recovery, and long term health.

Photo: Fitness World

Health, Wellness, and the Role of Gyms

Smith believes gyms are playing an increasingly important role in broader health outcomes, particularly as younger generations prioritize wellness more intentionally than previous cohorts.

“The baby boomers are in the same place they’ve always been,” he said. “It’s the younger generations that are really prioritizing health differently, and that’s refreshing.”

He also highlighted the growing intersection between fitness and healthcare, including the impact of GLP 1 medications and preventative wellness strategies.

“For every $1 spent on wellness initiatives, governments save about $4 in healthcare costs,” Smith said. “If we could get more Canadians active, even modestly, the societal impact would be enormous.”

Community Impact and Job Creation

As Fitness World expands, the company expects to create approximately 1,000 new jobs over the next five years, more than doubling its current workforce of about 700 employees. Beyond employment, the brand has invested in community focused initiatives, including free fitness programming for underserved populations and partnerships with organizations supporting youth and seniors.

“Our goal is to meet people where they are,” Smith said. “Whether someone’s goal is weight loss, strength, mental health, or simply staying active, we want to support that journey.”

With capital secured, franchising underway, and multiple markets under evaluation, Fitness World Canada is positioning itself as one of the country’s most aggressive growth stories in fitness and wellness. The combination of corporate discipline, franchise scalability, and community centric positioning reflects a strategy shaped by both hard lessons and renewed opportunity.

“We’ve found something that’s different enough to create separation,” Smith said. “Now it’s about doing it well, sustainably, and in a way that stays true to who we are.”

More from Retail Insider:

LEAVE A REPLY

Please enter your comment!
Please enter your name here

More From Retail Insider

RECENT RETAIL INSIDER VIDEOS

Advertisment

Subscribe to the Newsletter

Subscribe

* indicates required

RECENT articles

La Maison Générale Marks Montreal Milestone

La Maison Générale celebrates one year in Montreal as the French lifestyle brand marks its 80th anniversary.

Grocery Fuel Surcharge Fight Reshapes Pricing in Canada

Fuel surcharges are dividing Canada’s grocery sector, widening gaps between major chains and independent grocers.

Mandy’s opening latest location in Toronto’s The Distillery Historic District

Located at 359 Front St E in the District, the 1,900-square-foot space will offer 30 seats indoors, along with an additional 15-seat patio.

Canadian retail resets as 17 million square feet returns to market

“Canada’s retail market is moving through a supply-led reset, but demand has not broken.”

Calgary fashion-tech startup Prévoir expands AI-powered Shopify merchandising platform

It extracts detailed product attributes from a brand's product images, such as colour and fabric, and pairs them with sales data to reveal which styles and design elements perform best.

Cozey expands global footprint with Australia launch

The Australia expansion comes just six years after Cozey first launched in Canada and follows closely on the heels of its successful U.S. e-commerce debut in 2023.

Grocery Prices Stabilize, but Affordability Remains a Challenge in Canada

Grocery prices are stabilizing in Canada, but affordability challenges persist as many households continue to struggle with rising food costs.

Cadillac Fairview Dominates Canada’s Top-Performing Shopping Centres

Cadillac Fairview leads Canada’s most productive shopping centres, with seven properties in the national top 10 by sales per square foot.

Casavogue Expands Offering with Furniture Warehouse in Saint-Léonard

Casavogue opens a warehouse in Saint-Léonard with up to 65% off living room, bedroom, and dining room furniture.

Daily Synopsis: Apr 28, 2026

Lululemon appoints new leadership, surveillance pricing questioned, Alice + Olivia entering Canada, Quebec furniture manufacturing in jeopardy, mixed feelings in Winnipeg amid crime curb efforts, and other news.

Lululemon Resets Leadership Amid Rising Competition

Lululemon reshapes leadership with a new CEO and board appointments as competition intensifies and growth pressures emerge.

Self-Storage Proposed for Former Hudson’s Bay Centre in Toronto

Brookfield’s new plan for the former Hudson’s Bay Centre at Yonge and Bloor introduces self-storage above street-level retail, signaling a shift in redevelopment strategy.

adidas Canada partnering with Tim Hortons Timbits Soccer

adidas Canada has announced a multi-year partnership with Tim Hortons as the official jersey partner for the Timbits Soccer program.

La Maison Simons Announces Downtown Vancouver store at CF Pacific Centre

The location will occupy part of the mall's former Nordstrom space, and will be a welcome addition to Vancouver's downtown core which saw significant vacancies.

Alice + Olivia to Open First Canadian Store in Yorkville

Alice + Olivia will open its first Canadian store at Yorkville Village in Toronto, reinforcing the area’s strength as a luxury retail hub.

National roadshows strengthening business ties with China

The roadshow series will convene business leaders, government representatives, and industry stakeholders to explore how Canadian companies can expand into the Chinese market.

Canadian consumer still under pressure with food prices: Dalhousie report

Over 80% of Canadians identify food as the expense that has increased the most.

The Brick Chick grows with LEGO popularity

An independent parts and custom design business serving adult collectors across the U.S. and Canada.

Coast Appliances Files for CCAA After Leadership Exit

Coast Appliances enters CCAA after leadership resignations, mounting debt, and operational disruptions across Canada.

Daily Synopsis: Apr 27, 2026

DoorDash partners with Empire, Abercrombie & Fitch returning to Calgary's CF Chinook, No Frills opens in Edmonton, Michaels debuts 10-minute custom framing, Artizia opens flagship, and other news.