Cult.fit targets presence in 100 cities over the next four to five years
Cult.fit plans to expand through a franchise-owned, company-operated model, targeting up to 100 cities in four to five years. CEO said IPO timing will depend on regulatory progress and investor feedback; the company reported an FY26 EBITDA margin of about 8.5%.
What happened
Cult.fit plans to expand into up to 100 cities over four to five years, increasingly using a franchise-owned, company-operated model. The fitness company
Key facts
- 100 cities
- 4-5 years
- EBITDA margin about 8.5% in FY26
- EBITDA margin negative 3% in previous year
- 51% customer retention
- about 85% of members on 12-month memberships
Why this matters
Cult.fit’s national rollout creates potential partnership, franchise and real-estate opportunities, though counterparties should track how its FOCO model performs as it scales across new markets.
What to watch
- Named franchise partnerships, city-wise opening schedules and the ratio of franchise to company-operated centers.
- Evidence of successful entry beyond major metros, including membership ramp-up and retention in tier-2 markets.
- Changes in EBITDA margin, operating cash flow, pre-opening costs and franchise support expenses.
- Competitive responses from gyms, fitness aggregators, boutique studios and local chains, particularly promotional pricing.
- IPO-related governance upgrades, auditor/board changes, regulatory filings or formal banker appointments.
- Customer-experience indicators such as trainer attrition, app ratings, class utilization and membership renewal rates.
- Recruit regional franchise partners with real-estate access and operating experience in target cities.
- Build city-launch playbooks covering site selection, trainer hiring, local marketing and membership conversion.
- Increase central control of pricing, app-led subscriptions, class programming and service-quality audits across franchise locations.
- Use new-city openings to cross-sell sportswear, nutrition, digital fitness and corporate wellness offerings.
- Publish more granular unit-economics and same-store performance metrics as IPO readiness advances.