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Wednesday 5 August 2026 · Global franchise news

Franchise Expansion

Crunch Franchisee CR Fitness Plans 20 Phoenix Clubs By The End Of 2027

CR Fitness Holdings subsidiary Southwest Fitness Holdings is planning 20 Crunch Fitness clubs across the Phoenix region by the end of 2027, starting with Ahwatukee, Arcadia, Mesa Grand and Paradise Valley.

By Franchise Brief Newsroom·22 July 2026· 6 min read
Crunch Arcadia is one of the Phoenix-area clubs in CR Fitness Holdings' new regional expansion plan.

Crunch Arcadia is one of the Phoenix-area clubs in CR Fitness Holdings' new regional expansion plan.

Crunch Fitness franchisee CR Fitness Holdings is making a major bet on Phoenix, with subsidiary Southwest Fitness Holdings planning 20 locations across the region by the end of 2027. The 21 July announcement says five clubs are already in presale and identifies Ahwatukee, Arcadia, Mesa Grand and Paradise Valley as expected to open by the end of 2026, followed by Crunch Arrowhead in mid-2027. Additional Phoenix-area locations are planned as the company continues looking for development opportunities.

The headline is large, but the operator behind it is just as important. Southwest Fitness Holdings currently operates 14 Crunch gyms in the Dallas-Fort Worth area and has five coming soon in Arizona. Its parent, CR Fitness Holdings, says it serves more than one million members across 98 Crunch Fitness locations. That makes the Phoenix plan a franchisee-led regional expansion by an experienced operator rather than a speculative first-time deal. In mature fitness franchising, that distinction matters because large clubs require capital, site discipline, staffing, presale execution and a strong local management bench.

Each new Phoenix club is expected to use Crunch 3.0 design and range from about 33,000 to 48,000 square feet. The release says the clubs will include cardio and strength equipment, group fitness studios, personal training, HIITZone, Ride cycling, Hot Studio and Relax and Recover amenities, with some locations adding Reformer Pilates, Frost Locker, Abs and Glutes studios, steam rooms and 24/5 access. That amenity list shows how high-value fitness franchises are evolving. The old low-price gym model is being pushed toward more bundled experiences, recovery features and boutique-style options inside a larger format.

The investment and employment claims are significant. CR Fitness says each club represents roughly a $5 million investment and is expected to create more than 70 jobs. Across the 20 planned locations, the company expects more than 1,500 employment opportunities in the Phoenix region. Those numbers give the story local economic weight, but they also point to execution risk. A 20-club plan requires recruiting trainers, sales staff, operations teams and club leaders at scale while maintaining the brand's member experience.

CR Fitness chief executive Tony Scrimale framed the expansion around affordable fitness access and Crunch's No Judgments philosophy. The release also says founding member rates start at $9.99 per month with no long-term contracts. That pricing is designed to widen the top of the membership funnel, but franchisees then need strong retention, upsell discipline and service consistency to make the economics work. The addition of Crunch Select in Phoenix at select locations suggests the operator also sees room for a premium version of the model.

For the franchise market, the Phoenix plan shows how growth in fitness is increasingly franchisee-driven. Large operators with capital and systems are building regional density, refreshing club formats and competing against both budget gyms and boutique studios. The story is not simply that Crunch is adding gyms. It is that one of its major franchise groups is committing capital to a full regional rollout, and Phoenix will now test whether the 3.0 format can scale quickly while still feeling local to members.

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