Transform Hub Secures £1m Investment
AJ Bell co-founder, Andy Bell, invests £1m into fitness franchise Transform Hub
The co-founder of AJ Bell has invested £1m into a growing fitness franchise, which aims to employ 300 staff within two years.
Andy Bell is backing Transform Hub alongside Fergus Lyons, a former director at the FTSE 250 investment platform.
Transform Hub operate a number of boutique group training studios, aimed at the over 30s market, across the North West, Yorkshire, and London.
The business was launched in 2018 by personal trainer and body transformation expert James Calderbank.
It then pivoted to a new model in 2020 as gyms were forced to close during the pandemic.
Alongside co-founders Wendy Barker and Justin Devonshire, Calderbank re-launched a plug-and-play model which allows franchisees to create a profitable Transform Hub within three months.
The 30-year-old from Preston said: “We knew there would be high demand for in-person training after lockdown and our franchise model allows owners to focus on running their own personal studios.”
Growth, Resilience, and Strategic Investment
Transform Hub has seen exceptional growth with 50 staff working across 20 locations, including Knutsford, Bury and Burnley – with an Altrincham studio due to open later this year.
Explaining his reason to invest the former AJ Bell CEO said: “The impressive growth that Transform Hub has experienced made this an easy investment decision. The potential to scale further through a focus on new franchisees is really exciting.
“We were also impressed by the team’s resilience to pivot during Covid-19 and launch a group service which promotes positive change, both physically and mentally.
“This commitment to helping others formed part of our decision to invest, as well as being an attractive overall package.”
The Transform Hub deal sees Bell and Lyons each take a 12.5% share in the business with the current founders retaining 75% ownership.
And it comes six months after the pair invested £1.2m into Fuel Hub, a healthy meal delivery start-up founded by retired professional rugby player James Laithwaite and his wife.
Speaking of the Transform Hub investment, Lyons added: “The enthusiasm that James, Wendy, and the team have for changing the lives of Hub members is positively infectious.
“The traditional gym model doesn’t work for all and the level of care, support and accountability that Hubs give to members has been a huge contributor to the success story so far.”
Transform Hub's Unique Approach to Fitness
The £1m investment will go towards acquiring new franchise sites as the team aim to employ 300 people across 100 sites by 2025.
It is believed that new sites will either be greenfield, start-ups, or involve taking over distressed gyms.
Unlike traditional gyms, Transform Hub studios host group personal training classes where sessions are led by expert coaches.
With a community feel members are accountable to coaches with weekly nutrition calls, body composition measurements and goal setting sessions.
Calderbank explains: “Our studios are typically single-sex, and we see high demand for both male and female Hubs, with community and nutritional support ranking high on the reasons why we have been so popular
Explaining why the model is a success he adds: “We have centralised support for franchisees including fitness programmes, nutritional support, marketing for new customers and many other resources that small business owners find distracting.”
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