“Using Qvinci, our franchisees get to see how well the brand is performing and that encourages them to invest in additional locations.”
How valuable is Qvinci to Orangetheory Fitness?
It’s a great tool. Having this level of visibility into the system-wide unit economics definitely increases the value of the brand. This is important to us because about 80% of our deals are with existing franchisees. Using Qvinci, our franchisees get to see how well the brand is performing and that encourages them to invest in additional locations.
Why did Orangetheory Fitness partner with Qvinci?
One of our founders knew Qvinci through a previous experience at another major franchise that used their solution. Based on that experience, he insisted Orangetheory use Qvinci for its financial reporting and business intelligence. He even went so far as to make it part of the agreement with the franchisees from the beginning. For me, I was excited to find Qvinci already in place when I joined the company, because I knew it provided 100% visibility into system-wide unit economics which is unheard of in the franchising business. Nothing else even comes close.
What did you use before Qvinci?
We do a lot of benchmarking and year-over-year comparisons across the studios which helps our owners identify opportunities for improvement. The brand is on fire right now and we want to make sure our franchisees don’t get too “fat and happy.” Qvinci gives us the data we need to benchmark against the top studios, which shows that the lower performing studios could be doing better. Qvinci ensures everyone is always working with the most recent and accurate numbers which gives us what we need to help our franchisees to become better business people. During our 2017 annual conference, I used Qvinci’s reports in my financial presentation and it was very enthusiastically received by our franchisees.
How many of your locations are using Qvinci?
At any given time, the only studios not using Qvinci are those with new owners who are still in their 90-day “getting-up-to-speed” period. Other than that, we’re at as close to 100% compliance in this area as you can possibly get. Our owners get it. They know how valuable it is to have access to this level of system-wide business intelligence.