Sixth Street’s investment in CR Fitness signals the next phase of HVLP expansion, with investors continuing to see white space in one of America’s strongest-performing gym segments
Crunch Fitness franchisee CR Fitness Holdings has landed a $350 million strategic investment from global investment firm Sixth Street, fueling an expansion push that will see the group look to add more than 100 clubs over the next five years.
North Castle Partners, which led a majority investment in CR Fitness in 2019 and recapitalized the business in 2022, will remain the largest shareholder and continue its partnership alongside Sixth Street. The deal also includes a new senior debt facility provided by Golub Capital.
The deal comes as the high-value, low-price (HVLP) gym category continues to outperform the fitness industry overall. According to the Health & Fitness Association’s latest FIT Tracker, HVLP gyms hit record visitation levels in the third quarter. HVLP clubs, a favorite of Gen Z, are seeing traffic 22% above pre-pandemic levels.
The Florida-based CR Fitness, co-founded by industry veterans Vince Julien, Tony Scrimale and Jeff Dotson, operates nearly 90 clubs across the U.S. and leads the Crunch system in both unit count and sales volume. CR plans to open 24 new locations this year, including nine former 24 Hour Fitness sites in Florida.
The group also counts Dallas Cowboys quarterback Dak Prescott as a partner. The three-time Pro Bowler joined CR Fitness last year, supporting its expansion of HVLP gyms in Dallas and backing CR’s plans to open nine new locations in Texas by the end of 2026.
“Partnering with Tony, Vince and the CR team since 2019, when the franchisee had just 19 clubs, has been an incredible journey,” North Castle Partners managing partner Jon Canarick said. “In six years, the team has solidified CR Fitness as the leading franchisee in the Crunch system with a strong member-first culture. Sixth Street brings deep industry experience and values that align with ours and management’s, making them an ideal partner to support CR in its continued growth.”
Scrimale’s own path mirrors the kind of ground-up growth CR Fitness is known for. He began his career in the 1990s as a gym cleaner before working his way into management and later co-founding CR Fitness in 2011 with longtime partners Julien and Dotson.
North Castle, which has invested in several top brands in the fitness and wellness industry, named Scrimale its “CEO of the Year,” marking the second time in four years he’s earned the recognition.
“What sets CR apart is our people,” Scrimale said. “We’ve built a team of talented regional leaders who know how to launch, operate, and grow clubs the right way. That strength, rooted in a disciplined and proven playbook, allows us to expand with impact while keeping members at the heart of everything we do.”
Jenny Walsh, co-head of consumer at Sixth Street, noted the firm sees “substantial whitespace” ahead for CR Fitness.
“Beyond the growth opportunity, what stood out for us is how closely our teams are aligned on values: putting members first, empowering great operators and building for the long term,” Walsh said. “Our investment is intended to help accelerate new club openings and deepen the focus on the member experience alongside North Castle and the CR leadership team.”
It’s been a breakout year for CR’s parent company, Crunch Fitness, as well, having unveiled Crunch 3.0, a redesign template bringing premium touches like heated studios, recovery zones and expanded strength areas to its HVLP footprint.
The investment in CR Fitness also comes months after Crunch Fitness itself secured a majority investment from Leonard Green & Partners, marking a new chapter for the franchisor. Under the leadership of CEO Jim Rowley, Crunch has grown its membership base by 176% since 2019 and surpassed 3 million members, with more than 500 clubs worldwide.
