Welcome back to HALO Talks! In this episode, we're joined once again by Adam Sedlack, CEO of UFC Gym, for another conversation that explores the evolution of the brand since his last appearance in May, 2019. (Link below.) Adam takes us behind the scenes on navigating the challenges of COVID-19, transitioning to a franchise-focused, asset-light business model, and expanding globally, with UFC Gyms now operating in 48 countries and growing.

You'll hear firsthand how strategic decisions protected both the UFC brand and its franchisees, why careful franchisee selection and capitalization are crucial, and how UFC Gym's new concepts, like boutique jiu-jitsu studios, are shaping the industry's future. Plus, Adam shares very candid advice for fitness entrepreneurs, his thoughts on brand partnerships, and what true community means inside—and outside—the gym doors. Whether you're a franchise veteran or just starting out, this episode is packed with a ton of takeaways.

Key themes discussed

• UFC Gym's global franchising strategy and expansion
• Navigating COVID-19 financial challenges without bankruptcy
• Franchisee support, training, and operational infrastructure
• Introducing UFC Gym Jiu Jitsu boutique model
• Importance of franchisee passion and capitalization
• Opportunities for gym conversions and management partnerships
• Synergies and potential for brand sponsorships in clubs

A Few Key Takeaways

1.Asset-Light, Franchise-Focused Strategy Post-COVID: The organization shifted from owning corporate gyms, creating significant rent and debt liabilities, toward an asset-light, franchise-centric model. Assets were sold to well-capitalized franchisees, and proceeds were used to pay off debt, allowing the company to emerge stronger post-pandemic 06:07.

2. Disciplined Franchisee Selection: Success in franchising is not just about expansion but about choosing the right partners. The best franchisees are both properly capitalized and deeply passionate about the brand and its mission. A lack of either capital or passion is a deal-breaker, and sometimes it's about connecting people who have both qualities 20:39.

3. Global Expansion & Diversified Models: The brand is now developing in 48 countries, opening nearly one new gym every week, and is on track to increase that pace. Performance is especially strong in larger 30,000-40,000 square foot models. Additionally, they've launched a low-capital UFC Gym Jiu Jitsu studio to serve smaller markets and new owner-operator franchisees, expanding their reach and appeal 06:23.

4. Operational Infrastructure and Automation: To scale effectively, automation, robust systems, and support infrastructure are essential. The company leverages tools like Club Connect, comprehensive CRMs, and AI to support franchisees, enabling even average teams to perform at high levels by following well-crafted operational manuals 17:41.

5. Potential and Practice of Facility Conversions: There is growing opportunity in converting existing, often underperforming, fitness facilities (sometimes with landlords becoming franchisees) into refreshed UFC Gym-branded locations. The model is flexible, allowing for such conversions and even management partnerships where the UFC Gym team operates facilities on behalf of landlord-owners 26:24.

Resources:

• Adam Sedlack: https://www.linkedin.com/in/adamsedlack
• UFC Gym: https://www.ufcgym.com
• Adam's first HALO Talks: https://www.halotalks.com/adam-sedlack-president-ufc-gym (May 2019)
• Integrity Square: https://www.integritysq.com
• Prospect Wizard: https://www.theprospectwizard.com
• Promotion Vault: https://www.promotionvault.com
• HigherDose: https://www.higherdose.com