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Portnoy Law Firm
Lesley F. Portnoy, Esq.,
Office: 310.692.8883
1800 Century Park East, Suite 600
Los Angeles, CA 90067

Fuzzy Panda Research released a report on Monday, June 26, 2023, accusing Xponential Fitness, a global fitness brand franchisor, of concealing the struggles faced by many of their brands and franchisees. The report states that more than half of XPOF studios fail to generate positive financial returns. Contrary to the CEO’s claims that no stores have closed, the report reveals that 30 stores have been permanently shut down. Additionally, Xponential allegedly manipulates financial metrics by excluding underperforming stores from certain calculations, as mentioned in the report.

According to the report, Anthony Geisler, the founder and CEO of Xponential Fitness, has a lengthy history of engaging in unlawful business practices such as misappropriating marketing funds, violating labor laws, and imposing undisclosed fees on franchisees. Fuzzy Panda conducted interviews with former business partners, employees, and franchisees of Geisler, one of whom anonymously described him as a “crook” involved in numerous scams.

As a consequence of this revelation, Xponential’s stock price experienced a significant decline of more than 37% on Tuesday, June 27, 2023, inflicting substantial losses on investors.