

Sure, we have technology, we have apps, we have operating systems, we have all that stuff that we want to continue to get better at, but we're also trying to place a great deal of importance on emotional intelligence and just caring for people, understanding them, helping them see that this, although it may appear intimidating, they can do this, they have the capability to do this. We can have the emotional intelligence, the people skills to help understand people unlock where they want to go and meet them where they are. Our brands are trying to get far better at making sure we are very welcoming. I think what those people need is a gym or a studio that cares about them, that will take the time to understand them, personalize the experience, provides them education, motivation, welcome them, meet them where they are at, and then introduce them to a healthier lifestyle. There's this incredible white space opportunity with those who are at home, maybe sitting on the couch, maybe intimidated or just lack that motivation.

adults, so one out of five people who are members of some type of club or studio. Runyon: If you think about people who are active members in the fitness space, it is really only about 20% of the U.S. Knox: How are you working to grow the size of the fitness and wellness industry as a whole? Your health is either an asset or liability, and once you turn it into an asset, it can propel you forward in so many ways. It just feels good to know that at the end of the day, we're bringing help to communities and help to people. We're very proud of that. The more work we do, the more people change their lives. It's really less about us and more about their work and their achievement and the value that they believe in. I've never heard a franchisee saying that, "I did this because I made so much money," or, "I did this because you have the best treadmills." It's always a profound transformation story and something about self-love and self-respect and them really liking the new person that they are. In all the stories I've heard, I want you to think about this.

Oftentimes, our owners or our coaches who get the tattoo say two things, either, "I helped this person achieve something they could never do before and I'm very proud of that," or, "The values of this organization align so deeply with my values that I want to put this on my skin." We're a part of it because maybe our coach, our club helped them locally transform their life, but it's always a profoundly personal story. I've lost a hundred pounds," or, "I've run my first triathlon," or, "I just love who I am." It's always a sign of self-love and self-respect and because they love this new version of themselves. It is all about their personal transformation, like, "I love the new me, and I don't want to go back to being the old me. Quite honestly, it's really not so much about our brand, even though they have that symbol on their skin. If someone around the world gets a tattoo in their community and it has to do it Anytime Fitness, our owner sends us a picture, they send a reason why, and they send a receipt. I think we might be the only corporate headquarters in the world that has its own tattoo room. Runyon: We built our new headquarters about four years ago and we have a full-time tattoo room. How did that start and why do you think Anytime Fitness has cultivated such a strong commitment from your members? Knox: On that brand statement, one of the cool things about the brand is that 4,000 Anytime Fitness members have the symbolic running man logo tattooed on their bodies. Knox: In addition to being one of the top 25 franchise systems in the world, you are also the only one with a presence on all seven continents. How did Anytime Fitness end up with a presence on a luxury expedition vessel in Antarctica? In addition to founder passion, we want these differentiating experiences for the consumer. When we find that, it's a wonderful partnership between a founder's passion and our platform. Then Waxing the City had a wonderful approach with their approach to waxing and their technique is second to none. Bar Method is absolutely the highest consumer rating when it comes to those bar classes. Basecamp is the best workout in the shortest amount of time in the HIIT world today. Runyon: We are founder-conscious and all three of the brands had a strong founder influence. We loved the passion and the belief system of the founders of those three businesses, but they were looking to grow and scale, which is where Self Esteem Brands came in. From a value prop, they have distinctive offerings. Knox: When you acquired those new brands, what made them stand out as good fits for Self Esteem?
