Ohm Fitness Quick to Attract Minority Investor, Area Developers

Senior editor of Franchise Times

Doug Payne is founder and CEO of Ohm Fitness.

Ohm Fitness launched its concept, in which customers work out while wearing bodysuits that deliver EMS, or electrical muscle stimulation, for super speedy results, only last August. Events have been electrifying ever since.

"In the next 60 days we could declare that all the area representative rights have been sold" in the United States, said CEO and co-founder Doug Payne when reached in March. That pace stands out even for someone formerly involved in Massage Envy, Orangetheory Fitness and European Wax Center.

"It's wild to watch as an observer. It's even crazier to be in the middle of it. But it's all fantastic," said Payne. If they sell out in a few months, as he expects, "then my No. 1 focus is the next wave, which is successful studio openings."

For that, Payne will depend on his area developers, including Joshua Coba, the co-founder of European Wax Center who took it from one salon to a $151.6 million initial public offering in 2021. Coba had retired before then, at age 40, but reversed himself in 2022 to buy a minority share in Ohm Fitness from Payne, who was one of European Wax Center's first franchisees. Coba is also area developer for South Florida with his wife, Jenni.

Joshua and Jenni Coba are area developers for Ohm in South Florida.

"I really believe he has something here that's going to be very big. The idea I could support him early on was also very intriguing," Coba said about Payne. "The workout is really, truly amazing."

Signing franchisees in his area, as area developers do, is relatively easy—many are people he's worked with in the past. He's sold five licenses in the area so far to franchisees.

But signing leases is a different story. "So, sadly, real estate has just been astronomically challenging out here in Miami, in particular. So, we’ve been struggling," he said.

At first, he gave specific criteria for where he wanted space: in the top malls and best locations. "I’ve opened the gates to my broker. I don't even care anymore. I’ll go anywhere in a space that works," he said. He's planning 50 locations in this area, "ideally" with himself and three other franchisees with 10 locations each.

As of March, only one Ohm Fitness was open, the original corporate-owned store in Scottsdale, Arizona. The area developers for the state are Melissa DiGianfilippo and Alexis Krisay, co-founders of Serendipit Consulting, a marketing and PR agency that represents Ohm Fitness and many other franchise clients. This is their first time as operators.

Wireless suits deliver electrical currents to muscles for an efficient workout at Ohm Fitness.

DiGianfilippo believes Payne is on top of the fast growth. "We represented Modern Acupuncture and saw a similar amount of growth. Nothing like this. And no, I don't think it is too fast," she said. "They have a fully built-out office. They have all of their key positions filled. The marketing playbook's done. They’re lightyears ahead of where most franchisors are at this stage."

Payne, too, says he's on top of it. "We’re threading the needle between an aggressive development schedule that gets the brand out there the way that it should, and being too fast, too unrealistic," he said, adding Coba is an excellent partner.

"So, Josh has seen arguably every stage of development in the life cycle of a franchisor. He's seen the good, the bad. … He's helping us" avoid the latter.

One thing Payne knows for sure: They’ve got the wireless bodysuit that delivers EMS exactly right, he said, following several rounds of R&D that included his wife, Jackie.

"My poor wife was trying on one of the versions. And we fired it up. It almost gave you the feeling of pins and needles, and she said, ‘If this is what it's about, I’m out.’ So, we kept tinkering and tinkering," and finally found the perfect model.

"Very early on there was a bit of that laboratory mindset, and once we found the suit, we began hosting classes in our backyard," he said, beginning with one day a week. "By the time we opened, I was doing multiple sessions, three days a week, in my backyard. It was around that time that I thought, we’ve really got something here."

Senior editor of Franchise Times

Well-versed in legal and public policy issues, Beth is quick to dissect a lawsuit or court ruling, and her M&A expertise yields fascinating content for FT's Dealmakers program.