Poland’s fitness franchiser sets sights on Europe

With backing from bValue Growth and revenues rising sharply, Xtreme Brands is turning a domestic franchise success into a regional expansion story targeting 750 sites by 2030

Założyciele Xtreme Brands: Łukasz Dojka (z prawej) i Łukasz Nowakowski (z lewej) oraz James Cotton, prezes Xtreme Fitness Gyms i Xtreme Kids
Łukasz Dojka (right) and Łukasz Nowakowski (left) started their business with Xtreme Fitness Gyms, and in 2023 they launched Xtreme Kids play centers. They are supported in managing the franchise networks by James Cotton, the CEO. Photo: press materials/Xtreme Brands
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Łukasz Dojka started with a basement gym. Today, backed by the bValue fund, he is targeting 500 fitness clubs across several countries, 150 children’s play centers and 100 venues under a new concept. Details will be unveiled this year, alongside the launch of international expansion. It will require substantial investment – both the company’s own capital and that of several hundred franchisees.

For years, Poland’s fitness market lacked large, nationwide players – until the rise of Benefit Systems. The operator of the MultiSport program began securing a network of facilities to support its growth already in the previous decade. Under its updated strategy, it aims to operate 370–400 clubs in Poland alone by 2027, serving 1.9–2 million sports card users.

In 2020 Medicover joined the race, acquiring fitness chains at a striking pace. It combines sports offerings with medical services, delivering a comprehensive approach to health.

Somewhat in their shadow – having started in smaller towns – Xtreme Brands has been building its position. The company owns Xtreme Fitness Gyms (XFG) and, since 2023, Xtreme Kids play centers. Although founded in 2012, it only reached meaningful scale during the pandemic, when a fitness boom took hold. Within a few years, it aims to operate 750 locations across several European countries. Its international expansion will begin this year.

“I started from scratch – literally with a basement gym. Today, together with my team, I am building a market leader in Poland and preparing the company for international expansion. It is an experience that brings immense satisfaction. Success stories such as InPost, founded by Rafał Brzoska, show that Polish companies can think boldly and compete effectively on a larger scale. I, too, want to build a company from Poland that can compete abroad with the biggest players on equal terms,” says Łukasz Dojka, co-founder of Xtreme Brands.

227 clubs an ambitious target? Let’s make it 750

In 2022 the entrepreneur, together with his partner Łukasz Nowakowski, set a target of 227 profitable clubs by the end of 2027 – implying more than fourfold growth. It marked a transition to the next stage of organizational professionalization.

“At times we could hardly believe it would work, but only ambitious goals make sense. They create the motivation to find a way to achieve them. It quickly became clear that our fitness franchise – developed consistently over the past decade – fits the realities of the Polish market very well,” says Łukasz Dojka.

Today, XFG is already the largest fitness chain in Poland – while Benefit Systems and Medicover operate under multiple brands within an ownership model. A target that not long ago seemed ambitious will be comfortably exceeded. This year alone, the company will increase the number of clubs by more than 80, to around 250, and expand Xtreme Kids locations by 28, to roughly 40 sites.

“From an organizational standpoint, we are ready to open more than 100 locations a year, and we assume that by 2030 we will have 750 sites across Central and Eastern Europe (CEE). This will require significant investment – on our side and that of franchisees – exceeding PLN 700m (approx. EUR 160m). Even so, today’s outlook seems less demanding than our earlier plan for 227 clubs,” says Łukasz Dojka.

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A sports group with hundreds of franchisees

The targeted 750 locations will comprise around 500 gyms – mainly in Poland – some 150 children’s play centers and likely about 100 venues under a third concept, to be unveiled later this year.

“We want to be a franchise group built around sport and wellbeing. The new concept will be a natural extension of that direction – it will combine elements of our existing operations and open up another avenue for growth. We are exploring new opportunities not only because we have the organizational appetite, but also because we clearly see our partners’ growing readiness to scale up their involvement,” says Łukasz Dojka.

The most prolific franchisee already operates 14 XFG clubs, while four partners run locations in both concepts and are looking to open more. The network now exceeds 300 partners, some of whom are still awaiting the launch of their first site.

“In 2025 we added 40 new franchisees, and nine more so far this year. At this scale, the partner network itself is becoming one of the main engines of further growth,” says the founder of Xtreme Brands.

Fireside chat

A major franchise success can pave the way for others

XYZ: If global franchise leaders can scale in Poland’s food service sector, why has a major international player in fitness not yet emerged?

Sebastian Gazda, CEO of UP-Fit, owner of the UP brand: This is due to the dominance of very strong intermediaries in the Polish market – large sports card operators [primarily MultiSport, Medicover Sport and PZU Sport – ed.]. This has blocked, and increasingly continues to block, the entry of global industry giants. So far, every attempt has ended in withdrawal due to insufficient profitability. Only here do intermediaries sit at the center of the ecosystem, effectively preventing the replication of successes seen in dozens of other countries.

What has emerged instead is a local player challenging the biggest names: XFG.

Only now is Poland seeing a real breakthrough in fitness franchising concepts. After years of waiting, the country finally has its first consistently managed, scalable domestic franchise: XFG. It is a model that works like a well-oiled machine, comparable to U.S. brands such as Anytime Fitness or Orangetheory Fitness, but adapted to the realities of Poland and the wider region.

XFG has broken through the barrier, secured capital, built a team, and achieved a rapid pace of expansion. The success of one large player opens the door for others—both in terms of investor confidence and the breaking of the previous investment and acquisition duopoly.

Where are the greatest opportunities?

The key battleground is smaller cities, where large intermediaries are absent or significantly weaker. That is where the greatest room for growth remains, and where franchises can scale most quickly.

There is also continued space for boutique models targeting specific customer segments or services, as well as for operators able to adapt to the sports card ecosystem in large cities – capturing traffic and monetizing additional services.

As a club operator, I see a very specific situation.

What kind?

On one hand, an experienced operator can easily compete with the largest chains, because their operational quality is – put mildly – not perfect. Customers are often willing to choose a more refined, local offering. On the other hand, Poland still lacks diversity of capital and hundreds of franchise concepts – both domestic and international – typical of mature markets in Western Europe and the United States. The market remains flat and relatively undifferentiated, based on a handful of models and dominated by a single mechanism for distributing demand.

I would like to see that change. And right now feels like the right moment to build. The market is opening up again. Larger capital is starting to take interest in the fitness sector, and the success of XFG proves that it is possible to build a scalable, profitable concept despite the specific constraints of our market. That is a strong signal for all future entrants. However, the biggest challenge for the industry is still ahead – and it has nothing to do with demand or competition.

What is it then?

Real estate. As XFG and other franchise and proprietary networks expand, pressure on access to attractive locations for new clubs is increasing. We are already seeing rising rents, longer negotiation processes, less flexibility from landlords, and even a genuine shortage of suitable space in some cities.

In the coming years, access to good locations – not demand, innovation, or service quality – will become the key success factor for fitness chains. I am not worried about the industry’s potential, as we have entrepreneurial operators and strong momentum for growth. What I do worry about is that the commercial real estate market may not keep pace with the speed of expansion.

What could be the consequences?

Both franchise operators and club owners will be forced to seek more unconventional spaces, optimize floor plans, invest in redevelopment, or expand into locations previously treated as “second choice.”

Today, it is easier to open a fitness club thanks to standardized franchise models and growing market professionalization. However, running it profitably remains an operational craft. And in the coming years, that craft will increasingly include the ability to secure the right locations on favorable terms.

Czechia: launching international expansion

Several years ago, the company assumed that it would expand abroad in 2026. It is now executing that plan.

“More and more Polish entrepreneurs are making a similar move today, although no reasonable person pretends it is an easy path. It requires courage, determination, and a readiness to accept that success will not come automatically. We are fully aware that the hardest part is still ahead. At the same time, we know that without international expansion it will not be possible to achieve our intended scale,” says Łukasz Dojka.

XFG is focusing on the CEE region. From an operational and business perspective, this is the most rational direction. From its headquarters in Tarnów, it is even closer to Czechia or Slovakia – where it will begin operations – than to some of its own clubs in Poland. Moreover, the company is already present in several border locations, which has allowed it to closely observe local market conditions and customer behavior.

“We believe that the professionalization of the industry, which has been underway in Poland for several years, is only now beginning to gain momentum in Czechia and Slovakia. This creates room for players with experience, a proven model, and the ability to execute consistently. I observed a similar process two decades ago in the United Kingdom and the United States, so I have a good sense of where the market stands today,” says Łukasz Dojka.

First small cities, then big ones

For its first decade after founding, XFG expanded in Poland mainly in towns with fewer than 100,000 residents. This was its “blue ocean” strategy. Only from 2024 onwards has it begun entering the largest cities. The company intends to replicate a similar model abroad.

“We signed our first lease in Czechia in a town of 60,000 inhabitants. The opening is planned for the second half of the year, and from 2027 we aim to significantly accelerate expansion. In parallel, we are evaluating locations in Slovakia, and from next year we may also look at Romania,” says Łukasz Dojka.

The company does not build large clubs exceeding 2,000 square meters. Instead, it targets spaces of 500–1,000 square meters (around 650 square meters on average), located close to its customers.

“We operate in a convenience model – what matters is easy access, good visibility, and everyday availability, a place where people can drop in for a workout without disrupting their day. We want to stay close to people who expect a professional club with a good atmosphere, run by a local entrepreneur,” explains Łukasz Dojka.

Building the foundation for partners

As in Poland, XFG will begin its international expansion with a small number of company-owned clubs. This will allow it to better adapt the concept to local needs and prepare the organization for further scaling. The company is planning investments of several million euros.

“Alongside this, we will be looking for partners and, in the optimal scenario, also a master franchisee who will eventually lead local expansion. The requirement is simple: first, you need to build strong foundations – brand awareness and a sufficiently large member base. Only then can partners enter the business with a realistic prospect of generating fast returns,” explains the entrepreneur.

He notes that in Poland, some clubs become profitable as early as the first month of operation. However, he considers three to four months to be a safe and attractive benchmark.

As many as 100 gyms across the southern border

Łukasz Dojka notes that although the number of Poles using fitness clubs is growing rapidly, it still does not exceed 10% of the population. By comparison, he points out that in Scandinavia, the United Kingdom and the United States, the figure exceeds 20%.

“This is a clear signal that the Polish market still has significant room for growth. It implies the potential to roughly double the number of gyms to around 6,000. The greatest opportunities remain in towns below 100,000 inhabitants, as that is where roughly three-quarters of Poles live. The market is growing in line with increasing awareness of how strongly sport affects physical and mental health, as well as day-to-day wellbeing. There is also a growing understanding that fitness and physique are not permanent – they require consistent work,” says Łukasz Dojka.

He assesses that the Czech market is currently at a similar stage of development. For this reason, he assumes that over the next few years there is room for 50–100 XFG clubs there.

Synergy between fitness clubs and play centers

In its domestic market, the company aims – wherever possible – to open a gym and a children’s play center side by side. This was recently the case at Plejada in Sosnowiec, where it leased a total of 1,300 sq m.

“The two concepts complement each other. A parent can bring their child to an Xtreme Kids session and, at the same time, go for a workout ‘next door’ at Xtreme Fitness Gyms,” explains Łukasz Dojka.

For fitness clubs, the company is already entering towns with as few as 10,000 residents. For play centers, however, the threshold is currently higher – around 25,000–30,000 inhabitants. Exceptions do occur when suitable space is available, typically 600–800 sq m.

“The development of Xtreme Kids brings us a great deal of satisfaction. This business is not only commercial in nature, but also has a real impact on shaping healthy habits from an early age,” the entrepreneur explains.

Xtreme Brands expands across retail parks

Access to attractive locations is fundamental for Xtreme Brands’ further expansion. In recent years, Poland has seen a significant wave of commercial real estate development, particularly retail parks. Appetite among both domestic and international investors remains strong. As a result, the company is not concerned about space availability – at least over the next two years.

“In 2025 we signed 112 lease agreements covering a total of 70,000 sq m, and this year we have already signed more than 30 agreements for 20,000 sq m. At the same time, we are negotiating over 200 additional locations. For many investors and property managers, we have become a highly attractive and important addition to the tenant mix. We are a first-choice partner in fitness and one of the ten operators they want to engage with already at the building design stage,” says Łukasz Dojka.

He highlights the strong complementarity with retail chains. Their highest traffic occurs on Saturdays, while gym members typically visit on weekdays.

“From the perspective of property owners, this is an important advantage. We are also an attractive tenant because we sign ten-year leases, which are relatively rare in the market. We are focused on long-term relationships,” says Łukasz Dojka.

Expert's perspective

Fitness chains and retail parks: a proven match

The fitness industry is now one of the strongest and fastest-growing tenant categories in the services sector. In recent years, the market has seen dynamic expansion by major players such as Benefit Systems (including Zdrofit and Fabryka Formy), Medicover (including Well Fitness and Just Gym), and Xtreme Fitness. This momentum is supported by market data: more than 7 million Poles still live in municipalities without access to a chain-operated fitness club.

The latest European analyses further confirm the sector’s significant growth potential. According to the European Health & Fitness Market Report 2025, Poland’s fitness penetration rate – at around 8–9% - remains well below Western European levels, where it ranges from 12% to 17%. To fully capture this opportunity and sustain dynamic growth, the operating model must evolve. Fitness is no longer a service reserved for large shopping malls; it has become a key component of everyday local infrastructure.

Retail parks are particularly well suited to the needs of fitness operators. Their key advantages include ample parking, locations in well-connected and attractive areas, and the ability to combine workouts with everyday shopping. Fitness clubs generate steady footfall throughout the week, including off-peak retail hours, and help build customer loyalty. Crucially for asset stability, they are reliable tenants that sign long-term lease agreements.

The strategies of leading fitness chains show that the convenience model – proximity and ease of access – is decisive. There is no single dominant format; diversification is key. Retail parks are among the most frequently chosen locations for new clubs, especially outside major metropolitan areas. However, the market is also expanding rapidly in standalone residential locations and modern office buildings, pursuing a core objective: to stay as close to the customer as possible.

The investor brought more than capital

The fuel for Xtreme Brands’ expansion was provided a year ago. The company secured investment from the bValue Growth fund, which focuses on growth-stage companies. In a transaction worth PLN 43m (approx. EUR 10m), the fund acquired around a 30% stake, implying a valuation of approximately PLN 140m (approx. EUR 32m). The fund typically invests for four to six years and targets a several-fold increase in value over that period.

“After a year of working with bValue, we are even more convinced it was the right choice. We were not actively looking for an investor, but several funds approached us, so we reviewed the available options. We chose bValue because of the way its team thinks: entrepreneurial, yet still close to people,” says Łukasz Dojka.

The capital raised gave the company greater flexibility in developing its fitness club network and significantly accelerating the expansion of Xtreme Kids. However, it quickly became clear that the value of the partnership extends far beyond financing.

“Equally important for us is the ability to challenge ideas, access to experts across different fields, and support in the area of technology. Later this year, we will implement new technological solutions and launch a new website. Another important element was the standardization of reporting. This helped us better structure our processes and measure the business more precisely, as it now operates on a much larger scale than just a few years ago,” says the co-founder of Xtreme Brands.

Fast revenue growth and stable margins

In 2025, XFG increased revenue (comprising turnover from company-owned facilities and franchise income) from PLN 79.3m (approx. EUR 18m) to PLN 136.5m (approx. EUR 31m), while EBITDA rose from PLN 21m (approx. EUR 4.8m) to PLN 27.8m (approx. EUR 6.4m). Total turnover across both concepts (including Xtreme Kids) also increased significantly – from PLN 83.8m (approx. EUR 19m) to PLN 149.9m (approx. EUR 34m). This year’s target is to exceed PLN 200m (approx. EUR 46m) in revenue while maintaining an EBITDA margin of around 20%.

“Together with bValue, we have set specific targets we want to achieve by 2030. There is a lot of work ahead, and that is what we are focusing on first and foremost. When entering into cooperation with a fund, one must take into account different development scenarios. One of them may be a stock market listing. All the more so as I still see significant potential in this company and remain fully motivated to lead it through the next stages of growth,” says Łukasz Dojka.

Key Takeaways

  1. Rapid growth in franchisees and locations. Ambitious partners and attractive locations form the two pillars of Xtreme Brands’ expansion. The company already has more than 300 franchisees, some of whom are still waiting to open their first site. The most active franchise partner operates 14 XFG clubs, while four partners already run locations across both concepts and are planning further openings. To meet this demand, securing sites well in advance has become essential. In 2025, the company signed 112 lease agreements covering a total of 70,000 sq m, and this year it has already signed more than 30 agreements covering 20,000 sq m.
  2. From basement gym to the largest fitness network. Xtreme Brands traces its origins back to 2012, when Łukasz Dojka ran a gym in a basement. In the following years, he built a network of company-owned fitness clubs and later transitioned to a franchise model. The company became a significant market player during the COVID-19 pandemic, when expansion accelerated markedly. From 2025, following the entry of the bValue Growth fund, growth has picked up again, with the company now targeting 750 locations across several European countries by 2030. This will comprise approximately 500 Xtreme Fitness Gyms clubs, around 150 Xtreme Kids play centers, and roughly 100 venues under a third concept, set to launch this year. “We want to be a franchise group built around sport and wellbeing,” says Łukasz Dojka.
  3. International expansion plan. In line with a strategy set several years ago, the company is set to expand abroad. In the second half of this year, it will open its first fitness club in the Czech Republic. At the same time, it is scouting locations in Slovakia, and from 2027 it plans to explore opportunities in Romania. The focus is on Central and Eastern Europe. Expansion will begin with company-owned clubs to build brand recognition and a customer base. Only later will franchisees or master franchise partners be brought in to develop specific markets. As in Poland, the company is starting in mid-sized towns, where competition is weaker.