CEO of Xponential Fitness, Mark King, is retiring due to health reasons and will leave once a successor has been found, after overseeing the transition.

Former CEO of Taco Bell, King was already in his first retirement when he was appointed head of the US boutique franchisor last June, following the abrupt departure of Anthony Geisler.

Since King took over he has been working to achieve stability in the currently loss-making company and when announcing the full-year results, he said there was still a lot to do.

In Q1 total revenue decreased by US$2.8 million (4 per cent) to $76.7 million in the prior year period. Net losses totaled $2.7 million compared to a net loss of $3.8 million in the prior year period.

Regarding his departure, King said: “It has been an honour to lead Xponential’s team through a critical and transformative period. During my time as CEO, I leveraged my extensive experience in scaling global franchises to strengthen and broaden the appeal of our category-leading fitness brands.

“I helped stabilise the company through a focus on franchisee health and creating a customer-centric culture and laid out a strategy for the next phase of growth. Additionally, I appointed key executives to build a world class leadership team to fulfill the vision of becoming the global franchisor of choice in health and wellness.”

King recently told HCM that his strategy centred on three pillars: enhancing franchisee success, optimising brand operations and expanding the global footprint.

“I want Xponential to be recognized as the unrivaled franchisor of choice in fitness and wellness,” he said. “We'll continue strengthening our existing brands rather than adding new ones in the immediate future. The divestiture of AKT, Row House, and Stride in 2024 allowed us to concentrate resources on our highest-performing concepts. Our focus is on driving sustainable growth with an emphasis on quality over quantity.

“We've significantly enhanced our approach to franchisee support, moving from a model primarily focused on selling territories to one centered on franchisee success. I've also built out our executive leadership team, bringing in seasoned professionals with diverse experience beyond the fitness industry. We've implemented more robust data analytics capabilities to guide decision-making and strengthened our international expansion strategy with dedicated leadership.”

Speaking on behalf of the board of directors, chair, Mark Grabowski, said: “I commend Mark for his contributions and dedication to supporting franchisees and his positive impact on the company. It has been a privilege to work with Mark, and we wish him the best in his retirement. The Board is committed to running a thorough search and onboarding process and appreciates Mark’s continued support to ensure a seamless leadership transition.”

The news breaks on the same day as former CEO and Xponential founder, Anthony Geisler announced his comeback with Sequel Brands.