F45 Announces First-of-its-kind $150 Million Financing Facility to Accelerate Franchise Expansion in the U.S.

AUSTIN, Texas–(Small business WIRE)–F45 Education Holdings Inc. (NYSE:FXLV) (“F45” or the “Company”), the fastest growing fitness franchisor in the world in accordance to Entrepreneur, nowadays declared a strategic financing facility with affiliates of Fortress Credit history Corp. (“Fortress”). The new facility will allow for the Company to quickly begin presenting suitable F45 franchisees obtain to progress money to assistance the development of new F45 studios throughout the United States. This facility will be funded by a $150 million dedication of credit card debt financing with the prospective to increase to $300 million about time.

“I am thrilled to announce our new strategic financing with Fortress, which will drastically accelerate the growth of new F45 studios across the United States,” reported Adam J. Gilchrist, President, CEO, and Chairman of F45. “Coming out of the pandemic, obtain to interesting advancement funds has come to be much more hard for modest- and medium-sized organizations, specifically in the boutique fitness place. By establishing a new bespoke financing answer tailored to the precise demands of our franchisees, we have taken proactive steps to support our franchisees in executing on their advancement ambitions when developing even larger visibility in our individual enterprise. In addition, simply because the facility will be off-balance sheet from F45’s standpoint, we are ready to preserve our very beautiful financial model predicated on cash performance.”

Existing and prospective F45 franchisees will have the prospect to implement for financial loan financing beneath this method to create new F45 franchises in the United States beginning in Q2 2022.

Gilchrist ongoing, “Innovation is one of the a few core pillars of F45, and this first-of-its-variety funding structure is a prime instance of how we continue to push innovation in the health and wellness and broader franchise industries. This facility will assistance streamline the method for our franchisees to resource funds and speed up new studio openings nationwide. As we expertise unparalleled demand for F45, we remain fully commited to our goal of bringing the World’s Best Exercise to each and every health and fitness enthusiast. This new impressive partnership is an crucial phase in obtaining that target.”

“We are thrilled to collaborate with F45 in creating this bespoke funding facility which will permit them to give eligible franchisees financing for new franchise development inside the United States. F45 is a very clear category leader in the exercise field and has verified its resilient franchise economic design in the course of hard financial ailments, as shown by the very minimal closure rates across the U.S. program in the course of the COVID-19 pandemic,” claimed Brian Stewart, Taking care of Director at Fortress Credit score Money.

About F45

F45 delivers shoppers purposeful 45-moment exercise sessions that are efficient, fun and community-driven. F45 utilizes proprietary technologies: a health and fitness programming algorithm and a patented know-how-enabled shipping and delivery platform that leverages a rich content database of above 8,000 exclusive functional coaching movements throughout modalities to supply new exercise sessions each and every day and offer a standardized knowledge throughout the Company’s international footprint.

For extra information, you should stop by www.f45education.com.

About Fortress

Fortress Expense Group LLC is a primary, remarkably diversified worldwide expenditure supervisor. Started in 1998, Fortress manages $53.3 billion of assets as of December 31, 2021, on behalf of roughly 1,900 institutional consumers and personal investors all over the world across a selection of credit and authentic estate, non-public fairness and long term funds investment decision approaches.

Advisors

The Raine Team served as distinctive money advisor, and King & Spalding LLP is serving as legal counsel to F45. Katten Muchin Rosenman LLP is serving as legal counsel to Fortress.

Forward-Seeking Statements

F45’s economic outlook and other statements in this push launch that refer to future ideas and expectations are ahead-seeking statements, within just the meaning of Part 27A of the Securities Act of 1933, as amended, and Area 21E of the Securities Exchange Act of 1934, as amended, that involve a quantity of challenges and uncertainties. Text this sort of as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential,” or “continue” “or negatives of these text and variations of this kind of words and phrases and similar expressions are supposed to recognize these kinds of ahead-searching statements. Statements that refer to or are based on estimates, forecasts, projections, uncertain activities or assumptions, together with statements relating to F45’s system, total addressable marketplace and marketplace chance, fiscal outlook, business enterprise strategies, the pending acquisition of Vive Active and the predicted added benefits, future macroeconomic problems, future impacts of the COVID-19 pandemic, and upcoming solutions and solutions, also identify forward-hunting statements. All ahead-searching statements included in this press release are primarily based on management’s anticipations as of the date of this push launch and, apart from as required by legislation, F45 disclaims any obligation to update these ahead- wanting statements to replicate long term gatherings or instances.

Ahead-searching statements are matter to specified threats, uncertainties and assumptions relating to variables that could bring about genuine outcomes to differ materially from individuals predicted in these statements, which includes, devoid of limitation, the adhering to: our dependence on the operational and monetary final results of, and our relationships with, our franchisees and the accomplishment of their new and present studios our capability to guard our brand name and reputation our capacity to detect, recruit and agreement with a enough range of experienced franchisees our ability to execute our development method, together with by means of growth of new studios by new and present franchisees our skill to regulate our development and the affiliated pressure on our sources our ability to properly integrate any acquisitions, or comprehend their predicted rewards the significant level of opposition in the well being and conditioning sector economic, political and other threats affiliated with our worldwide operations modifications to the market in which we run our reliance on details methods and our and our franchisees’ capacity to adequately maintain the confidentiality and integrity of our info the event of cyber incidents or a deficiency in our cybersecurity protocols our and our franchisees’ capacity to draw in and keep users our and our franchisees’ capacity to establish and safe suited web-sites for new franchise studios hazards linked to franchisees normally our capacity to attain 3rd-get together licenses for the use of songs to supplement our workouts particular wellbeing and security challenges to associates that arise when at our studios our skill to sufficiently secure our mental home dangers connected with the use of social media platforms in our marketing and advertising our ability to acquire and retain large-profile strategic partnership preparations our means to comply with present or long term franchise guidelines and regulations our capacity to foresee and satisfy consumer choices and shifting views of wellness and fitness our company product becoming inclined to litigation the elevated costs involved with getting a general public firm the event of any function, adjust, or other situation that could give increase to the termination of the settlement to obtain Vive Active the incapacity to well timed total or full the Vive Lively acquisition due to the fact of the failure to satisfy ailments to closing set forth in the acquisition settlement the hazard that the Vive Lively transaction disrupts our latest plans and functions and/or Vive Active as a consequence of the announcement, pendency or consummation of the transaction the potential to efficiently combine the functions and personnel of Vive Lively into our functions the skill to realize the expected advantages of the Vive Lively acquisition and additional elements reviewed in our filings with the Securities and Trade Fee (the “SEC”). Even further, several of these variables are, and may well carry on to be, amplified by the COVID-19 pandemic. In depth information and facts concerning these and other factors that could affect F45’s company and results is incorporated in F45’s SEC filings, which includes in the section titled “Risk Factors” in F45’s Closing Prospectus dated July 14, 2021.