Customer Service Revolution 240: 7,000 Locations, One World Class Culture: Dave Mortensen on Franchising the Right Way
Want to know how to franchise a business and maintain world-class culture across thousands of locations? Discover the exact franchise growth strategies that took Anytime Fitness from a single 24-hour gym concept to the #1 fitness franchise in the world—with over 4,000 employees sporting brand tattoos (and they're not even corporate employees).
In this episode of the Customer Service Revolution podcast, John DiJulius interviews Dave Mortensen, co-founder of Purpose Brands—the largest portfolio of fitness, nutrition, and wellness franchise brands generating $3.7 billion in combined revenue across 7,000 locations in 50 countries.
If you're a franchisor struggling with culture consistency, a business owner wondering if franchising is right for you, or a multi-unit franchise operator looking to scale, this conversation reveals the counterintuitive secrets behind building a franchise system so powerful that franchisees' employees willingly get brand tattoos.
What You'll Learn:- The "Fanchise" model: How to turn franchisees into fans who are emotionally invested in your brand's mission (not just the ROI)—the framework from Dave's new bestselling book Fanchise Your Franchise
- The 5-location rule: Why you should NEVER start franchising until you've proven the concept across multiple company-owned locations (Dave and Chuck owned/flipped 5 gyms before franchising)
- The franchise validation process: How rigorous franchisee selection prevents 99% of future culture problems—"We want franchisees who want to change lives, not just make money"
- Scalable culture systems: The exact playbooks, standards, and training that allow 7,000 locations to deliver consistent experiences without Dave being present
- The PLEASE standards: How borrowing customer experience frameworks from consultants like John DiJulius transformed their service culture into an actionable system
- The tattoo test: When 4,000+ people tattoo your brand on their bodies by choice, you've transcended transactional franchising—here's how to create that level of loyalty
Phase 1: The Consultant Era (Early Career)
- Started in fitness at 21, dropped out of college, worked his way up
- Met business partner Chuck Runyon on similar trajectory
- Started consulting firm helping gym owners with operations, sales, and member experience
- Traveled across US, Canada, Australia, Mexico working with big box and boutique gyms
- Key insight: "People were passionate about fitness but didn't know how to run the business—Chuck and I could drive results AND write it down"
Phase 2: The Operator Era (1995-2002)
- Bought first gym in 1995—the same gym where Dave worked front desk for $4/hour
- Grew it from 400 to 4,000 members, then sold it
- Started buying, remodeling, and flipping gyms successfully
- Owned 5 locations simultaneously at peak
- Key insight: "We said we need to start SHOWING people we know how to do it, not just telling them"
Phase 3: The Franchise Era (2002-Present)
- Opened first Anytime Fitness in 2002 with revolutionary 24/7 model
- Kept consulting firm and big box gym for 3 years, then sold everything to focus on Anytime
- Sold franchise #1 to a member who believed in the concept
- Today: Co-founder of Purpose Brands with 9 franchise brands across 50 countries
- Key insight: "We didn't just franchise a business model—we franchised a mission to change lives"
9 Franchise Brands Under One Umbrella:
- Anytime Fitness (World's #1 fitness franchise)
- Orangetheory Fitness
- The Bar Method
- Waxing the City
- Base Camp Fitness
- SUMHIIT Fitness
- Stronger U Nutrition
- Healthy Contributions
- Provision Security
Total System Stats:
- $3.7 billion combined revenue
- 7,000+ locations
- 50 countries
- 6 million members served
- 4,000+ brand tattoos (just Anytime Fitness)
The Problem Most Franchisors Face: "I opened my salon 33 years ago and we were great at customer service because 50% of our staff was me and my wife. Then we grew to multiple locations and the experience tanked because we weren't everywhere." - John DiJulius
How Purpose Brands Solved It: Dave reveals the systems that allow franchisees' employees (not even corporate employees) to line up around the building to get brand tattoos at annual conferences—in the US, New Zealand, Australia, and beyond.
Critical Franchising Insights:"You don't franchise a business—you franchise a mission" The difference between transactional franchising (buy a territory, make money) and transformational franchising (join a movement, change lives)
"Find the 36-inch travel between talent and passion" Dave's framework for helping franchisees discover if they're in the right business—it's never 100% talent or 100% passion, but finding the balance point
"We want franchisees who want to change lives, not just make money" The franchisee selection criteria that predicts long-term success better than net worth
"Relationships create who we are—you are one of 50-100 that shaped our business" Why Dave credits consultants, mentors, and partners for Purpose Brands' success (including John DiJulius for helping create the PLEASE service standards)
"Create availability for people to find you—it makes it easier to make an impact" Leadership philosophy on accessibility that translates to franchise support systems
When to Franchise Your Business (Dave's Criteria):✓ Proven unit economics across multiple locations (not just one lucky store) ✓ Replicable systems that someone else can execute without you ✓ Mission-driven model that attracts passionate operators, not just investors ✓ Scalable training that maintains culture as you grow ✓ Clear standards documented in playbooks (the "write it down" principle)
Franchise Growth Strategies That Work:1. The Consulting-to-Ownership Bridge Dave and Chuck consulted for years before owning, which taught them what works across different markets and models
2. The Flip-and-Learn Model Buying, improving, and selling gyms taught them rapid value creation and what levers drive results
3. The Mission-First Sale First franchise sold to a member who believed in the concept—not a business investor looking for ROI
4. The Playbook Obsession "Write it down"—documenting every procedure so franchisees can execute at scale
5. The Partner Selection Dave: passionate about fitness + talent in business Chuck: passionate about business + talent in operations Perfect complement creates unstoppable partnership
For Corporate/Non-Franchise Businesses:Question to Dave: "Does someone have to be in the franchise world to engage you? Could KeyBank or another corporate entity learn from you?"
Dave's Answer: "Absolutely. Anyone that wants to develop a culture that is scalable—that they can scale within their system—is something we can be a part of."
Translation: The principles that allow 7,000 franchise locations to maintain culture work just as well for corporate multi-location businesses, distributed teams, or any organization struggling with consistency at scale.
New Book: Fanchise Your FranchiseThird book from Dave Mortensen and Chuck Runyon Core Concept: Transform franchisees from transactional business owners into passionate fans who champion your mission
Who Should Read It:
- Franchisors with 10-100 locations struggling to maintain culture
- Business owners considering franchising but unsure if they're ready
- Multi-unit operators wanting to improve franchisee engagement
- Corporate leaders looking to scale culture across distributed locations
- Anyone building a business that needs to maintain standards without being everywhere
Where to Get It: 4PGuys.com (the "4P Guys"—Dave and Chuck's consulting/speaking platform)
Perfect For:- Franchisors wanting to scale culture beyond 100 locations
- Business owners evaluating if franchising is the right growth strategy
- Multi-unit franchise operators looking to improve unit consistency
- Fitness/wellness entrepreneurs specifically in gym, boutique fitness, nutrition spaces
- Corporate leaders of multi-location businesses struggling with "employee roulette"
- CEOs who want to understand why some franchise systems thrive while others implode
Franchising vs Corporate Growth: "We didn't just franchise a business model—we franchised a mission to change lives. That's why their employees get tattoos, not ours."
Franchisee Selection: "We want franchisees who want to change lives, not just make money. If you're only in it for ROI, you won't survive the hard times."
Talent vs Passion: "You'll never be 100% talented at what you're most passionate about, and vice versa. But when you find the 36-inch travel between the two, you just found your career."
Scalable Leadership: "Chuck and I were absolutely different. Chuck was passionate about the business. I was passionate about fitness. That's what made us unstoppable together."
Helping Others: "If I can help people find what I've been lucky to have—an incredible business partner, a thriving business, a great family—that's my passion now."
Resources Mentioned:- Book: Fanchise Your Franchise by Dave Mortensen & Chuck Runyon
- Website: 4PGuys.com (consulting, speaking, franchise advisory)
- Purpose Brands Portfolio: 9 franchise brands across fitness, nutrition, wellness, security
- Previous Books: (Two prior books from Dave & Chuck on franchising/business building)
For Businesses Considering Franchising:
- Don't franchise until you've proven the model across 3-5 locations minimum
- Document every system in written playbooks before selling franchise #1
- Select franchisees based on mission alignment, not just capital
For Existing Franchisors:
- Audit: Are you franchising a mission or just a business model?
- Ask: Would franchisees' employees tattoo your brand? If not, why not?
- Implement: Customer service standards as action words (like Purpose Brands' PLEASE framework)
For Corporate Multi-Location Leaders:
- Steal the franchise playbook approach even if you're not franchising
- Create "write it down" culture so anyone can execute without you present
- Hire the Dave/Chuck complement—balance technical passion with business acumen
Most franchisors struggle to maintain culture past 50 locations. Purpose Brands maintains it across 7,000 locations in 50 countries—and has franchisees' employees tattooing the brand voluntarily.
The difference? They don't franchise businesses. They franchise missions. They don't sell territories. They recruit believers. They don't manage franchisees. They empower fans.
This interview reveals the exact systems, mindsets, and frameworks that create "Fanchises" instead of franchises.
Ready to franchise your business the right way—or scale your existing franchise culture? This episode is your playbook.
Links:
Fanchise Your Franchise, The Book: fanchiseyourfranchise.com
Contact Dave at 4PGuys.com
Purpose Brands: https://www.purposebrands.com/
The DiJulius Group Methdology: https://thedijuliusgroup.com/x-commandment-methodology/
Company Service Aptitude Test: https://thedijuliusgroup.com/c-sat-forms/individual-c-sat/
Schedule a Complimentary Call with one of our advisors: tdg.click/claudia
Ask John! Submit your questions for John, to be aired on future episode: tdg.click/ask
Customer Experience Executive Academy: https://thedijuliusgroup.com/project/cx-executive-academy/
Experience Revolution Membership: https://thedijuliusgroup.com/membership/
Books: https://thedijuliusgroup.com/shop/
Contacts: Lindsey@thedijuliusgroup.com , Claudia@thedijuliusgroup.com
Chapters:
00:00 Introduction to Purpose Brands and Dave Mortensen 04:11 The Journey of Anytime Fitness 09:35 Building a Franchise System 14:14 Defining Culture and Values 18:46 Connecting Head and Heart in Leadership 21:26 The Entrepreneur vs. Franchisee Mindset 25:42 Benefits of the Franchise Model 26:03 Building a Consistent Franchise System 26:57 The Evolution of Franchise Partnerships 27:31 Defining a Franchise: Passion and Purpose 29:27 The Importance of Emotional Investment in Business 30:44 Identifying the Right People for Your Business 31:28 Key Traits for Successful Team Members 34:06 The Three Golden Rules of Partnership 37:44 Leading Through Crisis: Lessons Learned 46:14 Finding Passion vs. Skill in Business 50:23 Helping Others Create Their Franchise Success
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