A conversation with a banker friend about how artificial intelligence “is going to take over the world” ultimately led Raheel Suria to Lumin Fitness, where virtual AI coaches instruct the workouts and a gym goer’s every burpee is tracked by sensors.
Lumin Fitness members work out in front of wall-to-wall LED screens, can choose their AI coach and music, and can earn “Lumin Coin” to redeem for brand swag.
Impressed by the brand and its leadership team, including CEO Brandon Bean, a former chief executive at Gold’s Gym, Suria and his Verge Capital investment group formed Verge Fit Holdings and signed a 13-unit deal to develop Lumin in several Texas markets. It’s the first franchise agreement for Lumin, which in September opened its first and so far only location in Irving, Texas, near Dallas.
Being the first franchisee in the system doesn’t faze Suria, who noted his company operates hundreds of Verge Mobile stores as a T-Mobile franchisee, along with hotel properties under the Marriott and Hilton flags. Partners Syed Shah, Jawad Rawra, Malik Kheraj and Ali Lakhany all have multi-brand franchise experience, he added, with Lakhany, for example also running CSM Group, a large Popeyes and Tim Hortons franchisee.
Getting in early with Lumin presented a “substantial opportunity” to grow a concept in a boutique fitness segment Suria said is performing better than the one dominated by big-box gyms. “Consumers are comfortable paying $120 to $150 per month for that studio experience,” he said. “I’m thrilled and excited to start this journey.”
Lumin Fitness offers class packs starting at $89, while its unlimited monthly membership is priced at $209. People come for the high-intensity group classes or personal training, but instead of a human shouting encouragement, counting reps or correcting a person’s form, Lumin uses AI coaches who deliver audio advice over headphones while wall-to-wall LED screens display the workout prompts and track the exerciser’s motions.
“People can go in, do their own class and choose a workout,” Chief Development Officer Craig Sherwood told Franchise Times in September. “It’s interactive and immersive. You’re working out in front of the screen so there’s a gamification aspect to it. It keeps you focused on a lot of elements, counting your reps. It’s also highly personalized to you. You pick your AI coach and music to listen to.”
“Lumin does an excellent job of pairing the workout with AI but still creating a community that people love,” said Suria as he noted elements such as the leaderboard in the lobby where people can see their “Lumin Score” to benchmark their performance. Users can also earn “Lumin Coin,” which they can redeem for apparel or additional classes.
Lumin’s first studio has gained what Suria described as a “great amount of traction” in its first few months. Human staff are on site, but the self-service model means franchisees “don’t have to spend an exorbitant amount of money on labor,” he added. Verge Fit Holdings will open its Texas locations over the next three years, with target markets of Austin, Houston and Dallas.
The cost to open a Lumin Fitness studio ranges from $505,792 to $997,475. A typical studio is between 1,700 and 3,000 square feet, depending on the number of stations included.
From left, Malik Kheraj, Ali Lakhany, Raheel Suria, Jawad Rawra and Syed Shah formed Verge Fit Holdings and are the first franchisees for Lumin Fitness.