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CrossFit's business model leaves little wiggle room for divorce

Many people of Texas are familiar with the company CrossFit, whose primary business goal is to make people fitter and healthier.

Their business strategy has always been to use a hands-off relationship between CrossFit headquarters and the affiliates, which supports affiliate owners with CrossFit training methods and good practices. This lessens the restrictions and regulations that often times are associated with franchises.

But in recent news, a private investment firm is negotiating for partial ownership of CrossFit which is prompting many people to wonder about the future of this business model that promotes both fitness and philanthropy. Though it seems to be a friendly business acquisition, a separation between owners could mean trouble for the company.

Recently, a contentious divorce between the current CEO and his wife has threatened the future of the company. At present, the CEO's wife has share in CrossFit, something that is legally hers when they split. According to experts, the future of CrossFit's ownership, as well as the survival of its affiliate business model, hinges on a decision that will be made by an Arizona divorce court.

Many are wondering, if CrossFit changes ownership, will affiliate business model change to something less desirable? The sentiment among affiliate CrossFit owners is the same: they don't want things to change. One owner said, "I got into the business of CrossFit because of the freedom inherent in the affiliate model. If I succeed or fail, the blame lies with me and there's no safety net. CrossFit Headquarters won't swoop in and tell me how to fix something."

It is unclear when the settlement of ownership will be made or how it will affect business owners at the present time.

Source: The Huffington Post, "Survival of the Fittest: The Future if CrossFit's Innovative Model," Nancy McGuire Choi, Sept. 11, 2012

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