Tough Mudder looks to secure capital investment for linked fitness club brand

Will Dean, founder and Chief Executive of Tough Mudder obstacle and endurance races has announced that the company is in the process of securing capital investment, setting the stage for continued growth in 2019.

As part of this, the company will spin off its new fitness business, Tough Mudder Bootcamp, into a separate business enterprise from its traditional live event business in order to allow both businesses to more successfully navigate their respective categories.

Dean will continue to head the Bootcamp business while also supporting the live event side, with both businesses to remain in private ownership.

Dean, who launched Tough Mudder in 2010, explained "this is absolutely the right strategic move for both businesses.

"Tough Mudder Bootcamp, with its fast-paced growth and high potential, will see the benefits of this capital infusion as we add franchising-specific talent to support the rapid growth, as well as creative license to capture its full potential. The live event business needs more diligent focus on cost and the kind of scaling benefits that come from being part of an event bundle."

Dean also emphasised that all elements originally included as part of the Tough Mudder Bootcamp franchise business remain in place for owners, including the perpetual rights to all Tough Mudder branding; the ability to market directly to Tough Mudder event customers; the right to activate for free at all Tough Mudder events, and the right to sell Tough Mudder live event tickets, among other elements.

He added “ultimately, this move will allow us the platform we've built in Tough Mudder Bootcamp to continue to build on the fantastic momentum already being generated, while we reinforce the strength of the live events and maintain their success with an infusion of new ideas.”

The Tough Mudder Bootcamp fitness business saw 60 franchises sold across the USA last year, with Dean also reporting demand from international franchises.

The Tough Mudder event business saw significant participation growth in 2018, driven in large part by the success of its new, shorter distance Tough Mudder 5K events. The brand has also continued to invest in new and more challenging obstacles as part of its courses.

The Tough Mudder Bootcamp concept delivers a 45-minute, high intensity interval training (HIIT) workout with programs changed daily done in tandem with other participants as partners and groups.

Images: Members at one of the first Tough Mudder Bootcamp franchises (top) and Will Dean (below).