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  • February 2015 (Revised February 2016)
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CrossFit (A)

By: Shikhar Ghosh, Ali Huberlie and Christopher Payton
  • Format:Print
  • | Language:English
  • | Pages:23
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Abstract

The case provides a sense of motivations of venture capital firms, the pivotal role that founders play, and explores the limits of founder-driven growth.
CrossFit (CF) describes the approach taken by its founder Greg Glassman in setting up one of the most successful chains of gyms in the world. Glassman rejects institutional money, focuses on the needs of trainers rather than customers, breaks all the rules of franchising and charges the ‘least rent’ possible. Why did this approach succeed? What does his success teach us about entrepreneurship?
In 2012, CrossFit was growing rapidly with over 5,000 'boxes' in operation. The founder’s ex-wife sold her 50 percent stake in the business to Anthos Capital, a VC/PE firm for $20 million and the deal was subject only to court approval. Glassman had to decide whether or not he should oppose this transaction, and take the risk of incurring $20 million in debt. What would be best for the company, the affiliates and the CF community?

Keywords

Finance; Venture Capital; Strategy; Organizational Culture; Entrepreneurship; Franchise Ownership; Innovation and Invention; United States; North America

Citation

Ghosh, Shikhar, Ali Huberlie, and Christopher Payton. "CrossFit (A)." Harvard Business School Case 815-089, February 2015. (Revised February 2016.)
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About The Author

Shikhar Ghosh

Entrepreneurial Management
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Related Work

    • March 2019
    • Faculty Research

    CrossFit (A)

    By: Shikhar Ghosh and Shweta Bagai
    • February 2015 (Revised February 2016)
    • Faculty Research

    CrossFit (A)

    By: Shikhar Ghosh, Ali Huberlie and Christopher Payton
Related Work
  • CrossFit (A) By: Shikhar Ghosh and Shweta Bagai
  • CrossFit (A) By: Shikhar Ghosh, Ali Huberlie and Christopher Payton
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