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The Principal-Agent Solution

Written by JD | Jun 24, 2025 1:46:35 AM

We believe the principal-agent misalignment is the single biggest barrier to global health, and by empowering independent gym owners whose success depends on client outcomes, Gym Force is positioned, with aligned incentives, to change the world.

I’ve come to see the principal-agent problem as the single biggest problem in the fitness industry today. It boils down to one simple truth: when the owner isn’t personally invested in each person’s progress, incentives pull in the wrong direction. Think of Planet Fitness, Orangetheory or any large chain: the manager or corporate leadership sets targets and policies from afar, while local staff work directly with customers. The link between a member’s real success and the bottom line is weak. In contrast, independent gym owners, whether in CrossFit/functional fitness gyms, martial arts schools or yoga studios, tend to live and breathe their members’ outcomes because their reputation, livelihood and community standing depend on it. That alignment is what makes long-term success possible.

I'm reminded of a hot summer weekend after my daughter’s softball games when we tried two ice cream spots on back to back days. At Dairy Queen, the tables were sticky and cleanup didn't seem to be very high on any of the employees’ list of priorities. The next day at a local, independent ice cream shop I noticed a middle-aged woman, who turned out to be the owner, wiping tables between customers to keep everything neat and tidy. That level of care did not come from a corporate memo but from someone whose name and standing in the neighborhood were at stake. Independent gym owners behave the same way every day. They notice when someone misses class because they know them personally. They also adjust training to meet people where they are based on their needs and goals at the time. They celebrate milestones and share in the success of their members. Those small gestures, such as checking in and community support, are required for there to be any chance of long-term success. This is not the case when the establishment is led from some distant headquarters.

This understanding shapes everything we do at Gym Force. We don’t do gimmicks or fads. Instead we highlight and support owners and coaches of great gyms who treat member success as personal. We ultimately hope to handle all marketing, lead generation and member retention work so owners can focus fully on coaching and community building. Many talented coaches have stepped away from our industry due to burnout from administrative and other tasks that fall outside their life-changing expertise. Gym Force hopes to bring them back to the work they love because there are so many out there who need their help. For anyone seeking support, finding a gym through Gym Force will mean connecting with a coach whose motives are aligned with their individual needs.

The same idea applies to corporate wellness partnerships. Companies often sign on with wellness vendors whose priorities lie anywhere but helping those in need. By connecting small businesses and their employees to local gyms led by independent owners, we can finally go beyond the standard membership reimbursement model that only caters to those who already lead a healthy lifestyle. Small businesses are the backbone of our community. They are also led by entrepreneurs who generally want what is best for their employees. That includes taking an active role in providing them with options and support when it comes to their health and wellness.

Make no mistake. We believe that our customers, these independent gym owners, are set to disrupt an entire industry. The compounding power of network effects is real. So is the impact of finding a coach that cares. It’s time we reward those that deserve it most and finally reverse the global downward spiral that is our physical and mental health.

There's nothing wrong with eating at Applebee’s. But the person cooking your steak didn’t wake up excited to get to work to make sure every step was taken to ensure everything was just right from the moment you walked in until the final bill was paid.

And that’s the problem. The principal-agent problem.

When it comes to steak, that problem is solved by going to a restaurant with a world class chef or chef/owner.

When it comes to our fitness and health, that problem is solved by joining a great gym.