Before Griffin Gordon and Kevin Condon became major franchisees for The Little Gym, their involvement began not as astute investors, but as enthusiastic parents witnessing their children’s delight in the franchise’s gymnastics and physical development programs. Their children’s eagerness to return after each class sparked an initial curiosity that would eventually lead to a significant entrepreneurial venture. As a customer, Gordon was particularly struck by The Little Gym’s commitment to personalized attention, where staff members not only remembered children’s names but also warmly greeted parents, fostering a strong sense of community and belonging. This early positive experience laid the groundwork for their future investment.

Gordon and Condon’s paths first crossed during their studies at the University of Chicago’s Booth School of Business. Following their academic careers, they embarked on distinct professional journeys. Condon established himself in the financial sector as a co-founder of Hidden River Strategic Capital, a private equity firm specializing in investments within small businesses. Gordon, meanwhile, carved out a career path that spanned private equity investment and the leadership of small and midsize companies, eventually founding an investment firm specifically focused on supporting franchisees. Their prior business acumen and shared entrepreneurial spirit would soon converge.

The pivotal moment arrived when an opportunity arose to partner with Richard Moore, a seasoned operator of The Little Gym. Moore, whose family had dedicated nearly three decades to cultivating the business, sought to expand its reach. With his parents nearing retirement, an advisor introduced him to Gordon and Condon. They recognized the potential to combine Moore’s operational expertise with their financial resources and strategic vision for growth. This synergy formed the bedrock of their future enterprise.

In 2023, Gordon and Condon’s investment firms made a substantial commitment, acquiring seven North Carolina locations of The Little Gym. This acquisition marked the inception of their business, aptly named Somersault. In the remarkably short span of three years, their footprint has expanded exponentially. The partners report that Somersault now encompasses over 30 operational locations, with an additional ten plus facilities in various stages of development. This rapid growth has translated into impressive financial performance, with the business generating nearly $20 million in annual revenue. Their success, they assert, is a testament to a strategic blend of established brand equity and astute business practices.

The Strategic Rationale Behind Investing in The Little Gym

The decision to invest so aggressively in The Little Gym, escalating from seven to over 30 locations in a short period, was driven by a confluence of strategic factors. Kevin Condon attributes this rapid scaling to the strength of their management team. "Ultimately, we’re backing management teams and organizational leaders," Condon stated. "We have a really good team here, which has allowed us to scale at this pace and given us the conviction to continue putting money behind the business." This emphasis on human capital underscores a fundamental principle in their investment strategy.

Condon further elaborated on the replicable nature of the franchise model. "The other piece is the repeatable process in franchising. You acquire a business or open a location, and you have a playbook." This established framework, when coupled with competent leadership, provides a clear roadmap for expansion. By leveraging a strong brand and integrating acquisitions with new openings, Somersault has effectively capitalized on this inherent scalability.

Griffin Gordon highlighted the attractive market dynamics and operational strengths of The Little Gym. "Kevin’s firm has done a lot of franchisee investing. My firm focuses solely on it," Gordon explained. "The Little Gym has the things we find attractive: a growing market of parents who want high-quality services for their kids, a strong brand and attractive unit economics when the business is operated well." This assessment points to a robust business model with strong potential for profitability and sustained growth.

A Synergy of Investment Acumen and Operational Excellence

The particular attractiveness of this opportunity extended beyond general market appeal. Gordon articulated a strong belief in The Little Gym’s market positioning. "In our view, The Little Gym is the best brand serving its target age range," he commented. "There are imitators, but we don’t think they match the quality of its curriculum and operating playbook." This confidence in the brand’s unique value proposition is a critical component of their investment thesis.

Furthermore, the relationship with the franchisor, Unleashed Brands, was a significant factor. "We also have a strong franchisor partner in Unleashed Brands," Gordon added. "To invest in franchisees, you need a partnership approach and confidence that the franchisor values that relationship, too." This symbiotic relationship, where the franchisor actively supports and collaborates with its franchisees, fosters a more stable and growth-oriented ecosystem.

The confluence of these factors—a leading brand in a growing market, a repeatable business model, strong unit economics, and a supportive franchisor—created a compelling investment opportunity. Gordon described the realization of this opportunity as "equal parts purposeful and opportunistic." Their focused interest in franchisee investing, coupled with a strategic belief in the child enrichment sector, aligned perfectly with the potential offered by The Little Gym.

Cultivating Growth Within an Established Business Framework

The decision to invest heavily in The Little Gym was significantly influenced by their personal experiences as customers. Kevin Condon emphasized the brand’s leadership in the youth enrichment sector. "The Little Gym offered the opportunity to invest in what we consider a category leader in youth enrichment, particularly children’s recreational gymnastics and related activities," he stated. The franchise’s long-standing history, marked by its 50th anniversary, underscored its enduring appeal and market resilience.

The established operational playbook was a key differentiator. "There’s an established playbook, and both our business and the overall system are growing," Condon noted. This predictability is invaluable in business development. When a strong brand is combined with favorable unit economics—the ability to successfully launch, scale, and achieve profitability at individual locations—it creates a potent formula for investor returns, job creation, and positive outcomes for families. This multifaceted benefit makes continued investment a logical and attractive proposition.

Griffin Gordon identified the core components of this successful playbook, distinguishing between enduring fundamentals and opportunities for modernization. "The fundamentals include building and investing in a great team, genuinely caring about the curriculum and developing authentic connections with the communities where you operate," Gordon explained. These foundational elements ensure a consistent and high-quality experience for customers.

Evolving the Curriculum for the Modern Family

The integration of these core principles with contemporary market demands is crucial for sustained success. Gordon elaborated on this dynamic: "You also have to work with the franchisor to make sure the curriculum supports the outcomes everyone wants: Confident, self-assured, well-adjusted children who have an opportunity to become physically active early in life." This focus on holistic child development aligns with the evolving expectations of parents.

The acquisition by Unleashed Brands marked a significant turning point, bringing much-needed technological and systemic upgrades. Gordon noted, "Before our investment, The Little Gym didn’t have much in the way of technology, systems and infrastructure. It operated more like a small-business-owned enterprise." The subsequent investment has enabled a fusion of traditional strengths with advancements in operational technology and customer interface systems.

This modernization effort also includes a more refined approach to customer acquisition and marketing. "There’s also been a more thoughtful approach to customer acquisition and marketing, alongside continued investment in the programming. The offering has to remain competitive with parents’ changing demands and schedules." This adaptive strategy ensures that The Little Gym remains relevant and appealing in a dynamic marketplace.

Kevin Condon highlighted the app’s role in enhancing parental engagement. "The core curriculum is the secret sauce. It’s been part of what has made The Little Gym special for 50 years. But you can build on that. For example, Unleashed introduced an app this year to help parents engage with their children’s classes and see milestones and pictures." This technological innovation bridges the gap between the franchise’s historical strengths and the contemporary needs of parents, creating a more integrated and informed experience.

The Enduring Appeal of Childhood Joy

The personal experiences of Condon and Gordon as parents whose children have benefited from The Little Gym’s programs offer a powerful qualitative endorsement. Condon described his children’s reactions: "Smiles from ear to ear. They’d spend 45 to 60 minutes in class, come out sweaty and exhausted, and their first question would be, ‘Can we do that again?’" This enthusiastic response speaks volumes about the engaging and rewarding nature of the classes.

"There’s a joy in watching children move and take appropriate risks, whether they’re learning a cartwheel or somersault, jumping, running, singing, following directions or engaging with other kids," Condon continued. This observation underscores the developmental benefits, extending beyond physical prowess to encompass social and emotional growth. While the primary age range is typically 2 to 6 years old, the program’s adaptability extends to younger and older children, consistently fostering positive experiences. The consistency of this "unadulterated childhood joy" across various locations is a testament to the program’s effectiveness.

The Strategic Advantage of Franchising

The decision to pursue franchising rather than establishing independent businesses was rooted in a strategic assessment of market dynamics and brand recognition. Kevin Condon articulated the benefits of leveraging an established brand. "In small business, the opportunity to be part of something with a name as established as The Little Gym is attractive," he said. While they invest in both franchised and non-franchised businesses, the advantage of a well-known brand with a significant history is undeniable. "If we started a competitor, we wouldn’t have 50 years of history or an established brand. Franchising gives us an affiliation with a much larger organization and system."

While franchising involves royalty fees and adherence to certain operational guidelines, Condon believes the benefits outweigh the costs. "You pay royalties and operate within certain rules. But in this case, we believe the playbook and brand provide more benefits than going it alone." This perspective highlights the value of a proven system and a recognized brand in mitigating risk and accelerating growth.

Griffin Gordon further elaborated on this synergy, framing franchising as a strategic acquisition. "When done correctly, franchising should be like buying a small business with the benefit of a national platform," Gordon stated. "Those two things should work together. That’s what we believe we have with The Little Gym." This dual advantage of localized business ownership within a larger, established framework is a cornerstone of their investment philosophy.

Navigating the Path to Franchise Ownership

For aspiring entrepreneurs considering franchising, Gordon offered practical advice on initiating the process. "One of the best things about franchising is the availability of information," he noted. The Franchise Disclosure Document (FDD) is a critical resource, containing a list of current franchisees. "If you’re evaluating a system, start calling owners and learning from them. These are people who have already done what you’re trying to do. I can’t think of a better resource." This emphasis on peer-to-peer learning underscores the transparency and interconnectedness within the franchise community.

Condon stressed the importance of personal connection and passion in selecting a franchise. "Find something you’re passionate about, particularly if you’ll be the operator," he advised. Even for investors who may not be directly operating the business, a genuine interest in the industry and its mission is crucial. "Even if you won’t operate the business yourself, you still need to care about it. In our case, as investors helping build and scale a company, we also need an operator who knows how to execute the playbook successfully." This highlights the importance of aligning personal values with business objectives and ensuring operational competence.

Enduring Lessons in People and Growth

The journey of building Somersault has yielded valuable insights, particularly regarding the human element of business. Griffin Gordon identified people as the central pillar of success. "The lesson we’ve learned and continue to learn is that this business is all about people," he asserted. While the business model itself may appear straightforward, its successful execution demands significant effort and skill. "It’s a simple business to understand, but a challenging business to operate well."

The ability to attract, train, and retain talented individuals is paramount. "The business depends on our ability to find the best people, train them effectively and give them career opportunities." This commitment to employee development extends from entry-level teaching roles to more senior management positions, fostering a culture of growth and advancement.

Looking ahead, the ambition for continued expansion is evident. When asked about future revenue milestones, such as reaching $100 million, Kevin Condon responded with enthusiasm. Gordon echoed this sentiment, emphasizing the rapid pace of their recent growth. "We’ve gone from seven locations to more than 30 in three years. We’ve quadrupled our footprint." While acknowledging the aggressive nature of replicating such growth, their strong belief in the brand and their business model fuels their ambition to "keep growing." This forward-looking perspective, grounded in a successful track record, positions Somersault for continued success in the youth enrichment franchise market.