CrossFit (A)

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?