Plus Fitness is a health and fitness chain that operates gyms and fitness centers in Australia, New Zealand, and other countries. It offers a range of fitness services and equipment, including cardiovascular and strength training equipment, group exercise classes, personal training, and more. Plus Fitness franchise locations typically feature a range of amenities, such as locker rooms, showers, and saunas. The company’s mission is to provide affordable and convenient fitness options for people of all fitness levels.
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What is the history of Plus Fitness?
Plus Fitness is a health and fitness chain that operates gyms and fitness centers in Australia, New Zealand, and other countries. It was founded by CEO John Fuller and Nigel Miller in 2009, and the first Plus Fitness gym opened 21 years ago. The company has grown rapidly, and in 2018 it became Australia’s largest and fastest-growing Australian-owned gym chain with 180 locations. Plus Fitness franchise has also sold two international master franchise licenses in New Zealand and India. The company’s franchise model includes a low-staff model, an exclusive territory for each franchisee, and a range of support services for franchisees. Plus Fitness has received numerous awards for its success, including being named Emerging Franchisor of the Year by the Franchise Council of Australia in 2013.
What is the state of the Health and Fitness industry?
There is a wide range of companies and organizations offering products and services related to health and fitness. The industry includes a variety of businesses, such as fitness centers and gyms, health clubs, spas and salons, and personal training and coaching services. It is influenced by trends in health and wellness and has benefited from an increase in consumer interest in maintaining a healthy lifestyle. The industry is also subject to economic and regulatory factors and has faced challenges such as competition from new entrants and changes in consumer behavior. Despite these challenges, the Health and Fitness industry in the United States is expected to continue to grow in the coming years.
According to data from the International Health, Racquet & Sportsclub Association (IHRSA), the Health and Fitness industry in the United States generated approximately $30 billion in revenue in 2020. The industry employed approximately 5.3 million people, and there were approximately 36,540 health and fitness facilities in the United States in 2020. These facilities served approximately 72.2 million members.
According to the U.S. Bureau of Labor Statistics, employment in the Fitness and Recreation industry is projected to grow by 11% from 2019 to 2029, faster than the average for all occupations. This growth is expected to be driven by an increase in the number of people participating in fitness activities and an aging population that is more focused on maintaining good health.
It is worth noting that these figures are from 2020 and are subject to change. The Health and Fitness industry was greatly impacted by the COVID-19 pandemic, which affected industry revenue and employment figures.
How can I start a Plus Fitness Franchise?
Plus Fitness does not offer franchises in the United States. However, we will discuss some fitness franchise alternatives below.
Orange Theory
Orange Theory Franchise was founded in Boca Raton, Florida in 2009. Co-founder Elle Latham decided to open a gym to implement her personally designed workout, which eventually became the basis for Orange Theory’s system. After establishing a strong reputation across the Health and Fitness industry, Latham decided to seek a larger challenge. He transitioned from the study of physiology to owning a gym that implemented a business model that remains in place across all studios to this day. Orange Theory offers trainer-led group workout sessions, which are broken into intervals of cardiovascular and strength training.
Franchising began one year later, and today Orange Theory studios can be found in 18 countries and across 49 states. The concept currently has over 1,000 franchises in the United States and another 150 international locations and is a subsidiary of Ultimate Fitness Holdings. Orange Theory is currently headquartered in Boca Raton, Florida, and is run by its CEO, Dave Long, who previously served as the main developer and owner of the European Wax Center. Orange Theory was ranked 49th in the franchise 500 rankings according to entrepreneur.com
Orange Theory’s success is quite similar to Peloton’s rise to fame. Both of these fitness companies, while they differ in business models, use your own fitness data and others to create a competitive atmosphere. Orange Theory uses your heartrate to show your exertion potential compared to the maximal effort and compares you to your peers in classes. This model has become extremely sticky in the Health and Fitness industry because while many people want to achieve their fitness goals, they innately lack motivation. Building in competition to workouts enhances one’s motivation and keeps consumers coming back.
The estimated total investment necessary to begin the operation of an Orange Theory Franchise ranges from $657,542 to $2,105,322. The minimum net worth required to own an Orange Theory franchise is $500,000 and the applicant must have liquid assets of at least $150,000. Based on a midpoint investment of $1,378,500 with estimated profits of $94,820 (10% profit margin) it would take about 15 years to recoup your investment.
Investing in an Orange Theory franchise is an interesting opportunity, especially for individuals looking to make their way into the Health and Fitness industry. The prospects for growth and success within the industry and the Orange Theory brand itself are extensive, and some markets continue to be available as they move forward with growing their presence across the country. If you are an individual with a passion for fitness and are willing to invest an amount ranging from $657,542 – $2,105,322 or more, Orange Theory might be the right fit for you
Planet Fitness Franchise
Planet Fitness franchise was founded in 1992 by Marc and Michael Grondahl in Dover, New Hampshire. The Grondahls had acquired a struggling Gold’s Gym franchise and closed it in 1993. They opened a new gym called Coastal Fitness and the Grondahls hired current CEO Chris Rondeau, who was still in college at the time, to run the gym’s front desk. The Grondahls changed the gym’s name to Planet Fitness in 1994.
After a few years of growth, Planet Fitness started franchising in 2003 with the first franchised gym opened in Florida. Planet Fitness’ growth continued over the next decade, and in 2013 TSG Consumer Partners, LLC became an equity partner in the Planet Fitness franchise. At that time, Michael Grondahl stepped down as CEO and Chris Rondeau took his place and has held the position since.
The franchise has locations in the United States, Canada, Dominican Republic, Panama, Mexico, and Australia.
The estimated total investment necessary to begin the operation of a Planet Fitness Franchise ranges from $1,625,600 – $4,921,000. Based on a midpoint investment of $3,217,800 with estimated profits of $176,100 at a 15% profit margin, it would take about 20 years to recoup your investment.
When you go to sell a Planet Fitness franchise based on the median multiple of .67 and net sales in 2021 of $1,545,877, it would sell for $1,035,737. This is significantly lower than the midpoint investment of $3,273,500. Even if your network of Planet Fitness franchises earns above $5 million, you will not be able to recover costs just by selling it.
Planet Fitness offers people the opportunity to be a part of the fitness business, but we do not believe this business is sustainable. There are very few reasons why one might want to open a Planet Fitness franchise. So long as you are not decided on the Health and Fitness industry, we recommend you have a look at other offerings.
We believe that this franchise is an option for those that are passionate about fitness and are willing to put in the hours to make the business run smoothly. We also suggest that you speak to 3 – 5 Planet Fitness owners before opening one yourself.
F45 Fitness Franchise
F45 Training is a global fitness franchise company that offers high-intensity interval training (HIIT) workouts. The company was founded in Australia in 2012 and has since expanded to over 4,000 locations in 45 countries. F45 studios offer a range of group fitness classes that are based on the principles of HIIT, which involves short bursts of intense exercise followed by periods of rest. Each F45 class is 45 minutes long and combines elements of cardio, strength training, and functional movement. The company offers a variety of class formats, including F45 Challenge, which is an 8-week program that combines nutrition coaching and fitness training, and F45 Athletics, which is a team-based workout that focuses on functional movement. F45 aims to create a fun and energetic atmosphere in its studios, and the company’s tagline is “The World’s Fittest Workout.”
F45 Training was founded in Sydney, Australia, in 2012 by the company’s CEO, Rob Deutsch. Deutsch was inspired to start the company after experiencing the benefits of high-intensity interval training (HIIT) firsthand. He believed that the format could be scaled and offered in a group fitness setting, and he set out to create a workout that was both challenging and fun.
In the early years of the company, F45 focused on expanding its network of studios in Australia, and it quickly gained a reputation for offering high-quality workouts that delivered results. In 2015, the company began to expand internationally, and it has since opened studios in over 45 countries. F45 has experienced rapid growth and has become one of the most successful fitness franchise companies in the world.
In addition to its expansion into new markets, F45 has also introduced new class formats and programs, such as the F45 Challenge and F45 Athletics. The company has also developed a strong online presence, with a popular YouTube channel and a large following on social media. F45 has been recognized with numerous awards and accolades for its innovation and success in the Health and Fitness industry.
The estimated total investment necessary to begin the operation of an F45 Franchise ranges from $313,200 – $485,100. F45 does not make any representations about a franchisee’s future financial performance or the past financial performance of company-owned or franchised outlets. However, if you are purchasing an existing F45, the company may provide you with the actual records of that F45 franchise.
However, Charlie Payne, chief financial officer, provided some insight into the financials behind an F45 in a press release before their IPO that gave us some insight into how well franchisees can do financially after opening an F45 studio.
“Our nearly 100% franchised model offers compelling economics to both us and our franchisees. Our franchisees benefit from our highly attractive new unit economic model that features a relatively low initial investment, low four-wall operating expenses, and strong returns on investment. A typical F45 franchise requires an initial investment of approximately $315,000, significantly lower than other franchise models. In Year 3 of operation, franchisees produce an average AUV of approximately $359,000; average four-wall EBITDA margins in excess of 30%; and average cash-on-cash returns in excess of 35%. On average, it takes a studio approximately six months and 75 members to reach breakeven.”
With powerful figures like Mark Wahlberg and David Beckham supporting this fitness franchise and with the growth of competitive group workouts, it is positioned to grow exponentially in the United States. The company raised a significant amount of money from its IPO and also a minority stake investment from Wahlberg.
Find out more about different franchise opportunities and about the Health and Fitness industry at Visa Franchise!
