10% of Australia's F45 studios up for sale

Amid ongoing troubles for F45 Training it has been reported that almost 10% of the franchisor's Australian sites are being offered for sale.

As reported by the ABC, the brand dominates gym listings on the anybusiness website, with most advertised for well below the estimated set-up costs for an F45 studio, believed to be in the region of $250,000.

The lowest asking price is $49,000, while several franchise owners said they are willing to consider any offers.

Since July last year, nine F45 gyms are understood to have collapsed into liquidation, with some owing creditors hundreds of thousands of dollars.

In comparison, an ABC search of Australian Securities and Investments Commission's public insolvency registry using other popular gym names found only one liquidation notice for a Fernwood gym from November.

The ABC reported one former F45 franchisee as criticising membership fees, stating "people don't want to pay $70 a week", while another explained "I think F45 has just had its time and the customer after COVID wanted to try something new.

"They just didn’t innovate enough and keep up with trends.

F45 chief revenue officer Luke Armstrong said the company's franchise costs were competitive, advising that the brand was focused on supporting the small business owners who operate F45 gyms.

Armstrong told The Business "when you're a player of our size in the franchise industry, it's quite natural that a secondary market for studios is created eventually," Madding F45 had not opened a new franchise in Australia in many years.

"Right now ... we're firmly focused on those things that are within our control, which is chiefly supporting our franchisees so that they can continue to offer the best team training in their local communities."

IBISWorld industry analyst Ekaterina Ezhova said F45's Australia's market share had fallen from 8.3% in 2017/18 to 6.7% this financial year.

Ezhova noted "when the company entered the industry, it offered some unique approach, but the company has approached its maturity in the market, with a number of other players entering the market and offering very similar product offerings and services."

Ezhova went on to suggest that the rising cost of living means some customers could not afford F45's average fees of $65-70 a week. Instead, she said the popularity of budget gyms and online workouts had increased.

IBISWorld estimates F45's Australia revenue will fall to $151.3 million this financial year from a high of $230.3 million in 2017/18.

Celeste Barber hosts F45 class
The embattled brand has announced last week announced that it is partnering with comedian Celeste Barber for a one off workout linked with the launch of her Wellmania series on Netflix.

The series follow's Barber's character as she pursues physical and mental wellness.

Image: Comedian Celeste Barber (centr, in yellow) promotes her new Netflix survey with F45 members. Image courtesy of Netflix.