Auckland gym rebanding shocks established franchisor

A legal battle has broken out between the owner of Auckland's well-known Club Physical gym chain and a franchisee who suddenly changed the name of three branches.

Until the end of the first week in February Club Physical was operating nine branches across Auckland and one in Kaitaia.

However, at around 4pm on Friday 8th February, Club Physical signs were pulled down at its franchised clubs in the Auckland suburbs of Westgate, Three Kings and Botany and the sites rebranded as Jolt Fitness with new membership contracts, new signage and new staff uniforms.

Club Physical owner Paul Richards posted on the company's Facebook page soon after, explaining his version of events to baffled members.

Richards claimed to have received a lawyer's letter at 4pm on 8th February stating that one of his franchisees, Stuart Holder, had cancelled franchise agreements for the three Club Physical gyms at Westgate, Three Kings and Botany.

Instructors who turned up to take classes that evening, including Richards' wife Tina, were turned away, he said.

Richards wrote "this has come absolutely out of the blue.

"These are franchise agreements with years to run on them. This is clearly in breach in many, many areas of that. Now it's in the hands of our lawyers."

Richards said on Facebook that Holder asked to buy all of the Club Physical branches late last year and but was turned down.

Holder did not immediately comment on the situation.

The events were reported on by 3News investigative programme Campbell Live and have sparked a heated discussion on the Facebook pages of both Club Physical and the newly created Jolt Fitness.

Richards has subsequently entered an application to the High Court seeking an injunction to block Jolt Fitness from operating.
With thanks to Ben Chapman-Smith, Business Reporter APM Digital.

To read the New Zealand Herald's article on this go to www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10865138

Image used for illustrative purposes only.

4th May 2011 - CLUB PHYSICAL’S RICHARDS QUESTIONS AUCKLAND COUNCIL’S AQUATIC AND FITNESS SPENDING

15th April 2010 - AUCKLAND FITNESS CLUB TURNS 29

5th August 2009 - CLUB PHYSICAL HELPS COMBAT DOMESTIC VIOLENCE

16th March 2009 - FITNESS MUSIC BATTLE HEADS TO COURT 

Asking a small favour

We hope that you value the news that we publish so while you're here can we ask for your support?

The news we publish at www.ausleisure.com.au is independent, credible (we hope) and free for you to access, with no pay walls and no annoying pop-up ads.

However, as an independent publisher, can we ask for you to support us by subscribing to the printed Australasian Leisure Management magazine - if you don't already do so.

Published bi-monthly since 1997, the printed Australasian Leisure Management differs from this website in that it publishes longer, in-depth and analytical features covering aquatics, attractions, entertainment, events, fitness, parks, recreation, sport, tourism and venues management.

Subscriptions cost just $90 a year.

Click here to subscribe.