Body Fit Training to expand in the USA with $60 million intellectual property sale to Xponential Fitness

Fast growing Australia exercise franchise, Body Fit Training (BFT), has announced that it has entered into an arrangement to sell its intellectual property to US-based Xponential Fitness Inc.

As part of the $60 million cash upfront deal, plus additional payments based on growth, BFT will continue to operate as the Master Franchisor in Australia, New Zealand and Singapore while Xponential - the owner of multiple exercise brands including Club Pilates, CycleBar and Pure Barre - will now grow the brand across the USA and Canada.

With BFT having sold over 300 franchises across Australia, New Zealand, Singapore and USA since being founded in 2017 the partnership will allow BFT to focus on existing and new markets in Asia, while capitalising on Xponential’s global strength and reach.

From what began with just four test pilot studios, the company is expected to have 40,000 members by the end of 2021 and 200 studios in Australia alone, with high-profile franchisees including cricketer legend Tim Paine, former AFL star Nick Riewoldt and former NRL players the Aubusson brothers.

Offering community-based functional training program including 50 minute progressive cardio and strength-based classes across 13 workout programs designed to achieve the unique health goals of its members, BFT utilises scientifically proven training techniques aimed to reduce fat and create lean muscle through a variety of training sessions overseen by highly accredited coaches in a dynamic group environment.

In 2020, BFT received the APAC (Asia-Pacific) Franchise of the Year Award, recognising the company’s continued strong growth during 2020 despite national lockdowns.

Speaking about the sale, founder and joint Chief Executive, Cameron Falloon advised “we are delighted to partner with one of the world’s leading fitness operators to continue our growth globally and provide additional brand strength for our franchisees and members.

“We are particularly proud of the circa 35,000 strong member base we have created and the franchisees who continue to believe in the brand, and we look forward to taking BFT to the next level.”

Falloon went on to tell Business News Australia “(our) US growth has slowed a little bit because of COVID and our inability to travel. But we have really strong interest there, the model really resonates

"In fact, our Santa Monica site has doubled its membership through COVID when California has been almost completely shut down. So that's been a really fantastic growth story for us."

Anthony Geisler, Chief Executive of Xponential Fitness, Inc. added “we are very pleased to announce the addition of our tenth brand through the partnership with BFT.

“Xponential has a demonstrated history of seamlessly integrating brands, and this acquisition expands our portfolio of boutique fitness offerings to include a functional strength and HIIT (high intensity interval training) based product that is complementary to our existing modalities.

“We see significant opportunity to expand BFT’s existing studio base both in the U.S. and internationally, as we leverage the Xponential Playbook to provide robust franchisee support, implement best practices and leverage synergies across our entire portfolio.”

The company is currently involved in a legal dispute with F45 Training over US patents and is awaiting a likely judgment on the matter in December.

However, the case has done little to slow its growth.

Image (from left): Body Fit Training owners Cameron Falloon, Richard Burnet and Hamish McLachlan.