Members get physical about broken franchising agreement

In advance of a legal battle in the New Zealand High Court over the rebranding of three Club Physical gyms, Club Physical members have mounted a protest over the club owner's having rebranded the gym under the Jolt Fitness banner.

As of Sunday 24th February, a group of Club Physical members, upset at changes to their terms of membership, held a public protest outside the Westgate branch of Jolt Fitness, which previously operated as Club Physical.

The protest and court action follow the decision by club owner Stuart Holder, to remove three Auckland fitness clubs, in the suburbs of Westgate, Three Kings and Botany from the Club Physical brand and to operate them as Jolt Fitness clubs.

Club Physical owner Paul Richards who, along with his wife Tina, had built the Club Physical chain over 31 years operating, prior to Jolt Fitness' split on 8th February, clubs in nine Auckland locations explains that when receiving advice that Holder was cancelling his franchises, "reading it felt like a sword had been suddenly thrust through my body."

With Richards having entered an application to the High Court seeking an injunction to block Jolt Fitness from operating, a judge has directed that the matter will be subject to an "urgent" half-day hearing tomorrow (Tuesday 26th February).

In response, Jolt Fitness Director Holder issued a statement explaining that he rebranded the clubs to ensure their continued operation.

The statement read "on Friday 8th, February we regrettably had to take steps to end our franchise agreements with Club Physical in Westgate, Botany and Three Kings because we believed the franchisor had not been meeting its obligations to us and that this was putting the future of the clubs in jeopardy. This wasnt a decision we took lightly, but we had to do this in order to offer our members the best possible fitness experience."

In other cases, courts in New Zealand have previously upheld franchise agreements.

Fitness New Zealand Chief Executive Richard Beddie has issued a general statement about the gym franchises honouring their contracts (click here to read this).

19th February 2013 - BEDDIE EXPLAINS BENEFITS OF FITNESS FRANCHISES: IMPORTANCE OF FRANCHISEES HONOURING THEIR CONTRACTS

18th February 2013 - AUCKLAND GYM REBANDING SHOCKS ESTABLISHED FRANCHISOR 

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