UFC Gyms silent on demise of Australian master franchisor but still looking for global expansion

The recent financial and legal troubles of UFC Gyms in Australia have not raised any form of comment from the Newport Beach, USA-based headquarters of the global franchise or from fitness conglomerate New Evolution Ventures - part owners of the UFC brand.

At the end of May, Ultimate Franchising Group Pty Ltd (UFG), UFC Gym Prospect Pty Ltd and Ultimate Franchising Group Properties Pty Ltd, the companies operating the Australian master franchise for USA-based UFC (Ultimate Fighting Championship) Gyms, each entered administration.

This followed the Federal Court of Australia ordering that they pay $5 million to three former franchisees.

Subsequently, administrators have indicated the companies have a collective debt of over $15 million.

In May it was also reported that members of UFC Gym Singapore had filed reports with the Singapore police and the Consumer Association of Singapore (CASE) after the sudden closure of its sole outlet at CityLink Mall.

Despite this, on 12th May, UFC Gym Chief Executive, Adam Sedlack told Channel NewsAsia that the group was "very eager" to re-enter the Singapore market and would "do our best" to provide concessions to customers impacted by the sudden closure of its earlier franchise.

However, despite Sedlak stating "Singapore remains a very attractive market for the brand of UFC Gym and our train different approach” there has been no subsequent indication that it has engaged with members.

Focus on Growth
May also saw the chain announced what it called a “landmark agreement” for London’s first ever UFC Gym while a January media release released by the group, advised that it had “celebrated a milestone year in 2022 by surpassing expectations on its domestic and international growth.”

The release noted “building on its momentum as one of the largest and fastest-growing operators and franchisors of premium fitness facilities, UFC Gym’s development of more than 1,000 locations in 40 countries will play an integral role in the organization's mission to provide a wholistic wellness approach to its unique global member community.”

In the release, Sedlak advised “coming off of the physical and economic hurdles that have unravelled over the past few years, UFC GYM® and UFC FIT® are poised to make an impact on fitness enthusiasts worldwide with our dynamic TRAIN DIFFERENT approach and industry-leading programming that brings out the purpose in why members go to the gym.”

Also in January, Sedlack spoke on the rapid expansion of UFC GYM globally and, with reference to India, advised how the brand was looking to create a “global legacy” by making the training regimen of elite MMA athletes accessible to all - regardless of skill or fitness level.

In the YouTube interview, posted on the UFC Gym India channel, Sedlack advised “we think that UFC Gym will dominate the fitness landscape throughout all of India within the next five to 10 years”.

Nine months earlier, Sedlack had, in an interview with Yahoo Finance on 4th April 2022, stated that, as of 2023 or 2024, he anticipated that the company will open two to four gyms per week, driven by both domestic and international opportunities.

Since the first UFC Gym opened in 2009, the business, developed as an alliance by UFC and fitness brand developer New Evolution Ventures™ (NeV), has expanded rapidly, with clubs open around the world.

As of early 2022, the group had 160 locations opened while claiming that it had 1,000 additional locations currently in development across 40 countries worldwide.

However, the group’s failure to address issues in the public domain in its operations in Australia, New Zealand and Singapore suggests a business unwilling to deal with challenges or scrutiny.

Neither UFC Gym’s USA-based head office or NeV have responded to Australasian Leisure Management’s requests for comment.