Latest News

Back to Latest News back

 

Gyms and fitness centres among Australia’s most successful franchise operations

Gyms and fitness centres among Australia’s most successful franchise operations
March 10, 2018

With franchising in Australia facing a series of challenges, newly released research from IBISWorld show that gyms and fitness centres are a consistent success in the sector.

With Australia’s than 4,200 fitness business recording annual revenues of $2.2 billion, the IBISWorld report Gyms and Fitness Centres in Australia suggests that much of the industry’ growth has been as a result of franchised 24/7 chains.

The international market research company’s report advises “franchises like Anytime Fitness and Jetts Fitness have undergone exceptional growth over the past five years, attracting new customers with their affordability and accessibility.”

IBISWorld predicts industry revenue to continue to grow, attributing the success of these franchises to increased awareness surrounding health and obesity.

In contrast, IBISWorld says the general franchising industry in Australia “has faced challenging trading conditions over the past five years” due to instability in financial markets and “negative consumer sentiment”.

Peter Harris, Chief Executive of franchise marketing platform Digital Stack, said the most successful franchises usually had the highest levels of online engagement, while poor performers struggled to maintain an online presence at all let alone one that resonated with customers.

Harris explains “you need to really understand the type of customers you want to deal with and you have to be passionate about it - if you don’t know why you’re getting into a business and you don’t want to make a difference, then just don’t do it.”

Harris says the key to buying into a successful franchise is finding one that had a healthy, active online and social media presence and which also gave franchisees the freedom to “do their own thing” at a local level.

Adding that brand consistency was another essential, Harris advised “if you look around and see different stores at different locations that look completely different but are part of the same brand, that’s a big warning sign - if branches at multiple locations don’t look the same, it’s a massive no-no.”

Retail analyst Geoff Dart, of DGC Advisory, cautioned “the franchise industry allows bad businesses to be flogged on to poor consumers who think the brand is great and think it will succeed when they won’t.

“There needs to be more regulation around what franchises can and can’t do.”

Warning that franchises were not always assets, Dart added “even McDonald’s is declining worldwide and is not what it used to be as people get more health conscious and find it a bit passé.”

This changing trend is reflected by the report highlighting that “spending on gyms and fitness centres positively correlates with increased health awareness across the population” and that that “rising health consciousness means that consumers are increasingly concerned about their health and are more likely to exercise.”

Click here for more information on IBISWorld Industry Report R9111: Gyms and Fitness Centres in Australia (Exercising power: Establishment numbers have bulked up due to the popularity of 24-hour gyms), November 2017.

Images: Anytime Fitness (top) and Jetts (below). 

29th December 2017 - BELGRAVIA LEISURE EXPANDS COACHING ZONE FRANCHISE

11th August 2017 - COLLECTIVE WELLNESS GROUP EYES 1,000 LOCATIONS AS PART OF AUSTRALIA-WIDE EXPANSION

4th August 2017 - COLLECTIVE WELLNESS GROUP ENERGISES ORANGETHEORY FITNESS IN AUSTRALIA 

7th July 2017 - PLUS FITNESS NORTHMEAD CELEBRATES 21 YEARS AND A NEW FRANCHISEE

13th February 2017 - WORLD GYM ANNOUNCES AUSTRALIAN EXPANSION PLANS

14th August 2016 - GOLD’S GYM REVEALS AGGRESSIVE GROWTH PLANS FOR AUSTRALIA

18th July 2016 - ANYTIME FITNESS RETAINS TOP PLACE ON ANNUAL TOP GLOBAL FRANCHISE LIST 

11th May 2016 - ANYTIME FITNESS’ MEDIA SUBSIDIARY CHANGES NAME TO DRIVE FUTURE GROWTH

10th May 2016 - MASSAGE ENVY MARKS INTERNATIONAL EXPANSION WITH AUSTRALIAN LAUNCH 

20th April 2016 - LOWER WAGE COSTS BOOST PROFITABILITY OF 24/7 GYMS 

21st April 2016 - ORANGETHEORY FITNESS LOOKS FOR NEW AUSTRALIAN FRANCHISEES

24th March 2016 - ACTIVITY ENTREPRENEURS SHARE THEIR BUSINESS SECRETS 

8th August 2014 - CONTOURS SHEDS AUSTRALIAN FRANCHISEES

16th July 2014 - 24/7 GYMS TO DRIVE FITNESS INDUSTRY REVENUES DOWN

6th June 2014 - CLUB LIME FITNESS CLUBS NAMED CANBERRA’S MOST TRUSTED BRAND

11th February 2014 - IBISWORLD PREDICTS FLAT GROWTH IN FITNESS INDUSTRY THROUGH 2014 


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.

 

supplier directory

The Complete Guide to Leisure Industry Products & Services.

See the directory see all

APT Asia Pacific Pty Ltd

APT (Advanced Polymer Technology) is the leading global manufacturer of polyurethane-based materials, acrylic coatings and synthetic turf products for sporting and recreational applications. From…

read more

Environment / Sport / Surfaces / Technology

 
 

HRMWEB

At easyemployer we've come up with a software solution that manages one of your most important, and often most costly, business resources - your staff. We are helping 100s of clients to…

read more

Finance / Fitness / Technology

 
 

SLE WORLDWIDE AUSTRALIA PTY LTD

SLE Worldwide Australia is a Managing General Underwriter specialising in insuring risks in the world of Sports, Leisure and Entertainment. Be it relaxing, playing, organising or watching sports,…

read more

Insurance / Venues

 
 

GEOFF NINNES FONG AND PARTNERS

Geoff Ninnes Fong & Partners (GNFP) is a structural, aquatic and civil engineering consultancy with broad experience in the design of new municipal and institutional swimming pools, hydrotherapy…

read more

Aquatics / Consultants / Design / Venues

 
 

Digonex

Digonex is a leading provider of customised dynamic pricing solutions to clients in arts and entertainment, sport, attractions, cultural institutions and retail sectors. Digonex’s technology is…

read more

Attractions / Entertainment / Sport / Technology / Ticketing

 
 

Summit Fitness

Summit Fitness Equipment is now part of NovoFit - see www.ausleisure.com.au/suppliers/novofit/

read more

Fitness / Recreation / Technology / Wellness

 
 

Spill Station Australia

Compliant chemical storage and decanting solutions. Includes spill kits, spill containment pallets, chemical decanting decks and safety shower and eyewash equipment. See our full range of solutions

read more

Aquatics / Safety / Security / Venues

 
 

AUSFIT

Ausfit began in 1992, providing software services to the health and fitness sector including ClubWise, a fully hosted web-based product which combines state of the art club management software,…

read more

Billing / Finance / Fitness / Technology

 
 
 
 

get listed with our suppliers directory

Get your business noticed in our targeted directory. Viewed by 10,000 industry professionals per week!

list your business