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Gym and health club operator Viva Leisure (ASX: VVA) is expanding its Plus Fitness chain to the UK after securing a master franchise agreement that will boost the presence of the Australian-born fitness club to six countries.
The Canberra-based Viva Leisure has secured a 10-year agreement with an undisclosed master franchisor, with options for an additional two 10-year terms.
“We’re excited to enter the UK market, which presents significant growth opportunities,” says Harry Konstantinou, the CEO of Viva Leisure.
“Our low-cost, high-reward franchise model will allow Plus Fitness to scale quickly and meet the growing demand for affordable fitness solutions.”
The agreement will see the first Plus Fitness location open in the UK in 2025, building on its global footprint of more that 200 locations in Australia, New Zealand, India, Singapore and The Philippines.
The master franchise agreement in the UK comes on the heels of Viva Group announcing last week that it has secured a 25 per cent stake in World Gym Australia for $16.7 million.
Plus Fitness has the largest footprint among the Viva Leisure brands which also include Club Lime, Hiit Republic, Groundup and Rebalance.
The company describes the Plus Fitness business, which it acquired in 2020 for $18 million, as a low-cost, low service operation that positions it for “swift, cost-effective scaling”.
“The Plus Fitness proven franchise model … has been tested and refined in other markets, providing UK franchisees with a low-risk entry point,” says the company, which has also indicated that the UK expansion is the latest step in taking the brand to a broader international market.
The UK expansion gives Viva Leisure further scope to expand its in-house Viva Pay system to a new UK membership base, helping to grow the technology division's income base.
“This opportunity will also provide for the future rollout of Viva’s cutting-edge Hub technology and Viva Pay payment systems, further driving the growth of our technology and payments division,” says Konstantinou.
“We look forward to seeing Plus Fitness thrive in the UK and the positive impact this will have on our broader strategy.”
Viva Leisure see “substantial growth potential” in the UK market where 15 per cent of the population holds a gym membership.
“As demand for affordable, flexible fitness solutions rises, Plus Fitness is well-positioned to leverage its successful business model and scale advantages to capture market share in this dynamic market,” says the company.
The first Plus Fitness location is set to open in 2025, with the sale of the first UK franchises set to begin in the new year.
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