Australia’s gym sector is set for a transformation with Viva Leisure to acquire Australian Fitness Management and its 197 franchised Plus Fitness locations which will push Viva to become the third largest gym operator in the country.
The deal with AFM is expected to occur by 31 August but is still subject to conditions and restructuring of AFM’s existing lease and sublease arrangements.
Across their 197 clubs, Plus Fitness has a combined membership of approximately 175,000 members with the clubs generating more than $100 million in annual revenues. Combined with Viva’s existing Club Lime brand of gyms, Viva will boast 280 owned and franchised clubs with more than 270,000 members to make it the third largest group by members.
Australian Fitness Management was founded by John Fuller and Nigel Miller in 1996 with both men to join Viva as part of the acquisition.
“We are excited to be acquiring such a successful and well respected brand as Plus Fitness. John and Nigel have done an excellent job in growing the business to where it is today. Viva Leisure believes that it can use many of its bespoke and in-house developed systems to help continue the growth of the entire Plus Fitness network, while at the same time ensuring there are financial and other benefits to franchisees. Viva Leisure knows that a successful franchise network only occurs when both Franchisor and Franchisee are achieving and succeeding,” said Viva Leisure CEO, Harry Konstantino.
“It has been an incredible journey for John and I with John opening the first Plus Fitness back in 1996. John and I joined forces in 2009 and have collectively taken 6 Health Clubs to what is now 196 gyms across three countries. The decision to sell has of course not been an easy one however we believe Viva Leisure are the right operators for the task being an equally progressive and driven company and that they will serve our Franchisees well. John and I will be retaining Executive positions in the business to assist with the transition of ownership and the continued growth of the network. In addition, we are also retaining our own portfolio of 12 Plus Fitness Franchises which we intend to build on over the coming months and years. So in short, we will remain a big part of Plus Fitness for many years to come,” said Nigel Miller, founder of Plus Fitness.
Once all Plus Fitness locations are integrated into Viva Leisure, the company has plans to develop its model to target 500 clubs and 500,000 members in multiple countries.