Viva Leisure (ASX: VVA) is Australia’s leading and fastest-growing health and fitness provider, founded in 2004. The company operates over 120 health clubs across the Australian Capital Territory, New South Wales, Queensland, and Victoria, with a focus on accessible, affordable, and diverse fitness options. Viva Leisure offers a variety of membership plans and caters to different fitness preferences, from large gym facilities to boutique fitness experiences. Its portfolio includes popular brands such as Club Lime and Hiit Republic. Viva’s mission is to connect Australians to healthier lifestyles by providing high-quality, flexible fitness solutions for all.
Growth Opportunities in the UK Market
Viva Leisure, one of Australia’s leading health and fitness providers, has announced a major milestone in its international growth strategy. The company has signed a Master Franchise Agreement to launch its successful Plus Fitness brand in the United Kingdom. This expansion signals a significant step in Viva Leisure’s strategy to broaden its global footprint and cater to the growing demand for affordable and flexible fitness solutions across the globe.
The UK fitness market presents substantial opportunities for growth. Currently, 15% of the UK population holds a gym membership, indicating a large pool of potential customers who are actively engaging in fitness. As the demand for affordable, accessible, and flexible fitness solutions continues to rise, Plus Fitness is well-positioned to capitalise on this market trend.
The franchise model’s low-cost, high-reward nature makes it particularly attractive to both investors and consumers. Plus Fitness has already established a proven track record in international markets such as Australia, New Zealand, India, Singapore, and the Philippines. This success provides a solid foundation for its entry into the UK, where the franchise model is expected to scale rapidly.
The first Plus Fitness location is slated to open in 2025, with the sale of additional franchises expected to begin in the coming months. This timeline sets the stage for rapid growth across the region and underscores Viva Leisure’s commitment to leveraging its successful business model to capture market share.
Industry Context: The Growing Demand for Affordable Fitness Solutions
The fitness industry has witnessed significant shifts in recent years, with increasing demand for affordable, flexible gym memberships and a broader range of fitness services. Many consumers are opting for cost-effective options that fit their busy lifestyles, driving the growth of budget-friendly gyms and fitness centres.
In the UK, the fitness market is highly competitive, with numerous national and regional operators catering to diverse consumer needs. However, despite the competition, the market remains underpenetrated when compared to other regions such as the US and Australia, where gym memberships are more prevalent. This gap presents a significant opportunity for Viva Leisure and its Plus Fitness brand to tap into an expanding market.
Plus Fitness’ model of providing a low-cost, high-value gym experience has resonated well with customers in other markets, particularly in Australia. The franchise’s approach includes no-lock-in contracts, 24/7 access, and a focus on convenience and affordability, which appeals to a broad customer base. With the UK’s growing preference for flexible and affordable fitness solutions, Plus Fitness is primed to succeed.
Strategy for UK Expansion
Viva Leisure’s strategy for expanding Plus Fitness into the UK is grounded in its successful international model. The Master Franchise Agreement is a key element of this expansion, which will see a UK-based franchisee partner with Viva Leisure to develop and manage Plus Fitness locations throughout the region. The agreement spans 10 years, with the option for two additional 10-year terms, providing a long-term commitment to growth in the UK.
One of the standout features of the Plus Fitness franchise model is its scalability. By offering a low-cost entry point for franchisees, Plus Fitness ensures that its franchisees can grow their businesses quickly while maintaining a high standard of service and member experience. This enables rapid scaling across regions, with minimal financial risk for franchisees.
The UK market will also benefit from Viva Leisure’s broader strategy of leveraging cutting-edge technology. Alongside the rollout of Plus Fitness, the company plans to introduce its innovative Hub technology and Viva Pay payment systems to streamline operations and enhance member experience. These technological advancements will further support the growth of Viva Leisure’s fitness network and improve customer engagement.
In addition to expanding Plus Fitness, this move into the UK is also seen as a stepping stone for further international expansion. With a solid footprint in the UK, Viva Leisure can explore additional opportunities in Europe and other regions, building on the success of Plus Fitness in markets such as Australia and Southeast Asia.