Fitness Franchise Fitstop has received $3.3 million in second–round funding from private equity backed US fitness franchise organisation Lift Brands to launch into the US market. This follows Lift Brands’ acquisition of a 30 per cent stake in the business early last year.
“Our investors have continued to be impressed with how we’ve positioned the business for growth, investing in a purpose-built model with the ability to scale which has given us results,” says Founder and Managing Director Peter Hull (pictured with wife Bec). “Our franchise growth is ahead of forecast with New Zealand and NSW market expansion.”
New US locations
Hull says the fresh capital will be used to fund the brand’s US expansion, including the launch in early to mid 2023 of the 10 locations already secured with business owners across California. “California is a market ripe for our brand. They enjoy an outdoor lifestyle, a love of fitness and sport, and there is a desire for fitness training that provides progression, strength and conditioning among a like-minded community.”
Passionate business owners
Hull launched the homegrown athlete-inspired fitness franchise in 2017 to target a dedicated fitness community seeking performance-based training. The brand has continued to attract high-profile athletes as owners and has over 17,000 members.
“We have custom technology built for owner operators to drive business performance and manage memberships, which has attracted passionate business owners,” he says. “We also partner with franchise owners who are equally passionate about fitness, moving more, living life and performing at your best. This is the strength behind building a dedicated community and seeing progression.”
The brand has 160 locations in the pipeline to add to the 87 locations across Australia and New Zealand. Last month Fitstop landed a partnership with Vytality Group which will see a further 80 locations open in the Sydney market over the next five years.
Impressive financial results
Fitstop closed off the financial year with $37 million in turnover, 70 per cent membership growth and five months ahead of forecast, with 60 per cent growth in franchise locations across Australia and New Zealand.
The expansion comes amid 80 per cent growth in the industry. Data released this month revealed that the Australian health and fitness sector made a direct GDP contribution of AUS$1.52 billion plus a further indirect contribution of $2.49 billion from its supply chain.
