Australian fitness franchisor Fitstop is executing an ambitious global growth plan and is currently ramping up its expansion across the competitive US market.
Peter Hull, Fitstop’s founder and CEO, established the business with his wife Rebecca in 2013.
Today it has an international footprint of more than 170 units across Australia, New Zealand, Singapore and now the US.
Its sustainable growth strategy prioritises systems, structure, and quality control over rapid expansion.
The US expansion strategy
Fitstop has five US locations operating – three in California, one in Philadelphia, and one in the New Jersey area. There are another seven in the pipeline.
Rebecca Hull, the brand’s international franchise recruitment manager, explains the deliberate East Coast–West Coast strategy: “We came into California to prove the brand in a fitness market. It’s hardest to start franchising here with tight rules and regulations.
“There’s a nuance to every country. When you come in with the same intent and same way as you do in Australia, ignoring customs… you land on your face,” she says.
“Pete was coming here for a year to understand the fitness climate and it was eye opening. We had always put the US on a pedestal; then we realised we had a gap to bridge with functional training because we are ahead in this market.”
Fitstop’s 12-week progressive program stands apart from traditional US group fitness models focused primarily on ‘getting a burn’.
“For us the US market is in its infancy, with rapid growth. Our strategy is getting it right with the right operators. We’ve learned the lessons the hard way. There’s no silver bullet. We’ve focused on systems and structure. Through our operations we understand what makes a good owner.”
A rigorous recruitment process
Hull has 15 years experience in recruitment and vets the franchise buyers at the initial stage. The approval process involves potential franchisees building operational plans, and meeting the operations and marketing teams.
The process uncovers a prospective franchisee’s understanding of the system and their resistance to following the rules.
“That process gets them to opt out themselves. It tests their understanding. Have they spoken to other owners? Do they know practically what it’s about? They have to drive it,” Hull says.
“We look for proof points in their current role, what they have achieved. When you are bringing in people, it’s a long-term partnership that has an impact on the brand, club members and the wider business. It’s a really considered approach. I’ve said no to countless people,” Hull says.
She believes harnessing the talents of local fitness experts has been key to the brand’s US development.
Steady growth for APAC
While the brand’s functional fitness is in its infancy in the US, the APAC market continues to be core to the business.
The business is ramping up growth in Singapore, and continues to grow the domestic footprint.
“We have key Aussie markets to grow but we’re not expecting hockey stick growth. We were opening 40 units every year; now we’re expecting about 10 per cent growth,” Hull says.
Scaling the business
Growth comes from onboarding new franchisees and upskilling existing franchisees so they can scale.
“It’s interesting that most owners at the top of the leader board are multi-site. We’ve got the right systems and only grant the next site if they are operationally strong, and they have a plan to take themselves out of the business,” Hull says.
The company has invested heavily into its operational systems to ensure quality and consistency across its growing network. The internal support structure has shifted from managers providing solutions for franchisees to directing franchisees back to the system, making partners accountable to their own results.
Swapping a proprietary system to a customised one was a big shift for franchisees and Fitstop deployed monthly catch ups on how to utilise the system.
“We want a business owner who is an expert; there is one-on-one training and each has to be accredited in the system,” Hull says.
Fitstop is streamlining further by developing an AI integration to provide franchisees with instant, system-based solutions to common questions.
Hull believes this clear focus on systems, structure, and quality control sustains the brand’s premium product and ensures owners execute effectively to meet member expectations.
“Our members keep coming back for the latest product, it’s important we deliver the next new program, and quality control is essential,” she says.
