Fitness & Lifestyle Group (FLG) is selling the franchise division of its Jetts Fitness business to a management buy-out.
Jetts Fitness Australia CEO Elaine Jobson is leading the buy-out with three other executives, supported by independent investors.
The deal gives Jetts Fitness Australia global brand rights – except for New Zealand, Vietnam and Thailand, where FLG retains ownership of the brand and operations.
FLG Group CEO Greg Oliver said “We continue to invest significant resources in the growth of Jetts Fitness across the APAC markets of Thailand, Vietnam and New Zealand.”
FLG has 400+ clubs, over 660,000 members and a portfolio of globally recognised brands. These include Fitness First Australia, Goodlife Health Clubs Australia, Barry’s, Zap Fitness, and California Fitness and Yoga.
Oliver said “The sale of the franchise business will allow Elaine’s team to move forward with its own independent expansion strategy.”
The Australian business comprises 129 franchised clubs along with gyms in the UK and the Netherlands.
Jetts Fitness Australia buy-out will allow for a laser focus on franchising
Jobson told Franchise Executives FLG’s multiple brand portfolio meant it wasn’t focused on franchising.
The buy-out creates new opportunities, she said.
“For us it’s being able to invest and focus on franchising, to really focus on building our franchise network.”
Jobson said the plan is to spread the brand in more states across Australia and boost international growth with master franchises.
“We will still open corporate owned gyms, and our growth plans for both franchised and corporate, is another 50-70 gyms.”
Jetts Fitness has started rolling out its Generation 4 concept, a results-based training gym.
“We’re doubling down at what we’re good at,” said Jobson. “We don’t do contracts at all. That’s what we’ll be focusing on. And we pride ourselves on our culture. We’ve put lots of investment in to it.”
“This is an exciting new chapter for my team and I as we continue to deliver high-quality training facilities, all staffed by incredible teams who are committed to helping our members live a better life.
“For our high-performing support office, who deliver exceptional franchisee assistance to our network, it will be business as usual with minimal disruption from this MBO.”
Jetts started in Australia back in 2007, launched by husband-and-wife team Brendon and Cristy Levenson. It was the first gym brand in Australia to offer 24/7 access, no lock-in contracts and low fees.