Viva Leisure remains tight-lipped on Plus Fitness franchisees’ claims that a new clause in the franchise agreement leaves existing franchise operators vulnerable to competitors.
The franchisees are reportedly concerned competitor locations from other Viva-owned fitness brands could be established within their exclusive territories.
According to the Australian Financial Review, a group of 53 Plus Fitness franchisees have joined forces to send a legal letter to parent company Viva about the changes to the franchise agreement.
In a statement to the ASX following the AFR revelation, Viva Leisure said it was confident in its position as a franchisor, and had no comment on the content of the article or the claims.
“Viva Leisure is confident that it and its group companies are dealing with franchising appropriately and in accordance with the law,” the statement said.
The group and its subsidiary Australian Fitness Management, the master franchisor of Plus Fitness, are in confidential discussions with some franchisees, the statement continued, with no details given on the nature of the discussions.
The statement reiterated Viva’s investment in the business and its efforts to support and promote Plus Fitness franchisees.
Viva CEO Harry Konstantinou told Inside Franchise Business Executive for legal reasons he was unable to provide any further comment.
Viva Leisure bought the 200+-gym chain last year for $18m from founders John Fuller and Nigel Miller.
The business also owns non-franchised brands including Club Lime, Fit N First, GroundUp, hiit, Pinnacle Health Clubs, and Psycle Life.
Former Anytime Fitness GM Gordon Martin was in April appointed to head up the franchise expansion at the group, tasked with a goal of 300 Plus Fitness gyms.
Viva Leisure has indicated Martin’s knowledge of operations, sales, performance, and leadership, will set him up to play an instrumental role in the growth and development of all brands across the portfolio.
In a market update to the ASX in April Viva Leisure said Martin would be both boosting the Plus Fitness network and “exploring additional fitness franchising opportunities”.
