Local F45 gym thrives despite US company woes

An Aussie F45 franchisee has spoken out about how his business has managed to stay afloat despite the problems facing the flagship company.

An Aussie F45 franchisee has spoken out about how his business has managed to stay afloat despite the problems facing the flagship company.

Damien Sweet, co-owner and chief happiness officer of F45 South Perth told news.com.au that since the parent company was delisted from the New York Stock Exchange (NYSE) in September, it had been getting back to its core business.

He described the delisting – which was brought about after the NYSE said “the company’s common stock is no longer suitable for continued listing and trading on the NYSE” after revenue reporting and accounting errors – as “such a positive move”.

Mr Sweet is excited about the future of his business under F45. Picture: Instagram.

Mr Sweet said that now the parent company has “taken responsibility again”, as a franchise owner the business is “only getting better”.

“They’ve started to refocus and return to their original mission of changing lives,” he told news.com.au.

Mr Sweet has operated his franchise for just under two years, having purchased it from a fellow franchisee, who had operated the business for five years, in January 2022.

He said the business is trading well, despite a nearby F45 franchise going into liquidation in November.

“People come and go but we’re doing well,” Mr Sweet said. “We’re still in business.”

He added that he had not experienced issues with some of the things that failed F45 franchisees commonly complain about, such as franchise territories being too small and cannibalising each other, or landlords being unwilling to give favourable lease terms to the business due to the string of failed franchises.

The team at F45 South Perth. Picture: Instagram.

Conceding that dealing with “both negative and positive press” is part of being a franchisee, Mr Sweet said that ultimately, being a part of a large company helps with marketing and brand recognition.

But he attributes the success of his franchise to the supportive environment offered by his community and staff.

“I’ve got some of the best staff in the world,” he said.

Despite his success, Mr Sweet said he has no plans to expand his operations to include other gyms.

He said he prefers to take a hands-on approach and continues to work in the business.

“I want to do the best job I can with one.”

Mr Sweet said that despite the troubled history of the F45 brand, the high intensity interval training (HIIT) 45 minute workouts based on functional movements offered by the chain are still world class, which is why they’ve been widely imitated by other gym chains.

“With competition we’ve only gotten better,” Mr Sweet said.

Hollywood actor Mark Wahlberg is a major investor in F45. Picture: Supplied

F45 was founded in Sydney’s Paddington in 2012, before expanding into the US in 2015.

In 2019, Hollywood actor Mark Wahlberg’s investment firm and another investor, FOD Capital bought a minority stake in the business.

The company listed on the NYSE in July 2021 when it was valued at US$1.4 billion (A$2.17 billion) but just prior to its delisting, its value had dropped to a meagre US$3.85 million (A$5.96 million).

The business has been plagued by revenue reporting and accounting errors that ultimately saw the CEO in July 2022 along with other key executives and directors.

In Australia, where there are nearly 500 F45 gyms, multiple gyms have gone bust this year while dozens more are up for sale.

Originally published as Local F45 gym thrives despite US company woes