F45 co-founder re-emerges with new gym venture

The co-founder of troubled global gym chain F45, Rob Deutsch, has re-emerged with involvement in a new gym chain run by a former F45 franchisee.

The co-founder of troubled global gym chain F45, Rob Deutsch, has re-emerged with involvement in a new gym group run by a former F45 franchisee.

Mr Deutsch has become a partner and strategic adviser to The Yard Gym, a chain with 18 gyms, mainly in NSW, but with one in Queensland and two in San Diego, operating under a franchise model.

F45 co-founder Rob Deutsch with new business partners, Tiarne and Dan Bova of gym chain The Yard Gym.

A co-founder of F45 in 2012, Mr Deutsch left the company in 2020, after expressing that he wasn’t in favour of its plans to list on the New York Stock Exchange.

F45 went on to complete its stockmarket listing, with the backing of Hollywood star Mark Wahlberg, but has since been plagued by poor financial performance and disputes with franchisees in a spectacular decline that culminated in its recent delisting.

Mr Deutsch sold his stake for an estimated US$145 million (A$224 million) before the company listed on the NYSE in July 2021.

The Yard Gym, which was founded by husband and wife team Dan and Tiarne Bova, declined to reveal the commercial terms of its arrangement with Mr Deutsch, but is looking to triple the number of gyms in the short term.

Former F45 owner Rob Deutsch with actor Mark Wahlberg, who bought a minority stake in the company in 2019. Picture: Instagram / F45 Training.

Mr Deutsch said that since leaving F45, he had “missed the camaraderie of working with a like-minded, passionate team”.

“I have also thoroughly missed the fitness industry,” he added.

“I have been presented with endless fitness concepts with opportunities to invest, but one model stood out for me. One that truly aligns with my core values. It is The Yard Gym. Dan and Tiarne have built a phenomenal business.”

Mr Bova, a former F45 franchisee, revealed ambitious growth plans for the business, which will grow to 25 locations by the end of 2023.

“We’ve sold over 50 territories, and 48 territories have been reserved within the last 14 days,” he added.

Mr Bova is cautious of the risks of overscaling, an allegation levelled against F45.

But Mr Bova said he is cautious of the risks of overscaling, adding that each of its gyms has a large territory so that locations don’t oversaturate a local area.

Operating too many gyms within small geographic areas is an allegation that has been levelled against F45 with many franchises collapsing into liquidation, being shut down or looking to sell after failing as a result of cannibalisation.

A non-compete arrangement prevented Mr Deutsch from re-entering the fitness industry until this year.

In November 2022 he told The Sydney Morning Herald: “I’d love to do something in fitness again.”

“There are definitely a lot of options and things I’ve been thinking about and some new stuff that doesn’t quite exist.”

Originally published as F45 co-founder re-emerges with new gym venture