F45 Training Tasmania: Devonport gym enters liquidation
The struggles of global fitness giant F45 Training are being felt in Tasmania, with a second local gym collapsing. DETAILS >
Tasmania
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AN F45 Training gym in Tasmania’s North-West has closed, with the company that held the franchise appointing an external administrator on Friday.
F45 Training Devonport, owned by Relbia director Jason Cooper, 52, via his company Fitaxis Pty Ltd, is the second franchise in Tasmania to collapse in the past four months, with F45 Cambridge exiting the market in December last year.
The two closures show that Tasmania’s F45 gyms – there are now six in the state – are not immune to the woes gripping the brand nationally and internationally.
It is understood that ten franchises, including Devonport, have closed across the country since July last year.
It comes amid a string of legal woes and negative press that has seen the share price of US parent company, F45 Training Holdings Inc, plummet to $1.30 USD at the time of writing. One year ago, it traded at $10.99 USD.
Oliver Sheahan, principal of Adelaide-based Sheahan Lock Partners, was appointed on Friday to liquidate Fitaxis.
He told the Mercury that Mr Cooper had only purchased the business in March 2022 and it was his understanding the business “didn’t turn a profit” for the duration of his tenure.
“A big part of my investigation will be to what extent F45’s national and international problems contributed to the downfall of this business,” Mr Sheahan said.
“Anecdotally, a lot of franchisees are struggling with the model.”
Mr Sheahan said Fitaxis was paying “over $3000 a month” in franchise fees and had seen a “steady decline” in patronage.
“The director took the view it wasn’t viable as a going concern,” he said.
Mr Sheahan said he believed the debt position of Fitaxis was “relatively modest” and that Mr Cooper had been “proactive” in appointing Sheahan Lock Partners.
He said Mr Cooper had been trying to sell the franchise as a going concern for “some months,” but was unsuccessful in finding a buyer.
Removalists under the direction of Pickles Auctions were removing fitness equipment when the Mercury went to visit on Tuesday afternoon. Mr Cooper was contacted for comment.
The franchisee of F45 Cambridge, who asked for her name to be withheld, told the Mercury she believed there to have been a lack of support from head office, particularly regarding advertising support.
She said she had been paying a lower monthly franchise fee of approximately $1800, but that it was her understanding franchise fees were slated to increase under future licensing agreements.
However, other F45 franchisees in Tasmania told the Mercury business was booming and they believed the workouts – and head office’s management of the brand – had never been better.
One said that the model, with increased competition from chains such as Body Fit Training, was still a good one, suited to owner-operators.
Speaking to ABC News, F45 chief revenue officer Luke Armstrong defended franchise fees as competitive.
He said head office was focused on consolidating the brand and supporting franchisees, noting a new F45 gym had not been opened in Australia for several years.
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