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Highlights:
- Viva Leisure (ASX:VVA) enters the United Kingdom via a 10-year Master Franchise Agreement for its Plus Fitness brand, marking its maiden international expansion into the region.
- The first UK-based Plus Fitness gym is slated to launch in 2025, with franchise sales to follow, targeting the demand for affordable gym operators in a market where 15% of the population holds gym memberships.
- Viva Leisure aims to leverage its proven franchise model and integrate its Hub technology and Viva Pay systems, enhancing growth across its technology and payments division.
Viva Leisure (ASX:VVA) has made significant strides in 2024, capping off the year with its first international expansion into the United Kingdom. Through a newly executed Master Franchise Agreement (MFA), the company will introduce its Plus Fitness brand into the UK market, marking a key milestone in its growth strategy.
The MFA spans an initial 10-year term, with an option to extend for up to 30 years. Viva Leisure plans to launch the first UK-based Plus Fitness location in 2025, with franchise sales commencing shortly thereafter. This expansion is seen as a strategic move to tap into a fitness market where approximately 15% of the British population holds gym memberships. The growing demand for cost-effective fitness solutions positions Plus Fitness to capitalize on the UK's appetite for affordable operators.
Viva Leisure’s proven franchise model, described as a “low-cost, high-reward” system, has already demonstrated success across various international markets, including New Zealand, India, Singapore, and the Philippines. The company highlights the model’s ability to provide franchisees with a low-risk entry point while delivering scalable results.
In addition to introducing Plus Fitness, the UK expansion provides a launchpad for Viva Leisure’s proprietary technology offerings, including its Hub technology platform and Viva Pay payment systems. These tools are expected to drive further growth across the company's technology and payments divisions, aligning with Viva’s broader digital transformation initiatives.
Earlier this year, Viva Leisure expanded its domestic operations by entering the Northern Territory in April and acquiring new assets in Queensland earlier this month. The UK entry solidifies the company's international ambitions while maintaining momentum in the fitness franchise market.
Viva Leisure’s CEO, Harry Konstantinou, emphasized the strategic importance of this expansion, highlighting the potential for rapid growth across the region while introducing its cutting-edge technology solutions to new markets. With its global presence continuing to grow, Viva Leisure positions itself as a key player in the evolving fitness industry.
By establishing a foothold in the UK and integrating technology-driven solutions, Viva Leisure sets the stage for long-term expansion and operational success across multiple regions.
