Viva Leisure Limited (ASX:VVA) Expands into UK Market
Master Franchise Agreement Details
Viva Leisure Limited has executed a Master Franchise Agreement for the United Kingdom, facilitating the expansion of the Plus Fitness brand. This agreement covers a span of 10 years and includes options for two additional 10-year terms. The inaugural Plus Fitness location is set to open in 2025, with franchise sales commencing in the new year to facilitate rapid growth throughout the region.
Market Opportunity and Global Reach
The UK fitness market presents significant growth prospects, with 15% of the population currently holding gym memberships. As demand increases for affordable, flexible fitness options, Plus Fitness is well-positioned to conform its successful business model to capture market share in this dynamic environment. The franchise model, known for being low-cost yet high-reward, offers UK franchisees a low-risk entry point for swift growth while ensuring top-tier service and member experience.
Plus Fitness is now active or has agreements to operate in six global regions, including Australia, New Zealand, India, Singapore, the Philippines, and the UK.
Executive Comments
Harry Konstantinou, CEO of Viva Leisure, expressed enthusiasm about entering the UK market, stating, “We’re excited to enter the UK market, which presents significant growth opportunities. Our low-cost, high-reward franchise model will allow Plus Fitness to scale quickly and meet the growing demand for affordable fitness solutions.” He further highlighted the potential rollout of Viva’s Hub technology and Viva Pay payment systems as part of the broader growth strategy.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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