Fitness First’s Shrinking Figures A Warning For Franchisees


Fitness franchises are starting to feel the effects of slow consumer spending, new reports claim, suggesting prospective franchisees should do their research before investing in the sector.

It’s been revealed that industry heavyweight Fitness First Australia, a global health club chain with more than 90 clubs in Australia alone, is losing members at an unprecedented rate.

Reports show Fitness First lost 16,000 local members in the year to October 2010, while net profit fell by a third to $28.5 million as a result of asset write-downs for “non performing clubs”.

The earnings drop came as revenue slipped 1% to $339.6 million, interrupting almost a decade of stellar growth since the company entered Australia in 2000.

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