Several franchisors this masthead spoke to said the issues facing the parent company’s headquarters have had virtually no impact on their operations, which are functioning normally. But some owners have faced questions from members about whether they are closing.
“It’s not ideal because it just means you have fires that you have to put out where there isn’t,” said F45 Blakehurst owner and head coach Rodger Talevski.
F45 operates a franchising model that grants franchisees “fundamental rights” to operate a facility in a designated location, rights to use the F45 brand and plug into all of F45’s systems and processes. Owners pay a fixed monthly franchise fee to F45.
Talevski said churn levels for F45 franchisees were “very, very low” compared to the industry standard, noting that although the company had lowered its expansion targets from 1,500 new locations to 350-450, the revised figure “still phenomenal”.
“F45 dominated the market and was innovative, and a lot of those people who continue to talk the brand out are the ones copying it or just trying to fill holes. [in] why the brand will not last,” he said. “I only see a full glass, not a half empty glass.”
F45, which has more than 1,500 franchise centers around the world, listed $16 on the Nasdaq last July. Shares have since fallen about 90 percent.
The company said last week it now expects underlying earnings of $25 million for the year ended Dec. 31, compared to previous forecasts of up to $US100 million.
High-profile Australian co-founder Adam Gilchrist (not the cricketer) resigned from the company last week.
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