The REAL Truth About F45 Fitness 🤯

[@Vettedbiz]

Need help finding the right franchise? Click here: www.vettedbiz.com/franchise-s...

[@steffypro]

I loooooove my F45 in NorCal. I've been to F45 up and down California and classes are booked out with people. It doesn't seem to be doing bad on the West Coast.

[@Vettedbiz]

Thanks for the insights! Have you spoken to any of the franchise owners?

[@cuzakuru]

You were so ryt mate 110 employees were just let go. 4 franchises here in Australia shutdown and selling its equipment on fb marketplace. Share price has gone ryt down. Good forcasting mate! Also board members have handed in resignations.

[@Vettedbiz]

Seems the system is imploding! I feel bad for the franchisees and employees at corporate.

[@brisguy69007]

I can tell you as someone who bought some F45 franchises, it was the single worst thing I’ve ever done and will likely end up losing my entire investment plus out of it. They have no idea how to run a business, there’s little to no support, they are arrogant and think they’re the OG so people will come, they haven’t adjusted to the competition in the marketplace at all who are doing the same thing cheaper. Now they’re trying to sell which tells me they want to exit, cash out and make it someone else’s problem. Ruined mine and others lives out of incompetence stupidity and greed.

[@Vettedbiz]

Sorry to hear your story! Sadly we've heard similar sentiment by numerous franchisees across the U.S. and Canada. Let me know if you'd be open to telling your story over a 20 min interview.

[@Vettedbiz]

Also what do you make of their #29 ranking on the Entrepreneur Magazine Franchise 500 list? Doesn't seem like Entrepreneur spoke to any franchisees... www.businesswire.com/news/home/20230110005075/en/F45-Ranked-Among-the-Top-Franchises-in-Entrepreneur%E2%80%99s-Highly-Competitive-Franchise-500%C2%AE

[@brisguy69007]

@@Vettedbiz I think that’s laughable. I don’t think they’ve spoke to any franchisees at all. They seem to be in an echo chamber hyping each other up and ignoring the real world. There’s business brokers here who either can’t sell an F45 at all or are getting 1/10th price offers on them to take over the lease. F45 HQ are often in breach of their own franchise agreements but the average franchisee isn’t commercial enough to fight back. With what happened with Meta and studios being unpublished I’d be surprised if it doesn’t collapse.

[@terrifurman4118]

Thanks for the good analysis. I'd be interested to learn how their competitor, BFT (Body Fit Technology), is doing in comparison. They are much newer, but BFT copied F45's model.

[@Vettedbiz]

Thanks Terri. We'll be sure to add to our list of franchises to review!

[@andrewg2855]

Body Fit Training not technology. They are just the same

[@peter_day]

Just curious to how many studios you surveyed and where you used in your financial analysis? You mentioned “the studios you spoke to” and came to a conclusion on the EBITDA. F45 is still pumping in Australia 😊

[@Vettedbiz]

Exchanged information with owners who collectively ran 10+ locations across U.S. and Canada. They provided insights on their locations as well as others in the system. It definitely could have been more extensive but most owners have not been comfortable sharing data unless they are up for sale. We have also reviewed many more F45s for sale over the past few years- Such as- www.bizbuysell.com/Business-Opportunity/f45-established-franchise-facility/2038210/ Glad it is still pumping in Australia! It appears the U.S. expansion happened too fast and it does not have the same brand recognition here. Any idea what the EBITDA % is for studios in Australia?

[@peter_day]

@@Vettedbiz I’m interested to listen to your breakdown of the franchise model, but I don’t think it’s reasonable with a data set of 10+ studios in a network of 2,000+ (which is 0.5%) to make sweeping statements of EBITDA or financial claims - i thought maybe you had a data set. Also, listening to the analysis, it may be different in different markets to. I don’t know the Canadian market. Our studio is running at about 30% in Australia, and I have friends who are crushing it - some aren’t doing as well, but I don’t have financials for everyone so I don’t know exactly. I think Australia are performing the best in the world though, so it would be a different analysis there I assume. From my experience, the operator of the gym is the biggest determining factor that comes down to the success of the gym. A good owner/operator could take almost any brand and make it run profitably, and makes a big difference to the outcome of the gym 🙏😊 The studios you’ve spoken to, so you know if they’re using marketing agencies to accelerate their growth ?

[@Vettedbiz]

@@peter_day thanks for sharing your experience. You’re right that I can’t confirm that the average EBITDA is not 30% for F45s in the U.S. I have only heard conflicting information from our research and the F45 franchisees we’ve spoken to and have reached out to us. Would any of your U.S. franchisee colleagues be open to speaking to us about their experience? I’m especially interested in those that have multiple units. As for the marketing agency, that is a great point and I don’t know too of mind. Thanks again for sharing your experience and pushing back on our video. We only improve when tested!!!

[@brisguy69007]

@@peter_day I know agents who can’t even sell an F45 because their value has dropped so far thanks to the CEO and share price issues. I know other agents that have so many F45 for sale they don’t know what to do. The stories are common though - nil support, failure of Meta, and pending class actions in the states with whispers of some in Australia as well.

[@peter_day]

@@brisguy69007 a business value is mostly determined on the net profit and a multiplier. Maybe that F45 gym wasn’t run very well and wasn’t turning a profit or very little NP. I can’t speak for specific circumstances, but there are many studios pumping in Aus. It really comes down to who owns that specific gym and how good they are at running it. If you’re good, you can make almost any gym brand work because you understand clients, sales and service.

[@patrickvuong1178]

Thanks for this video. Could you do a review on Plus Fitness Franchise?

[@Vettedbiz]

Sure! We'll add to the list. Are you looking to buy one?

[@patrickvuong1178]

@@Vettedbiz Potentially in the medium long term. I am more looking into F45 at the moment. Just would love to hear your opinion on the brand and perhaps investing in the fitness industry in general.

[@heidirobinson3352]

Thank you for this video.

[@Vettedbiz]

You're welcome!

[@heidirobinson3352]

I still want to try Life Time Fitness.

[@brybryBillions]

Would be interesting to compare F45 with OrangeTheory.. Is OrangeTheory doing this better?

[@Vettedbiz]

OrangeTheory sales are NOT keeping up with unit growth. www.franchisetimes.com/top-500-2022/96-orangetheory-fitness/article_4893b0fe-23e9-11ed-8352-cb3343c9acc0.html F45 is lower investment but less sales/ profit than OrangeTheory.

[@mitchelljack1590]

How was it ever even a thing

[@Vettedbiz]

Good question. Work out trend and celebrity endorsement?

[@elliotjones3098]

the one near my house, totally obnoxious loud music that blares out

[@Vettedbiz]

Wow, not good to piss off neighbors

[@fernandoaththanayaka3918]

I would be like a staring that how i can combined with that team?

[@Vettedbiz]

Sorry, can you ask the question in another way?

[@PhuongNguyen-m5u1m]

they're officially dead now. My heart goes out to retail investors

[@Vettedbiz]

Really sad

[@jessetrauma556]

Go to a real gym. They offer way more for less money.

[@Vettedbiz]

Any gyms in particular you recommend?