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Viva Leisure (ASX:VVA) is icing the cake that was 2024 with an international expansion, moving into the United Kingdom for the first time.
In April this year, the company expanded into the Northern Territory, then pivoted to Queensland just earlier this month by way of an acquisition.
Now, through the execution of a Master Franchise Agreement (MFA), the company has entered the U.K. with its Plus Fitness brand. The MFA runs for a decade with an optionality for a 30-year runtime.
The first U.K.-based Plus Fitness is teed up to launch in 2025, with the sale of franchises then kicking off thereafter. All cards in order, this has the potential to unlock “rapid growth across the region.”
Part of this thesis is that 15% of the British population allegedly holds a gym membership and that the search for cheaper operators is well and truly a trait of the market.
“The Plus Fitness proven franchise model, being a low-cost, high-reward franchise model has been tested and refined in other markets, providing UK franchisees with a low-risk entry point,” the company wrote on Wednesday.
The U.K. market addition means Plus Fitness now has a foothold (or plans to) in New Zealand, India, Singapore, the Philippines, and the U.K.
“In addition to expanding the Plus Fitness brand, this opportunity will also provide for the future rollout of Viva’s cutting-edge Hub technology and Viva Pay payment systems, further driving the growth of our technology and payments division,” Viva CEO Harry Konstantinou said.
VVA last traded at $1.44/sh.
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