Gold's Gym (US) Announces New Master Franchise Deal for Australasian Studios
26 Aug 2019 - Following several years of challenges in the Australian market, US fitness franchise Gold’s Gym has announced a new master franchise agreement for brand development in Australia with local investment group Colour Capital.
In addition to backing growth for Gold’s Gym Australia, the Colour Capital deal will also see the brand make its landmark entry into New Zealand.
Under the terms of the agreement, Colour Capital is set to deliver a minimum of 30 new Gold’s Gym Australia locations, and a minimum of 10 in New Zealand.
Adam Zeitsiff, President and Chief Executive of Gold’s Gym said that the new partnership would allow Gold’s Gym Australia to continue its aggressive expansion strategy, explaining “through this partnership with Colour Capital, we now have the opportunity to not only grow Gold’s Gym’s Australian presence exponentially, but to expand into the exciting New Zealand market as well.
“We look forward to working closely with Matt Hope and his team to deliver to these wonderful countries the best of what our global brand has to offer.”
Founded in the USA in 1965 and after building an extensive membership base, Gold’s Gyms operated in Australia from a number of years under master franchisee, Leigh Taylforth.
However, a string of reported leasing and financial disputes led to Gold’s Gym ending its link with Taylforth in 2016.
Speaking at the time, Craig Sherwood, Senior Vice President for Franchising and International, advised that the brand would need to restructure Australian operations in order to deliver on expansion targets.
Sherwood stated “we see tremendous opportunity in the Australian fitness market and are thrilled to strike new deals with our direct franchisees there.
“These deals will allow the Gold’s Gym brand to continue to grow while we begin the search for a new master franchise partner.”
Gold’s Gym’s new agreement with Colour Capital, the Sunshine Coast business’ inaugural fitness venture, will see the fitness chain work alongside the new master franchisee to transition the six existing Gold’s Gym Australia franchised locations under the new ownership banner.
Explaining the franchising experts new venture, Colour Capital Chief Executive, Matt Hope advised “as we researched options for expanding our portfolio by stepping into the health and wellness space, we immediately recognised an opportunity in the fitness markets of Australia and New Zealand that only the legendary Gold’s Gym brand can fulfil.
“In the months since we began working with Gold’s Gym, we’ve already seen what an invaluable resource this experienced team’s support will be to us, and we are excited to continue our efforts with them as we work to grow the brand’s presence in these two countries.”
Australasian Leisure Management