Planet Fitness Sells Stake in Australian Franchisee; New Owner Targets Expansion

Franchise Equity Partners has acquired Bravo Fit, which operates 32 Planet Fitness clubs and holds development rights for roughly 100 locations across Australia

Planet Fitness has exited its minority ownership position in Bravo Fit, its Australian franchisee, as private investment firm Franchise Equity Partners moves to accelerate the gym chain’s expansion across the country.

FEP acquired Bravo Fit from its existing shareholders, including Planet Fitness, for undisclosed terms, the firm announced. Bravo Fit’s current management team will remain in place and continue overseeing the business, which operates 32 Planet Fitness clubs across Australia.

The franchisee also holds exclusive development rights for approximately 100 locations across Victoria, New South Wales, South Australia, Queensland and the Australian Capital Territory. FEP said its investment will provide Bravo Fit with capital to open clubs faster and continue investing in its existing operations and member experience.

The transaction marks FEP’s first investment in an Australian-headquartered company and makes the firm a full-scale Planet Fitness franchise owner in the market. FEP is already a minority investor in a U.S.-based Planet Fitness franchise group.

“Bravo Fit is exactly the kind of partner FEP is built to support: a proven operator with a clear runway in a high-quality, globally recognized franchise system,” FEP managing director and head of investments David O’Donnell said.

O’Donnell added that the firm’s capital and franchise experience would help Bravo Fit accelerate its development pipeline while preserving its operating model.

Planet Fitness first entered Australia seven years ago and invested directly in Bravo Fit as part of its efforts to establish the brand in the market. CEO Colleen Keating framed the sale as a validation of Planet Fitness’ strategy of selectively deploying corporate capital to seed growth internationally before transitioning development to franchise partners.

“The success we’ve seen to date demonstrates one of the ways we can successfully deploy capital in a disciplined and focused manner to drive Planet Fitness’ expansion in international markets,” Keating said. “The sale of our ownership stake in Bravo Fit to FEP validates our approach.”

Planet Fitness has recently made international growth a more visible part of its strategy. In June, the high-value, low-price (HVLP) gym giant appointed Sudhanshu Priyadarshi as chief financial officer and president of international, placing the former Keurig Dr Pepper executive in charge of both the company’s finances and its expansion outside the U.S.

At its Investor Day last year, Planet Fitness said it had surpassed one million members and 180 clubs across its international markets, which include Canada, Mexico, Australia, Spain and Panama. Executives also outlined plans to enter one or two large, scalable international markets each year, favoring established local operators over opening isolated locations.

Bravo Fit CEO Danielle Monroy said the new transaction would allow the franchisee to expand more quickly across Australia.

“We look forward to benefitting from FEP’s expertise in scaling franchises as we work to open clubs faster, invest in our team and continue bringing the Planet Fitness brand and experience to more communities across Australia,” Monroy said.