Viva Leisure enters UK market

Viva Leisure (ASX:VVA) has announced its strategic expansion into the United Kingdom. The company has signed a Master Franchise Agreement for its Plus Fitness brand. This agreement will initially last for 10 years, with options for two further 10-year extensions. The first Plus Fitness location in the UK is expected to open in 2025, and franchise sales are set to commence in the new year.

Strategic expansion outlook

Viva Leisure has announced its expansion into the UK market through a Master Franchise Agreement for Plus Fitness. This 10-year agreement, with potential extensions, marks a significant step in the company's international growth strategy. With a planned opening in 2025, Viva Leisure aims to capture the UK's growing demand for affordable fitness solutions. The Plus Fitness model, known for its low-cost entry and high returns, is expected to appeal to UK franchisees. Currently operating in Australia, New Zealand, India, Singapore, and the Philippines, this expansion highlights Plus Fitness's growing global presence. Viva Leisure's CEO, Harry Konstantinou, emphasizes the growth potential in the UK and the expected boost to the company's technology and payments division. The expansion aligns with Viva Leisure's mission to promote healthier lifestyles through its diverse fitness offerings.

Executive insights on UK expansion

The opportunity to enter the UK market is significant, with a gym membership penetration of only 15%, which provides a substantial growth opportunity for our low-cost, high-reward Plus Fitness franchise model. Our proven franchise model has demonstrated success in several regions, making it a low-risk expansion strategy. We are excited to introduce Plus Fitness to the UK and believe our entry will not only strengthen our global presence but also enhance our technology and payments division through innovations like the Hub technology and Viva Pay systems.