BFT last week struck a $60 million licensing deal with America’s largest boutique fitness franchiser Xponential,which will now lead expansion of the BFT brand in the US and Canadian markets. “Our US growth has been hamstrung by the international border restrictions in Australia,it’s our biggest market globally,so they’ll be able to grow that region quicker than what we could do from here,” BFT co-founder and chief executive Richard Burnet said.
BFT has sold over 300 franchises since it was established in 2017,including to high-profile current and former athletes such as test cricketers George Bailey and Tim Paine and former AFL star Nick Riewoldt.
While franchising models have been controversial across the economy,BFT says its strong relationship with franchise owners is a big part of its success. Co-founder and co-CEO Cameron Falloon said the company did not lose a single franchisee during the coronavirus pandemic despite intermittent lockdowns which have forced closures of its clubs.
He credits this success to its ‘fairness’ based revenue model,which puts a fixed cap on the amount franchisers pay head office at around $2500-$3500 per month. “It creates a true partnership and sense of community. Their opportunity is our opportunity and if the members,and franchisees aren’t winning,how can head office?”
The company did not lose a single franchisee during the coronavirus pandemic despite intermittent lockdowns.
Co-founder and co-CEO Cameron Falloon
When the pandemic set in,Mr Falloon and Mr Burnet doubled their head office staff,reduced the group’s fees to give the franchisees financial relief,and concentrated their efforts on building the company’s online platform. After it was built,100 per cent of the platforms’ revenue went into keeping the franchisees viable.
Both based in Melbourne,the pair were quick to grasp the need to maintain a sense of community in their offering. “Group training with tailored classes has taken over the fitness industry. People are desperate to get back in the gym to feel a part of something,” Mr Burnet said.