Buy a fitness franchise overseas and see returns on a passive investment without leaving these shores.
That’s the message from franchisee turned master franchisor Luke Guanlao, who has proved himself an entrepreneurial powerhouse.
The multi-talented lawyer-businessman-franchisee has built on the success of his Anytime Fitness gym in Sydney to expand into overseas operations. Guanlao is part of the Inspire Brands Asia consortium that bought the franchise rights to Anytime Fitness Asia.
The group comprises lead investor Exacta Capital Partners, co-investor Aura Group and Anytime’s master franchisees in Malaysia, Philippines and Singapore.
The purchase includes the master license for Singapore, Malaysia, Philippines, Indonesia, Thailand, Taiwan, Vietnam, Hong Kong and Macau.
Anytime Fitness is the only regional master franchisee of the Anytime Fitness brand and is preparing to open its first gym in Vietnam.
The existing gyms and gym management businesses merged into the group which accounts for at least 30 per cent of the 24/7 gym chain’s operations in Asia.
“Now we’re letting people know about our model, we’ve created a platform to allow for passive investment into the region,” says Guanlao.
“I’ve been in business as a sub master franchisee for five years. Is a pandemic the best time to take over a multimillion dollar business? Probably not. But I was emotionally committed. I want to guide and coach franchisees, I really want to just help. What better time?”
He reveals a significant part of the business is overseas investment, with at least 50 per cent under Anytime in Asia Aussie-owned.
So how does it work?
“Inspire Brands Capital runs the gym for franchisees, we own it jointly. Franchisees get upwards of 35-40 per cent ROI with payback as early as 12 months, on average 18 to 24 months.
“This is an opportunity to create a very robust portfolio in Asia under the Anytime Fitness brand. We’d like to introduce some more clients to an opportunity beyond property and equity, but in a passive way.
“If you’re struggling with property or stocks, invest in small enterprise in safe way with one of the biggest brands,” he suggests.
And don’t be deterred by the prospect of a mega bucks investment to secure your part-ownership of a global fitness brand.
“Typically we don’t have a minimum [investment]. You could be a 5 per cent or 100 per cent shareholder.”
Friends or family can also group together to form a 10 per cent investment in gyms. For instance if the investment is $500,000 with 10 friends, each contributes $50,000. The investment could be a 10 year commitment.
Of course in most cases in well-developed regions gym franchises are owner-operated but this option allows for the running of the gym to be fully outsourced.