WELLNESS FLEXES ITS MUSCLE

PHYSIO INQ

Physio Inq is underpinned by three house rules which guide the business: employees come first; every client deserves an amazing experience; and referrals are treated like royalty.

“Wellness needs to be a part of someone’s life, not the complete focus,” says founder Jonathan Moody. “Seeing progress means that clients can fail one or two days and all is not lost. Rather than having the ‘I’ll start on Monday’ mindset, the wellness industry needs to be encouraging clients to do a little bit each day, however small that might be.”

He says, “The pursuit of perfection has been a focus in the past and we should instead look at progress, not perfection.”

WHAT ARE YOUR FIVE-YEAR GOALS FOR THE BUSINESS? “Physio Inq is an award-winning allied health franchise with the goal to have 100 clinics across Australia in five years, as well as 500 practitioners servicing clients in-home.

“We are on track to become a household name in the healthcare market and be known for our relentlessly caring approach.”

HOW ARE YOU OVERCOMING THE CHALLENGES OF EXPANDING THE NETWORK? “We have made some key hires in 2021 so far, which will be integral in scaling the network.”

New hires include a chief financial officer, chief data officer, a people development and experience manager, and promoting a senior manager to the position of chief operating officer.

“With this investment in people who will support and make up the infrastructure of Physio Inq, we will then streamline processes for growth.

“Another decision that we made in 2020 was to lower one of the barriers to becoming an owner by allowing anyone with or without allied health practical experience to become a franchisee.”

HOW ARE YOU ATTRACTING FRANCHISEES? “We are growing our network organically at the moment and looking internally on those who show the signs of a great business owner.

“Most of our new clinics have been opened by practitioners who were already working within our network but were keen on taking the next step in their careers. A few of our franchisees have also been growing their own network and opening their second unit.”

BRAND BASICS How long have you been trading? 15 years How long franchising? Since 2018 How long is a franchise term? Five years but there are no lock-in contracts

What is the upfront franchise investment?

$6500

What are the franchise fees/marketing

levies? We have a flat fee of $2750 per month

CITY CAVE

“City Cave delivers clients preventative healthcare services by offering float therapy, infrared sauna and massage services,” says David Wilkinson, franchise business coach.

Education is the most important aspect of City Cave’s growth strategy, he says. “Our centres are often booked out more than a week in advance and while we know we’re only scratching the surface of ‘mainstream’ we’re excited in knowing that every new centre opening exposes a new community to the benefits of float therapy and our other services.”

WHAT ARE YOUR FIVE-YEAR GOALS FOR THE BUSINESS? “Five years will see City Cave complete our franchise footprint in Oceania (200 open centres) and into stage two of our North American expansion (100+).

“Currently our network expansion plan is well on track, the biggest challenges in 2021 have been bottlenecks created by Covid shutdowns last year, in which many prospective franchisees hit the pause button. This has seen an influx of educated prospects who have re-entered the sales pipeline.”

Many new franchisees were originally City Cave clients.

BRAND BASICS How long have you been trading? Since 2016 How long franchising? Since August 2018 How long is a franchise term? Seven years with an additional seven-year option What is the upfront franchise investment? Between $450,000 and $500,000 What are the franchise fees/marketing levies? 8% royalty; no marketing levy

STRETCHING IT OUT

PEAK PHYSIQUE HOT YOGA

Mark Chapman, Peak Physique CEO, says “The market is competitive and while it has not reached saturation point yet, there is a demand for quality fitness-related services that cater to the demands of the busy professional who wants quality service in a family environment.

“Our brand is positioned in the middle range of the market and this is also our target area. We are not ‘top brand’ service providers, nor do we want to be, and we are also not a cheap and cheerful as this does not fit in with our professional image.

“We see ourselves as an affordable quality provider of fitness-related hot yoga that appeals to all ages, genders and backgrounds.”

Peak Physique’s brand ethos is a positive change to lifestyle delivered by professionals.

“Our mission is to make fitness, health and wellbeing accessible and to be a part of a family-focused community that promotes positive change and a healthy mindset.” BRAND BASICS How long have you been trading? 2011 How long franchising? 2013 How long is a franchise term? Five years

What is the upfront franchise investment?

$33,000 spread over two years plus the costs of the studio fitout

What are the franchise fees/marketing

levies? 10% for franchise fees and a monthly admin $220 cost which includes SEO and communications

FUNCTIONAL FITNESS

A mind and body fitness regime, Pilates was developed by Joseph Pilates in the early 20th century. The goal is to improve the body’s flexibility, strength and control with a focus on the core and an emphasis on breathing and alignment.

“The Australian wellness market, especially the boutique fitness market, is in a rapid state of expansion. Covid-19 has drawn people’s attention to the benefits of living a healthy/active lifestyle, with Pilates providing a sound foundation for a strong mind and body,” says Brendan James, Club Pilates Australia CEO.

CLUB PILATES

“A new approach to what has historically been an elitist and inaccessible form of fitness, Club Pilates, globally, has played a major role in educating people that Pilates is in fact for everybody and every body,” says Brendan James.

“We can all benefit from Pilates, so we want to empower as many people as possible to add strength, stability and balance to their lives.”

Club Pilates has more than 650 active studios across 11 countries, with three more set for this year.

WHAT ARE YOUR FIVE-YEAR GOALS FOR THE BUSINESS? “To open 50 studios in A-grade locations in the next five years. We will consistently deliver the highest quality franchise support from first contact, to studio opening, to a successful and sustainable business.”

Club Pilates aims to be recognised as the benchmark for the Pilates experience in Australia and the number one national WHAT ARE YOUR FIVE-YEAR GOALS FOR THE BUSINESS? Mark has a five-year plan to expand the brand into metro and non-metro areas of all states and territories in Australia. And this will be achieved with a measured approach.

“We are not rushing. The product needs to be right, and we are spending time adapting to the post-Covid climate and determining what the best model is to take forward.

“At the same time, we are raising the profile of the brand, confirming our position and doing a targeted campaign in key areas.”

The business is opening up its service offering as a licensed product in gyms and clubs.

“Hot yoga is enjoying a popularity that is not based on a new fad or product. It is simple to run as a business and has a high return ratio if run well. We emphasise the financial gains and the community spirit of a well-run hot yoga studio.”

provider of Pilates education.

“We are affiliated with Xponential, the largest boutique fitness organisation in the world with over 4000 sold locations across nine brands. Any new challenges to us are not new challenges to the group. We can tap into the support network of Xponential to overcome any challenges.”

Historically, franchisees come from three channels.

“Word of mouth from existing members is the most effective way to source franchisees as they see and share the wow factor of the brand and the benefit of their experience.

“Next are our instructors, who also know the brand and the way we are deploying it in Australia.

“Finally we are receiving enquiries from people who are aware of Club Pilates from their travels to the US, Canada or Europe and who wish to invest in themselves and their future.

“We do also offer a range of financial support options, if required to help our franchisees get started.”

BRAND BASICS How long have you been trading? Globally, 15 years, in Australia this is our first year.

How long have you been franchising?

Since 2007 How long is a franchise term? The first term is for 10 years with two 5-year options to renew

What is the upfront franchise investment?

The actual cost is about $400,000, under $300,000 with equipment finance; other funding packages are available

What are the franchise fees/marketing

levies? Franchise fee is 7% on all sales; marketing levy is 2%

KX PILATES

“KX Pilates was born from the ‘kaizen’ philosophy: where continuous improvements reap some pretty phenomenal rewards,” says CEO Selina Bridge. “We strive to create personalised experiences for our clients who can make continuous improvements in their physical wellbeing through dynamic Pilates movement.

“We are inclusive and focus on strength over beauty and we champion the power of individual performance.”

WHAT ARE YOUR FIVE-YEAR GOALS FOR THE BUSINESS? “We plan to grow the Australian network to 150 studios servicing 50,000 clients a month. We are committed to the ongoing development of our KX trainers and will continue investing in education opportunities for our trainers to ensure our clients receive the best service possible.

“We are very excited to soon be launching our own ‘KX Former’ into the Australian market, a revolutionary and proprietary machine that will enhance the overall KX experience.”

The business also has plans to expand international operations.

“KX is now Australia’s largest Pilates franchise and our ability to grow and attract great clients comes down to a focus on people, systems and processes and making sure we provide the best possible experience.”

HOW ARE YOU ATTRACTING FRANCHISEES? “At KX Pilates we look for passion for our product and the wellbeing of the community. We are a lifestyle business that people aspire to be part of. You can’t buy yourself success. We are therefore focused on attracting and supporting clients, trainers, owners and people through growth opportunities within the KX network.”

BRAND BASICS How long have you been trading? 11 years How long franchising? Eight years How long is a franchise term? Five years with one option to renew

What is the upfront franchise investment?

About $350,000 including studio fitout and equipment

What are the franchise fees/marketing

levies? $50,000 up-front franchise fees; 8% royalty. 4% marketing

GLOBAL WELLNESS ECONOMY: $4.5 Trillion Market

Traditional & Complementary Medicine $360b

Wellness Real Estate $134b

Preventive & Personalized Medicine and Public Health $575b

Workplace Wellness $48b

Healthy Eating, Nutrition & Weight Loss

$702b

Wellness Tourism

$639b

Physical Activity

$828b

Personal Care, Beauty & Anti-Aging

$1,083b

Thermal /Mineral Springs $56b

Spa Economy $119b

Note: Numbers do not add due to overlap in segments. Dark colored bubbles are the sectors for which GWI conducts in-depth, country-level primary research. Light colored bubbles are Note: Numbers do not add due to overlap in segments. Dark colored sectors for which GWI aggregates global estimates only, drawing from secondary sources. bubbles are the sectors for which GWI conducts in-depth, countrylevel primary research. Light colored bubbles are sectors for which GWI Source: Global Wellness Institute, Global Wellness Economy Monitor, October 2018aggregates global estimates only, drawing from secondary sources. Source: Global Wellness Institute

WELLNESS GLOBALLY IN 2023

$5.42 TRILLION REVENUE OVERALL $153.53 BILLION SPA MARKET $824.41 BILLION WELLNESS TOURISM $61.93 BILLION WORKPLACE WELLNESS Figures converted from US to AUS dollars.

Source: Global Wellness Summit Report, The Future of Wellness 2021. SCREEN SAVERS Wellness and entertainment now go hand in hand. Think Samsung Health, with 5000 hours of free fitness/meditation classes, and smart TVs that deliver personalised wellness/fitness programs through wearable technology.

Think generative music technology, which is biometrics meets neuroscientistdesigned sound used as a medicinal tool.

Source: Global Wellness Summit Report, The Future of Wellness 2021.

PUMPING IT! The physical activity economy will surpass $1.42 trillion by 2023, predicted GWI Global Wellness Economy Monitor in October 2018, with revenue growth the greatest from mindful movement and technology.

FINANCIAL INFLUENCERS Yes, they are a thing, as attested by 3 billion views of #personalfinance content on TikTok. Financial therapists are helping manage the links between money and mental health.

Source: Global Wellness Summit Report, The Future of Wellness 2021.

YOU WEAR IT WELL

MARKET RESEARCH FIRM IDTECHEX REPORTS A DOUBLING OF SALES OF WEARABLE MEDICAL HEALTH AND FITNESS TRACKERS BETWEEN 2014 AND 2019 TO ALMOST $US70 BILLION.

$230b

Sports & Active Recreation

$109b

Fitness

$368b

RECREATIONAL PHYSICAL ACTIVITIES

$466b

ENABLING SECTORS

$29b

Mindful Movement

$109b

Equipment & Supplies

$333b

Apparel & Footwear

Note: Numbers do not sum to total due to overlap in segments. Source: Move to be Well: The Global Economy of Physical Activity, October 2019

$26b

Technology

IT’S A STRETCH – YOGA OUTPACES PILATES

In 2018 findings released by Roy Morgan indicated the popularity of yoga over similarly female-dominated activities, Pilates and aerobics. At the time, 11 per cent of Aussies did yoga, while 6 per cent did Pilates and 5 per cent aerobics. All three typically attract younger and more affluent metro singles and families.

RECOVERY LAB

Former AFL umpire and Collingwood AFLW coach Matt James is the brains behind the Recovery Lab, which is a multi-treatment studio designed to boost peak performance in athletes and everyday Australians.

The Recovery Lab provides ice baths, compression boots, infrared sauna, massage guns, electrical muscle stimulation and NuCalm, a branded neuro-acoustic relaxation method endorsed by high-profile life coach Tony Robbins and exclusive to Recovery Lab.

It took four years for Matt to develop the multitreatment concept, which was born from his time at Collingwood.

“It was the most stressful position I’d ever been in,” he reveals.

In his search for a wellness boost program to help him cope with the stress he realised there was little in the market that fitted his needs.

He launched Recovery Lab in Windsor, Melbourne, and it’s been operating for two and a half years.

What’s on offer is a suite of scientifically tested recovery treatments set in a relaxing studio space.

Matt’s brainwave attracted the attention of Daniel Harford, former AFL player and now head coach of Carlton AFLW, who joined the venture as co-founder.

Ex-CEO for St Kilda and former head of the soccer A-League, Archie Fraser, heads up business strategy while former Western Force rugby union player Ben Seymour is also a partner in the business.

With the brand’s sporting pedigree it’s inevitable that Recovery Lab aims to help athletes reach peak performance levels but Matt believes the business can have a far greater reach.

“The whole thing is built around a community experience, it’s about investing in yourself. It’s designed for everyone. It’s for anyone who wants to improve how they feel and perform.”

Recovery Lab operates on a casual and membership basis. Membership accounts for 35 per cent of revenue and there are options for limited and unlimited access to the various treatments, with membership valid across the growing network of studios.

“There’s no doubt we’re first in market and we want to be pre-eminent for wellness,” says Matt.

He has an ambitious goal of opening 200 studios across Australia, with a mix of franchised and corporate ownership.

The model will suit franchisees who are owner occupiers with a passion for health and wellness and perhaps a fitness background, as well as investors looking to run up to five studios all under management.

“We’ve set the model as a low entry, turnkey is about $150,000,” explains Matt.

He believes a return on investment can be achieved within 12 months.

Matt has partnered with two friends to open a Hampton outlet and Richmond, Victoria and Townsville studios were set to open mid-2021 with 10 more deposits already paid. Sydney-based Ben Seymour has six sites in the pipeline.

The goal is to achieve an 80/20 franchised/corporate mix across the network.

Matt believes there is potential to extend the offering into the corporate market targeting time efficiencies and employee benefits, and is looking to sign national deals for corporate membership.

Collaboration is likely with like-minded businesses such as the Love Me Love You wellness hub incorporating yoga, Pilates and wellness specialists such as psychologists. n