IS THIS THE NEXT F45?

Celebrity trainer and F45 co-founder Luke Istomin turned Hugh Jackman into Wolverine, has worked with Nicole Kidman, and counts singer Jessica Mauboy and actor Susie Porter as clients, so you’d expect him to know a thing or two about fitness.

Not only that, he understands how to create a systemised franchise model. So it’s exciting that Luke has combined all his experience into a brand new concept, Reunion, and is planning a network of 150 studios across Australia.

So what is Reunion and why is it different?

The key to the business is creating an all-round fitness program that focuses on strength and conditioning broken up with high intensity routines delivered within a boutique, community-centred 50-minute session that includes 10-minute warm-ups.

“Our training principles are for the long term,” Luke tells Inside Franchise Business.

The focus is on a personalised program for each client. Sessions run five days a week, with a different workout focus each day and alternating between strength and conditioning.

It’s important for clients to have fluctuations in their training routine to achieve sustainable long-term results, he says.

Reunion trains in teams of three, called a pod. Clients are buddied-up with other members at a similar fitness standard and body size, with beginners grouped at one end and advanced clients at the other end of the room.

“It takes the intimidation factor out,” says Luke.

Reunion incorporates something from all elements of the fitness market, he says.

There’s plenty of equipment as there would be at a big box gym but it is a boutique size, session-driven studio. There’s a sense of community with team challenges and members introduced to each other by name.

And in a business where many gym members move from “one shiny thing to another” he’s pleased Reunion has a strong rate of member retention.

Right now there are three company-owned studios in Sydney – although they are operating digitally through lockdown – and membership has grown by 65 people during the last few weeks despite the stay-at-home orders in Greater Sydney.

“Our members are happy to stay, happy with the training, happy with their weight. Across our three studios, members look and feel good, they are educated to know how to approach dieting etc.”

The first studio opened in 2018 and has retained about 60 per cent of its membership.

“I’m really proud of that. And for franchisees, it’s more comforting to know the customer base is wider. Wellness is a lifelong commitment, and we want to make this accessible to anyone.”

Luke and CEO Simon Philis are determined the model delivers on the goal of being franchisee-centric.

For instance, rather than a fixed upfront franchise fee, the pair have devised a sliding scale of fees that relate to sites, which are tiered according to a number of factors. In that way a regional town studio catering for a smaller, lower income population base is not paying the same fee as a city studio with twice the footprint, more than twice the client base and a higher socio-economic clientele.

There are also deferred payments for equipment leasing, which gives new franchisees 12 months grace before they start repaying the loan.

“The more we can help a franchisee be successful, the more sites they’ll buy,” says Luke.

“We’ll take a short-term hit initially and make sure they are happy. We don’t want brand saturation or cannibalisation in an area.”

And that’s why he has set the target of 150 studios for the Australian market. n