Planet Fitness Signs Agreement To Open 35 Stores In Australia

 | Nov 10, 2019 08:23PM ET

Planet Fitness, Inc. (NYSE:PLNT) has reached an Area Development Agreement with Bravo Fit Holdings Pty Ltd. ("Bravo") in an effort to expand its footprint. Per the agreement, the company will open a minimum of 35 Planet Fitness locations in Australia over the next few years.

The company stated that its first official Judgement Free Zones are situated in Tuggerah and Gosford in the Central Coast of New South Wales. This will be followed by a new location in Casula, which is anticipated to open in 2020.

Ray Miolla, Chief Development Officer at Planet Fitness said, "Australia represents a unique opportunity to grow in a market that combines a favorable operational environment, consumer affinity for US brands, a desirable competitive landscape and an opportunity to develop a large fleet of clubs."

Strategic Expansion to Drive Growth

In a bid to expand presence, Planet Fitness has been focusing on strategic partnerships and international expansions. In this regard, it also partnered with Kohl’s. Per the terms of the agreement, Planet Fitness can open stores adjacent to select Kohl’s stores. In 2019, Planet Fitness intends to open up to 10 stores, adjacent to select Kohl's retail locations across the country.

Planet Fitness is one of the largest and fastest growing franchisors, as well as operators of fitness centers in the United States. As of Sep 30, 2019, Planet Fitness had more than 14.1 million members and 1,899 stores in 50 states. This apart, Planet Fitness is committed to open an additional 1,000 stores under prevailing area developments agreements.

Backed by solid expansion strategies and a strong brand presence, shares of Planet Fitness have gained 27.6% so far this year compared with the industry’s 1.7% growth.