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The Age
09-06-2025
- Business
- The Age
What collapse? How F45 Australia is plotting a comeback
Halfway into 2022, the world's fastest growing fitness empire began making headlines for all the wrong reasons. Barely 12 months had passed since a beaming Mark Wahlberg was photographed with F45 Training co-founder and chief executive Adam Gilchrist at the New York Stock Exchange, where the company soared to a $US1.6 billion ($2.5 billion) valuation and $US16 share price. Suddenly, Gilchrist was stepping down, and 110 employees were being laid off. Profit and revenue forecasts had been slashed. The share price plunged. A few months later, David Beckham – an ambassador for the brand – launched a lawsuit against it. In July 2023, F45 admitted to 'material errors' in financial figures that wound up being losses of $US372 million. F45 delisted from the NYSE the following month. In Australia, F45 studios were hitting the market or closing. Since then, life has moved on, but the narrative of imminent collapse has stuck. 'A lot of people are surprised when they find out I have an open F45,' said Danielle Tuifua, who owns a studio in Sydney's coastal suburb of Dee Why. 'It all did get into a lot of people's heads that F45 was going under and closing everywhere and all that,' she said. 'They're still everywhere.' Turning over a new leaf and distancing itself from its tumultuous history of hanging onto survival is a key focus, and challenge, for the fitness chain's new management. At the helm of F45 in Australia and Asia Pacific is Adrian Furminger, who took on the general manager role a year ago after undertaking some of his own due diligence. He found that F45 was still a household name and still the leading brand in the functional group fitness sector. 'You hear the stories, like 'we're collapsing'. It's just not true,' he said. 'We still have over 200 studios across Australia. Globally, [we have] over 1500 studios. I mean, that's a massive success story. We just need to shift the narrative a little bit.' Inside the rise and fall of F45 From 2015 to 2021, few fitness chains could rival F45's hype, fuelled by Hollywood celebrities brought on to spruik the 45-minute sessions that combined high-intensity interval training, circuit training, and functional strength movements. Setting a target of 23,000 studios around the world, the empire was going to be ' bigger than McDonald's '. 'Investors could buy a gym and it would probably make money, and they probably didn't have to do much. The model was that good,' said Peter Day, a director of F45 Seaforth on Sydney's northern beaches and long-time franchisee. For local operators, the wheels started falling off once Gilchrist and co-founder Rob Deutsch – who each pocketed $US50 million in cash when Wahlberg and his investment vehicle MWIG bought a stake in 2019 – started turning their attention to overseas expansion. As part of its IPO ambitions, F45 moved its headquarters to Austin, Texas. A lot of staff went with it. Loading Communication and oversight dropped off some time after, multiple current and former franchisees said. 'More resources were getting thrown at the new studios being open in the US,' said Day. 'When you grow too quickly, you're making mistakes along the way because you probably haven't got tight processes in place,' said Stuart Maltese, who owns two studios in Melbourne's St Kilda. During that period, Tuifua noticed fewer check-ins on compliance. 'If you needed help, you would have to kick up a bit of a stink to get it.' Another fitness industry source, who requested anonymity to speak freely, described the explosion of studios as a 'house of cards'. Community-centred events, such as the F45 Playoffs – popular 10-minute fitness competitions held on Manly and Bondi beaches and accompanied by thumping electronic music and cheerleaders – dropped off. Some of the very celebrities who contributed to F45's success turned on it: Beckham and golfer Greg Norman sued, and ultimately settled with, F45 for breaching contract terms to pay out shares for the endorsement. In the pursuit of growth, F45 had oversold territories. Dozens of investor-owners who bought into the hype had purchased one or several studios thinking it would be an easy business investment, but hadn't built a strong enough community or the know-how to withstand lockdowns. The pandemic decimated dozens of gyms, F45 or otherwise, particularly those in the CBD. In the headlines, shuttered F45 studios were being linked to the turmoil unfolding in the US. 'A lot of them started to close down because they didn't have that heartbeat in the area. They didn't have that focus you need to run a business,' said Day. The negative media attention was a distraction from what was otherwise business as usual, he added. 'Mark Wahlberg, David Beckham, it doesn't matter. What [members] care about is, is it going to be good for them tomorrow? Are there going to be good trainers? Are they going to get welcomed by the name when they come in?' Members would ask trainers and studio owners what was going on in the US. 'I'd just say, it doesn't affect your burpees,' said Tuifua. F45, still headquartered in Texas, has been led by early investor Tom Dowd since March 2023. He has been openly critical of the team led by Gilchrist and Deutsch, whom he said were 'behaving like cowboys'. The pair drove F45's meteoric rise – and subsequent crash – based on projections F45 could sustain the breakneck rate of signing on 1000 new studios a year. 'People have questions, which is perfectly natural,' said Furminger. 'The best way to keep confidence is not to shy away from those questions. It's actually to lean into them and have the conversation and be as open and as transparent as we can, and genuinely, put our hands up and say, 'You're right. This has happened.' ' Has the company really stabilised? 'Marketing's doubled,' said Tuifua. 'I've got 50 or 60 more members than I had this time last year at Dee Why.' Seaforth's membership numbers, over 250, are at an all-time high. 'They've just [made] really smart, logical decisions,' Day said of F45's current leadership. The studio director and three-time Playoffs champion said he had turned down approaches from two rivals to switch brands for free and believes the fitness brand is more proactive than people realised, pointing to the volume of recipes, customised meal plans and innovation in the company's workouts. 'Yes, F45 took a hit, but they are still by a long shot the market leaders in this space,' he said. 'I think in 10 years' time, the brand which everyone will still know is F45.' 'The right to grow' At its peak, F45 had more than 600 studios in Australia. More than half of those have closed. 'That's a consolidation. We're actually OK with that,' said Furminger. 'We have to earn the right to grow, and in earning the right to grow, part of that process is to ensure that we have a strong performing network. That's where our primary focus is at the moment, to ensure that every one of our franchisees is performing well and making money,' he said. Furminger envisions reopening in locations that used to have an F45 studio. 'Will there be an opportunity for us to expand our network size in the future? Absolutely, 100 per cent.' As the pandemic reshaped workout habits, F45's highly publicised fall from grace left room for competitors such as Body Fit Training (BFT) to capture market share in the group fitness space. F45's response to the Pilates boom has been to launch FS8, a 45-minute group workout concept like its predecessor that is lower impact by blending Pilates, yoga and toning exercises. FS8's growth so far has been slow and stuttered, despite a high-profile launch with Australian surfer Mick Fanning, whose plan to open a studio in Byron Bay never materialised. The Manly studio, where Fanning announced the launch of FS8, has closed. As F45 battled a wall of bad publicity, the company initially tried to convince existing studio owners to embrace FS8, which Maltese said appealed to a very different market. 'It has its own identity that is still trying to find its way,' he said. Shaking off the past won't be easy. F45 is facing at least two class action lawsuits in the US, brought by law firms Barrack, Rodos & Bacine and Rosen Law Firm, for being misleading in its IPO documents that it said contained 'material misstatements and omissions'. F45 had floated on projections of signing on more franchisees who would own several studios rather than 'single-unit' owners, but didn't tell the market it was offering better payment terms to multi-unit franchisees, the class action complaints state. F45 declined to comment on legal matters. It will be hard for new management to avoid the shadow of Gilchrist, who was technically listed as bankrupt between 2011 and 2014, the period when F45 was founded, and departed the business with a $10 million golden handshake. Profit margins are being squeezed by fierce competition and cost-of-living pressures. Operating costs such as rent, staff, cleaning, maintenance and other bills have risen by 30 to 40 per cent over eight years, said Day. Franchisees pointed to some of F45's recent partnerships, which include Red Bull, fitness competition Hyrox, Strava and Kourtney Kardashian's wellness brand Poosh, as signs the brand was recovering. 'I think with all the marketing and all the new things we're doing, [F45] is definitely making a comeback,' Tuifua said.
Sydney Morning Herald
09-06-2025
- Business
- Sydney Morning Herald
What collapse? How F45 Australia is plotting a comeback
Halfway into 2022, the world's fastest growing fitness empire began making headlines for all the wrong reasons. Barely 12 months had passed since a beaming Mark Wahlberg was photographed with F45 Training co-founder and chief executive Adam Gilchrist at the New York Stock Exchange, where the company soared to a $US1.6 billion ($2.5 billion) valuation and $US16 share price. Suddenly, Gilchrist was stepping down, and 110 employees were being laid off. Profit and revenue forecasts had been slashed. The share price plunged. A few months later, David Beckham – an ambassador for the brand – launched a lawsuit against it. In July 2023, F45 admitted to 'material errors' in financial figures that wound up being losses of $US372 million. F45 delisted from the NYSE the following month. In Australia, F45 studios were hitting the market or closing. Since then, life has moved on, but the narrative of imminent collapse has stuck. 'A lot of people are surprised when they find out I have an open F45,' said Danielle Tuifua, who owns a studio in Sydney's coastal suburb of Dee Why. 'It all did get into a lot of people's heads that F45 was going under and closing everywhere and all that,' she said. 'They're still everywhere.' Turning over a new leaf and distancing itself from its tumultuous history of hanging onto survival is a key focus, and challenge, for the fitness chain's new management. At the helm of F45 in Australia and Asia Pacific is Adrian Furminger, who took on the general manager role a year ago after undertaking some of his own due diligence. He found that F45 was still a household name and still the leading brand in the functional group fitness sector. 'You hear the stories, like 'we're collapsing'. It's just not true,' he said. 'We still have over 200 studios across Australia. Globally, [we have] over 1500 studios. I mean, that's a massive success story. We just need to shift the narrative a little bit.' Inside the rise and fall of F45 From 2015 to 2021, few fitness chains could rival F45's hype, fuelled by Hollywood celebrities brought on to spruik the 45-minute sessions that combined high-intensity interval training, circuit training, and functional strength movements. Setting a target of 23,000 studios around the world, the empire was going to be ' bigger than McDonald's '. 'Investors could buy a gym and it would probably make money, and they probably didn't have to do much. The model was that good,' said Peter Day, a director of F45 Seaforth on Sydney's northern beaches and long-time franchisee. For local operators, the wheels started falling off once Gilchrist and co-founder Rob Deutsch – who each pocketed $US50 million in cash when Wahlberg and his investment vehicle MWIG bought a stake in 2019 – started turning their attention to overseas expansion. As part of its IPO ambitions, F45 moved its headquarters to Austin, Texas. A lot of staff went with it. Loading Communication and oversight dropped off some time after, multiple current and former franchisees said. 'More resources were getting thrown at the new studios being open in the US,' said Day. 'When you grow too quickly, you're making mistakes along the way because you probably haven't got tight processes in place,' said Stuart Maltese, who owns two studios in Melbourne's St Kilda. During that period, Tuifua noticed fewer check-ins on compliance. 'If you needed help, you would have to kick up a bit of a stink to get it.' Another fitness industry source, who requested anonymity to speak freely, described the explosion of studios as a 'house of cards'. Community-centred events, such as the F45 Playoffs – popular 10-minute fitness competitions held on Manly and Bondi beaches and accompanied by thumping electronic music and cheerleaders – dropped off. Some of the very celebrities who contributed to F45's success turned on it: Beckham and golfer Greg Norman sued, and ultimately settled with, F45 for breaching contract terms to pay out shares for the endorsement. In the pursuit of growth, F45 had oversold territories. Dozens of investor-owners who bought into the hype had purchased one or several studios thinking it would be an easy business investment, but hadn't built a strong enough community or the know-how to withstand lockdowns. The pandemic decimated dozens of gyms, F45 or otherwise, particularly those in the CBD. In the headlines, shuttered F45 studios were being linked to the turmoil unfolding in the US. 'A lot of them started to close down because they didn't have that heartbeat in the area. They didn't have that focus you need to run a business,' said Day. The negative media attention was a distraction from what was otherwise business as usual, he added. 'Mark Wahlberg, David Beckham, it doesn't matter. What [members] care about is, is it going to be good for them tomorrow? Are there going to be good trainers? Are they going to get welcomed by the name when they come in?' Members would ask trainers and studio owners what was going on in the US. 'I'd just say, it doesn't affect your burpees,' said Tuifua. F45, still headquartered in Texas, has been led by early investor Tom Dowd since March 2023. He has been openly critical of the team led by Gilchrist and Deutsch, whom he said were 'behaving like cowboys'. The pair drove F45's meteoric rise – and subsequent crash – based on projections F45 could sustain the breakneck rate of signing on 1000 new studios a year. 'People have questions, which is perfectly natural,' said Furminger. 'The best way to keep confidence is not to shy away from those questions. It's actually to lean into them and have the conversation and be as open and as transparent as we can, and genuinely, put our hands up and say, 'You're right. This has happened.' ' Has the company really stabilised? 'Marketing's doubled,' said Tuifua. 'I've got 50 or 60 more members than I had this time last year at Dee Why.' Seaforth's membership numbers, over 250, are at an all-time high. 'They've just [made] really smart, logical decisions,' Day said of F45's current leadership. The studio director and three-time Playoffs champion said he had turned down approaches from two rivals to switch brands for free and believes the fitness brand is more proactive than people realised, pointing to the volume of recipes, customised meal plans and innovation in the company's workouts. 'Yes, F45 took a hit, but they are still by a long shot the market leaders in this space,' he said. 'I think in 10 years' time, the brand which everyone will still know is F45.' 'The right to grow' At its peak, F45 had more than 600 studios in Australia. More than half of those have closed. 'That's a consolidation. We're actually OK with that,' said Furminger. 'We have to earn the right to grow, and in earning the right to grow, part of that process is to ensure that we have a strong performing network. That's where our primary focus is at the moment, to ensure that every one of our franchisees is performing well and making money,' he said. Furminger envisions reopening in locations that used to have an F45 studio. 'Will there be an opportunity for us to expand our network size in the future? Absolutely, 100 per cent.' As the pandemic reshaped workout habits, F45's highly publicised fall from grace left room for competitors such as Body Fit Training (BFT) to capture market share in the group fitness space. F45's response to the Pilates boom has been to launch FS8, a 45-minute group workout concept like its predecessor that is lower impact by blending Pilates, yoga and toning exercises. FS8's growth so far has been slow and stuttered, despite a high-profile launch with Australian surfer Mick Fanning, whose plan to open a studio in Byron Bay never materialised. The Manly studio, where Fanning announced the launch of FS8, has closed. As F45 battled a wall of bad publicity, the company initially tried to convince existing studio owners to embrace FS8, which Maltese said appealed to a very different market. 'It has its own identity that is still trying to find its way,' he said. Shaking off the past won't be easy. F45 is facing at least two class action lawsuits in the US, brought by law firms Barrack, Rodos & Bacine and Rosen Law Firm, for being misleading in its IPO documents that it said contained 'material misstatements and omissions'. F45 had floated on projections of signing on more franchisees who would own several studios rather than 'single-unit' owners, but didn't tell the market it was offering better payment terms to multi-unit franchisees, the class action complaints state. F45 declined to comment on legal matters. It will be hard for new management to avoid the shadow of Gilchrist, who was technically listed as bankrupt between 2011 and 2014, the period when F45 was founded, and departed the business with a $10 million golden handshake. Profit margins are being squeezed by fierce competition and cost-of-living pressures. Operating costs such as rent, staff, cleaning, maintenance and other bills have risen by 30 to 40 per cent over eight years, said Day. Franchisees pointed to some of F45's recent partnerships, which include Red Bull, fitness competition Hyrox, Strava and Kourtney Kardashian's wellness brand Poosh, as signs the brand was recovering. 'I think with all the marketing and all the new things we're doing, [F45] is definitely making a comeback,' Tuifua said.
Business Wire
29-05-2025
- Business
- Business Wire
Recovery Made Easy: F45 Training Partners with Hyperice to Enhance Exercise Recovery Experience Globally
AUSTIN, Texas--(BUSINESS WIRE)-- F45 Training Holdings Inc., a leading global fitness community specializing in innovative, functional group workouts that are fast, fun, and results-driven, proudly announced today its strategic partnership with Hyperice – the industry leader in high-performance wellness technology – to enhance the recovery experience for F45 Training members worldwide. Available in select F45 Training studios globally, members now have access to state-of-the-art Hyperice technology to help train more effectively, reduce muscle soreness, and accelerate recovery. Through F45 Training and Hyperice's shared commitment to supporting the member wellness journey, Hyperice's cutting-edge recovery tools – including Hypervolt percussive massage gun, Normatec dynamic air compression boots, Vyper vibrating foam roller and Hypersphere massage ball – will be available at select F45 Training studios globally, providing significant benefits to the warm-up and recovery process through compression, percussion and vibration massage, targeting muscle stiffness and soreness, improving circulation and increasing range of motion. 'At F45 Training, we know recovery is just as important as the workout itself. Training for overall wellness, longevity, and improved fitness levels requires a balanced approach that includes proper recovery to prevent injuries and enhance performance,' said Tom Dowd, CEO of FIT House of Brands. 'Scientific research supports that maximized recovery improves muscle function, increases flexibility and reduces the risk of injuries from overuse. By partnering with Hyperice, we are providing our members with more tools to train smarter and recover faster." 'Over time, we've seen consumers take an intentional approach to their overall wellness routine by investing in warm-up and recovery modalities that help improve their performance,' said Hyperice CEO, Jim Huether. 'We're excited to partner with F45 Training and combine their functional training with our best-in-class technology to prioritize warm up and recovery for their community of members.' F45 Training, rated the No. 1 gym chain in the U.S. by Men's Journal in 2023, combines elements of functional workouts and high-intensity interval training (HIIT), with members able to complete each of the workouts at their own pace. Thousands of functional movements make the workouts different each time and are a proven concept to help members achieve the best results. For more information on F45 Training's collaboration with Hyperice and to read testimonials, please visit or learn more on Facebook or Instagram. For more information on Hyperice, visit and learn more on Instagram, LinkedIn and X. About FIT FIT (Functional Inspired Training) House of Brands is a global fitness franchise company with a network of over 1,500 studios across over 55 countries. FIT provides franchisees with proven business models, operational support, and structured training programs across its house of brands: F45 Training: A global leader in functional fitness, offering 45-minute team-based workouts that combine strength, cardio, and scientifically backed programming to build strength, improve endurance, and enhance longevity. FS8: FS8 fuses Pilates, Tone, and Yoga into a seamless, low-impact workout. Built on eight science-backed elements, FS8 is designed to enhance strength, flexibility, and mental well-being. The experience is dynamic yet restorative, offering a fresh take on fitness in an inclusive, community-driven environment. VAURA Pilates: A sensory-driven reformer Pilates experience that blends precision and athletic training in an immersive environment. With neon lights, mirrored ceilings, and upbeat music, VAURA energizes both body and mind, creating a workout that feels as powerful as it is effective. Recovery: A suite of solutions, including cold plunge, infrared sauna, and percussion therapy, designed to optimize recovery and performance. FIT is committed to building a sustainable and scalable global franchise network that empowers people to move better, feel stronger, and live longer. For more information, visit or follow us on LinkedIn (@FunctionalInspiredTraining) and YouTube (@FunctionalInspiredTraining). About Hyperice Hyperice is a technology-driven company with a giant mission, to help everyone on Earth move and live better. For more than a decade, Hyperice has led a global movement at the confluence of recovery and wellness, specializing in percussion (Hypervolt line), dynamic air compression (Normatec line), vibration (Vyper and Hypersphere lines), thermal technology (Venom line), contrast therapy (Hyperice X) and mind technology (Core by Hyperice). Now, as a holistic high-performance wellness brand, Hyperice is designed for all - from the most elite athletes, leagues (PGA TOUR, UFC, IRONMAN and more) and teams to consumers everywhere looking to unlock the best version of themselves to help them move better. Recognized as one of Fast Company's Most Innovative Companies, Hyperice has applied its technology and know-how to industries including fitness, hospitality, healthcare, massage, physical therapy, sports performance, and workplace wellness on a global scale. Hyperice's transformative acquisitions of Normatec, RecoverX, and Core have helped to accelerate its innovation agenda as it enters its next stage of global growth. For more information, visit
Yahoo
29-05-2025
- Business
- Yahoo
Recovery Made Easy: F45 Training Partners with Hyperice to Enhance Exercise Recovery Experience Globally
F45 members can speed up their post-workout recovery with Hyperice's award-winning equipment, now available in select F45 Training studios AUSTIN, Texas, May 29, 2025--(BUSINESS WIRE)--F45 Training Holdings Inc., a leading global fitness community specializing in innovative, functional group workouts that are fast, fun, and results-driven, proudly announced today its strategic partnership with Hyperice – the industry leader in high-performance wellness technology – to enhance the recovery experience for F45 Training members worldwide. Available in select F45 Training studios globally, members now have access to state-of-the-art Hyperice technology to help train more effectively, reduce muscle soreness, and accelerate recovery. Through F45 Training and Hyperice's shared commitment to supporting the member wellness journey, Hyperice's cutting-edge recovery tools – including Hypervolt percussive massage gun, Normatec dynamic air compression boots, Vyper vibrating foam roller and Hypersphere massage ball – will be available at select F45 Training studios globally, providing significant benefits to the warm-up and recovery process through compression, percussion and vibration massage, targeting muscle stiffness and soreness, improving circulation and increasing range of motion. "At F45 Training, we know recovery is just as important as the workout itself. Training for overall wellness, longevity, and improved fitness levels requires a balanced approach that includes proper recovery to prevent injuries and enhance performance," said Tom Dowd, CEO of FIT House of Brands. "Scientific research supports that maximized recovery improves muscle function, increases flexibility and reduces the risk of injuries from overuse. By partnering with Hyperice, we are providing our members with more tools to train smarter and recover faster." "Over time, we've seen consumers take an intentional approach to their overall wellness routine by investing in warm-up and recovery modalities that help improve their performance," said Hyperice CEO, Jim Huether. "We're excited to partner with F45 Training and combine their functional training with our best-in-class technology to prioritize warm up and recovery for their community of members." F45 Training, rated the No. 1 gym chain in the U.S. by Men's Journal in 2023, combines elements of functional workouts and high-intensity interval training (HIIT), with members able to complete each of the workouts at their own pace. Thousands of functional movements make the workouts different each time and are a proven concept to help members achieve the best results. For more information on F45 Training's collaboration with Hyperice and to read testimonials, please visit or learn more on Facebook or Instagram. For more information on Hyperice, visit and learn more on Instagram, LinkedIn and X. About FITFIT (Functional Inspired Training) House of Brands is a global fitness franchise company with a network of over 1,500 studios across over 55 countries. FIT provides franchisees with proven business models, operational support, and structured training programs across its house of brands: F45 Training: A global leader in functional fitness, offering 45-minute team-based workouts that combine strength, cardio, and scientifically backed programming to build strength, improve endurance, and enhance longevity. FS8: FS8 fuses Pilates, Tone, and Yoga into a seamless, low-impact workout. Built on eight science-backed elements, FS8 is designed to enhance strength, flexibility, and mental well-being. The experience is dynamic yet restorative, offering a fresh take on fitness in an inclusive, community-driven environment. VAURA Pilates: A sensory-driven reformer Pilates experience that blends precision and athletic training in an immersive environment. With neon lights, mirrored ceilings, and upbeat music, VAURA energizes both body and mind, creating a workout that feels as powerful as it is effective. Recovery: A suite of solutions, including cold plunge, infrared sauna, and percussion therapy, designed to optimize recovery and performance. FIT is committed to building a sustainable and scalable global franchise network that empowers people to move better, feel stronger, and live longer. For more information, visit or follow us on LinkedIn (@FunctionalInspiredTraining) and YouTube (@FunctionalInspiredTraining). About HypericeHyperice is a technology-driven company with a giant mission, to help everyone on Earth move and live better. For more than a decade, Hyperice has led a global movement at the confluence of recovery and wellness, specializing in percussion (Hypervolt line), dynamic air compression (Normatec line), vibration (Vyper and Hypersphere lines), thermal technology (Venom line), contrast therapy (Hyperice X) and mind technology (Core by Hyperice). Now, as a holistic high-performance wellness brand, Hyperice is designed for all - from the most elite athletes, leagues (PGA TOUR, UFC, IRONMAN and more) and teams to consumers everywhere looking to unlock the best version of themselves to help them move better. Recognized as one of Fast Company's Most Innovative Companies, Hyperice has applied its technology and know-how to industries including fitness, hospitality, healthcare, massage, physical therapy, sports performance, and workplace wellness on a global scale. Hyperice's transformative acquisitions of Normatec, RecoverX, and Core have helped to accelerate its innovation agenda as it enters its next stage of global growth. For more information, visit View source version on Contacts MEDIA CONTACTS ICRF45@ HypericeJack Taylorhyperice@
Korea Herald
02-03-2025
- Business
- Korea Herald
Korea's fitness paradox: Gyms are closing, but boutique studios are thriving
For years, Korea's gyms battled to offer the lowest prices — but as closures mount, boutique studios believe community matters more than affordability When economic uncertainty looms, people often cut back on dining out, travel and entertainment. But one expense some South Koreans are unwilling to forgo is their boutique fitness membership. 'It's a lifestyle, not a luxury,' Jamie Kim, CEO of F45 Training & FS8 Korea, told the Korea Herald. Kim's observation reflects a growing trend in Korea's fitness industry: even as traditional gyms shut down at record rates, boutique fitness studios like F45 are expanding. In 2024, 553 gyms closed nationwide, surpassing even COVID-19 pandemic-era shutdowns. At the same time, brands like F45 Training, FS8 Pilates and ButFit Seoul have continued to grow, tapping into a new kind of consumer demand — one that prioritizes structured workouts, high engagement and a sense of community over simply having access to gym equipment. This contrast begs the question: Why are conventional gyms struggling, and what makes pricey boutique fitness appealing to Korean consumers? Why traditional gyms are collapsing One could say the downfall of Korea's traditional gym industry has been years in the making. Between 2019 and 2023, the number of gyms in the country nearly doubled according to local business permit data, leading to unsustainable competition and brutal price wars. Large chain gyms slashed membership fees to as low as 10,000–20,000 won ($7–$14) per month, forcing smaller gyms to either drop prices beyond profitability or close their doors. Worse, many fitness centers relied on prepaid membership models, offering steep discounts for six-month, or even year-long contracts. When financial instability hit, some resorted to outright fraud — shutting down overnight and leaving prepaid members without refunds. Consumer complaints skyrocketed, with over 2,500 gym-related fraud cases reported in 2024 alone, according to the Korea Consumer Agency. A personal trainer who recently opened a large gym in Incheon shared his perspective as a business owner. 'Most gym owners aren't exactly looking to swindle people from the start,' he said. 'But in Korea, gyms rely on prepaid memberships as startup capital, not just revenue. So when new sign-ups decline, financial collapse becomes almost inevitable.' Unlike traditional gyms, where members exercise independently, boutique fitness studios offer structured, instructor-led workouts in small group settings. These studios specialize in high-intensity interval training, strength training and functional movement programs. F45 Training, one of the most recognizable names in boutique fitness, has been at the forefront of this shift. Originally founded in Australia, F45 offers 45-minute circuit-style HIIT workouts, combining cardio, strength and agility training in a globally standardized format. Every session is programmed in advance and displayed on screens, ensuring members follow the same workout regardless of location — whether in Seoul, Sydney or New York. Since launching in Korea in 2019, F45 has expanded from one location to over 50 studios nationwide, with additional openings planned in 2025. This rapid growth is mirrored by competitors like ButFit Seoul, SleekBoost and GoodHabit PT, which are similarly scaling up through franchise expansion. Joseph "Joe" Maier, COO of Embrace Co. Ltd., the master franchisee for F45 Training & FS8 in Korea, explained why this approach has resonated with Korean consumers. 'Big-box gyms focus on volume — getting as many people through the doors as possible. Boutique fitness is experience-driven. Every workout is structured, coached and community-based, which keeps people coming back.' 'One thing that worked in our favor when launching F45 in Korea was the strong emphasis on community — Koreans naturally enjoy doing things in groups and seek validation from shared experiences. That collective mindset made it easier for us to build a highly engaged, energetic member base,' Kim added. Unlike traditional gyms that rely on prepaid memberships, boutique studios use subscription-based pricing, increasing financial stability. At F45 Gwanghwamun, a single session costs 35,000 won ($26), while an unlimited monthly membership runs 348,000 won. Though expensive compared to budget gyms, F45 reports a 90 percent monthly renewal rate and an average membership period of 18 to 19 months, according to internal company data. This high retention is due in part to the demographics of boutique fitness consumers. F45 Korea's membership is 62.7 percent people aged 25–35, followed by 26.9 percent aged 35–44. While younger professionals make up the bulk of members, Kim noted that participation from people in their 40s and 50s is steadily increasing, mirroring trends seen in Western markets. For first-time attendees, boutique fitness can be an intense but exhilarating experience. A ButFit Seoul member in her late 20s, who also maintains a separate gym membership, described her first session: 'In a 50-minute class, I burned over 600 calories — way more than I ever did working out alone at a gym. The structured format pushed me in a way I couldn't have achieved on my own.' While fitness remains the core attraction, boutique studios are also becoming social hubs — especially among young professionals. Many members see these studios as a place to meet like-minded people, leading some to describe the experience as 'elite socializing.' One former F45 member in her 30s, who attended multiple locations across Seoul over a year for socializing, likened the culture to a 'cult." She also found the gym valuable to her professional life. 'There's a sense of team spirit that's hard to find elsewhere. A lot of professionals in high-income jobs go there — it's almost like high-end networking disguised as a workout.' The global nature of F45's programming also fosters an international community. CEO Kim recalled how she and a friend in New York exchanged messages about the same workout happening in different time zones: 'If today's workout is 'Bears' – a pretty well-known cardio workout among our members – then I know my friend in the US will be doing the exact same session later that day. It creates this shared experience, even across continents.' Can boutique fitness avoid the same pitfalls as traditional gyms? But as boutique fitness brands rapidly expand through franchising, some industry insiders worry about potential overcrowding and quality control issues. The Korean personal trainer who recently opened his large-scale gym in Incheon expressed skepticism, arguing that boutique studios provide a solid entry point but lack the depth of one-on-one coaching for long-term fitness development. Maier acknowledged these concerns but argued that boutique fitness serves a different purpose. 'Our competition isn't personal training. It's other group fitness providers. Some people want individual coaching, but our members want that socializing element.' Despite the high-intensity nature of its workouts and premium pricing, F45 Korea sees its high retention rate and long average membership periods as a positive sign that the model is sustainable, even as competition increases. 'Of course, we don't expect members to stay forever — that's just how fitness works,' he said. 'People come and go, so the key isn't stopping churn, but keeping workouts engaging and ensuring there's always new interest coming in.'
