Australia’s Jetts Fitness is biding its time seeking the “right fit” in potential investors after having had inbound interest from a range of parties, said managing director (MD) and CEO Elaine Jobson.

The Queensland-headquartered gym franchise business, which just announced its expansion into India earlier this month, has been self-funded through strong cash flows and strategic reinvestments, with its system wide revenue exceeding AUD 150m (USD 96m) annually, Jobson told Mergermarket.

As it accelerates into new regions and considers acquisitions, the company is open to engaging with potential investors and may look to raise AUD 10m-AUD 30m, depending on the growth opportunity, she said.

“We’re not looking for capital for capital’s sake, we’re looking for strategic partners who bring more than just funding,” she said.

The company has had preliminary conversations with some interested parties, from private equity to family offices and strategic wellness funds, the CEO said, without identifying those parties.

“We’re taking our time to ensure we find the right fit,” she said. “The ideal investor understands the power of franchising, shares our people-first philosophy, and has a long-term view of value creation, not just short-term returns.”

Jetts Fitness’ primary growth model remains to be franchising, which is “part of our DNA” and allows the business to scale with local partners that understand their communities, Jobson said. That said, the company would consider alternative expansion structures and in some select markets has explored joint ventures and master franchise partnerships, especially where local market expertise or regulatory requirements demand a more tailored approach, she added.

Acquisitions on the radar

The company, already with more than 250 clubs globally and with a strong presence in Australia, New Zealand, Thailand, the UK, the Netherlands, has outlined a five-year international expansion plan targeting key markets across the Americas, Europe and Southeast Asia, according to its press release announcing the India entry.

Acquisitions are definitely on Jetts Fitness’ radar as it expands globally, according to the CEO. “We’re looking at strategic acquisitions that align with our values, culture, and operating model.”

Ideal targets would include fitness or wellness brands with strong local presence, loyal member bases, and operational synergies with Jetts Fitness, particularly in markets where the company sees an opportunity to accelerate its footprint, she said.

In terms of size, Jetts Fitness is primarily looking at small to mid-sized operators, “anywhere from a few clubs to national chains of 20 to 50 locations”, she added.

When asked how the company and its international expansion will be impacted by the US tariffs, Jobson said that Jetts Fitness is primarily a service-based business and hence its exposure to global trade disruptions is relatively limited.

Meanwhile, the company still closely monitors supply chain dynamics, especially around equipment and technology, and, where necessary, has built diversified supply networks and retained a level of flexibility in its model to adapt quickly to external shocks, the CEO noted.

Jetts Fitness, founded in Australia in 2007 by husband-and-wife team Brendon and Cristy Levenson, was the first gym brand in Australia to offer 24/7 access, no lock-in contracts, low fees and member-friendly policies.

It was acquired in September 2016 by Quadrant Private Equity, which formed Fitness and Lifestyle Group (FLG) as a holding company to acquire health and fitness businesses. In September 2022, FLG announced the sale of the franchise division of its Jetts Fitness business via a MBO led by CEO Elaine Jobson.