F45

PHOTO: F45. SUPPLIED

F45 Franchise Collapse: Auckland Gym Operator Enters Liquidation

The company behind three F45 Training gym franchises in Auckland has officially entered liquidation, marking another significant setback for the fitness industry in New Zealand.

🏢 K E M Holdings Limited, which operated F45 studios in Karaka, Auckland Viaduct, and Britomart, appointed liquidator Victoria Toon from Corporate Restructuring on March 24, 2025. This decision comes amid financial pressures that have plagued several F45 locations both in New Zealand and globally.

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🏋️ What Led to the Liquidation?

The once-booming F45 franchise model, known for its high-intensity functional training workouts, has faced growing financial struggles. Industry analysts point to a mix of factors contributing to the closures:

❌ Declining Memberships – A post-pandemic shift in fitness trends has seen many consumers opt for cheaper gym memberships or home workout solutions instead of boutique fitness classes.

📉 Economic Pressures – The rising cost of living in New Zealand, along with inflation, has impacted discretionary spending, leading many to cut back on premium fitness services.

🏢 Franchise Model Challenges – F45’s business model requires franchisees to pay high royalty fees and meet strict operational requirements, making profitability a challenge for some owners.

💰 Competition from Other Gyms – The New Zealand fitness market is highly competitive, with new players such as BFT (Body Fit Training), Les Mills, and 24/7 budget gyms gaining ground.

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🚨 A Troubling Pattern for F45 in NZ & Australia

This is not the first time F45 franchises have faced financial struggles. Several studios across Australia have closed or entered liquidation, citing similar economic pressures.

📌 In 2023, multiple F45 gyms in Australia shut down due to financial difficulties, leading to concerns about the sustainability of the franchise business model.

📌 In the US, F45’s parent company saw its stock price crash, and in 2022, co-founder Adam Gilchrist stepped down as CEO following financial turmoil.

📌 New Zealand’s fitness industry is seeing a shift in demand, with traditional gyms, cross-training facilities, and online fitness programs capturing a larger market share.

🔮 What’s Next for Affected Members & Franchisees?

💡 If you’re a current F45 member at one of the affected locations, check with the liquidator for guidance on potential refunds or alternative gym options.

💡 F45 franchisees still in operation may need to restructure or adapt their business models to stay afloat, possibly diversifying their offerings.

💡 Industry experts suggest that the fitness sector will continue to evolve, with a stronger focus on flexibility, digital fitness, and cost-effective memberships.

🏁 Final Thoughts

The liquidation of K E M Holdings Limited serves as a cautionary tale for fitness entrepreneurs considering franchise investments. While F45 once thrived, its high-cost model has proven challenging in an economic downturn.

For gym-goers, this could mean greater competition in the fitness space, leading to more affordable and varied workout options across New Zealand.