Building a better business
FORMER soldier Beau Houldsworth is back with a new fitness franchise three years after he was declared bankrupt when a gym he ran with his siblings failed.
Hammer Fitness opened in 2014 and aimed to be a “gym with a difference”, incorporating fitness training, boot camp workouts, functional training and Olympic lifting.
But it didn’t work out, closing after just 2½ years.
Mr Houldsworth declared bankruptcy under a debtors’ petition in November 2017.
“We had to sell everything. I sold my house. We actually ended up going bankrupt and I lost everything,” he said.
Mr Houldsworth said he and wife Evelyn had to start over.
He says he dived “into the world of online” and started to consult gym personal trainers on their digital marketing strategy. It was when he landed a job at boutique fitness studio franchise Orangetheory that he met his now business partner Jaydyn Rosevear.
He said they were both impressed with Orangetheory’s model, which is centred around heart-rate-based, high-intensity interval training.
Mr Houldsworth and Mr Rosevear, with the help of an investor putting in $100,000, then set about preparing for the launch of 5ive Element Fitness, or 5ef.
Mr Houldsworth said the “five elements” referred to were nutrition, fitness, supplements, personal coaching and community.
The first “concept gym” was opened in Southport and there are plans to open 13 more in April and May this year in Brisbane and on the Gold Coast.
Mr Houldsworth said they would compete on service and price. “We’re half the price of everyone else. On average most memberships are anywhere between $45 to as high as $85 to $100 a week. Ours is $29.50 and the highest we have is $34.50,” he said.
“I wouldn’t say we’ve enhanced it (Orangetheory’s model), we have just adjusted it to the style of workout. What they do is treadmills, rowers and a little bit of weight training.
“However, we do a majority of weight and HIIT (highintensity
interval training).”
Master franchise agreements, under which the owner can open multiple locations, are being sold for $203,500.
Mr Houldsworth said under the agreement they find a location, sign the lease and source all materials and operators for the gym.
He said the investor was paid a 17.33 per cent return annually for five years. That comes from a royalty paid by the operators, who run the gym and are also franchisees, and shared between the investor and 5ef. The operators,
once they have paid royalties and outgoings, are left with any profit that remains.
“Already these guys are earning over $85,000 each. When you look at the award for the personal trainers it is like $42,000 on average,” Mr Houldsworth said.
“Our intention is to build brand. We don’t want to become an F45. An F45 is functional, it’s 45-minute workouts, that’s all they can do. We want to become essentially what Virgin did. There’s Virgin Airlines, phones, credit cards.”
NEWS
GRAND Slam fever has hit the property market with mansions featuring tennis courts in hot demand nationwide.
Knight Frank’s first Australian Residential Tennis Court Premium report found increased sales of superprime properties that featured tennis courts in five Australian cities. Almost $682.8m changed hands across 38 sales, up 230 per cent on a weak 2019.
Sydney ($436.6m) and Melbourne ($134.6m) led the way. The Gold Coast was third with $50m in sales. Brisbane had $20.1m.
The city’s top tennis court homes that sold in 2020 were located in Surfers Paradise, Mermaid Waters and Broadbeach Waters.
“Our research conducted a few months into the pandemic found 66 per cent of global residential buyers listed outdoor space as the top factor to be considered when choosing a home, and we have seen a corresponding rise in interest in superprime properties with tennis courts,” Knight Frank national head of residential Shayne Harris said.
“The Gold Coast lifestyle became more popular through COVID-19 resulting in last year being the only year in the past five to register any super-prime sales accommodating tennis courts.”
Luxury tennis court properties on the Gold Coast occupied an average land area of 6250sq m, almost double the average area in Brisbane or Sydney (3150sq m).
The trend continued in January with a tennis court home owned by entertainment dynamos Billy and Jackie Cross changing hands for $12.5m.
Marketing agent Michael Kollosche said high-end buyers were choosing to invest in home assets as the pandemic cast shadows on international travel.
“Beachfront properties, riverfront properties, large pontoons for boating and jet skis and other recreational amenities have become quite popular,” he said.
Casa Del Sol at 159 The Panorama, Tallai, goes to auction on Saturday. Owner Tracey Welten said times spent on-court had been a highlight for her family since purchasing the sprawling sixbedroom Spanish-style hinterland mansion in 2019.
Mrs Welten and her builder husband Brad, both avid tennis fans, have hosted many social matches as well as weekly family games.
“It was amazing to find a house with a tennis court so our children could learn to play too,” Mrs Welten said.
“We introduced Tuesday tennis and taco night so it’s a bit of fun for us as a family every week.”
Marketing agent Nicky Cunningham, of Harcourts Broadbeach-Mermaid Waters, said the recently refurbished tennis court had attracted interest from several potential buyers identifying the recreational asset as a must-have.
At Carrara, V8 Supercar driver Paul Weel’s mansion, featuring a purple tennis court, is one of three properties for sale on Maryland Avenue. Mr Weel’s 14 Maryland Ave is on the market for $11.95m. The others are 2 Maryland, with a price tag of $6.75m, and 23 Maryland, for $4.5m.
96-PAGE REAL ESTATE MAGAZINE TOMORROW
THE lawyer for ex-Channel 7 star Andrew O’Keefe has indicated the sacked game show host will plead guilty to allegations he assaulted his partner if the charge is not dismissed under mental health.
Waverley Local Court also heard on Thursday O’Keefe remains an “involuntary” patient at the Prince of Wales Hospital almost three weeks after the incident at his girlfriend Orly Lavee’s home in Sydney.
A hearing has been set for April to deal with his charge of common assault under the Mental Health Act, where his lawyer will argue the charge should be dismissed.
O’Keefe’s lawyer Kara Greiner told the court she could indicate pleas of guilty and asked for a six-week adjournment to prepare supporting materials.
“I can’t formally (enter pleas) as there is a dispute as to the facts,” she said.
It is an about-face for O’Keefe, whose former lawyer Claudette Chua earlier this month said he would fight the allegations.
Ms Greiner yesterday tendered a medical letter that excused the troubled TV star from appearing, as the court heard he had been held in hospital since the day of his arrest on January 31.
The former The Chase Australia and Deal Or No Deal host, 49, was arrested in Randwick at 3.30am that morning, about four hours after police allege he assaulted Dr Lavee in her nearby apartment.
The father of three, who lives in Paddington, was charged with one count of common assault and released on bail.
An apprehended domestic violence order was also taken out on behalf of haematologist Dr Lavee, 41.
Channel 7 revealed after his arrest that Mr O‘Keefe, a long-time personality at the network and former host of Weekend Sunrise, was no longer working for the station.
A hearing date has been set for April 20, when Mr O’Keefe could be sentenced.