SPEEDFIT FRANCHISE PROSPECTUS

THE SMARTER WORKOUT. AND NOW THE SMARTER BUSINESS OPPORTUNITY.

THE SPEEDFIT STORY

MEET THE FOUNDERS

THE PHILOSOPHY

THE CONCEPT

FRANCHISE OPPORTUNITY

BENEFITS

INDUSTRY PERFORMANCE

NEXT STEPS

INVESTMENT

CONTENTS

Congratulations on taking your first step to owning your own SpeedFit and helping more people lead healthier, happier lives, with stronger more functional bodies in just 20 minutes a week.

As one of the founders of SpeedFit, I will be your first point of contact and main source of support not just in getting your studio open but also to help you at every step of the way in running a successful SpeedFit studio.

Be it that you have always dreamed of running your own successful business or looking at ways to be able to help more people live healthier lifestyles, as an investor or with aspirations to own multiple sites, I’m here to give you the guidance and support you need to realize your goals with a SpeedFit Franchise.

This initial prospectus contains some great information to help you understand more about SpeedFit and EMS Training but I’m sure you will have plenty of questions you would like to ask, so I will contact you over the coming days to answer any you may have.

Have a great day and talk soon.Matej Varhalik

INTRODUCTION

SpeedFit was founded by Matej Varhalik with the support of friend Roland Safar, both with extensive backgrounds in athletics and personal training. Fueled with determination and entrepreneurial spirit, the two bravely set out to challenge the traditional gym norm and make SpeedFit a household name in Australia. Starting with studios in Northbridge, and then Claremont, Western Australia, news of SpeedFit travelled fast. Before they knew it, there were eleven studios in Perth, and two in Sydney.

To cope with the never-ending demand for expansion, in 2015 they welcomed new business partners, Sharad and Neema Shetty. Following the success of their first expanded business venture, SpeedFit decided that it was time to franchise in 2017. Now sitting strong with thirteen studios open, the Speedfit team are geared up for steady growth, with the goal of eight more openings by June 2020.

For a franchise network in its third year, SpeedFit are recognised across Australia for being industry leaders. The significant point of difference has attracted considerable media attention. SpeedFit has appeared on Channel 7’s Today Tonight, Channel 9 News, Channel 10’s Shark Tank and has featured in The West Australian newspaper, making it a business opportunity rare and not to be missed.

THE SPEEDFIT STORY

SPEEDFIT. THE SMARTER WORKOUT. AND NOW THE SMARTER BUSINESS OPPORTUNITY.

“IT DOESN’T LOOK LIKE MUCH, BUT IT DOES MAKE YOU WORK”

“WE HAVE BEEN TOLD WHEN IT COMES TO EXERCISE, NO PAIN NO GAIN... BUT THIS NEW DEVICE IT’S TURNING THIS THEORY ON ITS HEAD!”

“IN AUSTRALIA, SPEEDFIT IS CURRENTLY THE MOST POPULAR NETWORK OF EMS PERSONAL TRAINING STUDIOS.”

The constant pain is gone and a much-reduced incidence of chronic breakdown. I was 101.5kg with a BMI over 30, very high cholesterol levels and was considered obese.

In February this year I had smashed my goals, achieving a weight of 83.5kg, BMI at 25 and normal cholesterol levels.

Speedfit has helped with the discipline and motivation to change exercise and eating habits. A change in lifestyle that is enjoyable and has given me the confidence to take on the world.”

Rae (SPEEDFIT SOUTH PERTH)

“STARTED MY SPEEDFIT JOURNEY 2 YEARS AGO TO HELP WITH BACK PAIN AND WHAT A SUCCESS!

MEET THE FOUNDERS

Matej made his way to Australia in 2013, with not much more than a suitcase, the concept of SpeedFit and a plan to making these 20-minute workouts available Australia-wide. After seeing how successful the concept was in Europe with well over 5000 thriving studios, he knew it would be a hit in the Australian market. At this point, Matej welcomed two well-renowned new business partners who jumped on the potential and opportunity SpeedFit presented. Dr. Neema Shetty, Dental Surgeon and Dr. Sharad Shetty, Cardiologist, with a recently completed fellowship with Harvard Medical School.

The mission was clear:

YOUR FITNESS REGIME SHOULDN’T TAKE OVER YOUR LIFE, BUT FIT INTO IT.Together, they were keen to challenge the traditional gym ethos by combining personal training with EMS technology in one short session, performed in private, fully equipped studios.

Introducing SpeedFit to Australia has brought the duo a lot of success, not without its expected challenges. Put it this way: if the guys had a dollar for everyone that said a 20-minute workout with real results was not possible...

Fortunately, the results soon quieted the naysayers.

MATEJ VARHALIK

Our mission is to change the way you think about fitness, so you can achieve your fitness goals with just one 20-minute session a week.

At SpeedFit, we believe that your fitness routine shouldn’t overtake your life but fit into it.

ATTENTION TO DETAILWe go the extra mile to ensure our clients perform at their best to achieve their ideal results.

EMPOWERED We are self starters with individual ideas. We autonomously deal with any issues that arise quickly & efficiently.

INTEGRITY We are honest, authentic & fair. We will fight for the best interests of our clients & are passionate & proud of the SpeedFit brand.

PERFORMANCE We grow as our clients shrink. We want to have fun in studio, while we care for the SpeedFit family (staff & clients). We are continuously moving forward, innovating & improving, while staying humble.

FAST & EFFECTIVE We are as efficient as our workouts! We are easy to deal with & we strive to always be on time.

THE SPEEDFIT PHILOSOPHY

FAST, EFFICIENT AND DEEPLY EFFECTIVE, SPEEDFIT TURNS EVERYTHING YOU KNOW ABOUT GYM WORKOUTS ON ITS HEAD.

SpeedFit provides EMS training (electronic muscle stimulation), which is a scientifically proven method used for decades in Europe for rehabilitation and sports medicine. EMS machines mimic the natural action of your central nervous system, sending electrical impulses that contract your muscles.

A SpeedFit session only takes 20 minutes, which means it is an attractive, time efficient and effective option for those looking to improve their strength & body composition.

Each workout is tailored to the individual’s needs, with the workouts adaptive enough to vary accordingly. For the elderly or injured, the workout can be extremely mild, while those wanting something a little more rigorous (even elite athletes), can experience a hard-core workout with strong muscle contractions and dynamic exercises.

SpeedFit studios are no ordinary gyms. Expect small and pristinely clean private spaces – with few people present at any one time. Your instructor will give you your own machine and guide you through a personally tailored workout just right for your body – and your health and fitness needs.

THE SPEEDFIT CONCEPT AND EMS TECHNOLOGY

QUEENSLANDAVAILABLE

WA

NSW

PERTHLIMITED

SYDNEYAVAILABLE

VICTORIAAVAILABLE

LIMITED TERRITORIES AVAILABLE

OTHER TERRITORIES AVAILABLE UPON REQUEST

ADELAIDEAVAILABLE

THE SPEEDFIT CONCEPT AND EMS TECHNOLOGY

960 repetitions in 20 minutes

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72

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24 hours

48 hours

72 hours

Activates 90% of your muscles in one session

Up to 500 calories burnt in one session

» Training that fits into your life without overtaking it » Move without pain or impact » Gain muscle control and reach your physical goals » Achieve emotional and physical recovery » Do what you love, but do it better

EMS is a technology that is emerging in Australia and quickly becoming the choice of exercise for both the elite and the everyday person. A benefit that this style of training has above HIIT, Combat or 24/7 gyms is that it also functions as a rehabilitation tool, allowing the service to tap into several markets and demographics, making it much more than another fitness fad.

The health and fitness industry in Australia has seen steady growth over the past decade with no indication of slowing down. This is due to multiple variants including:

» Increased awareness around living a healthy lifestyle » More consciousness about getting fit and staying active » Decreased hours worked each week, creating more leisure time » Rise in discretionary income

EMS TECHNOLOGY AND GROWTH GLOBALLY

50+ Studios in AU500+ Studios in USA

6000+ Studios in EU

“90% OF EMS TRAINEES REPORTED REDUCTION

IN BACK PAIN”

Join a franchise network with involved franchisors and a support team to ensure that you are set up for success.

With thirteen locations currently operating, the SpeedFit team have plans for steady growth in the near future. Maintaining brand integrity is of high importance to Matej, as well as providing a high level of support to their franchisees. The SpeedFit growth strategy has been curated with this holding high importance.

The short term goal is to maintain steady growth through 2019, with the long term goal of a controlled but rapid expansion by 2024. Become a part of our brand success story today. You won’t look back.

You will be buying into a brand that is established and recognised throughout Australia, whilst still benefiting from being one of the first franchisees who will watch SpeedFit reach its full potential and become the most recognised EMS brand in Australia, and potentially across the globe!

The SpeedFit business model is one that could be adopted by an ex-physio, someone in the Allied Health Care industry, a Fitness Enthusiast or an individual who is business savvy and looking for a new venture. If you are a systems driven person who is familiar with the industry or how to run a successful business, this opportunity could your next success story.

THE SPEEDFIT FRANCHISE OPPORTUNITY

Ex-Physiotherapist Health Care Fitness Enthusiast Business Savvy

You will receive support not just throughout the opening of your studio, but with assistance in every part of your business, including post opening. The support you receive from Head Office will include:

AS YOU OPEN: » Securing a site » Negotiating your lease (extensive list of partners in real estate) » PR, Marketing and Advertising Campaign management » CRM Systems Training » Studio Fitout and setup - Turnkey Solution » Equipment purchase and advice

ONCE YOU’RE OPEN: » Support from hand-picked print partners » HR Support » PR, Marketing and Advertising Support including Campaign Assets » Constant sales training and assistance » Constant product training » Ongoing support from dedicated Operations manager

THE SPEEDFIT FRANCHISE OPPORTUNITY

WHAT MAKES SPEEDFIT UNIQUE TO A CONSUMER?

CONVENIENT We provide an easy-to-follow routine that doesn’t take over your life but instead fits into it. The exercises are easy to follow and are suitable for almost all individuals, and all fitness levels.

ALL-INCLUSIVEThere is no need to bring anything to your workout.

FULLY TRAINED, CARING AND ATTENTIVE INSTRUCTORSSpeedFit instructors are always willing to go the extra mile to support, challenge and educate our clients.

SMART AND ACCESSIBLE BOUTIQUE STUDIOSEasy to find and access, our clients are free to attend any studio location they prefer under one membership

EDUCATION + NUTRITIONWe offer extras such pre- and post-workout drinks to counter the output throughout the session, nutrition advice, magazines, and nutrition booklets.

SUPPORT We offer everything you need to open and manage you an active, healthy lifestyle, including strength and cardio training, high-end supplements, nutrition classes and body composition measurements.

PUNCTUALITY Our business model is based on serving busy clients, in-and-out in 30 minutes, so punctuality is always ensured.

INDUSTRY LEADERS We continue to provide ongoing education, information and training to both staff and clients on how best to maintain a healthy lifestyle.

TRIED & TESTEDThe SpeedFit franchise model has been tried and tested in Western Australia for the last five years and has proven itself successful and profitable. The team have only touched the surface of these lucrative business opportunities, and there are many uncharted territories up for grabs for suitable candidates.

BROAD TARGET MARKET The potential for clientele is almost limitless with a SpeedFit studio. From 18 to 80, super-fit or fitness newbie, almost everyone can benefit from SpeedFit. The largest target market is females aged 35+.

SIMPLE BUSINESS MODEL SpeedFit studios are easy for the owner-operator to manage, with a simple business structure and minimal staff requirements. Our membership model and client payment plans take the stress out of creating ongoing revenue.

ONGOING SUPPORTEnjoy the SpeedFit Support on Demand program by your dedicated area manager with excellent business, training and planning advice, regular visits and quarterly network meetings.

LOW RISK INVESTMENT A SpeedFit franchise is a low risk, high support model that makes growing your business enjoyable. The team at Head Office will help you avoid the pitfalls while challenging you with realistic, manageable goals.

THE SPEED FIT ADVANTAGE Offering a unique concept, SpeedFit is the most established EMS training business in Australia with strong brand recognition online, in print and mainstream media, giving you the confidence in a brand people know and trust. The SpeedFit crowd has developed an amazing team spirit; franchise owners from all over are talking together about improving the SpeedFit experience and making their businesses even stronger.

BENEFITS OF OPENING A SPEEDFIT

MELBOURNE

SpeedFit are looking to enter the Melbourne market with a team of solid franchisees. Being one of the most livable cities in the world, Melbourne is where you can find trendsetters and image-conscious city slickers.

MELBOURNE

Melbourne is one of the countries most diverse cities, with around one third of all residents being born outside of Australia.

Popular ethnic groups are British, Chinese, Greek, Indian, Italian, New Zealand and Vietnamese.

With a very young demographic, Melbournians have disposable income ready to spend. 26.9% of the population are between 20-24 years old.

The percentage of children and families in Melbourne are very low With the average people per household sitting at 1.9, this indicates that a lot of people in Melbourne either live alone or with one other person.

Australian

British

Chinese

Greek

Indian

TOP 5 ETHNIC GROUPS IN MELB

Melbourne is home to nearly 5 million people now, accounting for 19.05% of the national population.

The median age is 27, with an even split between females and males

References: http://worldpopulationreview.comhttps://quickstats.censusdata.abs.gov.au

I used to suffer extreme, constant discomfort in my back, and at times, chronic pain. Thinking this might be a way of strengthening my core muscles I was amazed at the immediate benefits I’ve received – and continue to receive. Now, after 30 years of pain, I finally know what it is like to be pain-free! I always look forward to my weekly ‘buzz’ session.”

Ken(SPEEDFIT MYAREE)

“I STARTED SPEEDFIT TO STRENGTHEN MY BACK

COSTS INVOLVED

Our studios are specifically designed to make it easy for you, as an owner to get started and manage operations once open. We have an internal specialist team coupled with Finance, Property and Marketing Partners to make your opening and operational process easy and enjoyable.

With the low foot traffic of 2 clients maximum at any given moment and 1 trainer, studios are easy to manage and maintain.

UPFRONT COSTS Franchise License Fee: $50,000Equipment Package: $53-55,000 ( can be leased for circa $800/month)

ONGOING MONTHLY FEE’S Franchise Royalty 7% of revenueMarketing Fee’s 6% of revenue

FRANCHISE LICENSE FEE INCLUDES » Generous Exclusive Marketing Zone » Use of Speedfits proven business and marketing systems » 2 weeks training for the Franchise Owner, Studio Manager and two trainers at

SpeedFit HQ’s training centre » Start-Up kit including ( All supplements, Exercise Garments, and toiletries) » Staff Uniforms.

NEXT STEPS

FINAL STEPS TO OWN A SPEEDFIT We will walk you through the final steps of acquiring a SpeedFit franchise which will include but not limited to location guides, forecasting tools, finance advice, and franchise courses.

FRANCHISE PROSPECTUS Now that you have reviewed our Franchise Prospectus, the following broadly maps out the journey you will take to join the SpeedFit team. It’s detailed but important to both of us that we are the right fit for each other.

CONFIDENTIALITY Sign a Confidentiality Deed. This way, we can provide you with confidential information on the business and what you can expect as an owner.

EXPERIENCE SPEEDFIT You will be then invited to an existing studio to experience SpeedFit, if you haven’t already. This will give you further insight in to the experience.

FACE TO FACE MEETING At this point, a face to face meeting will be locked down and you will receive a Franchise Application Form. This stage is essential for us to get to know you as a potential business owner, but just as importantly for you to get to know how we run SpeedFit as a business.

REFUNDABLE DEPOSIT You pay a fully refundable deposit of $3000 inc. GST. We will issue you with an Example Disclosure Document so you can see our Franchise Agreement, Disclosure Document and the Franchising Code of Conduct.

OPERATIONAL OBSERVATIONS A second meeting will be booked to complete a half or one-day studio observation. This is your time to see the inside operations of SpeedFit.

Low impact exercise great for my knees and it has really helped strengthen my lower back which has been painful since pregnancy. 5kgs down and counting!”

Jenna (SPEEDFIT NORTH SYDNEY)

“ON MY SECOND MONTH AT #SPEEDFITNORTHSYDNEY AND LOVING IT!”

OWN A SPEEDFIT TODAY

THE SMARTER WORKOUT.

AND NOW THE SMARTER BUSINESS OPPORTUNITY.

MATEJ VARHALIK 0432 679 133FRANCHISE@SPEEDFIT.COM.AU

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