Jetts Fitness Australia

In 9 out of 10 meetings with prospective new Jetts owners, the first question asked is... what return can I expect on my investment?

The truth is, we can share performance benchmarks, model revenue scenarios with you, and walk you through comparative clubs, but none of that tells the full story. There is one variable that will have more influence on the financial outcome of your gym than almost anything else. The lease.

Two Business Owners opening gyms in similar locations with similar membership bases can end up with very different profit positions. Not because one is a better operator, but because one negotiated the right lease for their business goals.

So before we talk ROI, let's talk leases. Specifically, we want to walk you through three real-world lease scenarios that illustrate how different deals can look, and how each can affect your bottom line.

There's no right or wrong answer here. Each structure suits a different type of owner, a different capital position, and a different appetite for risk and reward.

Before we get into the examples, a quick note: these are illustrative scenarios, not promises. Every site is different, and we require every prospective Jetts owner to seek independent financial and legal advice before making any investment decision.

If you're looking at a site within around 90 minutes of a major centre like Brisbane, you're in a competitive corridor.

In this type of deal, you might expect a healthy cash contribution combined with landlord-completed works like air conditioning and plumbing.

The trade-off is potentially a higher rent. The landlord has already deployed capital and will look to recover it through the lease. You're not paying for nothing. You received the cash contribution and the completed works, but your initial occupancy cost may be higher than in other structures.

This deal suits Business Owners who want to minimise their upfront capital requirement and can carry a slightly higher rent against projected revenue during the ramp-up phase. If you're well-capitalised and bullish on membership growth, this deal may be for you.

In some locations, typically suburban areas or sites where the landlord is motivated to secure a long-term quality tenant, the incentive structure shifts.

Instead of a cash contribution, the landlord completes a more comprehensive scope of works. And instead of a higher rent, they offer a competitive rate.

No cash changes hands, meaning you'll need more capital at the front end. However, the benefit of a lower rent compounds over the life of a lease in a way that an upfront cash payment simply does not.

For Business Owners who have access to capital and who see genuine long-term value in the location, this structure is often more attractive than it first appears. You're essentially trading a higher day-one investment for a structurally lower cost base for the life of the club.

Jetts loves regional, and it's because regional deals operate differently. Landlords in regional markets generally don't have the capacity to offer cash contributions or complete metro-level fit-out works. Their incentive is the rent itself, and when they want to attract a quality tenant, they can be remarkably flexible.

Regional landlords also tend to be more generous with rent-free periods. Rather than a standard few months, you might negotiate a longer upfront rent-free period followed by an extended half-rent period, giving you up to a 12-month buffer while you build your membership base. This kind of runway can be the difference between a focused presale and launch, and a stressful one.

The catch? There's usually more work to do upfront. Regional sites often require more remediation before the fit-out can begin, and landlord works may be limited. Your capital requirement going in will likely be higher than in a metro deal, but weighed against years of significantly lower rent and escalations, the numbers can stack up very favourably.

Regional clubs have consistently featured in the top three, and more often than not have been in the running for Club of the Year across the Jetts network. The community feel, the focus on customer service, and the ability to build a strong local presence all compound over time. But it starts with the rent.

So which one is right for you?

There is no universally better deal. What matters is that you understand what you're signing, what the variables mean for your cash flow, and how the structure aligns with your financial position and long-term business goals.

We help you find the right site.

The right site for one Business Owner is the wrong site for another. Our job is to know the difference, and to make sure the opportunities we bring to you are the ones that genuinely stack up for your circumstances.