Renowned fitness group F45 has confirmed 300 of its United States franchise sales have been cancelled, amid drastic financial losses
The fitness group say the nosedive of outside financing is to blame for the major axe.
A lack of third party financing has impacted the ability to carry through with franchise sales.
They have reported a loss of $US38.5 million, for the June Quarter.
“In total franchises, sales declined by 175 in the [US] region. The franchises sold in the US will comprise of 132 gross franchise sales, less 307 terminations during the quarter,”
“The terminations were due to the inability of franchisees to access the financing facilities, we announced that the end of [the first quarter].”
F45’s interim chief executive Ben Coates.
It comes as F45’s share price also tumbled to just $1.35 last month.
However, investors have been reassured that key financiers still support the Mark Wahlberg backed business.
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