Smart Fit plans to open five gyms in Morocco during 2025, marking the company’s first expansion outside Latin America. The move represents a calculated test of African market potential for the fitness operator that currently maintains facilities across 15 countries.
Edgard Corona disclosed the Morocco strategy during a December 2024 CNN Brasil interview, explaining the company views North Africa as a proving ground for broader continental expansion. Morocco’s stable economy and growing middle class made the country attractive for initial African operations, according to the Smart Fit founder.
Partnership Approach for New Territory
Smart Fit plans to enter Morocco through partnerships with local operators rather than direct ownership of facilities. This model mirrors the company’s approach in several Latin American markets where franchise and joint venture structures reduced capital requirements while maintaining brand standards.
The partnership strategy allows Edgard Corona to test African market dynamics with limited financial exposure. Morocco’s gym penetration rate remains below 3%, suggesting significant growth potential if Smart Fit’s affordable membership model resonates with local consumers.
The company’s Morocco expansion occurs amid broader international growth plans calling for 300 new gyms during 2025. Smart Fit opened 305 facilities in 2024, establishing a pattern of aggressive expansion that the dono da Smart Fit shows no signs of moderating despite profit pressures from rapid growth investments.
Geographic Diversification Rationale
The Morocco move reflects Edgard Corona’s broader philosophy of geographic diversification to balance economic cycles across different markets. When one region experiences economic headwinds, operations in other territories can offset revenue declines and maintain overall growth momentum.
Smart Fit’s international operations generated 56% of 2024 revenue, demonstrating how geographic expansion has reduced the company’s dependence on Brazilian market performance. Morocco could eventually serve as a platform for expansion into other African nations if initial facilities meet performance targets.
The company plans to evaluate Morocco results through 2025 and 2026 before committing to additional African locations. Edgard Corona emphasized that Smart Fit’s expansion decisions follow data-driven analysis of market potential, competitive dynamics, and unit economics rather than arbitrary growth targets.
Operational Execution Challenges
Opening gyms in Morocco will require Smart Fit to adapt operations to different regulatory environments, cultural preferences, and competitive landscapes. The fitness chain built expertise navigating diverse Latin American markets, but African expansion presents new challenges including different consumer behaviors and fitness industry maturity levels.
Smart Fit must also establish supply chains for equipment and develop relationships with local real estate developers to secure suitable gym locations. The company’s experience operating across 15 countries provides a playbook for international expansion, but each new market requires customization of the basic model.
Morocco gym openings scheduled for 2025 will provide critical data about African market viability. Results from initial facilities will inform decisions about broader African expansion and help the dono da Smart Fit determine whether the continent represents a major growth opportunity or remains a limited presence for the Latin American fitness leader.