Business Overview

This is a premier fitness franchise located in the posh and upscale neighborhood of Fairview, TX. This facility strives to provide the best possible workout to its clients on a daily basis. Its family-friendly environment is for anyone who wants to achieve his/her fitness goals – from stressed out college students to retired adults to moms on the go. Its staff strives to bring an awesome workout to everyone that steps through its doors and spare no effort in order to deliver the best time of client’s day.

When it comes to weight management, good nutrition is vital. This business gives all members access to their own free personal nutrition program to achieve health objectives with daily meal plans, tracking, and community support. The team mentality at the gym helps members transform their lifestyle physically and mentally while encouraging community growth and a no-ego attitude.

This business was established in May 2017; the current owner started this location from scratch. The business has grown tremendously over the last 4 years. Although the revenue and profitability dropped in 2020 and 2021 due to COVID-19 pandemic, the business is poised to make a nice comeback in 2022.

The current owner is selling the business to pay attention to his corporate job and impending relocation to Florida and would like to handover this business to a new and energetic entrepreneur who can take this business to the next level. The buyer is expected to profit handsomely from this deal.

For buyers who are interested in purchasing a package deal of two locations, please checkout McKinney location at: https://www.bizbuysell.com/Business-Opportunity/Profitable-Fitness-Franchise-in-McKinney-Absentee-Owner/1915809

Financial

  • Asking Price: $75,000
  • Cash Flow: $71,301
  • Gross Revenue: $321,826
  • EBITDA: N/A
  • FF&E: $100,000
  • Inventory: $2,000
  • Inventory Included: Yes
  • Established: 2017

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:2,519
  • Lot Size:N/A
  • Total Number of Employees:3
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The gym is housed in a spacious and well-equipped facility located in the affluent area of Fairview, TX near a major mall. The facility has a covered area of 2,519 sq. ft. and monthly rent of $7,032 (includes NNN). The current lease expires in Oct 2022 but tenant has one options to extend the lease for 5 more years.

Is Support & Training Included:

2 weeks

Purpose For Selling:

Corporate job - Relocation

Pros and Cons:

Although fitness industry is competitive, this business has established a great reputation and goodwill among its clients. The franchise has a unique and effective model which is very popular and its members stay longer with the program compared to other gyms.

Opportunities and Growth:

The current owner can’t pay much attention to this business due to demands of his high tech corporate job. Most of the business comes from existing clients and referrals. A new owner can direct sales and marketing to further increase membership. There is a huge potential for growth in the fitness industry. This business can’t be outsourced.

Additional Info

The venture was founded in 2017, making the business 5 years old.
The sale does include inventory valued at $2,000, which is included in the listing price.

The business has 3 employees and resides in a building with estimated square footage of 2,519 sq ft.
The real estate is leased by the company for $7,032 per Month

Why is the Current Owner Selling The Business?

There are all types of reasons people choose to sell operating businesses. Nonetheless, the true factor vs the one they tell you might be 2 completely different things. For instance, they might say "I have way too many various commitments" or "I am retiring". For lots of sellers, these reasons stand. However, for some, these may just be excuses to try to conceal the reality of changing demographics, increased competitors, current decrease in revenues, or a range of other factors. This is why it is extremely essential that you not count totally on a seller's word, however instead, make use of the vendor's answer combined with your general due diligence. This will paint a more practical image of the business's current situation.

Existing Debts and Future Obligations

If the current company is in debt, which lots of companies are, then you will need to consider this when valuating/preparing your offer. Lots of businesses borrow money in order to cover items like supplies, payroll, accounts payable, so on and so forth. Bear in mind that in some cases this can suggest that earnings margins are too thin. Numerous companies fall into a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may likewise be future obligations to take into consideration. There might be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with vendors that should be satisfied or might cause fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do companies in the location attract new customers? Many times, operating businesses have repeat consumers, which create the core of their daily earnings. Certain elements such as new competition sprouting up around the area, roadway construction, and staff turnover can impact repeat consumers and also adversely influence future earnings. One vital thing to think about is the placement of the business. Is it in a highly trafficked shopping mall, or is it concealed from the highway? Certainly, the more individuals that see the business on a regular basis, the better the possibility to develop a returning client base. A final idea is the general location demographics. Is the business placed in a densely inhabited city, or is it situated on the edge of town? Exactly how might the local typical home earnings impact future income prospects?