Listing ID: 70250
Imagine a gym “where everybody knows your name.”
This university hometown feel fitness center includes strength, aerobic, flexibility and mobility conditioning accessible to all fitness levels. Unique community culture complete with happy hours, picnics and holiday parties.
Established in 2017, the fitness center has experienced steady growth. Can be operated by owner/trainer or absentee. Hours consist of 40+ scheduled classes per week.
Rare combination of franchise support and mom/pop client engagement.
Great price for loyal membership base.
All equipment is practically brand new!
Lots of growth potential. Almost only game in town.
- Asking Price: $299,000
- Cash Flow: N/A
- Gross Revenue: N/A
- EBITDA: N/A
- FF&E: $366,270
- Inventory: $2,000
- Inventory Included: Yes
- Established: 2017
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
The business was started in 2017, making the business 5 years old.
The deal shall include inventory valued at $2,000, which is included in the suggested price.
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals decide to sell operating businesses. Nonetheless, the true reason vs the one they tell you may be 2 completely different things. As an example, they might say "I have way too many other obligations" or "I am retiring". For many sellers, these reasons stand. But also, for some, these might just be reasons to attempt to conceal the reality of changing demographics, increased competitors, recent reduction in profits, or an array of other reasons. This is why it is extremely essential that you not rely completely on a seller's word, however rather, make use of the seller's response in conjunction with your general due diligence. This will paint an extra reasonable image of the business's existing situation.
Existing Debts and Future Obligations
If the existing entity is in debt, which lots of businesses are, then you will need to consider this when valuating/preparing your offer. Lots of businesses borrow money with the purpose of covering items such as inventory, payroll, accounts payable, so on and so forth. Bear in mind that occasionally this can suggest that earnings margins are too thin. Many organisations fall under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may also be future commitments 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 suppliers that have to be fulfilled or may cause penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the area bring in new clients? Often times, companies have repeat customers, which develop the core of their daily profits. Specific elements such as brand-new competitors sprouting up around the location, road construction, and personnel turnover can impact repeat clients and negatively affect future earnings. One important thing to take into consideration is the placement of the business. Is it in a highly trafficked shopping center, or is it concealed from the main road? Certainly, the more individuals that see the business on a regular basis, the higher the chance to develop a returning consumer base. A final thought is the general area demographics. Is the business placed in a densely populated city, or is it situated on the outskirts of town? How might the regional typical house earnings influence future income potential?