Listing ID: 73194
This RED HOT new fitness concept is once again growing fast as we come out of the shutdown. Housed in an upscale retail development in one of our top small cities this brand new build-out has many cutting edge features. With all new equipment and multiple infrared saunas it is the go-to gym for the high end fitness club market. This is a franchise business with one of the three-pack completely built out. A franchise transfer fee will apply. The right buyer will do well.
- Asking Price: $315,000
- Cash Flow: N/A
- Gross Revenue: $240,000
- EBITDA: N/A
- FF&E: $215,000
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
other business interests
Why is the Current Owner Selling The Business?
There are all sorts of reasons individuals resolve to sell operating businesses. Nonetheless, the genuine factor vs the one they tell you might be 2 absolutely different things. As an example, they may say "I have too many other obligations" or "I am retiring". For many sellers, these factors stand. However, for some, these might simply be justifications to try to conceal the reality of transforming demographics, increased competitors, recent decrease in incomes, or an array of other reasons. This is why it is very essential that you not depend absolutely on a vendor's word, but instead, use the vendor's solution together with your general due diligence. This will repaint a much more reasonable image of the business's present situation.
Existing Debts and Future Obligations
If the current business is in debt, which lots of businesses are, then you will certainly need to consider this when valuating/preparing your deal. Lots of companies borrow money with the purpose of covering things such as supplies, payroll, accounts payable, and so on. Remember that occasionally this can mean that revenue margins are too small. Many businesses come under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may likewise be future commitments to take into consideration. There may be an outstanding lease on tools or the structure where the business resides. The business may have existing contracts with vendors that need to be met or may cause charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the location draw in brand-new consumers? Many times, businesses have repeat clients, which create the core of their day-to-day earnings. Certain variables such as brand-new competitors sprouting up around the area, road building, and personnel turnover can affect repeat customers as well as negatively impact future earnings. One vital point to consider is the area of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the main road? Clearly, the more people that see the business often, the better the chance to build a returning consumer base. A last thought is the basic area demographics. Is the business located in a densely populated city, or is it situated on the edge of town? Exactly how might the local average family income effect future income prospects?