Listing ID: 75122
A solid Franchise model that allows members to enjoy results driven and science based fitness programs combined with the latest technology and equipment so they can meet their health and fitness goals!
Newly opened and placed in a thriving and growing area, this gym has nearly two year track record of solid financial performance. Back up over pre-covid related shutdown numbers.
Great Location – Close to Luke AF Base and the base provides a steady flow of clientele that are easy to market too and attract.
Continue to follow the Franchisor direction and marketing to grow the business.
- Asking Price: $299,000
- Cash Flow: $110,530
- Gross Revenue: $403,000
- EBITDA: N/A
- FF&E: $98,500
- Inventory: $1,500
- Inventory Included: N/A
- Established: 2019
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:15,000
- Lot Size:N/A
- Total Number of Employees:5
- Furniture, Fixtures and Equipment:N/A
The business was started in 2019, making the business 3 years old.
The transaction doesn't include inventory valued at $1,500*, which ins't included in the requested price.
The company has 5 employees and is situated in a building with approx. square footage of 15,000 sq ft.
The building is leased by the business for $3,500 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons individuals decide to sell operating businesses. Nevertheless, the genuine reason and the one they say to you may be 2 totally different things. As an example, they may say "I have way too many other responsibilities" or "I am retiring". For numerous sellers, these reasons are valid. But, for some, these may simply be reasons to attempt to hide the reality of changing demographics, increased competitors, current reduction in profits, or a range of various other factors. This is why it is very essential that you not rely entirely on a vendor's word, but rather, use the seller's answer combined with your overall due diligence. This will repaint an extra realistic picture of the business's current situation.
Existing Debts and Future Obligations
If the current company is in debt, which many businesses are, then you will certainly have reason to consider this when valuating/preparing your offer. Lots of businesses take out loans with the purpose of covering things such as supplies, payroll, accounts payable, and so on. Remember that in some cases this can suggest that earnings margins are too thin. Lots of companies 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 obligations to take into consideration. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with vendors that need to be fulfilled or might lead to penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the area bring in new clients? Most times, companies have repeat clients, which form the core of their everyday earnings. Particular aspects such as brand-new competitors growing up around the location, roadway construction, and employee turn over can impact repeat customers and also adversely influence future incomes. One vital thing to think about is the location of the business. Is it in a highly trafficked shopping center, or is it hidden from the main road? Undoubtedly, the more people that see the business on a regular basis, the better the opportunity to develop a returning consumer base. A last thought is the basic area demographics. Is the business placed in a densely populated city, or is it situated on the outside border of town? Just how might the local mean family income impact future revenue prospects?