Business Overview

This fitness club is a semi-absentee, premier fitness franchise located in a posh and upscale neighborhood of Plano, 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 hour of its client’s day.

This business specializes in group fitness classes (boxing, kickboxing, and MMA) and takes pride in providing top-notch personal training services. It has designed each class to push clients to a level that they have never experienced before. The group fitness classes begin with the warmups – a HIIT (high intensity interval training) workout that combines trainer-led boxing with cardio drills and stretches. The next phase is the rounds, where the trainer will lead clients through a series of jab, hook, and cross combinations on the heavy bag. After the rounds, the trainers lead the clients through an ab workout where they use weighted medicine balls to define the core.

The sale price includes two paid franchise fees ($99,000) of undeveloped territories in a fast growing area of west Frisco and surrounding area. Qualified buyer will be eligible for discounted rent of only NNN payment for 6 months.

The business was established in May 2012; the current owners purchased the business in Oct 2017. The business has grown tremendously over the last 8 years. Although the revenue and profitability dropped in 2020 due to COVID-19 pandemic, the business has rebounded nicely in 2021 as COVID-19 vaccine is administered to general population.

The current owners are selling the business to focus on their corporate jobs 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.

Financial

  • Asking Price: $168,000
  • Cash Flow: $124,014
  • Gross Revenue: $426,111
  • EBITDA: N/A
  • FF&E: $110,000
  • Inventory: $1,250
  • Inventory Included: Yes
  • Established: 2012

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:4,835
  • Lot Size:N/A
  • Total Number of Employees:16
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

This fitness club is housed in a spacious and well-equipped facility located in the prime business district of Plano, TX. The facility has a covered area of 4,835 sq. ft. and monthly rent of $9,670 (+ $3588 NNN). The current lease expires in May 2022 but tenant has an option to extend the lease for 5 more years. Qualified buyer will be eligible for discounted rent of only NNN payment for 6 months.

Is Support & Training Included:

2 weeks by the seller plus franchise training

Purpose For Selling:

Other interests

Pros and Cons:

Although the fitness industry is competitive, this business has established a tremendous reputation and goodwill among its clients. This franchise has a unique model which is very popular and the members stay longer with this club compared to other fitness centers.

Opportunities and Growth:

The current owner utilizes a digital marketing vendor to help provide some leads for the club, but most of the business comes from existing clients and referrals. There is no marketing plan and no strategy to reach the new corporations that have moved to the area in the last few years. There is a huge potential for growth.

Established Franchise:

This Business Is An Established Franchise

Additional Info

The venture was started in 2012, making the business 10 years old.
The sale does include inventory valued at $1,250, which is included in the listing price.

The company has 16 employees and is situated in a building with approx. square footage of 4,835 sq ft.
The building is leased by the company for $13,258 per Month

Why is the Current Owner Selling The Business?

There are all types of reasons individuals decide to sell operating businesses. However, the true reason and the one they say to you might be 2 totally different things. As an example, they may state "I have way too many various responsibilities" or "I am retiring". For many sellers, these reasons stand. However, for some, these may just be excuses to attempt to conceal the reality of changing demographics, increased competition, recent decrease in profits, or a range of various other factors. This is why it is extremely vital that you not rely completely on a vendor's word, however instead, use the seller's response combined with your total due diligence. This will repaint an extra practical image of the business's present situation.

Existing Debts and Future Obligations

If the existing entity is in debt, which many companies are, then you will need to consider this when valuating/preparing your deal. Lots of companies take out loans so as to cover things like inventory, payroll, accounts payable, etc. Remember that sometimes this can suggest that earnings margins are too small. Numerous companies fall into a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may additionally be future obligations to consider. There may be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with vendors that need to be met or may cause fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do companies in the location bring in new consumers? Most times, operating businesses have repeat consumers, which create the core of their daily profits. Particular elements such as brand-new competition growing up around the area, roadway building and construction, and also staff turn over can influence repeat clients and negatively affect future profits. One crucial point to take into consideration is the placement of the business. Is it in an extremely trafficked shopping center, or is it hidden from the highway? Obviously, the more individuals that see the business regularly, the greater the possibility to develop a returning customer base. A last idea is the basic area demographics. Is the business placed in a largely populated city, or is it located on the outside border of town? Exactly how might the regional mean family income effect future earnings prospects?