Listing ID: 69866
Business Overview
Established and Growing | Top Fitness Franchise | Training/Support from Franchisor
It’s hot, hot, hot! This existing fitness franchise is profitable, has a great location and is meeting the needs of key clientele in a vibrant, bustling community across from a “Big Box” retailer drawing people to the front door.
A $47,000 down payment “buys” a $94,000+ cash flow Seller’s Discretionary Earnings (SDE). You can be your own Boss or manage someone else with support from the seller and the franchisor.
This is a top fitness franchise in the USA and is growing by adding memberships as America comes out of the pandemic. The franchise bucked the trend of Covid and grew during 2021 after having a slow start in 2020 at the beginning of Covid. Owners live over 2 hours away and can’t be part of the local community, giving you the opportunity to own this profitable fitness franchise today!
•Low management requirements
•Manageable hours
•Assumable equipment lease for part of purchase price
•New owner can be manager or manager is in place
•Great location in busy shopping center near big box retailer
SBA approved franchise for financing
Owner may also do some financing for the right buyer
Attractive lease and licenses all in place
No waiting to start making money
Local ownership can do more marketing in Texarkana area
Demographically attractive concept
Financial
- Asking Price: $275,000
- Cash Flow: $94,148
- Gross Revenue: $245,416
- EBITDA: N/A
- FF&E: $175,000
- Inventory: $5,000
- Inventory Included: Yes
- Established: N/A
Owner/manager willing to train
Moving - currently live too far away
This Business Is An Established Franchise
Additional Info
The transaction will include inventory valued at $5,000, which is included in the suggested price.
The building is leased by the company for $0.00
Why is the Current Owner Selling The Business?
There are all sorts of reasons why people resolve to sell businesses. Nevertheless, the real factor and the one they say to you might be 2 completely different things. As an example, they may state "I have too many other responsibilities" or "I am retiring". For numerous sellers, these factors are valid. However, for some, these may simply be excuses to attempt to hide the reality of transforming demographics, increased competition, current reduction in profits, or a variety of other factors. This is why it is very essential that you not count totally on a vendor's word, yet rather, use the seller's answer along with your total due diligence. This will repaint an extra reasonable picture of the business's present circumstance.
Existing Debts and Future Obligations
If the existing company is in debt, which many businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Lots of businesses finance loans in order to cover items like inventory, payroll, accounts payable, etc. Remember that occasionally this can suggest that revenue margins are too tight. Numerous organisations fall into a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may also be future commitments to think about. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with suppliers that need to be met or may cause penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the area bring in brand-new clients? Many times, companies have repeat clients, which form the core of their daily profits. Certain aspects such as brand-new competitors growing up around the area, roadway building and construction, and employee turnover can influence repeat consumers and adversely affect future revenues. One essential point to take into consideration is the area of the business. Is it in a very trafficked shopping center, or is it concealed from the highway? Certainly, the more individuals that see the business regularly, the better the possibility to develop a returning client base. A final thought is the general location demographics. Is the business placed in a largely populated city, or is it situated on the outside border of town? How might the neighborhood typical house earnings impact future income prospects?
