Listing ID: 73433
Own two West Texas physical therapy boutique studios that will give you satisfaction of helping people of all ages, backgrounds, and interests. The first of the studios, part of a fast-growing national franchise that brought practitioner-assisted stretching to the public and introduced a new vertical in the health and fitness industry, was opened in 2018. The second location opened in 2020. Common clients are professional athletes, young athletes, and golfers, but the services offered also can help seniors who want to improve their regular range of motion, people with lower back pain, sciatica, muscular dystrophy, cerebral palsy, and Parkinson’s disease. The practitioners can work with anyone age 15 and older. The current owners, Army veterans and active runners experiencing injuries, discovered the franchise while on a business trip. The national franchise, launched in 2004, is expected to grow to 200 locations by 2022, up from 136 now operating. Among the franchise’s store owners are celebrity NFL and MLB players and coaches, who recognize the chain’s potential among sports enthusiasts. The growth is a response to the increased demand for scientifically backed wellness programs. A pioneer in the health and wellness industry, the franchise uses a proprietary strapping system that expertly positions, stabilizes, and isolates muscles to allow for truly effective stretching. A truly unique experience, each stretch is customized to fit the specific needs and preferences of the individual regardless of age or athletic ability.
- Asking Price: $412,000
- Cash Flow: $206,223
- Gross Revenue: $560,159
- EBITDA: $190,715
- FF&E: $72,000
- Inventory: $8,000
- Inventory Included: Yes
- Established: 2018
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:1,200
- Lot Size:N/A
- Total Number of Employees:14
- Furniture, Fixtures and Equipment:N/A
Two, 1200 square foot shopping center locations
The owners spend about four hours per day in the stores, checking on the respective general manager’s goals for the day and assisting in any sales or stretch training opportunities, as both owners are trained on sales and stretching methods. They also spend time during pop-up events and community involvement meetings with different local organizations. They, along with the franchise, will provide the needed support and training for the success of the ownership.
Sellers moving across state to work in family business.
Over 80% of Americans don't get enough exercise, and likely don't do enough stretching either, despite its ability to improve blood circulation, mobility, and flexibility. Those who do work out regularly need it: repetitive motions can cause damage to the body. Even just 20 minutes of stretching a week can counteract damage and prevent potential injuries. Not to mention, people say they sleep better, and it just feels great to stretch. Stretch Zone was an early creator of the stretching studio movement that has taken hold all across the country as the popularity of "recovery" widens. ClassPass Inc., the largest health club aggregator by number of club partnerships, with over 30,000 health clubs in 28 countries, named stretching studios the fastest-growing trend just before the pandemic, reporting a 16% increase in restorative and recovery classes being booked. The category is no longer restricted to professional athletes or physical therapy offices. Deep stretching by a professional, which differs from self-stretching or even yoga in its effectiveness, is not something most Americans have experienced. That makes it a somewhat difficult sell: it's not a massage, but it's also not fitness. It's exercise-like, in that it's good for you, but someone else is doing the work. When you experience it, you get it. There's definitely education that has to happen and industry experts have found that when people try it once, they come back. If people try it twice, they come back regularly.
Educating the public to reach and attract more customers is key. Investing in pop-ups to bring its services to boutique gyms, YMCAs, or companies where people sit too much, will help expand the market. Some experts predict stretching could grow as big as Pilates, if not bigger. The category sees an equal amount of male and female attendees, and if the “self-care” trend continues as its current pace, consumers will only seek more and more recovery methods. Even Massage Envy, with its 1,000-plus locations, recently added a stretching option.
This Business Is An Established Franchise
The business was started in 2018, making the business 4 years old.
The transaction will include inventory valued at $8,000, which is included in the requested price.
The business has 14 employees and is situated in a building with approx. square footage of 1,200 sq ft.
The building is leased by the company for $1,500 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons why people decide to sell businesses. Nevertheless, the real reason and the one they tell you may be 2 totally different things. For instance, they may say "I have a lot of other commitments" or "I am retiring". For numerous sellers, these reasons stand. However, for some, these might just be excuses to try to hide the reality of altering demographics, increased competitors, recent reduction in profits, or a range of other factors. This is why it is extremely crucial that you not depend entirely on a vendor's word, but rather, utilize the vendor's solution combined with your total due diligence. This will repaint an extra practical image of the business's present circumstance.
Existing Debts and Future Obligations
If the current company is in debt, which many businesses are, then you will certainly need to consider this when valuating/preparing your deal. Many operating businesses borrow money so as to cover items like supplies, payroll, accounts payable, and so on. Keep in mind that sometimes this can mean that earnings margins are too thin. Numerous companies come under a revolving door of taking loans as a way to pay back other loans. In addition to 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 should be fulfilled or might result in fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the location draw in brand-new consumers? Most times, companies have repeat clients, which create the core of their daily profits. Particular elements such as brand-new competition sprouting up around the location, road building and construction, as well as personnel turn over can influence repeat consumers and negatively impact future profits. One crucial thing to consider is the placement of the business. Is it in a very trafficked shopping center, or is it hidden from the main road? Certainly, the more individuals that see the business regularly, the better the chance to develop a returning consumer base. A final idea is the basic area demographics. Is the business placed in a densely populated city, or is it situated on the edge of town? How might the neighborhood typical home earnings effect future earnings potential?