Listing ID: 76158
This is one of the top and best fitness franchises in the nation. As a well-known brand, this location continues to grow as word of mouth spreads and online reputation increases daily with exceptional customer reviews. Even with the recent COVID-19 shutdown and re-opening affecting revenue and cashflow in 2020, more new members have signed up than anticipated due to lack of local competition and other gyms that went out of business. With local mask mandate removed in March of 2021, personal training has come back again with an estimated Adjusted EBITDA over $250K+ this year! The owner has trained managers in place to run the day-to-day operations. This is an ideal opportunity for a buyer with fitness industry experience looked for a Colorado location or an individual buyer looking to own their first gym in an area of town that continues to attract health conscience families. The buyer will receive hands-on training from both the owner and the franchisor. This franchise has also been pre-qualified by local SBA Lenders for qualified buyers.
- Asking Price: $1,095,000
- Cash Flow: $213,561
- Gross Revenue: $798,070
- EBITDA: $213,561
- FF&E: $946,000
- Inventory: N/A
- Inventory Included: N/A
- Established: 2007
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:24
- Furniture, Fixtures and Equipment:N/A
pursuing other interests
This Business Is An Established Franchise
The business was founded in 2007, making the business 15 years old.
Why is the Current Owner Selling The Business?
There are all types of reasons why people choose to sell businesses. Nonetheless, the true factor and the one they tell you might be 2 totally different things. For instance, they may claim "I have a lot of various responsibilities" or "I am retiring". For many sellers, these reasons are valid. But, for some, these may simply be reasons to try to hide the reality of altering demographics, increased competition, current decrease in profits, or an array of other reasons. This is why it is really important that you not rely completely on a seller's word, but rather, use the vendor's response in conjunction with your overall due diligence. This will paint a much more realistic image of the business's existing circumstance.
Existing Debts and Future Obligations
If the existing business is in debt, which lots of companies are, then you will have reason to consider this when valuating/preparing your offer. Many operating businesses finance loans with the purpose of covering things like supplies, payroll, accounts payable, so on and so forth. Keep in mind that sometimes this can mean that revenue margins are too small. Many organisations come under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may also be future commitments to take into consideration. There may be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with suppliers that should be fulfilled or might result in penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the area attract new customers? Many times, operating businesses have repeat clients, which develop the core of their daily profits. Specific elements such as brand-new competitors growing up around the location, roadway building and construction, as well as personnel turnover can impact repeat clients as well as adversely influence future earnings. One essential thing to think about is the placement of the business. Is it in an extremely trafficked shopping center, or is it hidden from the highway? Obviously, the more people that see the business often, the better the possibility to build a returning customer base. A last thought is the basic area demographics. Is the business placed in a densely inhabited city, or is it located on the outside border of town? Exactly how might the neighborhood median house income effect future income potential?