Listing ID: 80916
Opportunity to own a specialty fitness studio that offers a variety of training programs in an energetic and supportive atmosphere. A growing and successful franchise.
The studio offers a range of workout classes instructed by an elite group of 11 coaches who bring their own flair and focus, so they never repeat a workout and avoid member burn-out. Each exercise program whether cross-training, barre, yoga, TRX, running or boot camp sessions has its own progression so that everyone can feel successful. The staff and business functions are turnkey.
Their target market is professionals between 35 and 60 who have more free time because their kids are older. These members want to lose weight and feel trim and attractive, but their primary motivation is feeling good from fitness.
The studio offers nutrition coaching, personal training, and holds fitness and wellness events. The franchise team is exceptionally supportive and helpful to new owners. The franchisor provides excellent branded marketing and monthly social media postings. Classes are held in a beautifully built-out studio that it moved into two years ago. The studio’s operations have room to grow in this spacious location, which is perfect for building our brand.
97% of income is derived from monthly membership fees; 2% from non-recurring such as boot camp sessions, and 1% from retail sales. The membership base includes at least 60 members, with membership increasing and falling with the seasons.
We are completely reopened with full operating capacity and enhanced sanitation protective measures to prevent the spread of COVID-19.
- Asking Price: $60,000
- Cash Flow: N/A
- Gross Revenue: $122,000
- EBITDA: N/A
- FF&E: $37,244
- Inventory: N/A
- Inventory Included: N/A
- Established: 2013
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:4,305
- Lot Size:N/A
- Total Number of Employees:11
- Furniture, Fixtures and Equipment:N/A
Current rent amendment provides base rent of $1,200 until May 31, 2021. Following May 31, 2021, base rent reverts to $3,415.72 (plus NNN) as set forth in the original lease. Landlord has been cooperative through COVID-19.
Able to provide up to 30 days post-closing training for the new owner.
An owner with some additional capital could increase the class offerings to include heavier lifting (Cross Fit-style) classes, cycle/spin classes, and others that require more equipment. Offering up a daycare solution could also bring in younger parents. A robust retail strategy would increase revenue. Adding a focus on selling personal training and/or nutrition coaching as add-ons to membership is a prime avenue to increase revenue.
This Business Is An Established Franchise
The venture was started in 2013, making the business 9 years old.
The company has 11 employees and is situated in a building with estimated square footage of 4,305 sq ft.
The property is leased by the company for $1,200 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people decide to sell operating businesses. Nonetheless, the real factor vs the one they say to you might be 2 totally different things. As an example, they might claim "I have too many other responsibilities" or "I am retiring". For numerous sellers, these factors stand. However, for some, these may just be justifications to attempt to conceal the reality of changing demographics, increased competition, current decrease in incomes, or a variety of various other reasons. This is why it is very essential that you not count completely on a seller's word, however rather, make use of the seller's answer together with your overall due diligence. This will repaint a more realistic picture of the business's existing scenario.
Existing Debts and Future Obligations
If the current entity is in debt, which lots of businesses are, then you will certainly have reason to consider this when valuating/preparing your offer. Many operating businesses finance loans so as to cover items like inventory, payroll, accounts payable, and so on. Remember that occasionally this can mean that revenue margins are too tight. Many companies come under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may likewise be future commitments to consider. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with vendors that need to be met or may result in charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the location draw in brand-new clients? Many times, operating businesses have repeat customers, which form the core of their day-to-day earnings. Certain factors such as new competition sprouting up around the location, road construction, as well as employee turnover can influence repeat customers as well as negatively impact future earnings. One vital thing to consider is the placement of the business. Is it in a highly trafficked shopping mall, or is it hidden from the main road? Clearly, the more people that see the business regularly, the higher the possibility to develop a returning customer base. A final thought is the basic area demographics. Is the business situated in a largely populated city, or is it situated on the outskirts of town? Just how might the regional mean house earnings influence future earnings prospects?