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Non-Franchise Affluent Neighborhood Fitness Center

Turn-Key, Fully Equipped, Well Staffed Gym *Priced for Quick Sale*

Specifications

 Price:
$260,000
Revenue:
$363,471 (3-Year Avg)
Revenue:
$534,986 (2019)
Location:
Santa Cruz County
Service Area:
Inquire for Exact Location
Cash Flow:
Inquire for Explanation
 Employees:
7 PT Counter/Sales, 6 Instuctors/Trainers, 1 Owner PT hours
Goodwill:
13 Yr. Reputation  
Year Established:  2009
Services:  Individuals or groups, Indoor & Outdoor Classes, In the Gym or the Water
Clients:  All Ages Welcome, Senior Friendly
Equipment:  List to be Provided, Recently Upgraded Cardio, all other Has Been Well Maintained
Lease:  Renewal Date 4-1-2024, $7405 per Month, Assumable
Facility:  Assignable With Options $6,000 Plus Monthly
Personnel:  7 Part Time Front Desk/Sales Staff, 6 Class Instructors/Trainers
Owner: Semi-Absentee 20-25 Hours Per Week

Popular, established, full-service neighborhood fitness center, complete with outdoor lap pool, deck area, and Gazebo.

Amenities include equipment that are staples in most full gyms and fitness centers:

·     Free weights & dumbbells ·     Bikes, treadmills, ellipticals + ·     Lap pool w/ deep & shallow ends
·     Large outdoor deck for classes ·     Hot/dry sauna, steam sauna & jacuzzi

Classes and one-on-one training are offered to help clients achieve their personal fitness goals.

Staff includes talented personal trainers & instructors who are proficient at providing a variety of programs.

Programs offered include classes such as:

·     Circuit training ·     Zumba ·     Yoga ·     Tai Chi ·     Nutrition services
·     Water mobility ·     Water aerobics ·     Deep water ·     Shallow water ·     + More

Business is showing recovery to pre-pandemic levels. This listing offers a unique opportunity to acquire a turn-key facility at a fraction of the cost to duplicate the equipment inventory, infrastructure components, brand awareness, etc.

Seller has an existing EIDL Loan which is assumable for qualified buyers.  Interest is 3.75 % with a 30-year term.

Value Proposition

  • 13 Years of Established Reputation
  • Exceptional Customer Reviews
  • Pre-Covid Profit Margin 24% on $534,986 Sales
  • Priced Below Market for Quick Sale
  • Experiened Team of Staff, Instructors, & Trainers
  • Assummable EIDL Loan At 3.75%, If Qualified

Financial Highlights

  • Listing Price $260,000
  • Listing Price Includes Equipment and Inventory
  • Pre-Covid Sales & Profit Numbers Are Returning

Cashflow Analysis

Asking Price

The asking price is determined using a cash flow methodology. Cash flow is the sum of net income from the business plus any non-cash expenses, non-recurring items and any seller’s personal expenses. A multi-factor multiplier is applied to the cash flow based on the condition of the business.

For this business, a three-year average cash flow is applied making the business price more favorable to the buyer. The multiplier applied in this case is 2.62x, below the market in favor of the buyer.

Funding Example

Purchase Price: $260,000

20% Buyer Down Payment

$52,000

Buyer’s Equity

80% Bank Loan

$208,000

10-Year term at a rate of 5.50% = Monthly loan payment of $2257.35

  • Cash Flow (SDE in 2019): $131,180
  • Annual Payment to Bank: $27,088
  • Net Profit (After Expenses and loan payment): $104,092

* Please note that the decision of whether to extend a loan on any sale belongs to the bank, and this document does not guarantee specific terms or verify that financing is available.

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