Non-Franchise Affluent Neighborhood Fitness Center
Turn-Key, Fully Equipped, Well Staffed Gym *Priced for Quick Sale*
Specifications
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Price: $249,000 |
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Revenue: $363,471 (3-Year Avg) |
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Revenue: $534,986 (2019) |
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Location: Santa Cruz County |
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Service Area: Inquire for Exact Location |
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Cash Flow: Inquire for Explanation |
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Employees: 7 PT Counter/Sales, 6 Instuctors/Trainers, 1 Owner PT hours |
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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.
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
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: $249,000
20% Buyer Down Payment
$49,800
Buyer’s Equity
80% Bank Loan
$199,200
10-Year term at a rate of 8.50% = Monthly loan payment of $2,469.79
- Cash Flow (SDE in 2019): $99,234
- Annual Payment to Bank: $29,637.48
- Net Profit (After Expenses and loan payment): $69,597
* 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.