Listing Details return to results >

#619 Top Rated Fitness Franchise in Great Location, SBA Pre-Qualified
Health Care
Colorado Front Range
Health Care
Asking Price:
Down Payment:
Adj. Profit:
Adj. Profit Type:
Seller's Discretionary Earnings  

Top Rated Fitness Franchise in Great Location, SBA Pre-Qualified - This business is well positioned in one of the fastest growing counties in Colorado and is part of well branded, highly rated, national franchise.  The owner has done the hard work including a custom build out, hiring a well-trained staff, and growing its memberships to a profitable level.   An industry buyer, health conscience entrepreneur, or passive investor can now capitalize on this opportunity and further realize the rising profits from this monthly recurring revenue business.   The owner and staff take pride in the friendly and clean atmosphere intentionally built to attract new members in the area for years to come.  The owner has a full-time military career and would like to sell due to possible relocation soon.   This franchise is approved in the SBA Franchise Directory and is already pre-qualified by SBA lenders. Contact Rob Amerine. BUSINESS SUMMARY

Notes of Explanation:
  1. TBS = "To Be Suggested"
  2. Seller's Adjusted Profit

The Seller's Adjusted Profit is a calculation showing the cash flow generated by the Business for the most recent tax year, unless otherwise indicated, by adding back to the net profit those costs that are discretionary to the Seller. These costs could include the owner's salary and benefits, interest paid on the seller's notes/debts that are not assumed by the buyer, non-cash expenses such as depreciation (in appropriate situations) and amortization, and certain non-recurring or unusual expenses. Details of the Adjusted Profit calculations are available in each presentation package and in our files.

"An Economic Basket"

Another way of viewing the Seller's Adjusted Profit is as the historic economic basket of benefits available to the new owner so he can:

  1. Pay himself an appropriate wage commensurate with the skill required to manage the business.
  2. Service any debt incurred to purchase the business.
  3. Receive a reasonable rate of return on the down payment invested. (The appropriate rate of return depends on market conditions and the size of the business. For smaller transactions the rate of return on investment is not usually a significant factor in the valuation.