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Name:
#1619 High Recurring Income Fitness Gym, Semi-Absentee
Categories:
Franchise Resale; Retail; Health Care
Region:
Colorado Front Range
Industries:
Health Care
Segments:
Fitness Center; Franchise; Health
Asking Price:
$1,595,000  
Down Payment:
$246,000  
Revenue:
$629,085  
Adj. Profit:
$246,163  
Adj. Profit Type:
Seller's Discretionary Earnings  

High Recurring Income Fitness Gym, Semi-AbsenteeThis is one of the top locations 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.  Active memberships have grown nearly 70% and net cashflow has nearly doubled over the past year.  The owner has trained managers in place to run the day-to-day operations making this an opportunity ideal for a fitness industry buyer looking to add another location on the Colorado front-range or an individual buyer looking to own their first gym in an area of town that continues to attract health conscience families.  Both the gym and real estate are available for sale and hands-on, in-depth training will be provided by both the owner and the franchisor.  With the new year just around the corner, now is the time to acquire this business before new monthly memberships explode again and the value further increases. 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.