The business is a franchisee of the largest fitness franchise in the world with thousands of locations worldwide. This fitness and weight loss facility is dedicated to providing affordable, one-stop exercise and nutritional information for women. It's located in a highly-visible, easily-accessed retail center in one of the nation's largest metropolitan areas. Currently this location is open day and evening, Monday through Friday, and Saturday mornings. They provide members with a fun, convenient, comfortable environment where you will find all the support needed to meet their weight, fitness, and nutrition goals. The workout takes just 30 minutes and includes all the components needed for a complete exercise program - warm-up, cardiovascular, strength training, cool down, and stretching. In purchasing an existing franchise, the prospective buyer should consider the cost, start-up expense, initial negative cashflow, and uncertainty of a new franchise. And, then compare that to an existing franchise having steady cashflow, profit, and an established customer base and market presence on which to grow. According to the franchisor, the cost of a new franchise is ?? $39,900, with delivery of the equipment being $2,000-$3,000?. When you come for training, you will be provided other materials such as wall charts, music, cue tapes, start up forms, supplies, and specialized training in the operation of your club. Other costs that you may incur in opening your Franchise include but may not be limited to, a lease, lease space finish out, travel expenses for club camp, stereo system, deposits on utilities, telephones, computers and local advertising, all of which will be purchased from third party vendors.? The additional initial costs could be another $15,000, without leasehold improvements?an upfront investment of over $55,000, plus leasehold improvements. Then, when the doors open, the new franchisee will begin to market the services, gradually add members, and hope to gradually decrease the negative cashflow, reach a break-even point, and then show a profit. By contrast, an established territory is a territory that has an existing fitness center and membership base. The new owner will be responsible for a training fee of $2500. This existing location already has equipment with costs and delivery fees already paid. It is well-established, known in the community, and bringing in revenue from long-term established members. Furthermore, there is an existing staff with knowledge of the program and rapport with the members. Purchasing an existing franchise, affords the opportunity to ?hit the ground running.? This location has over 300 active, paying members, with more than half for more than a year and many having continuous memberships as long as 10 years or more. Gross sales for 2013 are projected to be $150,000, with a seller's discretionary earnings ("SDE") in excess of $80,000, assuming an owner-operator. In the case of this location, an owner-manager could reap the greatest benefit by retaining the existing staff for club operations and concentrating efforts on marketing and expansion of membership.-- Additional gross revenue will translate will be highly profitable since fixed costs should not increase and the current facilities, equipment, and staff have capacity for much greater utilization. The franchisor charges a monthly franchise royalty and a monthly advertising royalty that are based on a percentage of gross revenues. The franchise royalty is 5% of gross revenues, with $795 being the maximum monthly payment by a franchisee and $195 being the minimum. The advertising royalty is 3% of gross revenues, with $395 being the maximum monthly payment by a franchisee and $95 being the minimum.
Santa Clara County, California, Strip Center
Reason For Selling:
Retirement and pursuit of other interests