Broker Name:Ronald Cervelli
Broker Email:contactus@regalconsultants.com
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Popular Franchise Fitness Center
(Recreational , Fitness Center)
Bergen County , NJ
Listing ID: FITN272

Listing DetailsGross Revenue: $ 1,671,933
Cash Flow: $ 450,000
FFE: $ 750,000 (Included in Price)
Franchise Info: This business is an established franchise
Reason for Sale:

The purpose of this sale is due to absentee owners as a corporate group.


Training & Support:

The seller will remain after closing and supply a satisfactory transitional period.


OperationsYear Established: 2007
Non-owner Payroll: $ 38,000
Employees: 37
Absentee Owner: No
LocationLease Expire: 0000-00-00
Lease Security: 69850
Monthly Rent: $ 32,848
Square Footage: 42985
Facilities:


The business facility consists of 42,985 square feet with a newly built ultra-modern image. The Gym is fully equipped with state-of-the-art equipment and consists of various sections for different activities. The facility also has a fully equipped men’s and woman’s showers / lockers including offices and work stations.


SummaryBusiness Description:

This franchise gym is considered the best of the best fitness companies in the world. This highly successful gym is presently owned by an absentee corporate partner group and located in Northern New Jersey. This gym is by far the most recognized name in the industry, serving millions of members throughout the United States. This ultra-modern facility consists of 42,985 square feet, multiple levels with modern state of the art equipment and services approximately 3,800 members. The business has a 2018 gross yearly income of $1,671,933 and a verifiable net yearly income of $450,000. The original cost to build out including the required equipment cost represented an investment cost of $900,000. This gym offers every possible exercise activity imaginable and has continually evolved its profile by offering the best amenities and the latest in cardio and strength training equipment as well as the most dynamic group exercise programs including Zumba, yoga, group cycling, mixed martial arts, muscle endurance training, and Pilates. At this Gym, you’ll find an energetic, supportive staff who are committed to achieving their goals. The franchise was originated in the 60’s and their worldwide locations are home to the most diverse group exercise classes and amenities in the industry. Combine that with our best-in-the-business personal trainers and you have an unmatched fitness experience. The staff understands the amount of weight you lose is often determined by the amount of work you personally supply and your knowledge about your body. Their weight loss articles show their members the correct way to trim down with tips for altering your diet and new ways to work out. This fitness business has 37 Full/Part time employees including an operation manager who are unaware of the pending sale and fully expected to remain post closing, payroll is approximately $38,000 monthly. The business has an assignable commercial lease expiring 11/30/2020 plus 2 five-year options with a monthly base rent of $32,848 all in. Security deposit of $69,850. The business has been valued based on a multiple of the net yearly income which includes the value of the specific business assets and bank financing has been approved to a qualified buyer with an appropriate down payment, collateral, resume and credit rating. Based on the asking price, required down payment and net income this business should supply a dependable return to the owner operator prior to debt service. This is an excellent safe business opportunity. Please do not disturb business, this sale is absolutely confidential, the employees are Unaware of the pending sale, all viewings are by appointment only and photo does Not represent this particular business opportunity.


Competition:

This general area presently has competitors and do not expect any new fitness centers. The seller & franchise has agreed to supply an appropriate non-compete agreement to the new operator.


Potential Growth:

This company is presently owned by multiple absentee owners, however with onsite management this fitness center can be further improved resulting in an additional net profit to the owner operator. Additionally, local advertising can be improved, and the web site can be further optimized resulting in an increase in membership.


Financing/Terms:


Seller financing is available to qualified buyers.