Broker Name:Ronald Cervelli
Broker Email:contactus@regalconsultants.com
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Franchise Gym Nets $250k
(Recreational , Fitness Center)
Middlesex County , NJ
Listed Price: $ 795,000
Listing ID: FITN275

Listing DetailsGross Revenue: $ 1,500,000
Cash Flow: $ 250,000
FFE: $ 750,000 (Included in Price)
Franchise Info: This business is an established franchise
Reason for Sale:

The owners have elected to reduce their work responsibility.


Training & Support:

The owner will remain post-closing for 30 days and supply a transitional period also the franchise will remain in order to assist the franchisee.


OperationsYear Established: 2016
Non-owner Payroll: $ 26,000
Employees: 25
Absentee Owner: No
LocationLease Expire: 0000-00-00
Lease Security: 78000
Monthly Rent: $ 38,000
Square Footage: 25000
Facilities:

The business is located in Northern New Jersey, in the county of Middlesex which consists of various highly populated and affluent communities. The facility consists of two floors, twenty-five thousand (25,000) square feet in an ultra-modern fully equipped state of the art building. This gym has various sections specifically designed for separate functions and services.


SummaryBusiness Description:
Solid business opportunity for this ultra-modern 25,000 square foot, fully equipped franchise fitness center, gym with a projected 2019 gross yearly income of $1,500,000 and an estimated net yearly income of $250,000 to the owner operator. This state-of-the-art modern facility offers every possible service in the fitness industry, from basic exercise, personal training, to MMA. This business presently has 2,420 registered contract members and is expected to further increase its growth within the next twelve months. The income represents various functions, and approximately 25% of the gross sales is personal training. The build out cost and high-quality equipment represents a substantial investment which will result in an excellent and continued positive cash flow. This franchise name and brand has been one of the top leaders in the fitness industry for the past 25 years. With hundreds of licensees internationally, the franchise has continued to steadily gain global attention by expanding into additional countries worldwide. The franchise name and logo provide its gyms instant recognition and credibility associated with an internationally registered trademark and service mark symbolic with quality in the health and fitness industry. The famous logo is a sign of credibility across the country and is a testament of where this company began. The gym trademark is associated with service and quality and is apparent throughout each and every facility. You can be your own boss and fulfill your franchising dreams with the best in fitness with global brand recognition, and multiple revenue streams. This franchise is a premium global sports brand boasting more than 284 million members worldwide. With this brand, the franchise has exceptional growth opportunity and each model offers the opportunity to drive revenues from multiple sources, membership to retail, private coaching to supplements. This franchise offers a full range of group conditioning and technique focused classes, functional training, personal training, traditional martial arts coaching plus fitness, youth and family classes – all in a supportive and motivating environment. This fitness center has 25 full & part time employees who are unaware of the pending sale. The staff is fully expected to remain post-closing with a monthly payroll of approximately $26,000. The business has an assignable commercial lease which expires 2024 plus additional options, with a monthly rent of $38,000 plus cam and rent security $78,000. Franchise royalty fees represents 6% yearly expense. The business has been valued at $795,000, based on a multiple of the net yearly income, which also includes the value of the specific business assets and seller financing has been approved to a qualified buyer with 30% down payment based on a 7 year term at 6% interest, subject to appropriate collateral and credit rating. 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:


To the best of our knowledge no other new competitors are expected near to this business and the owner has agreed to supply a non-compete agreement to the purchaser.


Potential Growth:

The business is three year new, requires time to develop with onsite management and an improved marketing system to further develop the gross sales.


Financing/Terms:

Owner financing 30% down, 7 year term, 6% interest.