Listing ID: 6471

Business Overview

This business opportunity is a four-year-old fitness franchise for sale in North Tustin (Santa Ana), California. The franchise offers a unique blend of classes and equipment that set it apart in the highly competitive fitness industry and is ranked in the Franchise 500 by Entrepreneur Magazine. Multiple revenue streams from membership fees, personal training and branded merchandise. This is a very clean, modern and welcoming facility, with a territory that has substantial room for further development and growth. Fully staffed with qualified trainers and appropriate admin support. This is a profitable business priced at less than the cost of opening a new territory from scratch. The owner has other business and personal interests.

The business is housed in a leased 3,072 sq. ft. facility that is well located on a busy street with proximity to major freeways. Good parking and curb appeal. All improvements are in good condition. The franchisor reports that to open a comparable facility in a new market would require between $115K and $375K.

The Company enjoys a loyal clientele and has a very strong reputation – 5-star ratings on social media platforms like Yelp and Facebook. The current revenue base at this location is good mix of membership fees, personal training revenue, and merchandise sales. Membership fees are collected on an automatically recurring basis via credit card and ACH debit.

The franchise territory includes North Tustin and parts of Santa Ana, Orange and surrounding communities. The area is economically and demographically diverse.
The business competes with other national and local businesses and sole proprietors providing fitness services. However, this franchise takes a unique approach by incorporating the training elements of certain professional sports to create a high-energy total body workout. Member testimonials bear out that the results are very impressive. Another key differentiator is that the atmosphere and training protocol appeal to both women and men. The owner reports that 70% of the members at this location are female, consistent with what the franchisor says is typical across their system.

The U.S. fitness industry is exploding, reaching all-time highs in recent years. It is an $87 billion-plus market that serves over 70 million consumers. Boutique fitness centers, like this company, are the fastest growing segment of the market, and all these trends are expected to continue.

The seller has other business and family interests that are motivating this sale. The business is running smoothly and has good financials, but there remains considerable opportunity for a new owner to grow and improve this location. The owner will assist with transition. The franchisor will provide complete training for the new owner and their key staff, as well as guidance and support through the transition.

Financial

  • Asking Price: $250,000
  • Cash Flow: $83,000
  • Gross Revenue: $270,000
  • EBITDA: $83,000
  • FF&E: $94,927
  • Inventory: $
  • Inventory Included: N/A
  • Established: 2014

Detailed Information

  • Building Square Footage:3,072 Sq Ft
  • Furniture, Fixtures and Equipment:$94,927

Addition Info

The venture was started in 2014, making the business 6 years old.
The deal won't include inventory valued at N/A, which ins't included in the suggested price.

Further more, Furniture, fixtures and equipment valued at $94,927 is included in the asking price.
The building is leased by the business for $5,149 /Month

3 Things to Consider When Researching businesses for sale in Orange County - North Tustin, California

Buying a business is among the greatest choices you will make in your lifetime. Selecting intelligently can lead to tremendous monetary benefits for you, your loved ones, as well as your retirement. Nevertheless, in order to make a correct decision, you need to take into consideration several things.|In order to make a proper decision, you need to think about several points.} Below are 3 important items to consider before purchasing an organisation in Orange County - North Tustin, California.

Why is the Current Owner Selling The Business?

{There are all sorts of reasons individuals choose to sell businesses. Nonetheless, the true reason vs the one they tell you might be 2 absolutely different things. For instance, they might say "I have way too many other obligations" or "I am retiring". For many sellers, these reasons are valid. But also, for some, these might just be excuses to attempt to conceal the reality of transforming demographics, increased competition, current reduction in earnings, or a range of various other factors. This is why it is very essential that you not depend totally on a seller's word, yet rather, utilize the seller's response along with your overall due diligence. This will repaint a more sensible image of the business's present scenario.

Existing Debts and Future Obligations

If the existing company is in debt, which numerous companies are, then you will certainly have reason to consider this when valuating/preparing your offer. Numerous operating businesses borrow money in order to cover things like inventory, payroll, accounts payable, and so on. Remember that in some cases this can imply that earnings margins are too small. Many companies fall into a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may likewise be future commitments to take into consideration. There may be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with vendors that should be fulfilled or may lead to charges if canceled early.

Understand the Customer Base, Competition and Area Demographics

Exactly how do businesses in the Orange County - North Tustin, California location bring in new customers? Most times, businesses have repeat clients, which form the core of their day-to-day revenues. Certain factors such as new competitors growing up around the location, road building and construction, and staff turnover can impact repeat clients and also negatively influence future incomes. One important thing to take into consideration is the area of the business. Is it in a very trafficked shopping center, or is it hidden from the main road? Clearly, the more people that see the business regularly, the higher the chance to develop a returning client base. A last idea is the general location demographics. Is the business situated in a densely populated city, or is it located on the edge of town? How might the neighborhood median household earnings influence future income prospects?