Navigating the Sale of My Fitness Studio: Insights and Questions
Greetings and welcome to my journey as I embark on the process of selling my small fitness studio, a franchise endeavor that has been my passion for the past three years. With nearly 15 years in the fitness industry, I’ve come to a point where I’m eager to explore new opportunities that reignite my enthusiasm. While I maintain a personal love for fitness, my drive to support others in this realm has gradually waned over the past year, shifting my aspirations towards new endeavors.
As I venture into selling my first business, I am eager to gather advice and insights from those who have navigated this path before me. Below, I will share some pertinent details about my studio, which has flourished, showcasing profitability and growth consistently over the past three years, and continuing into the current year.
Business Overview:
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Team and Operations: The studio employs two full-time staff members—our General Manager, who will remain post-sale, and a devoted instructor who has been part of our team for over a year. The prospective owner will need to assume 30 hours of weekly instruction that I currently manage or appoint an additional coach.
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Facility and Lease: Approximately 3.5 years ago, I built the studio from the ground up, transforming a shell space into the vibrant environment it is today. With a robust HVAC system and well-maintained equipment, the studio is visually appealing, likely only requiring a fresh coat of paint in the coming year. Situated in a retail shopping strip, the lease extends for nearly two years, with an automatic five-year renewal option.
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Financial Overview: Consistent expenses include rent and payroll, while I draw a quarterly owner’s income rather than a fixed payroll. Operational costs cover insurance, utilities, supplies, merchant fees, and franchisor royalties, amounting to around $22-$23k monthly.
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Revenue and Growth Potential: Demonstrating consistent revenue growth, our financials are as follows:
- 2022: $210k
- 2023: $324k
- 2024: $405k
- 2025 Q1: Up 9% from Q1 2024
While there’s potential to reach a $450k annual revenue cap, further growth could be achieved through strategic rate increases.
- Liabilities: A business loan with five years remaining exists, with plans to settle it utilizing proceeds from the
