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Anytime Fitness for Only 115K in Omaha

Sold

CASH FLOW
$67,750

Specifications

  • Price
    $115,000

  • Cash Flow
    $67,750

  • Revenue
    $221,381

  • Profit Margin
    30%

  • Equipment
    $115,000

  • Lease
    $5,193

  • Location
    Omaha

  • Down Payment
    15%

  • Multiplier
    3.10

  • Franchise

  • Reason for Sale
    Transitioning Careers

  • Employees
    2 PT trainers

This fitness franchise located in Omaha with a separate personal training business within the gym is perfect for a personal trainer looking to increase a client list and earn extra income.  Under current ownership since 2009, gym membership has increased from 150 customers to 600 with a capacity to include another 500.  In addition to offering modern workouts on all types of equipment, clients are invited to take advantage of personal training with scripted workouts, evaluations and nutrition advice.  Started and run by the owners, the personal training business is separate from the franchise and is not subject to any royalty fees. 

While the gym is open 24/7, personal training services are available Monday through Saturday from as early as 8:30am to as late as 7pm.  Fully built out at 4,850 sq. ft., gym goers have a wide range of fitness choices, from rowing machines and treadmills to classes and tanning.  The owners have also built training relationships with nearby school sports teams, which has been a good way to increase community presence.  A buyer could easily capitalize on this by creating a social media presence and starting B2B relationships to drive membership numbers

Priced at $115,000, this gym and personal training business is ready for a new owner, and is far cheaper than what the franchise expects for a new location.  Eligibility requires over $100,000 in liquidity and a net worth of $300,000, but a buyer could own this existing facility for $22,500 down.

With assets of $175,000, an $86,250 bank loan would be over collateralized, and a buyer could expect a first year’s profit of $50,427 after debt payments.

Business Highlights

  • Years in Business: since 2009 under current owners
  • Location and Service Area: Southwest Omaha
  • Number of Clients: 600 (capacity for 1,100 total)
  • Lease: 4,850 sq. ft. at $5,193/month – NNN
  • Reason for Selling: Transitioning career
  • Employees: 2 Part-time trainers
  • Seller Training Period: 90 days plus franchise training/support
  • Gym Hours: 24/7
  • Personal Trainer Hours: Mon – Thurs 9:30am – 1:30pm, 3pm – 7pm; Fri 9:30am – 3pm; Sat 8am – 11:30am
  • Special Services: personal training, scripted workouts, and nutrition advice
  • Growth Opportunities: increase membership to capacity, capitalize on social media, build B2B relationships
  • Current Owner’s Responsibilities: Seller runs the personal training business within the gym; management & bookkeeping

Financial Highlights

  • List Price: $115,000
  • 2016 Gross Sales: $221,381
  • 2016 Cash Flow: $67,750
  • Business Assets: $175,000        
    • Equipment: $115,000 – recently upgraded premium fitness and tanning equipment; gym amenities
    • Intangible Assets: established training relationships with nearby school sports teams
    • Build-out: $60,000

Franchise Startup Expenses:

Avg. EBITDA Before Salaries: $135,300

Total Initial Investment: $101,245 - $490,100

Initial Franchise Fee: $37,500

Cash Flow Analysis

Description of Financial StatementP&L Statement
Combined
Tax Return
Combined
Tax Return
Combined
Tax Return
Combined
Notes
2016201520142013
GROSS SALES$221,381$248,303$239,254$203,070Personal Training and Gym are kept on two separate tax returns.
Net Income Shown on Financial Statement$67,750$35,706$18,250$-3,936
ADDBACKS
Compensation to Owner$0$29,358$30,117$28,387
11% Tax on total W2 Salaries$0$3,228$3,312$3,122
Depreciation$0$8,447$11,890$14,514Non-Cash Item
Interest$0$9,391$3,950$3,020Non-onward going expense
Meals & Entertainment$0$8,831$3,955$4,279Non-onward going expense
Amortization$0$70$70$23Non-onward going expense
Auto-Personal Use$0$3,967$8,560$9,222Personal auto use unrelated to business
Personal Trainer$0$-40,000$-40,000$-40,000Seller is a personal trainer - replacement cost for new trainer
TOTAL ADDBACKS$0$23,292$21,854$22,567
Seller's Cash Flow = Total Addbacks + Net Income$67,750$58,998$40,104$18,631
Profit Margin30.60 %23.76 %16.76 %9.17 %
  • Side-by-side comparison of both franchise and personal training business and their combined income and cash flow
  • 13% increase in cash flow between 2015 and 2016

Equipment

   
Cardio Weights
Treadmills Free weights
Cardio TV’s Dumbbells
Elliptical cross-trainers Squat tracks
Exercise cycles Plate loaded
Stair climbers Barbells
Rowing machines  
Spin bikes  
   
Functional Training  
Battle ropes TRX
Kettlebells Multi-functional rack
Resistance bands Queenax
Bosu Jump Ropes
Medicine Balls Plyometric boxes

Gym Amenities

24-hour access Private showers
24-hour security Health plan discounts
Convenient parking Wellness programs
Anywhere gym access HDTV’s
Private restrooms Vitamin/supplements

Personal Training Services

Personal Training/Fitness Assessment/Specialized Classes/Small Group Training

  • Scripted workouts
    • Clients start with 3-5 workouts per week
    • After 4-6 weeks, evaluations are offered to learn new workouts and avoid reaching a plateau
  • Nutrition
    • Counseling and planning through an online tracking system
    • Goals are set to give clients things to work on each week
  • Evaluations
    • Track weight, body fat and measurements every 4-6weeks
  • Plateau busting
    • Work to change workouts to keep challenging the body

Sales Comparison

Gym Sales Personal Trainer Sales
Year
2016 $141,252 $54,255
2015 $144,968 $103,333

A Word from the Sellers

We purchased the gym in May 2009.  The three of us were previously involved in the fitness and personal training industries.  We wanted a place of our own where we could train and help people accomplish their health and wellness goals.

Since then, we have been able to rebuild the business and its reputation after going through four previous owners.  The facility has been improved, and we’ve provided a clean and comfortable environment for our customers.  However, although we have built up the gym over the years, all of the owners have options to pursue other careers.  We feel someone with new passion and a different business mind will be able to take the club to capacity and run it with continued, if not greater, success. 

Valuation Details

The Firm Business Brokerage used a Cash Flow Valuation methodology to determine the Purchase Price of the business. 

The formula used is as follows:

2016 Cash Flow          x          Prescribed Multiple     =          Fair Market Value

Cash Flow is the sum of business net income plus any owner perks and any non-onward going expenses.

A multiple is prescribed by a 20 question, 100-point parameter ranking system that is used to analyze the current business health. Each question is based on a scale from 1 to 5: 1 being low, 2 below average, 3 average, 4 above average, 5 high. The average of the responses sum is the business’ prescribed multiple.

With this information, the computation is as follows:

$67,750    x     3.1       =          $210,025

The Fair Market Value found above positions the business List Price at $204,000, but the price is reduced to $115,000 as the owner is changing careers and would like a faster sale!

Funding Example

Purchase Price:                        $115,000

15%Buyer Down Payment:     $17,250

10% Seller Financing:             $11,500

75%Bank Loan:                      $86,250

Seller Financing 5-year term at a rate of 4.5% equals a monthly loan payment of $214.

Bank Loan 7-year term at a rate of 5.25% equals a monthly loan payment of $1,229.

After business expenses and annual loan payments of $17,323, a buyer would retain a profit of $50,427. A 15% down payment of $17,250 results in a 292% return on investment in the first year!

A lender is required to have a minimum 1.5 coverage ratio for any business loans extended. At a proposed Purchase Price of $115,000 with the terms listed above, the coverage ratio is 3.91. 

Please note that the decision of whether to extend a loan on any sale belongs to the bank, and this document does not guarantee specific terms or verify that financing is available.  

Click to download NDA form

Print, sign and send to:

210 N 78th St. 2nd Floor
Omaha, NE 68114

Or fax to:

f 402.939.0857

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The Firm Business Brokerage is not a real estate brokerage and therefore the staff will not handle any aspect of the lease, sale or purchase of real estate.