First Coast Muscle Inc

I own a 24/7 hardcore gym that was created for competitors and serious athlete's. The gym is open 24/7 with key card access.  I have one personal trainer that is set up as an independent contractor and pays a monthly set fee to operate out of the gym and his clients pay a month to month membership. I was previously 50% owner and due to some unsatisfactory activity on part of the other owner I sought legal means and took over the gym 100%, which I am more than happy to go into.

I currently have 121 active members that are either on a single membership and or a couples membership. The single membership is $100 enrollment fee and $29.99/month after that. The couples membership is $120 enrollment fee and $55/month after that. I have some members that choose not to be locked into a year membership and choose the $45/month route month to month without contract. I charge a $10 guest fee for those accompanied by a member and want to check out the gym. I charge a $20 guest fee for non members not accompanied by a member. Since the reopening of the gym I have continued to gain members and following on the gym social media. My gym has the largest assortment of Arsenal strength equipment in Jacksonville Florida.  Currently we average about 4 new sign ups a week and usually take in an average $100/week in guest passes. 

I have added some FCM clothing and have had good results in selling. 

There are two employees currently that work less than 40 hours per week. A day shift and a night shift. Day shift is 8-3p.m. and Night shift is 5-10p.m. 

Members enjoy a very positive atmosphere and a serious atmosphere. We have a lot of active competitors in the gym. The goal is to get to at least 300 active members and then take on the space next to our current location and add additional pieces of equipment. Then increasing the membership to at least 500 members.  A lot of financial burden was taken on from the pandemic, in addition to legal fees and other hidden costs that were not previously disclosed.  Some of those costs are delinquent payments that I was not aware of and now it has become a very serious matter that could result in having to shut down. 

I have assumed one of the equipment lease to own contracts with a balance of $57k left on it. The other equipment lease to own contract has $94k left on it and was declined on the assumption due to credit.  My goal is to find an investor to either pay that one off and or a financial institution that will take it over and place in my name. The capital that is requested is $50k which will take care of past due lease issues and add capital to the business until it is on it's feet, which is estimated to be the 3rd quarter of 2021. The cost per month to operate with equipment payments, lease payments, utilities and payroll is at $7,500/month. The gym is taking in roughly $5,000/month currently. I cannot continue to put in $2,500/month for very much longer.  In addition the funding will go towards an aggressive ad campaign through various social media avenues and door to door flyers, etc.

At an average of 16 sign ups a month with limited advertising we would reach the 300 member goal by end of 4th quarter 2021. That equates to 179 new sign ups and figured on those being single contracts that is $100 enrollment fee multiplied by 179, which equals $17,900 plus a monthly draw on membership dues of $8,997.00 and leaving $1,497 per month profit without figuring in the enrollment fee revenue. 

The goal is to expand and eventually open up two other locations. One in the Orange Park area and the other in Ormand Beach.  With additional capital we can really go hard on the marketing and branding and get to the 300 member goal much quicker than the 4th quarter of 2021.