Fitness Studio

My interest is a franchise company is a recreational sports facility that offers a club for consumers to join and engage in recreational sports activities. The company's team includes managers and lower-level employees who will provide valued services to members at the fitness studio. The most recent downturn the business had experienced problems during the 2020 world-wide pandemic, when a severe disease spread and could have infected consumers' health or caused death. Humans in the workforce had to stay home from work, businesses closed, and people were not allowed to be out of the house. The COVID pandemic temporarily closed all the business in the world, with exceptions to hospitals, pharmacies, grocery stores, and gas stations. A solution to the problem caused by government regulation on businesses, who legally had to close to stop the spread of the deadly virus, was to renovate the gyms and replace old equipment with new, cutting-edge equipment.

The company is a franchise partnership, the franchise has had decades of experience in the industry. The fitness studio franchise generates strong brand awareness in every market with robust national brand advertising. Franchisees receive superior support from the franchisor, who provides the best available resources in every department. Company operation ensures impressive demand in the economy. In 2019, the United States reported 64.2 million members, there is a low rate of cancellation fees in the market. The franchise goal is to engage the community and drive memberships through local studio marketing and sales strategies. Industry market grew 7.2% in 2021, however industry profit during the period declined. Consumer demand for a low-monthly cost membership has repressed profit for gyms that require a higher volume of subscriptions.

The studio has a formidable reputation and desires a vast, loyal consumer base. The company reviews are 5-stars on Yelp and Facebook. Future baby boomers that identify as health conscious and concerned of old age will see an expected growth of revenues, as well as parents with children who are concerned with child obesity. Consumer demographics show growth in demand for gym memberships, the industry averages consumers at ages 20-64 who purchase subscriptions. In 2021, the organization received annual revenues of $965K and 843 active members, the annual revenues divided between eight fully operating fitness studios. Current revenues derive from profits received from monthly membership dues, personal training revenue, and merchandise sales.

I have sent in a buyer’s proposal, but I did not meet the requirements to purchase the business. I am currently looking for an investor who wants to become partner owners in the franchise. The seller is asking for $500K of equity from the buyer. Increases in consumer spending raises conjecture of industry expectation. Due to increase in interests of participation in sports and recreational sports activities the market projection notions to expand demand for industry services. Annual growth of 2.7% is an expected growth rate of industry revenues, projected growth of industry revenue to 42.3 billion in 2026. My goal is to grow revenues by expanding into a larger market at various locations. The owner is selling multiple locations and is willing to sell more than one to buyers, under a franchise contract. I am currently waiting for an investment opportunity to continue the buying process with the seller and to receive more particulars regarding knowledge of the business.