This West Los Angeles Area Fitness Center and Gym boasts one of the best locations in the area, with a great deal of street visibility and excellent freeway access. The newly built-out facility has had over $750,000 invested in its launch, and although it’s already profitable, it’s tracking to reach far better profit levels with continued growth in the coming months. This opportunity is ideal for the passionate fitness industry entrepreneur who wishes to have their own venue to operator from, or given the facilities’ top of the line and extraordinarily versatile build-out, another fitness center that wishes to expand without the heavy lifting associated with identifying, negotiating and building-out a prime location, instilling a successful program and building a sufficient customer base to reach profitability.

This ideally located Class A structure 5,000 square foot facility leases for $16,900 per month plus $4,700 in common area maintenance expenses with a lease until 2013, plus one five year option. All of the business’s furniture, fixture, equipment and goodwill will be included in the sale.

While Greater Los Angeles is considered a highly competitive market for any type of fitness related concept, this venue occupies an unmatched customer-embraced concept in what may likely be the most sought after location in the area. The business’s popular concept, build-out and ideal flagship style location with excellent street visibility and freeway access provide it a long-term sustainable advantage over incumbent competition or potential industry entrants.

As the current semi-absentee owner is not a fitness person, and has not engaged in many forms of traditional advertising and marketing but relied on organic referral based growth, the business could tremendously benefit from a marketing oriented owner-operator who is already well versed in the fitness industry and is able to act as a full-time general manager, sales person or personal trainer to minimize wage expense while optimizing customer’s overall fitness experience. Given that the business has already obtained the critical mass of clients to reach profitability, and its growth trajectory, new operators may wish to continue with the exact same concept and pricing structure that currently exists or they may wish to modify either of these to best suit their preferences. Other options for growth include participate in popular programs such as Class Pass, modifying the floor layout and equipment offerings, extending hours (particularly on weekends when it closes as 12 noon or 1 pm), implementing a group based spinning or similar large group based cardio component.

At present, the fitness center has a 230 patron membership base, while management feels it could comfortably accommodate at least 300 members. With a 13% year over year growth rate, despite major setbacks such as losing 2 key personal trainers in the 2nd quarter of 2016, it is projected that the business could track at $850,000 in top line revenues and $200,000 in profits in the short-term (by the first quarter of 2017), and without any major modifications be at $1 million in gross revenues which would result in an estimated $350,000 in profits to a full-time working owner!

Posted Sep 15, 2016

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