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Health Club Franchise looking for start up capital
Posted by: aanderson204 on 1/11/2008 10:26:30 PM
Funding Needed:
Under $100k
Category:
Other
Website :
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Location :
Orlando, Florida, USA
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Description:
Description:
The Company
Anytime is a fitness center that was developed to offer a time and cost effective alternative to the typical large box health club. Anytime gives the member the opportunity to make fitness a part of their daily activities. Clubs are generally positioned near high traffic daily activity points such as: grocery stores, daycare centers, beauty salons, post offices, restaurants, shopping malls, etc… The Anytime Fitness model is a Minnesota based company. The first center was started in Cambridge, Minnesota in 1995. Since its inception Anytime Fitness has grown to over 250,000 members and 1,000 franchises. The business model has thrived due to low start up expenses, lower than average operating expense, the ability to produce maximum revenues leaving for a larger profit margin. Anytime Fitness has been proven to thrive in markets with fierce competition as well as rural markets where traditional big box clubs fail.

The Products
Anytime Fitness offers unlimited 24 hour club access at an affordable monthly rate. Anytime Fitness clubs have 2 different models, the standard model which ranges from 2,500-5,000 square feet and typically has between 500-1,500 members. The standard clubs offer 8-12 pieces of cardio equipment, dumbbell to 80 pounds, a 10-12 piece circuit, a cable cross over, functional training equipment, 2-3 tanning beds and 1-2 vending machines. The second option is an express model that ranges from 1,200-2,500 square feet and has between 250 and 750 members. The express club generally has half of the equipment of a standard center. This model thrives as a satellite to a standard club or can be put into a hotel, apartment complex or business. Both models offer 24 hour access as well as reciprocity to over 1,000 clubs nationwide.

Exit Strategy

Option 1
After an 18 month period owners will be fully vested in the company. Owners will draw dividends after 24 months. Dividends will be paid on a quarterly basis after the 24th month of operation. There are 2 ways to determine the value of the business for buyout purposes. The first is a pre determined value that is set in the beginning. The second is to determine market value at the time of sale. After 24 months individuals can sell their interest to another party within the ownership group for their percentage of ownership multiplied by the determined sale price.
Option 2
After 24 months clubs could be bought by an outside party. Each individual would be entitled to their individual percentage of ownership times the established sale price.

The Offer/Need
A&G Fitness Solutions is offering 15% equity ownership on club number 1 and a teared % on clubs 2 and 3 depending on the level of involvement from investors. A&G needs 50k in start up cash as well as access to hard assets for equipment and building leasing purposes. In a two year span one club will drum up $330,382.46 in NET profit, so at 15% ownership, the investor will make $49,557.3 on top of our payback of 50k to them so there making nearly a 100% return on investment just in that alone plus the exit strategy will make them a good sum of money as well. This is for a much smaller investment than even a house in some cases plus a low risk because of the less than 1% failure rate that Anytime Fitness franchises have. The investors may also see what I’m currently doing in the club were working for right now. We are doing far better numbers in the current club were in than what we have stated in the proforma. (available by request)

aanderson@apbdonline.com
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