Do you guys think an Anytime Fitness Franchise is worth $390,000?

[farquhar]

For sale: 3087 WINSTON CHURCHILL BLVD, Mississauga, Ontario L5L2V8 - W5765573 | REALTOR.ca

I believe these Franchises are 8 years old; and this would be the second time this particular Franchise is on the market. The current owner bought it 5 years ago.

He claims he has over 300 members with 20 - 30 new members every month. Memberships are currently sold for as low as $39/month on a 12 month contract.

While he doesn't mention what the Average Revenue Per Membership is, I'm going to venture a guess it is in the range of $460/year/member.

The real money, of course, is in the Personal Training.

There is another option to own 1/3 of the business for $130,000.

Thoughts?

 

[curr3n_c1000]

I looked at the interior pics. The place looks a bit cramped and uninspired.

On top of that, there is an LA Fitness 1min away.

 

[poker]

It is both worth it, and not worth it.

Someone out there has the drive and creativity to make a killing there.

Someone else is capable of running it into the ground.

The avg guy will make a modest living.

Which are you?

 

[farquhar]

I looked at the interior pics. The place looks a bit cramped and uninspired.

On top of that, there is an LA Fitness 1min away.

Anytime is a worldwide franchise and you can use any club with your membership; however, I do find Anytime to be a bit expensive for what you get; I have a Membership at one in Oakville for $22 bi-weekly.

Fit4Less is opening a club in Oakville at Dorval/North Service Road on Wednesday; this one has an exclusive 3000 sq. ft. work out area for Black Card Members and the membership is $11.99 bi-weekly.

 

[NotADcotor]

One opened in town. It closed down before Covid. YMMV

Problem with gyms
1: You gotta keep getting new meat in the door as the old meat figures out they haven't been in a year or two and finally give up the membership
2: Every meat head and his brother wants to own a gym and there isn't all that high barriers of entry except for a bit of cash
3: You got Fit for less and Planet Fitness the later isn't a gym but it is competition and offering for under 15 a month.

It can work, or not. I figure many are hurting for cash after covid smashed their revenue stream and membership base like She Hulk smashed any chance of a good ending. If you want to buy an going concern, now might be the time, look into their pre covid numbers.

 

[NotADcotor]

Anytime is a worldwide franchise and you can use any club with your membership; however, I do find Anytime to be a bit expensive for what you get; I have a Membership at one in Oakville for $22 bi-weekly.

Fit4Less is opening a club in Oakville at Dorval/North Service Road on Wednesday; this one has an exclusive 3000 sq. ft. work out area for Black Card Members and the membership is $11.99 bi-weekly.

Sure, good prices but it's bi weekly, it must be stressful to find a guy and a girl to have sex with every freaken week and one willing to document it, never mind 12 or 22 times a week.

 

[curr3n_c1000]

Anytime is a worldwide franchise and you can use any club with your membership; however, I do find Anytime to be a bit expensive for what you get; I have a Membership at one in Oakville for $22 bi-weekly.

Fit4Less is opening a club in Oakville at Dorval/North Service Road on Wednesday; this one has an exclusive 3000 sq. ft. work out area for Black Card Members and the membership is $11.99 bi-weekly.

Overall, I don't like the location.

There is a Anytime on Mavis and Eglinton and it is positioned right in the middle of a residential area with no nearby competitors. A location like that is perfect.

 

[bluetors]

Gyms are a scam. Once people realize this, they cancel their membership. I'd rather buy a condo for that much money.

 

[sprite09]

Gyms are a scam. Once people realize this, they cancel their membership. I'd rather buy a condo for that much money.

Not a scam. but agree on the 2nd point (use the money for real estate instead).

 

[SchlongConery]

Most franchise businesses are the business of franchising.

From my experience in business consulting, buying a small franchise is basically just buying yourself a $100,000 a year job.

Small business takes a lot of unpaid administrative and government compliance work that really dilutes your effective hourly wage.

You really have to look at the financial statements and make a cold, hard business decision. Unless you are educated in business analysis you really should invest in a business analyst to prepare a report for you.

AND NEVER BUY A NON-CONTROLLING INTEREST IN A SMALL BUSINESS! VERY HIGH PROBABILITY OF YOUR MONEY EVAPORATING! If this guy is willing to sell a $130k interest, that suggests he is sufferig some sort of financial difficulty. Your $130k will relieve that crisis and allow him to avoid making the hard changes that will get him back into the same situation when the cash runs out.

Also.... I am not pitching my, or anyone's services. I can't make any referrals for you, sorry.

 

[Carvher]

If he is adding 20 to 30 new members a month, why does he have only 300 members? Find out how many he is losing every month. Be careful, it's a tough space to be in.

 

[jalimon]

If he is adding 20 to 30 new members a month, why does he have only 300 members? Find out how many he is losing every month. Be careful, it's a tough space to be in.

Agree completely. Do not enter that business its a real pain.

 

[farquhar]

AND NEVER BUY A NON-CONTROLLING INTEREST IN A SMALL BUSINESS! VERY HIGH PROBABILITY OF YOUR MONEY EVAPORATING! If this guy is willing to sell a $130k interest, that suggests he is sufferig some sort of financial difficulty. Your $130k will relieve that crisis and allow him to avoid making the hard changes that will get him back into the same situation when the cash runs out.

I had that thought as well; something is awry.

 

[Ceiling Cat]

Going forward,

- People will have less money to join.
- People with memberships will opt out because they have less money.
- As the economy dips, people will have less money to spend on luxuries.

No one knows what we are in for. We ( the world ) have to pay for the pandemic. Before the pandemic there was a recession long overdue.

IMHO - We are at the threshold of the unknown. It will take another year or two before we can see light at the end of the tunnel.

 

[sprite09]

Going forward,

- People will have less money to join.
- People with memberships will opt out because they have less money.
- As the economy dips, people will have less money to spend on luxuries.

No one knows what we are in for. We ( the world ) have to pay for the pandemic. Before the pandemic there was a recession long overdue.

IMHO - We are at the threshold of the unknown. It will take another year or two before we can see light at the end of the tunnel.

that's why one should continue to dollar-cost average and not sit out in the market if one's time horizon is long term

 

[Brill]

You can turn it into a front for a brothel if you partition off a few rooms and rent them to some fine ladies for $20 per hour.
Guys wouldn’t be lying if they told the wife they went to the gym for a short workout.

 

[Goodoer]

You can turn it into a front for a brothel if you partition off a few rooms and rent them to some fine ladies for $20 per hour.
Guys wouldn’t be lying if they told the wife they went to the gym for a short workout.

Big Brain Idea right there.

 

[Ceiling Cat]

that's why one should continue to dollar-cost average and not sit out in the market if one's time horizon is long term

That may be good advice, at the right time with the right business. I know of 5 businesses that went under after the pandemic started that were bought out and revitalized only to go bust again. Are we out of the tunnel yet? Will there be further lock downs? I think we are in for a rough ride for the next 3-5 years.

 

[Spunky1]

You can turn it into a front for a brothel if you partition off a few rooms and rent them to some fine ladies for $20 per hour.
Guys wouldn’t be lying if they told the wife they went to the gym for a short workout.

There was "gym"Incall around Etobicoke a few years ago, Never went myself ,I can't remember the name of the place but I remember the ads. They mentioned personal training nude workouts. There's reviews of the place on here somewhere.

 

[Spunky1]

Start your own place. I heard about a gym in SanFran. that has stations set up where one can live stream or post their workouts to their followers/fans whoever.
It's become the go to gym for those social media influencer types I'm sure both established and wannabes.
Selling them organic fair trade gluten free Protien shakes ect will also bring in $$$ if you go that route.