MergerPlace

Independent Gym in Mankato,

Minnesota (Blue Earth)


  • Asking Price: $80,000
  • Gross Income: $36,033
  • Cash Flow: Not Disclosed
  • Real Estate: Not Disclosed
  • Inventory: $200
  • FF&E: $70,000
  • Listing ID: #221749
  • Established: 2005
  • Employees:

Business Description

Independent gym for sale in prime location in Mankato, MN. Use this opportunity to launch your personal training career with a turn-key operation. Located in a high traffic area near a major college campus, this gym has plenty of demand from the residents in and around the area. Included in the price is all equipment and leasehold improvements that make this gym a clean, efficient place to work out.


Business Details

Primary Business Category: Services - Other Services
Location: Minnesota
County: Blue Earth

Company Information

Year Established: 2005
Home Based: No
Franchise: No
Relocatable: Yes
Number of Employees:

Financial Information

Asking Price: $80,000
Gross Revenue: $36,033
FF&E: $70,000
Inventory: $200
Seller Financing Available: Yes

Property Information

Facilities:

Facility has been updated in the past 5 years and features a clean, high energy palate that lends itself to helping patrons get the most out of their workout.

Growth & expansion opportunities:

This gym is turn-key for a part-time owner to keep membership consistent. However, the real opportunity here lies in a new owner that is a personal trainer. For the owner that wants to build a personal training clientele, this business would be a springboard. The current owner predicts that a good personal trainer could be training full-time at the gym in a relatively short period of time.

Competition:

Per IBIS World: Companies in this industry operate fitness and recreational sports facilities that offer exercise equipment and recreational sports activities for consumers. Some gym, health and fitness clubs have appealed to consumers by offering low-cost memberships with full operational hours. Comparatively, niche studios have appealed to consumers by offering classes with specific workouts or environments. According to International Health, Racquet & Sportsclub Association data, the number of health club memberships in the United States increased to 62.4 million members in 2018 (latest data available), illustrating heightened industry demand. Overall, monthly memberships with low cancellation fees have fared well during the period. The number of adults aged 20 to 64, the largest gym-going demographic, has expanded over the past five years, spurring demand for gym memberships. Accordingly, over the five years to 2020, industry revenue is expected to increase at an annualized rate of 3.0% to $39.0 billion, including a 2.6% rise in 2020 alone, as more consumers value fitness as a means to bolster their overall health. However, profit is expected to decline to 12.7% of industry revenue in 2020. Growing consumer demand for low-cost monthly memberships has constrained industry profitability for gyms with low member retention rates because this type of business model typically requires a higher volume of subscriptions to generate growth. Over the five years to 2025, many baby boomers are expected to sign up for health club memberships as they grow more health-conscious due to their age. Furthermore, employers may subsidize gym memberships for their employees, while parents will continue to seek out fitness programs for their children as concerns regarding childhood obesity grow. However, expected slowdowns in both per capita disposable income and consumer spending are expected to limit industry expansion as compared with the previous five-year period. Conversely, increased time spent on leisure and sports is expected to bolster demand for industry services, which will help drive revenue to grow at an annualized rate of 2.5% to $44.1 billion over the five years to 2025.

Reason for selling:

Seller has other business interests.

Support & Training:

Will train for 2 weeks @ no cost This business provides a 24/7 gym to monthly paying patrons. There are fees that are paid each year to the state of MN to maintain the license for the business, in addition the current owner chooses to be a part of a national independent gym association. Next owner should have a passion for fitness and ability and willingness to facilitate people joining and using the gym.

Contact Business Seller

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Business Listed By:

John Mangouras

Murphy Business Brokers