Very profitable USA health & sport club franchise in Vancouver fo...

Undisclosed Address, Vancouver, BC
Business Opportunity for Sale
Catylist Listing ID: 30447487
Property Subtypes: Entertainment and Leisure
Building Size (RSF): 1,500 SF
Sale Price: $849,000
Name of Establishment: Boutique Pilates Health & fitness club
Franchised Business: Yes
Year Business Established: 2018
Gross Revenue: $700,000 (Annual)
Cash Flow: $220,000 (Annual)
Cash Flow Type: Sellers Discretionary Earnings
Sale Terms: cash to the sellers
Last Updated: 11/17/2019

Overview / Comments

Fantastic opportunity to be the owner of a successful and profitable health club franchise ( share sales ) in Vancouver West. Front street unit of 1,500 sq.ft is leased for $6,500/month ( gross rent, all taxes in ), 10 yrs head lease, 9 yrs remaining. Company is a franchisee of well-known American franchise organization with more than 500 locations across the USA, all are very successful. In 2019, Master franchise agreements signed in Japan and Saudi Arabia.
The management team manages the franchise, certified instructors provide the training to the several hundreds of members from 6:00 - 8:30 pm. This is an absentee business, the owner lives abroad and comes to Vancouver once every 2 - 3 months. Stable annual sales revenue is close to $700,000 ( or a range of +/- $60,000/month ), gross cash flow to the owners before tax +/- $200,000 - $240,000/year ( or +/- $18,000 - $20,000/month ). No competition in Lower Mainland, protected territory, to multiply the business and earn $500,000/year and more.
Sellers will provide operational knowledge during a smooth transition period of 30 days. Business is qualified for the BC PNP immigration program.

The company priced well for a quick sale, don't miss an opportunity to have a very decent income from day one. For further information and/or a showing appointment call the listing agent. NDA required.

***Employees unaware of the business selling, approaching the staff members strictly prohibited !!! DO NOT DISTURB STAFF!!!

Lots of information available on the franchise and the business.

Additional Details

Industry Segment: Sports Teams and Facilities
Reason for Selling: The Seller lives overseas for many years and doesn't have the intention to visit Canada anymore.
Value of Inventory Included ($): $0
Value of Furniture, Fixtures, and Equipment ($): $425,000
Real Estate Status: Leased
Value of Real Estate Included ($): $0
Real Estate Lease Description: Leased area – 1,500 sq.ft, + two ( 2 ) parking spots. Head lease, basic rent + NNN, term - 10 years lease ( 9 years left ), gross monthly payment $6,200 + 5% GST = $6,510/month – all included. Escalating of $300/month, years 6 – 10. No demolition clause.
Employee/Labor Description: Full-time manager ( salary + commisssion ), assistant manager ( salary + commission ), 4 front desk clerks ( part-time, salaried ), 10 cetified instructors ( part-time, salaried )
Mgmt/Training Support Description: This is an Absentee business model, trained full-time management in places, 10 certified instructors train the members from 6:00 am to 8:30 pm on a daily basis. Franchise owner's training is available in USA head-quarter. Also, 30 days training period is available - the seller is willing to work with the new owner for one full month for a smooth transition.
Competition/Market Description: 1. Well-known USA franchise just moved to Canada in 2018. No competition. 2. More than 500 locations in the USA, all are very profitable and successful franchises. 3. There are two international Master Franchise Agreements - in Japan and Saudi Arabia - have been signed in 2019.
Growth/Expansion Opportunities: The management team is very motivated for expansion. Great opportunity to multiplicate business - open two-three new locations in other parts of Greater Vancouver. Also, it can be a great opportunity for the purchasing international master franchise.

Contact

Photograph of Listing Agent

Pavel Prilepin

EstateBlock Realty Inc. Commercial First Member
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