USA, Chicagoland, Illinois
This kickboxing fitness center, which has been SBA pre-qualified, is nationally recognized as one of the most successful (and fastest growing) franchisees in the country. As a result, it often receives “first-dibs” at new technology & marketing efforts tested by the franchisor. The studio sells memberships that provides access to group fitness classes, in-studio events, DJ nights, and transformation challenges. Due to the strong culture and fun atmosphere, the studio has a high retention rate and many of its new members are referrals from current members. The studio receives strong marketing and business support from the franchisor (on a needed basis). The efficient business model, low overhead and expenses, and small working capital requirements has resulted in nearly 50% net profit margins. The current owner expects growth to continue in the coming years with a newly implemented POS system and fitness technology. The studio has a 5-year lease with 3 additional 5-year lease extensions (on favorable terms) with a friendly landlord. There is an experienced staff in place.