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Asking Price$4,600,000
Revenue$6,495,631 Established2007
Cash Flow$1,174,499 Employees10 full, 16 part
FF&E$2,000,000* FranchiseYes
Inventory$296,724* RelocatableNo
Real EstateUndisclosed Home-basedNo
* Included in Asking Price
These remotely operated health & nutrition locations with $1,000,000 in Cash Flow are a leading retailer in the health and fitness industry. There are a total of 8 locations in Wisconsin, North Dakota, and Minnesota. Each year since 2009, the business has seen year-over-year growth on both top line and bottom line revenues. There is a loyal customer base of over 4,600 monthly reward members that provide a recurring income stream of $11/month resulting in a total of $607,200 in ongoing revenue each. The business achieved revenues of $6,495,631 in 2015 adjusted Earnings for 2015 were $1,174,499.

The current owners oversee financials weekly and travel to each location once every 45 days. Owners live out of state and have staff in place, including a full time General Manager, Chief Financial Officer, Regional Managers, Store Managers and sales associates, to fully operate the business. Security systems, inventory control and point of sales systems allow for remote ownership.

Reason for Selling: Dissolution of Partnership due to growing families
Personnel: FT GM; CFO: Regional Managers – Fully Staffed Locations
Hours: Vary by Store (Retail Hours)
History: 2009
Support to Buyer: 20% Financing and 3-6 Months of Training & Franchise will fully train
Additional Information:

Location and Service Area: Currently own stores in Wisconsin (3), North Dakota (4) and Minnesota (1)

Product Mix: 80% private label, sold exclusively at these stores and 20% “off the shelf” products

Diversified Customer Mix: (1) Weight loss supplements and nutrition planning [Jan & May], (2) Strength & conditioning – high school, college and adult athletes [school year], (3) Wellness – 40-65 years of age [year round]

Employees: Full time General Manager; Chief Financial Officer; two Regional Managers; fully-staffed locations with a store manager and retail sales associates

Profit Opportunities: Owners plan to consolidate two Wisconsin stores to decrease overhead expenses adding $341,559 to net profit; 2016 profit projected at $1,765,562 with a reduction in radio marketing contract & consolidation

Current Owners’ Responsibilities: Owners oversee financials weekly and travel to each location once every 45 days. Owners live out of state and have staff in place to fully operate the business daily. Security systems, inventory control and point of sale systems allow for remote ownership.

Financial Overview
Gross Sales
2015: $6,495,631
2014: $6,750,399
2013: $5,856,529
2012: $5,473,244

Owner Profit/Cash Flow
2015: $1,174,499
2014: $1,035,892
2013: $977,282
2012: $809,165

Growth/Sales Trends: Purchased two additional stores which were included in the financials starting November 2014

Profit Margin: 17%

Valuation: 2015 Cash Flow x Multiple = Price
$1,174,499 x 4.1 = $4,815,445

Assets Included in Purchase:
Equipment: $250,000 Build-Out and FF&E at each of eight locations ($2,000,000 total)
Inventory: $296,724

Funding Example
Purchase Price: $4,600,000
10% Buyer Down Payment: $460,000
20% Seller Financing: $920,000
70% Bank Loan: $3,220,000

After debt service the new owner will show a net operating income of $609,020 annually.
Facilities:Location and Service Area: Currently own stores in Wisconsin (3), North Dakota (4) and Minnesota (1) - each is leased
Growth Potential:Owners plan to consolidate two Wisconsin stores to decrease overhead expenses adding $341,559 to net profit; 2016 profit projected at $1,765,562 with a reduction in radio marketing contract & consolidation
Training/Support:3-6 months & Franchise will fully train
Seller Financing:20% $920000
Sale Reason:Dissolution of Partnership due to growing families
Ad #77778
Seller Reference #FIT009
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Contact This Seller
Cortney Sells
The Firm Business Brokerage
402.998.5288
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