Price Reduced Inner Suburban Fitness Centre In Melbourne For Sale

Business description

This inner suburban fitness centre was established approximately 20 years ago. It is located in one of Melbourne’s densely populated inner suburban suburbs on the fringe of the city. The current owners acquired the business in 2006 when there were approximately 500 members. The business has grown since acquisition to over 800 members today, and is capable of further growth. The current owners are committed to providing personal training, which is the area of their greatest interest. The business and the facilities could easily cope with another 200 members, which the vendors believe would not be difficult to do. New equipment was acquired and the premises were refurbished at a cost of approximately $20,000. The building is heritage listed and the rustic old Melbourne look attracts many members.

Operations:

Operating hours are:

• Monday to Thursday 6.00 a.m. - 10.00 p.m.
• Friday 6.00 a.m. - 9.00 p.m.
• Saturday and Sunday 8.00 a.m. - 6.00 p.m.

As indicated above, the gym concentrates on personal training. Personal trainers are paid $25.00 per hour by the gym, and the gym receives $40.00 per half hour from the member for their services. All personal trainers are casual employees.

In addition, space is rented at $200 per week for regular yoga classes.

The club also receives $400 per month from Preggie Bellies for their classes.

The club uses Clubware software, which is integrated with the members’ program. The vendor has developed a computerised fitness monitoring program called “APK Fit Touch”. This enables members to enter their training programs onto the touch pad computer monitors located in the gym, and track their progress. This does away with the need to keep filing cabinets for fitness tracking records. In addition, the system offers interactive feedback through Smartphones and tablets as well as being able to print out the results.

This system is currently only available at Time 4 Fitness, but will be sold to other fitness centres and this is the reason that the owner has put the gym on the market, to enable him to concentrate on this new venture.

Market / Customer:

Most members are residents of the surrounding area. Current membership is 804, of whom 130 are personal training members as well. The breakdown of current membership is:

• Paid up front 351
• Direct debit 453
Products / Services:

The normal workout equipment and classes are offered, including:

• Boot camp
• Yoga
• Les Mills Body Pump
• Xpress Spins
• Pilates
• Les Mills Body Attack
• S & S
• Zumba
• Boxing
• Preggie Bellies

The premises are 800 square metres in extent, all on one level.

Rent is $6,975 per month. The original lease was signed in 2008 for 5 years, with a 5 year option for renewal. Annual rental increases at 5% are provided for in the lease, with a market review when the option is exercised.

In addition to the main gymnasium floor, there is a reception, office, kitchen, storeroom, assessment room, group fitness room, male and female change rooms, each with 3 showers and a sauna, and lockers. It is fully air conditioned.

Plant/Equipment / Fittings:

All cardio equipment is rented, and at the end of the rental period, the business has the option to continue renting at a lower price, purchase the equipment or upgrade it to the new models. All other equipment is fully owned and paid for. A full list is included in the business plan which interested parties will receive.

Management / Staff:

The owner works 4½ days a week, but a fully trained and competent staff attend to opening and closing and can run the gym in his absence. Staff is made up of 5 personal trainers and one part time admin assistant.

Financial Results:

The full extent of the profitability of the business can only be truly assessed by an inspection of the business. A full profit and loss account is included in the business report.

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To receive ADDITIONAL INFORMATION on this business, please contact Steve Lentin:

Property information

Real Estate:

Lease

Lease terms:

Expires December 2013. 1 x 5 year option to renew.

Leasehold rent:

$84,000 per annum

Location:

Inner City Suburb

Premises details:

See report

Size in square feet:

8,000

Business Operation

Trading hours:

• Monday to Thursday 6.00 a.m. - 10.00 p.m.
• Friday 6.00 a.m. - 9.00 p.m.
• Saturday and Sunday 8.00 a.m. - 6.00 p.m.

Employees:

6

Years established:

20

Other information

Support & training:

As reasonably required.

Furniture / Fixtures value:

$180,000

Inventory / Stock value:

$5,000 (included in the asking price)

Relocatable:

This business can be relocated.