Fitness Franchise Multiples

searcher profile

June 08, 2024

by a searcher from University of Maryland at College Park in New York, NY, USA

Is there data or comps to support a stable fitness franchise in a growing market selling for a 3-4x multiple? Recognizable brand with corporate marketing support. On the premium end of the boutique "group fitness" model (i.e. not planet fitness). Product is great 200+ 5.0 star reviews on Google.

The location has been open for more than 7 years, showing stable 5-7% YoY growth past 3 years. SDE in the range of $550k-600k/yr with minimal owner involvement aside from regular operations.

Located in a top 10 growing metro market in the US (2-3%/yr). Stable rent and lease through 2030.

No major red flags in the financials. Of course, there is always the risk of changing fitness trends and recessionary impact on discretionary spending.

What is a reasonable multiple? Is there any data to show that a fitness franchise shouldn't get a standard market multiple?

0
3
83
Replies
3
commentor profile
Reply by a searcher
in Los Angeles, CA, USA
Hello - We manufacture equipment for the fitness industry - I can be contacted at redacted Post Covid, the brightest star in the fitness industry are commercial gyms - membership and check-in levels are at their peak, and more women at pursuing strength training as well. If you can swing so that your multiples are reasonable, you will be a great position to enjoy revenue growth and growing EBITDA over the medium term.
commentor profile
Reply by a professional
from University of New Haven in Cromwell, CT, USA
If it is a franchise and still seeking other operators/investor/owners for new or recycled franchises ask for the offering doc for franchise sales. It may have prior transactions. Check with BVR transactions which is available on this site.
commentor profile
+1 more reply.
Join the discussion